324
C
(44991/13)
in clauses 2, 3 and 4, of which your Department is directly
concerned only with the first two.
Clause 2.
The definitions of "China Company" and "Hong Kong
Company" have been changed. The important alteration is
that which required every Hong Kong Company, if it is to
be a "Hong Kong Company" under the Order, to be controlled
from Hong Kong. A company limited by shares which is
incorporated at llong Kong but controlled from China will be
a "China Company"; if controlled from Hong Kong, it will
be a "Hong Kong Company". The object of this alteration
is to prevent a company from securing immunity from the
restrictions imposed on China Companies by keeping up the
pretence of a branch at Hong Kong.
Clause 3 constitutes the Consul-General at Shanghai
Registrar of Companies at that place and bestows upon him
within the limits of the Order authority similar to that
exercised by the Registrar: of Companies at Hong Kong.
Clause 4 has been expanded with the intention of
securing effective control over the operations of companies
in
Bat