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control and British management of færniga companies
thatxo xxxii ( even very important public
utility companies) operating in foreign territories
that the risk of reprisals was felt to be great.
On general-obvious-economic grounds, special action
was also deprecated.
3. In several recent cases, th Cos: have (by
appropriate means) introduced restrictions as to
share holding by foreigners. The Calcutta Electric duffly 20
Tramways, for example, limit foreign held or controll-
ed shares to 20% of the total issues; and the directors
must be British subjects. This was done, I remember,
on an intimation from the G of I that it was desir-
able. The Burma Corporation -again I think on an
intimation from the G of India that this was desir-
able--give foreign shareholders no vote.
4.
This method--whichavoids very many difficult-
ies--would probably be successful in a large number
of cases, and particularly where no suggestion of
the acquiring of foreign control has as yet been
made. Much, obviously, would depend on the relations
between the Govt: and the Co:,and the degree of
practical influence which the Govt: possessed.
5. A number of important Swedish Cos: adopt
another method--again, I understand, on an intimation
from their Govt:, though there may have been more
than an intimation behind it. The Swedish Patch
Co:, for example, divides its capital into A and B
shares:--92 million kr: of the former,38 million
kr: of the latter. The shares are equal in all res-
pects, except that the A holder has one vote, and the
B holder 1/1000 of a vote. (The B shares usually
stand materially higher than the A shares)
The information to be received from the other,
Depts: should be awaited.
11-3-30.
11/3/36