CO129-557-9 British protection of companies in China 26-3-1936 - 27-2-1937 — Page 49

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C. O.

Mr.

Mr.

Mr.

Sir C. Parkinson.

Sir G. Tomlinson.

Sir C. Bottomley.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

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 companies incorporated

in Shanghai. The words "voting 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 to private companies incorporated

within the British Empire. The greater

part of the capital should be owned by

British subjects.

These proposals were forwarded

to the Governor of Hong who saw no

objection in principle.

The Attorney-

FURTHER ACTION.

General at Hong Kong furnishes a

memorandum, and a draft Order in Council

which he suggests would carry out

Sir John Brenan's proposals (see

53680/36 4.19

enclosure to (8) on this file).

It is pass ble

I feel on the whole that the

lack of objection in Hong Kong is founded

rather on legal than on economic grounds,

since Sir John Brenan himself admits that

it might affect adversely the receipt of

fees