CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 3

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See (1) on 53671/35.

See enclosure to (1) on 53671/35.

lack of liquid assets but also from their small

proportion of paid up capital. of the Book big

Department Stores in Hong Kong, the Wing On and

the Sincere Companies were typical examples of

the Savings Bank side of Chinese trading

institutions.

It is, however, most noticeable that

the Committee of Inquiry considered that it

would not be either desirable or practical to

attempt to devise legislation for the control

of either those Chinese shops which accept

which deposits or of the Chinese banks who conduct

their business in Chinese fashion and keep

their accounts in the Chinese language. Such

H

shops and banks are ordinarily proprietary or

partnership concerns and are not formed or

incorporated as companies.

Those who entrust

their money to their care do so in reliance

upon the personal integrity, business acumen,

and financial status of the proprietor or

partners, and the Committee considered that no ef-

fective control could be achieved and that

intervention might result in persons placing

reliance on an ineffective Government control

harthy This cónfirms the

This cónfi:

rather than on the status of the proprietors

or partners as they do now.

doubt expressed by Mr. Kemp, Attorney General

in 1930, as to the wisdom of an attempt to

(Acom for it confines them dowle A a fartanla dans supervise or control Chinese banks. The

of bank

No.39 of 1932.

present legislation then is confined to

banking companies formed and incorporated under

the Company's Ordinances or which being

constituted