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No. 2.
C. O.
Hon. Colonial Secretary,
70% 104
Mercantile Bank of India Ordinance.
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I have seen the Manager as you suggested to him, and have discussed the question at length. My first idea was that the difficulty would be met by deleting from s. 4 everything from "and in the event" to the end and substituting "in accordance with the law applicable there to". This I could have done by
an amendment of the General Revision Ordinance. But there are
I think further points which require consideration. The Companies Ordinance, s. 229, only deals with the liability of the Bank in
respect of its note issue, and, as the Mercantile Bank is concern- -ed, the English Companies Act which contains the same section
would meet the case so far. But there is no power for the Crown
Agents and the Treasurer to sell the securities, and I think
tais power should be expressly given, more especially as the
Bank exists in virtue of an English registration, and not a
Colonial one. The matter therefore is more complicated than I at
first thought, and though I would have done it in revision if possible, I think it had better be dealt with by special Ordinancę
I should further point out that it is not "in the event of the Company becoming insolvent that the sale of the securities must be authorised, but in the event of the Company being wound up.
(Sd.) F. T. Pissott.
7th. May, 1912.