Enclosure2in Shanghai P/L despatch to Peking Number 329 of August 13th
(COPY)
Copies to: Peking No.329,
1935.
British Con sula te-General,
23
Shanghai.
August 13th, 1935.
Diplomatic Mission, Nanking, Crown Advocate.
Cir,
I have the honour to acknowledge the receipt
of Your Excellency's dempetch No.2584/23 of August 1st
on the subject of priority in respect of claims for
rates in winding up China companies.
22. With reference to paragraph 10 of the Attorney-
General's minute enclosed in the despatch under
acknowledgment, any amendment which was made in existing
legislation to restore the priority of the Municipal
Council of the International Settlement would have to
apply also to other municipal administre tions such
the French Municipal Council and the City Government of
Greater Shanghai, I do not, however, see any objection
to this. It would merely restore them to the position
they sccupied prior to the esendmant introduced by
Ordinance No.29 of 1933.
3. With reference to the final paragraph of the
Attorney-General's memorandum I venture to suggest that
it is the Companies Ordinance which should be amendeû
and not the China Order-in-Council, and that the object
which is sought would be attained were Article 251 (1)
altered to read as followɛi
"251(1)
In a winding-up there shall be paid in priority to all other debta -
(a) all debts due from the Company to the Crown at the relevant date (and in the case of a Company carrying on business within
/the
His Excellency,
The Officer Adamietering the Government,
HONGKONG.