CO129-416 - Public Offices - 1914 — Page 653

(15207/14).

646

proceedings. To avoid this difficulty the proposed Order

was drafted to restrict China companies to companies limited

by shares and provision is made that all shares should be

fully paid up; so that, in the event of winding up proceed-

ings, there would be no contributories.

Any inclusion of

companies limited by guarantee would immediately involve the

possibility of there being foreign contributories in the

event of a winding up over whom no effective jurisdiction

could be exercised.

Consequently if China companies are to be kept free

from such difficulties, companies limited by guarantee must

be kept beyond the scope of the definition and Sir E. Grey

is therefore advised that the suggested amendment is inac-

ceptable.

With regard to the further amendments proposed, none of

them would appear to be of sufficient importance to justify

the delay which their introduction would entail. It is

moreover not suggested by His Majesty's Representatives in

China that they would make any substantial alteration in the

sense