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Colonial Cases

Shanghai Cotton Manufacturing Co., Ltd, 1920

[company, winding up]

Shanghai Cotton Manufacturing Co., Ltd.

Supreme Court of China and Japan
4 March 1920
Source: The Canton Times, 6 March 1920

 

Shanghai Cotton Manufacturing Co., Ltd.

QUESTION OF BRITISH DIRECTORATE MAJORITY.

 Shanghai, Mar. 4. - The case of the Shanghai Cotton Manufacturing Company, Ltd., again came before the Supreme Court this morning.

   The Crown Advocate, on behalf of the Registrar of Companies, applied for the winding up of the Company under Article VIII of the China Companies' Order in Council, 1915, requiring a majority of British directors in a British Company.

   The point is a purely technical one.  There are three British directors and three Japanese, one Japanese subject of the Mitsui Bussan Kaisha and the Mitsui Kaisha Shanghai manager.

   The Company pleaded ignorance of the law, and pointed out that it was not necessary to elect the manager as a director, he being legally such as the Mitsui Bussan Kaisha representative, and that he had not voted on two occasions.

   The Judge (Sir Havilland de Sausmares) rejected the application, holding that the Company had acted in good faith.

   The action in which several shareholders applied for an injunction to prevent the sale of the company to a Japanese syndicate (a full account of which appeared in the Daily Bulletin of March 3) will come up again on March 15. - Pacific Service.

Published by Centre for Comparative Law, History and Governance at Macquarie Law School