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25
that this proposal would probably have the effect of conferring some benefit on certain enemy shareholders, but on the other hand it should safeguard certain British shareholders in companies with a preponderant German interest. In this connection I attach a copy of a letter received by the Registrar of Companies from Sir Robert Bredon, with copies of the two enclosures to that letter.
10.
With particular reference to the case of the
Central and North China Godowns and Press Packing Company, Limited, referred to in your letter of the 24th. November I concur with your view that there seems to be no objection to Mr. Teesdale's acting as liquidator.
11.
With particular reference to the case of the Yang- -taze Wharf and Godown Company, Limited, referred to in your letter of the 25th. November, it seems to me that there is no means of protecting the British shareholders, such as Sir Robert Bredon, except by means of the compromise which I have sugested for your consideration.
12. With reference to your letter of the 14th. December
I am to say that it will apparently be possible from the 1st.
January, 1916, for a company to be struck off on the ground of
failure to pay a fine imposed by the Magistrate at Shanhai; see
section 257 of the Companies Ordinance, 1911.
13, A question will arise as to the status of the pro-
-posed new German companies, as it may be possible to argue that they are not incorporated in an enemy country" within the mean- -ing of paragraph 3 of the Trading with the Enemy Proclamatio No. 2. It may be that they will be "bodies of persons of eneziy nationality carrying on business in China" within the meaning of paragraph 1 of the Trading with the Enemy (China, Siam, Persia and Morocco) Proclamation, 1915, but it is possible that they will contain non-enemy shareholders, and this again may give rise to argument, especially where the non-enemy shareholders amount to any considerable portion of the whole. This question will