116
exercised in accordance with the principles set out
in Clause 2 (3) of the draft Ordinance enclosed in
the savingram No.C.A.2473 of 8th March 1946 from
the C. in C., Hong Kong.
2. As regards paragraphs 4 to 10 of your
despatch regarding the conversion of capital of a
China Company it is suggested that legislation
might be enacted under which a China Company should
be allowed to convert its capital if it so desired,
subject to a resolution to that effect by the
shareholders and to the consent of the Registrar of
Companies instead of the normal method of obtaining
the consent of the Courts; or of the Governor in
Council (see Article 3 of the Military Proclamation
No. 27).
13
5-5087/6/46
}
3. I have no observations to make on the
Bill which makes provision enabling Hong Kong
Companies which transferred their registration from
Hong Kong during the war to return to Hong Kong, and
the Articles 4A and B which makes similar provision
in respect of China Companies which transferred their
registration to the United Kingdom during the war.
As regarde Paragraph 18 of your despatch, flee
Please refer
I would refer you to paragraph 4 of my savingram No.20
of 20th May 1946.
4.
5. ig reparas Paragraph 19.of your despatch
the term "country of origin" in Regulation 5A of
the Defence (Companies) Regulations 1940, is used to
describe the country under the law of which a
company is incorporated. It seems clear, therefore,
that Hong Kong is the country of origin of China
Companies. I do not, therefore, see any legal objection
to an order being made with respect to such a company
under the Regulation in question.
sece