CO129-405 - Public Offices - 1913 — Page 451

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procedure if adopted by China Companies would obviate

the difficulty.

I do not know that this need be

compulsory.

It has been suggested that a provision might

be inserted "that any share so forfeited" as in sub-

article (2) "shall be deemed to be the property of

the company and the directors may sell re-allot or

otherwise dispose of the same in such manner as they

think fit". In any event it occurs to me that there

should be some provision as to the party in whom the

property is a forfeited share is to vest. An adver-

tisement of the fact of the cancellation of a share

might with advantage be male compulsory.

It has been suggested that the whole article is

unnecessary, as companies do not want all their

capital at once; and this is particularly the case

with respect to new capital. The China Association,

however, agreed to the provision substantially as it

stands, and though I referred the point to them do

not propose to modify their assent. The difficulty

can in most cases be got over by issuing a proportion

of the shares as fully paid up, and reserving a part

for