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The question of the position of alien enemy share-
holders and of the status of British limited companies in
The
which they hold shares, is a difficult one on which opposing
views are held. Compare, for instance, the note in the Soli-
citors Journal of the 24th October, vol. 59, p.3, with that in
the Law Tines of the 24th October, vol. 157, p. 559.
matter is also discussed in Phillipson's Effect of war on con-
tracts and Bentwich's Tar and Private Property. It seems
however to the Government, as at present advised, that whatever
may be desirable from the point of view of policy, and with the
possible exception of Prise Court proceedings, the national
status of a limited company under the existing law depends upont
the place of its incorporation. This question, however, does
not arise in the present case as Hr. Bune is not an alien
enemy but only an enemy subject.
The wider question of the whole relationship of alian
shareholders to British Companies is of course one which is
acutely realised in the Far East in a way in which it obviously
cannot be felt in England. As you are aware, legislation
dealing with part of the problem was under discussion at the
outbreak of war, though the matter has been unavoidably de-
layed owing to the pressure of other business, and as in that
case legislation is clearly necessary, so it also appears to
this Government that the ownership of British ships by com-
panies composed of aliens can be prevented only by legislative
enactment.
The other question raised, in view of alleged deal-
ings with Mesars. Jebsen & Co., is that of the status of
branches/