NOTES ON THE DRAFT
CHINA (COMPANIES) ORDER IN COUNCIL.
445
2.
Definition of "China company" after the
word "shares" insert the words "or guarantee".
Companies limited by guarantee are not uncommon. The
Shanghai Stock Exchange, the Shanghai Club, a purely
social institution, and The Christian Literature
Association which is a charitable trust formed for the
purpose of holding and administering the property of
a Missionary Society organized on the lines of the
S.P.C.K. are examples of different companies limited
by guarantee which exist in China for purposes
unconnected with Hongkong.
Generally with respect to this Article I
am afraid that undesirable companies, the existence
of which cannot be open to doubt, will merely by a
colourable or even real carrying on of business in
Hongkong endeavour to defeat one of the objects of
the Order which is to ensure that British joint-stock
companies really managed in China shall comply with
the provisions in Articles 8 13 of the draft.
There
-