CO129-554-11 Stamp Amendment Ordinance 1935 18-4-1935 - 25-6-1935 — Page 9

Enclosure No.2.

9

ATTORNEY GENERAL'S CHAMBERS,

Hong Kong,

18th April, 1935.

REPORT ON ORDINANCE No.

20 ....of 1935.

1.

I have examined the accompanying Ordinance intituled an Ordinance to amend the Stamp Ordinance, 1921, and I am

of opinion that the Ordinance is one which is not

contrary to the Governor's instructions.

2. Section 2 of this Ordinance amends paragraph (28) of section 3 of the principal Ordinance by the

insertion of certain words to make it clear that de-

bentures of the marketable security class are included

in the expression "share" when used in the Ordinance.

3. Section 3 of this Ordinance inserts a new section

16A in the principal Ordinance. The object of this

amendment is to incorporate in the Colony the amendment

made by section 42 of the Finance Act, 1933 (23 & 24

Geo.5, c.19) in the English law, on which the local

provisions relating to bills of exchange are based.

effect of the amendment is that a bill presented for

acceptance, or accepted, or payable outside the Colony

is not invalid by reason only that it does not comply

with the stamp laws: if unstamped, or not properly

stamped, it may be received in evidence on payment of

The

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the proper duties and penalty under sections 6 and 16 of

the principal Crdinance.

4. Section 4 of this Ordinance adds a sub-section to

section 21 of. the principal Ordinance imposing civil liability

for the duty on persons required to take out certificates

of practise. It is similar to the civil liability imposed

on other persons by section 5 (5) of the principal Ordinance.

5. Section 5 inserts a new section 25A in the principal

Ordinance in order to incorporate the provisions of section

23 of the Stamp Act, 1891. The new section follows that

section except that in sub-section (1) the word "stock" is

omitted and in sub-section (2) the word "share" is sub-

stituted for "stock". These variations from the model are

due to the fact that section 3(28) of the principal Ordinance

gives to "share" the definition which section 122 of the

Stamp Act, 1891, gives to "stock". The effect of the amend-

ment will be that instruments under hand (not being promissory

notes or bills of exchange) given upon the deposit of shares

transferable by delivery, by way of security for a loan will

be charged with the stamp duty of $1 as Agreements under

heading No.3 in the Schedule to the principal Ordinance.

6.

Section 6 adds a new heading No.14B to the Schedule to

the principal Ordinance imposing on Cashier orders, if passed

through a bank other than the bank of issue, a stamp duty of

10 cents similar to the duty payable under heading 14A (as

amended by section 5 of Ordinance No.30 of 1930) on Compradore

orders, if passed through a bank.

7.

Sections 7 and 8 amend Headings Nos. 15 and 29(4) in

the Schedule to the principal Ordinance by substituting

references to shares and mortgages for references to market-

able securities. The effect of these amendments will be that

transfers of debentures which are marketable securities will

in future be charged 20 cents for every $100 under Heading

No.40(1) instead of as hitherto 10 cents for every $100 under

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