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Court having jurisdiction there is the Court to apply to, and that is what is done with reference to the different parts of the United King-
-dom I cannot but think it would lead to confusion if applications might be made to either Court indiscriminately and I do not think that that is a course open to public companies under any system of law. As I said there will be special conditions attached to China Companies, which are rendered necessary by circumstances of which the Shanghai Court has better knowledge than the Hongkong Court; indeed the Hongkong Court would hardly know on what lines to exercise a discretion in some
cases,
were a discretion provided for in the new legislation. Section
1 (3), which is no doubt necessary at the present time, I think ought not to be wanted where there is a proper Court having direct jurisdiction, for that is the proper Court to apply to. Should a large number of companies arise in South China which are not managed in or from Hongkonę we can make provision in the future, but in the meantime let us legis- -late for existing circumstances, i.e. Companies managed in Shanghai nine-tenths, in other Northern ports one-tenth, on the one hand, and Companies managed in Hongkong on the other hand. Hongkong is the centre for the latter, Shanghai for the former, and the Court in each place should have exclusive jurisdiction for the purposes of the Ordi- -nance over the Hongkong Companies having their registered office in the colonial and extraterritorial jurisdiction respectively. Such a
limitation of the jurisdiction of the Courts follows such a well known practice as that which is applied to the different parts of the
United Kingdom and is one to which we can better apply existing law than the one you suggest, which might lead to business concerns in the
North being hampered in their work by applications to the Hongkong Court. There may be reasons which I do not appreciate for the latitude you would give, but, so long as a Company can choose and does choose where its registered office is to be, I think it would be better that
it should not be allowed to chop and change its Court.
I am very anxious to get this business which is of great importance settled by the summer, so I should like to have
your further views on the two points as soon as it is convenient to you.
Sincerely Yours
(Sd.) H. W. de Sausmarez.
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