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companies, for example mutual insurance companies,
might be formed with a very substantial liability
in respect of the guarantee.
I suggest that this point could be dealt with
by omitting the words "limited by shares" from the
definition of "China Company" and adding to the Order
a provision that no person other than a British
subject shall be capable of becoming a member of a
China Company otherwise than as a shareholder.
This would still leave the difficulty with regard
to a Company with unlimited liability. But the
registration of such Companies is so rare that I
think the difficulty in that case might be ignored.
I cannot see that there is likely to be any inducement
to register a China Company with unlimited liability.
Yours sincerely,
(8d,) H. A. Payne