CO129-554-4 Companies Amendment Ordinance 1935 7-1-1935 - 17-12-1935 — Page 28

From the Secretary General, Shanghai Hunicipal Council, Shanghai, to H. B. M. Consul-General, Shanghai.

28

6th July, 1935.

sir,

I have the honour to address you on the Comcil's

behalf with reference to an amendment made in 1933 to

section 251 of the Hongkong Companies Ordinance No.39 of 1932.

By the amendment (Order No.29 of 1933) there was sub-

stituted for the words "all local rates due from the Company"

the words "all debts due from the Company to the Crown". I

venture to think that it may not have been realised that this

amendment seriously prejudices the position of the Shanghai

Municipal Council.

Council was, in regard to its rates levied under the

authority of the Land Regulations, which have the force of

law for British subjects in Shanghai, in exactly the same

position as any English local authority in as far as priority

in a winding up is concerned. I cannot think that there was

any intention to affect this position.

Until the passing of this amendment the

The Council possesses under Articles X and XIII of the

Land Regulations the right to distrain on lands and goods in

cases of non-payment of rates and taxes, but it will readily

be appreciated that this remedy is not a satisfactory substit-

ute for a legal claim to priority in a winding up.

n

The Council ventures to express the hope that you may see

your way to make represen ta tions to secure amendment to

restore the former rights of the Comcil.

Should it be considered for any reason undesirable to

give priority to rates not collected under the authority of

British law I would venture to suggest that possibly en saend-

ment might be made to the China Order in Council restoring priority in the case of China Companies to rates collected

under the authority of regulations which have duly been

applied by Order in Council to British subjects in China.

I have the honour to be,

Your obedient servant,

(sd) stirling Fessenden, Secredakir-