CO129-417 - Public Offices - 1914 — Page 76

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MLBRA

Again, a company limited by guarantee "the opera-

tions of which are directed and controlled from some

place within the "limits of the Order" would be neither

a "Hongkong" nor a "China" Company and would be subject

to the same law as other British Companies. Independent-

ly of the danger of such companies with a share capital

escaping control under the draft Order through the

Supreme Court for China, the effect of the legislation

is to limit the jurisdiction of the Court and the

functions of the Registrar of Companies in Shanghai in

a class of cases which have nothing to do with Hongkong.

It is I think clear that companies limited by

guarantee should not be excluded in defining China

Companies if the two objects aimed at by this legisla-

tion, facility of registration and guarantee of good

faith and British nationality are to be attained.

The same remarks apply to unlimited companies

though in a less degree, as the risks to shareholders

in such companies are such that they are not likely

to be much in request. Still the company, which we

particularly object to, consisting of Chinese and

other doubtful persons of foreign nationality, might

get itself registered as an unlimited company do busi

ness