CO129-554-4 Companies Amendment Ordinance 1935 7-1-1935 - 17-12-1935 — Page 56

COMPANIES AMENDMENT ORDINANCE, 1924.

OBJECTS AND REASONS.

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1. The new sub-section to be enacted by clause 2 will specify clearly the cases in which the Chinese characters for "Limited", and (in the case of China companies) "British company" must be used. Before the amendment of last year the law on this subject was ambiguous and it may be that it was too wide and laid an unreasonable burden on companies using Chinese names. On the other hand, the new sub-section introduced last year has proved on examination to be too narrow and to produce inconsistent results. The proviso will give power to exempt companies with old and well known hong

names. In the case of companies of this kind there is no danger of misunderstanding as to the company's status and the requirements of the section are therefore unnecessary in such a case.