Memora dum.
J END
A question has arisen regarding the kind of
securities which should be accepted for deposit under the Life Insurance Companies Ordinance, No.11 of 1907, the Fire and Marine Insurance Companies Deposit Ordinance, No.32 of
1917, and the Trustee Ordinance, No.18 of 1934, (Part VIII),
and it is felt that it would be helpful if I may be informed of the practice of the Companies Department of the Board of Trade in similar matters under the Assurance Companies
Act, 1909.
The companies respectively dealt with in the above mentioned Ordinances are required to deposit security with this Government as a condition of commencing business in the Colony. In every case the security must first be approved
by the Governor in Council. Since the commencement of the
above Ordinances it has been the practice for the Governor in Council to accept as security, inter alia, mortgages of
Crown leaseholds in the Colony, but experience has proved
that mortgages are rather a troublesome type of security from Government's point of view and I am now considering a suggestion by the Registrar of Companies here that in future the Governor in Council should prove only gilt-
edged securities.
It is understood that the Companies Department of the Board of Trade issues periodical lists of securities which will be accepted for deposit under the Assurance Companies Act, 1909, etc., and that it is not the practice of that Department to permit mortgages of any description to
be accepted for deposit.
Before coming to my decision on the point I should prefer to obtain confirmation of this and general information as to the practice of the Companies Departent regarding the compilation of the periodical lists of securities.
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༄'', སྐོ *