CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 147

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Memorandum on H.M. Ambassador's letter of November 29th,

1935.

1. Public companies incorporated in Shanghaij

Suggested requirements are already called for

by the Order in Council, except that no special return of managing director's nationality is made.

This class of company will not be affected by

proposed changes.

2.

Public companies incorporated within the British Empire.

Out of a total of 161 there are 138 which comply with the requirement of a British chief local represent-

ative. Records as at present filed make it impossible

to check up on the 2/3 of persons having authority to

sign.

23 companies do not comply. These include

Hongkong China concerns like the Bank of Canton, Sincere

and Wing On insurance companies, etc. If these were

debarred from registration and operation in China, the resultant loss of fees to the Foreign Office would

be negligible. But if such action forced them right

out of business the loss to Hong Kong, to whom they

pay annual and other company fees, would be greater.

The amount, however, cannot be estimated here.

3.

Private companies incorporated in Shanghai.

The Order in Council already provides for all

the proposed requirements with the exception of a

British majority of shareholders.

Out of 257 companies, 209 comply with the share-

37 do not and 11 are on the border

holding requirement.

line.

/As