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MLBRA
Again, a company limited by guarantee "the opera-
tions of which are directed and controlled from some
place within the "limits of the Order" would be neither
a "Hongkong" nor a "China" Company and would be subject
to the same law as other British Companies. Independent-
ly of the danger of such companies with a share capital
escaping control under the draft Order through the
Supreme Court for China, the effect of the legislation
is to limit the jurisdiction of the Court and the
functions of the Registrar of Companies in Shanghai in
a class of cases which have nothing to do with Hongkong.
It is I think clear that companies limited by
guarantee should not be excluded in defining China
Companies if the two objects aimed at by this legisla-
tion, facility of registration and guarantee of good
faith and British nationality are to be attained.
The same remarks apply to unlimited companies
though in a less degree, as the risks to shareholders
in such companies are such that they are not likely
to be much in request. Still the company, which we
particularly object to, consisting of Chinese and
other doubtful persons of foreign nationality, might
get itself registered as an unlimited company do busi
ness