The situation hitherto has been as follows A company pays a certain registration fee in London or Hongkong and registers itself under the Companies' Acts. So long as the fees were paid, the authorities in British territories did not _concern themselves as to who the directors or management were, because everybody was under the jurisdiction of the regular courts. But when with the aid of such registra: tions, the companies began to operate in China, the question became much involved.
There have been instances of companies registered in London as limited liability companies,—all the directors being Germans or Austrians. That company operates in China as a British company, while not one of its officers is amenable to the discipline of the British Court. "Or again, there are companies, nominally" British, and registered in Hongkong; all their businesses are in Shanghai and other China ports. Hence there arose the curious spectacle of British authorities being powerless to control "British" companies.
Further, under the old regime, the executive authorities had no knowledge whatsoever of the standing of many "British" companies, and they were unable to obtain registration, the Consular author: ities do not afford Briti tion to such companies. Thi purely a question of prerogative, and has no connexion whatever with ezal procedure. Protection of British subjects in places other than His Majesty's dominions is purely a Royal prerogative; if the executive authorities have reason to withdraw protection from a com-any or individual, they can always do s0 by obtaining the sanction of! the Secretary for Foreign Affairs.
Te is notorious again that several of the so-called British companies operating in China are obtaining more credit and protection than they deserve, because very little is known to the authorities about them. Once the Rey tration becomes an accompliel ed fact, the public will also be protected against being imposed upon.
It is only too true that British prestige in China has been consider. ably hurt by the go-called "British" companies, which in many cases are not at all under British management.
Text read from the printed page and cleaned; old type leaves the occasional error.