November 14.
On October 13 under the title of "Companies" Ordinance 1910" a Bill introduced before the Legislative Council of Hongkong and was read a first time. The second reading is to take place this month, and in view of the numerous and important changes in Company law that it proposes to bring into force, it desirable that those who are interested in Shanghai companies should make themselves familiar with the terms of the new measure. As is known, the present Company law operative in Hongkong is consolidation of the original Companies' Ordinance of 1865 and of various subsequent ordinances, which adopted selected portions of later British legislation. It contains none of the Home legislation utter 1898, and the legislation up to that year was only partially incorporated.
Not the least ing law is the failure to take over the terms of the Directors' Liability Act of 1890. Th" Bill now before the Council is based on the English Companies (Consolidation) Act of 1908, anti embodies the Act of 1890 and the Companies Act of 1907. Its provisions, which are exceedingly numerous, apply to existing as well as to future companies, and if passed into law, will need to be studied by all who have to do with the management of companies.
Within the limits at our disposal it is impossible even to summarize the whole scope of the now Bill, but we may refer to a few of the salient features, leaving matters of special application to. Shanghai for later consideration Every one contemplating the issue of a prospects must stady Section LXX XII of the Ordinance, where he will find fourteen requirements of most searching character, intended to give the public the fallest information about the proposed venture and all connected with it. Farther the minimum subscription on which the Directors will proceed to allotment must be stated and every Director must sign a consent
Text read from the printed page and cleaned; old type leaves the occasional error.