CO129-465 - Public Offices & Others - 1920 — Page 69

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As to half, at least, of the Statutory deposit of

one hundred thousand dollars which, as the law stands,

must consist of the securities named in Section 5 (2)

(a), (b) & (c):-

In the case of 'China' Fire and Marine Insurance

Companies carrying on business in China, and not also in Hongkong, it is I suggest, worthy of consideration whether on any amendment of our Companies Orders in Council to the list of securities named in Section 5 (2) (b), namely "British, Indian or Colonial Government bonds or stooks"; there should not be added 'Debentures issued by the Muni-

cipal Councils of any Foreign Settlement or Concession in

China approved by the Minister".

This suggestion, if adopted, would enable 'China'

Fire and Marine Insurance Companies to deposit silver

securities in which their investments of capital are more

likely to have been made than gold Government securities,

and moreover would obviate what would in fact be, to the

extent of the deposit in gold securities, a gamble in

exchange.

As to the remaining portion of the deposit which in

accordance with Section 5 (5) of the Hongkong Ordinance as applied by the China Order in Council have to be of a

nature approved by H.K. Minister, Mr. J.F.Brenan, Deputy Registrar of Companies Shanghai, has made a suggestion with

which I concur. Mr. Brenan's Minute is as follows:-

"I suggest that for the half of the deposit not covered by section 5 (2) of the 1917 Ordinance, the Company be required to obtain and file a guaranty bond from an approved British Bank for $50,000, as is done by the Asiatic Petroleum Co. in the case of their oil tanks.

In/