48
guarantee.
This should lay down the principle
that no British company would be allowed to
operate in China without the consent of the
Ambassador, this only being given subject
to certain conditions. A requirement would
be enforced by the usual Penal Clause, and
the operation of a company without it
would be a ground for compulsory winding-up
by the Court.
A difficult question is raised by
companies formed by persons of Chinese race,
some of whom might claim 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hitherto been withdrawn from these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 de-
nationalisation certificates should be
accepted as British subjects for purposes
of local company legislation. that the proposed limitations would preclude
so
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withdrawn if it is found that the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
from obtaming the combarenda's consent
comfancis
managed
many
to operatic in
by #arts-boon Cherese.
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