25-1
on business within the Colony.
There are already powers
under section 132 of the Companies Ordinance. Any further
power probably would involve the proposal referred to in
the previous paragraph. I therefore an not in favour of
this power being taken.
8. Mr.Shenton also proposes that all banking
undertakings carrying on business within the Colony should
make a return in the form set out in Form C in the First
Schedule to the Companies Ordinance Ordinances Vol. IV,
p. 2161.
This form is applicable only in the case of
companies.
It could be adapted to other banking institutions,
but I very much doubt the utility of the proposal. I think
that it is really involved in the investigation proposal, which
I think is undesirable.
9. The most modest proposal is that all future
banking companies formed under our Companies Ordinance should
not be allowed to commence business until they have satisfied
the Registrar of Companies that a certain amount of paid up
capital has been collected. No suggestion has been made yet
as to what the amount should be. It seems to me that the
chief objection to this proposal is that it does not deal with
the case of a banking undertaking commenced outside the
Colony and establishing a branch here. We might provide that
such an undertaking must satisfy us that it had a certain amount
of paid up capital, but it would be very difficult to verify
any such claim. For example, how could we be sure that a bank
established at Canton had the necessary paid up capital?
10. On the whole, as at present advised, I am against
any legislation. The Instone Banking Corporation Ltd., is so
far an isolated case, and I think that its failure, and the prosecution of Mr.Brewer, will for some time serve as a
useful warning.
The failure involved no great loss and caused
no general dislocation.
(sd.) J. H. Kemp
Attorney General.
15.
2.
30.
}