North to Be Separate from Central China Tokyo, Mar. 14, Government bills for the creation of "national polley companies" designed to develop industries in North China and Central China will be presented to the Diet to-day.
The North China Development Company "will "be. capitalized at '¥,850,000,000, halt of which will be ald by the Government, while the Central China Development Company will have a capital. of ¥.100,000,000, halt of which will be subscribed by the Government.
The Central China Development! Company" with headquarters in Shanghai will invest in or grant tunds to electric power, gas and water supply works, "transportation and communteation services, mining and marine products industries and other enterprises, it was dislosed here to-'Executives of the' company\ will consist of a president, vice-president, more than three directors and two auditors.
Tt was decided to establish headquarters of the ¥.100,000 firm "in Shanghai because of ite favourable location from. which to rect the economic rehabilitation and development of Central China.
'Tenure of office of the president and vice-president was fixed at five years, Directors and auditors will be chosen at a general stockholders' meeting. Executives of the company will not bb permitted to engage In other professions. rae The North China Company Simultaneously plans for the inauguration of the North China development company were _announced to-day, the rules governing both firms following parallel lines.
Personnel of the North China company, which will be capitalized at '¥.380,000,000, will comprise a presldent, two vice-presidents, more than five directors and two auditors, according to the bills, The president and vice-presidents: will be appointed by the Government. Tenure of office 4s the same as that for the president of the Central China company. Directors will hold ofice for four years and auditors for three years, OMelals of this frm Ukewise will be prohibited from holding other positions. A number of advisers will be attached to the companies.
The purposes. of the North China firm were outlined Investing in, granting funds to or controlling the following branches of industry: trame, transportation, har-hour construction works, communication facilities, electric power, mining and salt producing projects, and sales organs.
"The company Is authorized to issue debentures to the amount of five times the paid up capital. The Government will guarantee the repayment of principal and interest on debentures, it was announced.
Both firms will be under the supervision of the Government in carry ing out their projects, while permission of the Government must be obtained to revise articles of incor~ poration or to make loans and dis pose of profits. The Government also Fesorves the right to issue any order to the companies that may be deemed necessary in controlling their business from the viewpoint of national defence, or economic development of China. The Government also may attach controllers to the firms, it was slated—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.