Sessional_Paper_1901 — Page 754

HONGKONG.

REGISTRATION OF CHINESE PARTNERS.

Laid before the Legislative Council by Command of His Excellency the Governor.

REPORT

OF THE

COMMITTEE APPOINTED TO INQUIRE INTO THE REGISTRATION OF

CHINESE PARTNERSHIPS.

SIR,

HONGKONG, 24th September, 1901.

749

No. 43

1901

The Committee appointed by His Excellency the Governor to inquire into the advisability of introducing a Bill for the Registration of Partners in Chinese firms, have the honour to report as follows:-

2. At the preliminary meeting of the Committee on the 5th March last, when Mr. Justice SERCOMBE SMITH was Chairman, it was decided that all the papers connected with the subject should be read by the members individually so that they might be- come thoroughly conversant with the history of the question under consideration. This was done, and after further meetings, it was decided that some gentlemen of experience should be asked to attend and be questioned as to their opinions on the matter. Ac- cordingly, the papers were passed on to Sir THOMAS JACKSON and Mr. CHATTERTON WIL- cox, respectively, and they, together with Mr. J. F. REECE, were, on the 8th July last, examined before the Committee, so also were Messrs. FUNG WA CHUN, HO FOOK and LAU YAM CHUN on the 22nd July last.

3. After hearing the opinions of the above mentioned gentlemen and after fully considering the question themselves, the numbers of the Committee unanimously decided (though for different reasons) that it would be inadvisable to introduce such legislation whether penal or disabling. The general ground, however, for such a deci sion was that it would be impracticable to give due effect to such legislation. Amongst the reasons brought forward to support such a decision were the following:

Ist. That in consequence of the difference between English and Chinese law us to the liabilities of a partner in an insolvent firm, the Chinese would not be inclined to register their true names, and that any such registration would there- fore tend to fraud and litigation.

2nd. The enormous expense that would be entailed owing to the difficulty of finding out who the partners in a Chinese firm are,

3rd. That such legislation would tend to drive capital from the Colony and would seriously interfere with trade.

4. The above are shortly the reasons which have induced the Committee to advise inst the proposed legislation, but in order that the decision should be more perfectly un Jerstood, the detailed statements of the members and the gentlemen who came forward. are attached hereto, together with the minutes of some meetings held, taken by the Secretary to the Committee.