CO129-426 - Public Offices - 1915 — Page 417

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companies, for example mutual insurance companies,

might be formed with a very substantial liability

in respect of the guarantee.

I suggest that this point could be dealt with

by omitting the words "limited by shares" from the

definition of "China Company" and adding to the Order

a provision that no person other than a British

subject shall be capable of becoming a member of a

China Company otherwise than as a shareholder.

This would still leave the difficulty with regard

to a Company with unlimited liability. But the

registration of such Companies is so rare that I

think the difficulty in that case might be ignored.

I cannot see that there is likely to be any inducement

to register a China Company with unlimited liability.

Yours sincerely,

(8d,) H. A. Payne