CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 37

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itself. They find it, however, virtually impossible

to obtain from the Chinese authorities denationalisation

certificates.

(3) The Proposals.

Sir John Brenan feels that the local company

legislation dealing with British companies in China needs

drastic revision. At present foreign companies such as

Centroso jus Limited, and other Soviet Government trading

institutions incorporated in London, the (Czech) Bata

Shoe Company, incorporated in Singapore, and many purely

Chinese businesses incorporated in Singapore and Hong Kong,

operate in China under British extra-territorial juris-

diction.

Many are even in competition with British trade.

The previous difficulty in dealing with such

companies has been the definition of what constitutes a

bona fide British company or a "substantial British interest", Sir John Brenan proposes that the French

regulations in this matter should be followed.

These

provide that companies can only enjoy extra-territorial rights if they comply with certain conditions, the principal

of which are as follow:-

"The President of the Board of Directors, the Managing Directors, the Auditors, at least two thirds of those persons having authority to sign on behalf of the company, at least one-half of the subscribers of a private company, of the Directors and of the Committee of Manage- ment, shall be British citizens or subjects or nationals of a country under British protection or Mandate. above requirement as to nationality shall also be fulfilled

The

by