CO885-(15-16) — Page 678

R

No. 178.

(GENERAL.)

CASE SUBMITTED BY TREASURY to LAW OFFICERS:.

[Position of Enemy Shareholders in English Companies.]

The opinion of the Law Officers of the Crown is desired on behalf of the Treasury with regard to the payment of dividends to enemy shareholders in English Companies and with regard to the registration of transfers of shares to or from such shareholders.

It is understood, in pursuance of recent opinions of the Law Officers, that the only enemy shareholders that need be considered are those who are resident in a hostile country, whatever be their nationality, and that German or Austrian subjects resident in this country stand in this respect on the same footing as British subjects. Similarly as regards the latter residing in a neutral country.

Among other applications the Treasury have received the following from the New Kleinfontein Company, Limited :-

14th August, 1914.

SIR,

REFERRING to my interview this morning at the Home Office and also the Treasury (Mr. Upcott), I understand that dividend payments may be made without restriction to all shareholders, including alien enemies, whether resident in this country, or otherwise.

This Company, being desirous of immediately distributing about £40,000 to its shareholders, some of whom come under the above description, both by dividend warrant and bearer warrant coupons, would esteem it a favour if would confirm the above or give other instructions, inasmuch as it appears you contrary to the legal opinions that have been taken on the question.

An early reply would much oblige, as it is desired to make the above payment without delay.

I am, &c.,

JOHN H. CLARK,

Secretary.

PUBLIC RECORD OFFICE

Reference :-

THERE C.O.885

16

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

To which the Treasury gave the following reply:

GENTLEMEN,

*

17th August, 1914.

In reply to your letter of the 14th instant, relating to the payment of dividends to alien shareholders, I am directed by the Lords Commissioners of His Majesty's Treasury to say that the payments in question do not appear to them to fall within the prohibitions included in the Royal Proclamation on Trading with the Enemy, and that no objection to them will be taken by His Majesty's Government.

I am, &c.,

A further application from the same Company was made on the 18th August as follows:-

SIR,

I BEG to acknowledge, with thanks, your favour of 17th instant in reply to mine of the 14th instant.

May I ask your further ruling on the following points daily arising with

this and other Companies in these offices?

1. May transfer deeds be accepted for registration:

(a) into the names of residents in Austria and Germany;

(b) out of the names of residents in Austria and Germany?

2. May certificates or bearer warrants be delivered to all parties, whether

alien enemies in this or any other country?

Awaiting the favour of an early reply,

(8262-2.) Wt. 124-872, 25. 11:14. D & S. G 1,

I am, &c.,