CONFIDENTIAL
XCC(93)106
THE BILL
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The Bill is modelled on the UK Act. Clause 2 provides that where a question arises as to whether a corporation incorporated under the laws of a territory which is not recognized by the UK as a State, and the laws of that territory are at that time applied by a settled court system in that territory, the question of whether the corporation should be regarded as having legal personality as a body corporate in Hong Kong and other material questions shall be determined as if that territory were a recognized State.
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Clause 2(3) provides that any act done before the commencement of the Ordinance is regarded as valid if it would have been valid pursuant to the provisions of the Ordinance.
LEGISLATIVE TIMETABLE
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Subject to Members' approval of the introduction of the Bill into the Legislative Council, the legislative timetable will be -
Publication in the Gazette
First Reading and commencement of the Second Reading debate
Resumption of Second Reading debate, committee stage and Third Reading
9 July 1993
21 July 1993
to be notified
BILL OF RIGHTS IMPLICATIONS
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The Bill has no Bill of Rights implications.
CHINA DIMENSION
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There may well be sensitivities on the Chinese end on suggestions about "recognition" of Taiwanese corporations, but this is a commercial reality which has to be addressed. Furthermore, it concerns not only the development of Hong Kong's commercial and economic relationship with Taiwan, but also other territories which are not recognized by the UK. As a result, we do not think it is necessary to take the initiative to brief the Chinese. If asked, it would be explained that we are following the relevant UK legislation, for the same reasons. The Chinese Government had not expressed any objection to the UK Act before it was passed.
Executive Council
No comments yet.
Private notes are available after approval.