(Enclosure in Crow Advocate's minute)
Endo.
144
Public companies incorporated in Shanghai
The managing director
the majority of the directors,
the auditors, and
the liquidators
to be British subjects.
Note:-
I would suggest that, if it should be found that the substantial majority (aay three-fourths) of the shares of this class of Company is held by non-British subjects over a period of, say, twelve months, its licence to operate in China should be withdraw. This suggestion would seen equally to apply to the under- mentioned classes of companies.
Fublic companies incorporated within the British Empire.
The chief local representative and two thirds of the
persons having authority to sign on behalf of the company
in China to be British subjects,
Note:- I would suggest the deletion of the words "having
authority to", inamuch as this condition, if know, might easily 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 signed on behalf of the Company. This suggestion would appear equally to apply to Private companies incorporated within the British Papire.
Private companies incorporated in Shanghai.
The managing director,
the majority of directors,
the auditors,
the liquidators, and
the majority of the shareholders
to be British subjects.
Also the greater part of the capital to be owned by
British subjects.
Note:- I would suggest that instead of the word "share-
holders" the words "Voting members" might be used and for the word "capital" the words "paid up shares bona fide held for value" might be used. This suggestion would appear equally to apply to private companies incorporated within the British Empire.
/Private