CO129-461 - Governor Sir Stubbs - 1920 [5-7] — Page 300

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Enclosure No.2 in Shanghai Despatch No.91 of 23rd April,1920, to Peking

Sir,

296

H. B. M. Consulate-General,

Shanghai, 18th March, 1920.

I have the honour to acknowledge the receipt of your letter of March 8th on the subject of the China (Companies) Amendment Order in Council, 1919.

With reference to paragraph 3 of your letter I would point out that Section 3 of the 1919 Order provides that "where the general or substantiel control is exercised by persons ordinarily resident within the limits of this Order, the Com- pany shall..........be a China Company within the meaning of the China (Companies) Order in Council, 1915". Mr. Kwok Bew was therefore advisedly informed that the Wing On Company (Shanghai) Limited was a China Company within the meaning of the 1915 Order, and would have to comply with its other requirements including a majority of British directors resident in China.

As regards the enforcement of the 1919 Order, I quite appreciate the anomalous position created by the present differ- ence in the Company law of the Colony and that governing British subjects in China, and it is not my intention to commence any proceedings, which are likely to lead to the situations fore- shadowed by you, without previous consultation with the Hongkong authorities. I presume, however, that steps will be taken with- out delay to bring the Colonial Company legislation into line with the new Order in Council since it would not comport with my duty to ignore much longer an Order in Council which, in the part applicable in this case, came into force two and a half months

ago.

Then that has been done, I agree that the procedure

suggested in paragraph 5 of your letter under reply will be the

most convenient one to follow in ordinary cases.

he Registrer of Companies,

Hongkong.

I have, etc.

sd.

E. H. Fraser,

Consul-General and Registrar

of Companies.

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