125
HONGKONG LEGISLATIVE COUNCIL.
PRESENT:
27TH OCTOBER, 1914.
HIS EXCELLENCY MAJOR-GENERAL F. H. KELLY, C.B. (General Officer Command- ing Troops).
HON. MR. CLAUD SEVERN (Colonial Secretary).
power to begin that winding up, and to carry it through, and you will understand HIS EXCELLENCY THE GOVERNOR, SIR that as the community in question has to FRANCIS HENRY MAY, K.C.M.G.
cease business in a very few days, that it is necessary with the utmost despatch to provide for taking over all their business. Therefore, I will ask you to-day to pass this Bill in all its stages. There has not been a great deal of time for the consideration of the measure, and it is perhaps to be foreseen that it may be necessary to amend it in particulars later when perhaps experience shows that it is defective in any parti- cular. But we must begin the liquidation of these businesses at once, therefore it is necessary that we should be armed with the necessary power so to do.
HON. MR. J. H. KEMP (Attorney- General).
HON. MR. E. D. C. WOLFE (Colonial Treasurer).
HON. MR. A. F. CHURCHILL (Direc- tor of Public Works).
HON. MR. E. R. HALLIFAX (Secretary for Chinese Affairs).
HON. MR. C. McI. MESSER (Captain Superintendent of Police).
HON. MR. WEI YUK, C.M.G. HON. MR. H. E. POLLOCK, K.0. HON. MR. E. A. HEWETT, C.M.G. HON. MR. D. LANDALE. HON. MR. LAU CHU PAK. MR. M. J. BREEN (Clerk of Councils).
Financial
THE COLONIAL SECRETARY, by command of H.E. the Governor, laid on the table the Report of the Finance Com- mittee (No. 15), and moved its adoption,
THE COLONIAL TREASURER second- ed, and the motion was agreed to.
Alien Enemies (Winding up)
Ordinanc>
IIS EXCELLENCY-Gentlemen, since our last meeting it has been considered necessary, for reasons which I am not at liberty to state, that the German and Austrian community should leave the Colony or be interned. The result naturally is that their trading in the Colony must cease, and that the businesses of the various firms which have been trading here under licence have to be wound up. This Bill is intended to give
certain
then
THE ATTORNEY - GENERAL moved the first reading of the Bill entitled, "An Ordinance to provide for the winding up of the affairs of certain alien enemies.
THE COLONIAL SECRETARY second- ed, and the Bill was read a first time.
The Objects and Reasons attached to the Bill state:The object of this Bill is to provide for the winding up of the affairs of such alien enemies as may be ordered to quit the Colony or may be detained or may be absent from the Colony.
moved
THE ATTORNEY-GENERAL the suspension of the Standing Orders to enable the Bill to
pass through its remaining stages at this meeting.
THE COLONIAL SECRETARY second- ed. and the motion was agreed to.
moved
THE ATTORNEY-GENERAL the second reading of the Bill. In doing so he said-Certain enemy subjects have been ordered to leave the Colony, others will be detained, and others who are absent from the Colony will not be able to return. It is therefore necessary and desirable that some provision should be made for winding up the businesses and personal affairs of such persons, and this
HONGKONG LEGISLATIVE COUNCIL
Bill, Sir, provides a scheme for such THE ATTORNEY - GENERAL'- winding up. Speaking generally, the scheme of the Bill is as follows:-In the first place, alien enemies, who are defined as persons whose sovereign or State is at war with his Majesty are prohibited from doing any business or disposing of any property without permission. Power is then given for you, Sir, to appoint such persons as you may think fit to wind up the business and personal affairs of any alien enemy who may have property or business the Colony. These liquidators will have the same rights and powers as if the property and business of alien enemies whose affairs they are liquidating had been transferred to them, and as if the contracts made with alien enemies had been made with them. Of course liquidators, as provided in the Bill. will not be able to insist on the continuance of any contract of partner- ship, agency, or any contract of personal service. The Bill also provides that any proceedings which might, if this Bill were not passed, be brought against an alien enemy in respect of his trade, or in respect of his personal affairs, or brought by him, may be brought by or against the liquidator, but to save the liquidator from personal liability it is laid down that he is to incur no personal liability by the winding up except for such things as would be criminal in the case of the natural person. It is also provided that he is to incur no liability whatever in respect of the winding up beyond the assets which may come to his hands. It is also laid down, Sir, that the winding up is to be carried out as for the benefit of persons who may be entitled to the profits of the trade or to the property dealt with as the case may be, and pro- ceeds resulting from the winding up are to be paid into a bank to await ultimate disposal thereof in accordance with any law provided for the purpose, or any direction you may give. The Bill also provides, in case the assets of an alien enemy are not sufficient to cover his liabilities, they shall be distributed in a certain order which, to a considerable extent, almost entirely, follows the order of distribution in bankruptcy: first of all, secured creditors are to be paid up to the value of their respective securities.
HON. MR. HEWETT-I beg pardon, are you referring to sub-clause 11 of clause 5?
126
Yes. 587
liquidator in the course of winding Next, the expenses incurred by the
up are to be paid; also, the remunera- tion of the liquidator, which has been fixed ai
2 per cent, of the total him. Next, the salary or wages of any assets realised and brought to hand by clerk or servant in respect of services rendered, less any sum of money due by such clerk or servant to such alien enemy. Fifthly, all sums of money due to the Crown, and sixthly, all other liabilities rateably pari JESSI whether due to persons within or without the Colony. Clause 6 is intended to prevent the carrying on of a business formerly carried on by an alien enemy by a mere nominee or dummy figurehead on behalf of, and possibly under the direction of, an alien enemy. Without such prohibition it might possibly happen that an alien enemy, expelled or interned, might find someone to deal with the old customers and carry on the old business for the benefit of the alien enemy, and the inten- tion of this Bill would be thereby frustrated. It is not intended, Sir, that this clause should prohibit in any way any person who bond-fide establishes any of an alien enemy, or bonâ-fide obtaing trade relations with any former customers
agencies formerly held by
In any case, Sir, you have power anyone, if you think fit, to carry on the under the Bill to grant permission to business formerly carried on by an alien enemy if it should be transferred to some person whom you approved, and it does not seem conceivable that any hard- ship will occur, or any undue interfer- ence will be made with any persons who should happen to deal with former customers or former principals of an alien enemy, assuming that they take it over boná-fide, and not for the benefit of the alien enemy. Powers are also given to inspect and search, and the usual penalty clause is inserted. Provision is also made that no prosecution shall take place without the consent of the Attorney- General, and the rights and remedies of to be affected by the Bill. The Bill has persons as against alien enemies are not been drafted, Sir, as you have said, at very short notice, the subject matter is novel, and the usual assistance received from previous legislation almost stances, it is perhaps too much to hope Under those circum- entirely absent. that the Bill approaches anywhere near perfection, and, as your Excellency said,
enemy.
is
an
alien
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