39
to be British by virtue of birth in Malaya, Hong Kong, or
elsewhere in the Empire. Protection has hitherto been
withdrawn from these companies, but they remain under
British jurisdiction. It is suggested that in this
matter the rule of dual nationality should be strictly
applied, and that only those Chinese who have received
denationalisation certificates should be accepted as
British subjects for purposes of local company legislation
so that the proposed limitations would preclude from
obtaining the Ambassador's consent to operation many
companies managed by Straits-born Chinese.
The Crown Advocate in Shanghai suggests as an
addition to the above limitations (1) that in regard to
a public company incorporated in Shanghai, its licence
to operate in China should be withdrawn if it is found
that the substantial majority (say three-fourths) of
the shares is held by non-British subjects over a period
of twelve months; (2) In regard to public companies
incorporated within the British Empire. The obligation
that persons having authority to sign on behalf of the
Company should be British subjects should be deleted, as
it might be circumvented by the granting of the necessary
authority to British subjects who would not in fact
exercise the same. It would be a matter for the Registrar
of Companies or his informants to observe who in fact
sign on behalf of the company. (3) In regard to private
The words "voting companies incorporated in Shanghai.
members" should be substituted for "shareholders", and
the words "paid-up shares bona fide held for value" for
"capital" in the definition of the restrictions.
(4) In
regard