CO129-554-4 Companies Amendment Ordinance 1935 7-1-1935 - 17-12-1935 — Page 23

Enclosure2in Shanghai P/L despatch to Peking Number 329 of August 13th

(COPY)

Copies to: Peking No.329,

1935.

British Con sula te-General,

23

Shanghai.

August 13th, 1935.

Diplomatic Mission, Nanking, Crown Advocate.

Cir,

I have the honour to acknowledge the receipt

of Your Excellency's dempetch No.2584/23 of August 1st

on the subject of priority in respect of claims for

rates in winding up China companies.

22. With reference to paragraph 10 of the Attorney-

General's minute enclosed in the despatch under

acknowledgment, any amendment which was made in existing

legislation to restore the priority of the Municipal

Council of the International Settlement would have to

apply also to other municipal administre tions such

the French Municipal Council and the City Government of

Greater Shanghai, I do not, however, see any objection

to this. It would merely restore them to the position

they sccupied prior to the esendmant introduced by

Ordinance No.29 of 1933.

3. With reference to the final paragraph of the

Attorney-General's memorandum I venture to suggest that

it is the Companies Ordinance which should be amendeû

and not the China Order-in-Council, and that the object

which is sought would be attained were Article 251 (1)

altered to read as followɛi

"251(1)

In a winding-up there shall be paid in priority to all other debta -

(a) all debts due from the Company to the Crown at the relevant date (and in the case of a Company carrying on business within

/the

His Excellency,

The Officer Adamietering the Government,

HONGKONG.