TNAG-1645-FCO40-2292-Company-law-reform-in-Hong-Kong-Companies-(Amendment)-(No.-2-1987 — Page 84

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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guarantee from the requirements of Section 114C, in the same way as

they were exempted from Section 136 of the Companies Act 1948 (now

Section 372 of the Companies Act 1985) in Britain or that, at least,

the section should be amended to provide that only another member

of the club could be appointed as a proxy. The almost universal

reaction was that strangers should not be able to speak and vote

at a general meeting of a private club.

4.10

The criticism of Section 157A was rather less strong

and three of the organisations consulted felt that they could live

with the section. However, most did feel that the section was an

unnecessary complication which went against their existing rules and

procedures and that there was no real justification for it.

4.11

With regard to Section 114C, Members recognised that the

application of the section to all companies was in line with the

recommendation of the Jenkins Committee. One Member, with considerable

experience of these matters in Britain, thought that the situation there

was very different as far as private clubs were concerned in that far

fewer of them were incorporated as companies compared with Hong Kong

where, for various reasons, a large number or clubs are incorporated

as companies limited by guarantee. This meant that when the Jenkins

Committee decided on their recommendations to extend Section 136 of

the Companies Act 1948 to apply to all companies, they had not had

to take into account the impact of such a change on a large number

of clubs. Accordingly, even if the Jenkins Committee's recommendations

had been implemented in Britain, this would not have meant that they

would have constituted a good precedent for Hong Kong. It was also

felt that when the Companies Law Revision Committee had agreed in

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