CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 308

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As to the third characteristic. There is primâ focie no reason why a firm should not hold a share in another firm. This can be done subject to one limitation under the present partnership law (see Warner e. Smith 32 L. J. Ch. 573), The limitation is that imposed by section 4 of the Com- panies Ordinance No. 1 of 1863 which provides that no partnership consisting of more than twenty persons may be formed for the purpose of carrying on any business that has for its object the acquisition of gain unless it is registered A firm is uat, like a body corporate, a as a company. single entity. It is merely a convenient name for describ ing a number of individuals who are associated together. So if firms are allowedin discriminately to take shares in other firing the number of partners in the latter firms would The difficulty can be got over by often exceed twenty. providing that where a firm is registered as a partne it is to be regarded for the purposes of the Ordinance as one person, and by providing that only one of its members should be allowed to interfere in the management of the partnership in which the firm has taken a share.

names.

With regard to the fourth characteristic. It is undesir- able that individuals should hide their identity under tong It is submitted that a Chinese partner should be registered either in the first name he receives after birth or in the game he receives when he reaches manhood's estate. A tong name may be registered in addition.

The last two characteristics are typically Chinese and to ignore them in a Bill intended, as far as possible, to give effect to Chinese customs would be measurably to defeat the object of the Bill,

The accompanying Bill embodies the views expressed in this memorandum. Registration is voluntary but partners who do not register are subject to the unlimited liability of the present partnership law. The principles of the new Bill are essentially different from the principles of the Limited Partnership Act 1907 which limits the liability of sleeping partners and which, some day, it may be necessary to introduce into the Colony; but as far as it has been practicable to do so the Bill is modelled on that Act.

C. GRENVILLE ALABASTER,

Attorney General,

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