CO129-613-4 Transfer of registration of China Companies from the United Kingdom to Hong Kong 16-4-1946 - 3-2-1948 — Page 113

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exercised in accordance with the principles set out

in Clause 2 (3) of the draft Ordinance enclosed in

the savingram No.C.A.2473 of 8th March 1946 from

the C. in C., Hong Kong.

2. As regards paragraphs 4 to 10 of your

despatch regarding the conversion of capital of a

China Company it is suggested that legislation

might be enacted under which a China Company should

be allowed to convert its capital if it so desired,

subject to a resolution to that effect by the

shareholders and to the consent of the Registrar of

Companies instead of the normal method of obtaining

the consent of the Courts; or of the Governor in

Council (see Article 3 of the Military Proclamation

No. 27).

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5-5087/6/46

}

3. I have no observations to make on the

Bill which makes provision enabling Hong Kong

Companies which transferred their registration from

Hong Kong during the war to return to Hong Kong, and

the Articles 4A and B which makes similar provision

in respect of China Companies which transferred their

registration to the United Kingdom during the war.

As regarde Paragraph 18 of your despatch, flee

Please refer

I would refer you to paragraph 4 of my savingram No.20

of 20th May 1946.

4.

5. ig reparas Paragraph 19.of your despatch

the term "country of origin" in Regulation 5A of

the Defence (Companies) Regulations 1940, is used to

describe the country under the law of which a

company is incorporated. It seems clear, therefore,

that Hong Kong is the country of origin of China

Companies. I do not, therefore, see any legal objection

to an order being made with respect to such a company

under the Regulation in question.

sece