CO129-405 - Public Offices - 1913 — Page 450

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a reality and it should be situate where the business

was in fact managed. The fact that the office is in

Hongkong is one of the troubles we now have to contend

with.

13.

One or two practical suggestions have been

made and are worth consideration.

I think in view of the necessity of binding

foreign contributories as far as possible it might be

well to provide that every share issued by a China

company shall bear upon it a statement to the effect

that it is issued subject to the provisions of the

Proceedings to obtain the delivery of forfeited

shares would probably be facilitated.

Order.

It is important that forfeited shares should

be returned to the company otherwise a defaulting

shareholder will hold on to his certificate and he may

put in on the market, in any event the possible doubt

as to the authenticity of shares might prejudice the

facility of their transfer. Query. Add a provision

for the return of the certificate.

Some companies,

I believe, provide for shares being transferred only

by a transfer in the books of the Company, and some such

procedure

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