Preventing Evasion on Share Gare sorjects and reasons" of a Transactions
Bill published in the Hongkong Government Gazette state that the tthe of carrying out of the re-Government intends to legislate on
conimendations of the recent Stamy Daties Committee, The committee was appointed by the Government "to consider the amendment of the Stamp Ordinance with a view to preventing evasion of the stamp duty on share transactions and of the estate duty on forming part of the estates sassed persons, Two proposals were recommended by the committee, The first, refer-zed to as the dividend proposal. should, it was stated, tend to courage the registration of transfers at the time of each declaration of dividend, and the second proposal should make it easier for the Estate Duty Commissioner to ascertain whether shares standing in the name of a deceased are part of his estat" for not. The second proposal also embodied a provision auxiliary to the first proposal, as it made deceased's estate liable for contraventions of the dividends section.
To Prevent Passing on Dividends Section 6 of the amending: Ordinance introduces a section unanimously recommended by the ce! mittee, It is intended to prove the passing on of dividends to unregistered shareholders and veads as follows:—26A.—(1) No person shall be entitled to claim, directly or indirectly, the payment of any dividend, or of the amount or-value of any' end, on any share on a share register which is by law required to Be kept within the Colony, unless (a) such person is the registered owner of the share in question a: the time of such claim, or (b) such person was the registered owner of the share in question at some date subsequent to the declaration of the dividend in question, or (c) such person is entitled to be paid uch dividend under a bona fide declaration of trust in favour of 4 Oe '8-0 bone fide ceslud que trust, specified person or firm, or other-
Sve (cly such person has bone de ent money on the security of the share in question and is entitled by the express written terms of the loan agreement to claim such dividend, When Demand and Payment are (2) No person shall, orally or in writing, demand or request, or accopt, directly or indirectly, payment of any dividend, which under the provisions of sub-section (1) he not entitled to claim, (8) No. person shall, directly or indirectly, pay any dividend, or the amount of value of any dividend, on any share on a share register which ig by law required to be kept with the Colony, to any other person unless (a) such other person is the registered owner of the share in ques tion, or (b) such other person was the registered owner of the shar in question at some date subsequent to the declaration of the dividend in gestion, oF (e) such other perso is entitled to be paid such dividend under a bona fide declaration of trust in favour of a specified person or firm, or otherwise as a bona fide ceatui que trust, or (d) such ether. person has bona fide lent money on the security of the share in question and is entitled by the express written terms of the loa: agreement to claim such dividend.
(4) For the purposes of this se: tion, notwithstanding any declar: tion' of trust or agreement whatsoever, no unregistered beneficial own. er of any share shall ye deemed to be-entitled as cestui quo trust to be paid any dividend on such share by any previous registered owner of such share.
(5) Every person who con traveness any of the provisions of this section shall upon summary conviction be liable to a fine not exceeding one thousand dollars the total amount of dividend in question, whichever limit be the greater.
Text read from the printed page and cleaned; old type leaves the occasional error.