CO129-369 - Acting Governor May Governor Sir Lugard - 1910 [10-11] — Page 517

t

1

CO P.T.

closure 2.

Hon. Colonial Secretary,

C

• 515

I attach a copy of an important judgment of

the Chief Justice in relation to the Registration here of Shan- -ghai Companies under our Companies Ordinance. The question arose

in connection with a petition to wind up a Shanghai Company

registered here. The effect of the judgment is that in order te

entitle a foreign company to register here it must be in

reality "carry on" its business in Hongkong.

The question of the right of a foreign

company to register here has never before been challenged as a

matter of law but it has been considered on the question of

policy, and this was discussed in C.S.0. $256/06 on the

question of legislating here on the lines of the Companies (Colonial Register) Act 1883 1.8. to providihat Companies

registered here and carrying on business outside the Colony

may koop local registers of members. The subject was very

fully dealt with at that time by Mr. Justice Gomperta as Acting

Attorney-General and I draw attention to his minute of 12th.

February, 1907.

In regard to that minute you wrote as

follows on 16th. February, 1907 :-

With reged to the question raised in

"paragraph 1 of the Attorney-General's minute as to whether

*this Government should permit the registration in Hongkong

*of Companies with foreign capital and a foreign director-

*-ate I imagine there can be but one answer and that is in

"the affirmative”.

Sir Matthew Nathan confirmed your view in his minute of 11th.

March, 1907. The Companies (Local Registers) Ordinance 1907

was then passed and its preamble reads as follows:-

"Whereas many Companies registered under

'the Companies Ordinance, 1865, carry on business in

"places outside the Colony and dealings in their shares are

frequent -