CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 48

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guarantee.

This should lay down the principle

that no British company would be allowed to

operate in China without the consent of the

Ambassador, this only being given subject

to certain conditions. A requirement would

be enforced by the usual Penal Clause, and

the operation of a company without it

would be a ground for compulsory winding-up

by the Court.

A difficult question is raised by

companies formed by persons of Chinese race,

some of whom might claim 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hitherto been withdrawn from these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 de-

nationalisation certificates should be

accepted as British subjects for purposes

of local company legislation. that the proposed limitations would preclude

so

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withdrawn if it is found that the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

from obtaming the combarenda's consent

comfancis

managed

many

to operatic in

by #arts-boon Cherese.

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