time making clear in the English name (as was already clear

in the Chinese name) the national status of the firm.

53

In 1923 the Hongkong Government, without consulting the

Registrar of Companies at Shanghai, issued a new Ordinance

Article 2 of which amended Article 64(1)(a) of the 1911

Ordinance, as amended by the 1921 Ordinance, to apply only

to limited companies which use a transliteration or translation

of their names in Chinese characters.

The Attorney General explained in his Objects and

Reasons that the 1921 amendment had given rise to difficulties.

"The term "Chinese name" would seem to include any Chinese

name used by the Company, even though only a colloquial

unofficial designation of the Company. Several European

companies are known among the Chinese by such names, which

frequently bear no relation to the sound of the official

English name of the Company." The proposed amended sub-

section was intended to clear up any such doubt by making it

applicable only to a transliteration or translation of the

official English name of the Company.

The Consul-General and Registrar of Companies at Shanghai

took strong exception, pointing out that it would render

practicably ineffective the requirement of the 1921 Ordinance

that every China Company when trading under its Chinese name

should make clear the fact that it was British and also that it

possessed limited liability, and that every Hongkong China

Company in the same circumstances should disclose its

limitation of liability and he expressed the opinion that

-

there could be no question as to the desirability, if not necess-

ity, of these two requirements.

He reverted to the 1922 proposal and suggested that

British companies, other than China Companies, be obliged

by

O-in-C/

Share This Page