CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 39

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to be British by virtue of birth in Malaya, Hong Kong, or

elsewhere in the Empire. Protection has hitherto been

withdrawn from these companies, but they remain under

British jurisdiction. It is suggested that in this

matter the rule of dual nationality should be strictly

applied, and that only those Chinese who have received

denationalisation certificates should be accepted as

British subjects for purposes of local company legislation

so that the proposed limitations would preclude from

obtaining the Ambassador's consent to operation many

companies managed by Straits-born Chinese.

The Crown Advocate in Shanghai suggests as an

addition to the above limitations (1) that in regard to

a public company incorporated in Shanghai, its licence

to operate in China should be withdrawn if it is found

that the substantial majority (say three-fourths) of

the shares is held by non-British subjects over a period

of twelve months; (2) In regard to public companies

incorporated within the British Empire. The obligation

that persons having authority to sign on behalf of the

Company should be British subjects should be deleted, as

it might be circumvented by the granting of the necessary

authority to British subjects who would not in fact

exercise the same. It would be a matter for the Registrar

of Companies or his informants to observe who in fact

sign on behalf of the company. (3) In regard to private

The words "voting companies incorporated in Shanghai.

members" should be substituted for "shareholders", and

the words "paid-up shares bona fide held for value" for

"capital" in the definition of the restrictions.

(4) In

regard