CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 19

19

No. The str. 45. 3 Corp.

operates under an Armance:

The Chartered Bank by a

charts: the

by. Some of the Banks operate Under special auto

charlin.

ΟΥ

hall it be necessary therefor for nich Banks to take out a liner?

Agree

Don't follow all time. Leamin

we ought to put the Board of Trade view to the

Governor, I doubt if we need ask for deletion

of the provision (especially as the B. of E.

make no comment on this point) and we might

well leave the decision to the Governor.

The

B. of E. assume that the effect of this Section

will be to make all existing banking companies

I doubt if this is the

case, and we might suggest the advisability of

making such a provision to the Governor.

apply for a licence.

Section 3. The B. of E. suggest that

subscribed capital should also be included,

and that after the word "therein" there should

be inserted the words "with equal prominence".

anfroided for in the new 5.353, I see no objection.

and Brisking Banks do not fall

within its pueriscons

i.

Contr

(ai).

mol·ready linna to be

A.. summat

Section 4. The B. of T. state that so

far as liquidations in this country are

concerned, dominion and foreign creditors are

treated on a footing of absolute equality with

English creditors, and, even in cases in which

local creditors are entitled to local assets

in priority to creditors outside the local

jurisdiction, their dividends are equated to

those of the English creditors out of English

They strongly deprecate any amendment

of a local Act which would give priority to

local creditors.

assets.

This no doubt refers particularly to

Chinese companies with branches in Hong Kong,

such as the Wing On Company. The provision

might no doubt be of advantage in Hong Kong,

but in view of the considerable objection

expressed on general grounds by the B. of T.,

I think we must ask for the deletion of this

provision.

Section 6.