188
THE NEW ZEALAND GAZETTE.

The following is the copy of the Minute re-
ferred to:-

Copy of Treasury Minute, dated 31st
October, 1862.

The Assistant Secretary brings under the
notice of the Board an advertisement which
has appeared in the public papers, of the estab-
lishment of a Joint Stock Bank under the
Joint Stock Banking Companies Amendment
Acts, by the "The London and Colonial
Bank (limited);" likewise an advertisement of
the Standard Bank of British South Africa
(limited).

In the memorandum of the first mentioned
Association, registered under the Joint Stock
Companies Acts, 1857 and 1858, it is stated
that the object of the establishment of the
Company is the "transacting of every kind of
banking business in India, and the Colonial
Dependencies of Great Britain beyond the
limits of the United Kingdom."

But it appears from the advertisement, that
"in the first instance it is intended to confine
the operations of the bank to Canada," and it
is announced that "the management of the
Bank will be in London, and a Branch Office
will in the first instance be established in Mon-
treal, under the control of a Local Board of
Directors."

On referring to the Acts relating to Joint
Stock Companies and Joint Stock Banking
Companies, my Lords observe that a distinction
was drawn by the Legislature in the earlier
enactments between the two descriptions of un-
dertakings. An Act was passed in 1844 for
the regulation of Joint Stock Companies gene-
rally, and in the same year another Act was
passed for the regulation of Joint Stock Banks
in England.

In the year 1846 an Act was passed extend-
ing the provisions of the last-mentioned Act to
Scotland and Ireland.

"The Limited Liability Act, 1855," applies
only to Joint Stock Companies formed under
7 & 8 Vict., c. 110.

The Joint Stock Companies Act of 1856
excepts from its operation Banking and
Insurance Companies.

Thus far legislation relating to banking in
the United Kingdom was kept distinct from
that relating to Joint Stock Companies for
other description of business.

A further Act was, however, passed in the
year 1857 for the regulation of Joint Stock
Companies constructed as one with the Act of
the preceding year, and which may be cited
with it as the Joint Stock Companies Acts,
1856-1857.

In the same session, an Act, entitled "Joint
Stock-Banking Companies Act, 1857," was
passed, which repeals the 2nd section of "Joint
Stock Companies Act, 1856," and incorporates
with its enactments the "Joint Stock Com-
panies Acts, 1856 and 1857," except that it
does not permit banks to be registered with
limited liabilities.

This latter restriction was removed by an
Act passed in 1858, except as regards banks
of issue in the United Kingdom.

From the foregoing recital of enactments, it
would seem that the intention of Parliament
had been, in the first instance, to provide a
different system of legislation for Joint Stock
Banking Companies in the United Kingdom
from that applicable to other Joint Stock
Companies, and it may be presumed that by
the later legislation which removed that dis-
tinction (with exception of Banks of issue in
the United Kingdom), Parliament had in view
only Joint Stock Banking Companies in
England, Scotland, and Ireland, which formed
the subject of the Acts of 1844 and 1856.

A more extended view of the operation of
these Acts was however taken by the "Agra and
United Service Bank (limited)," which having
obtained a charter under the Act of 1844,
reciting a deed of settlement, which purported
to recognise a power of carrying on the
business of banking beyond the limits of the
United Kingdom, was afterwards registered
under the Limited Liability Acts.

My Lords understand also that proposals
have been made for the establishments of other
Banks under the Joint Stock Banking Com-
panies Acts, for the purpose of carrying on
the business of banking abroad or in the
Colonies, under the control of Boards of
Directors in London.

The "London and Colonial Banke (Limited)"
now advertized, is, however, as far as this
Board is aware, one of the first establishments
which have been organized under the Joint
Stock Banking Companies Acts for the
avowed object of carrying on the business or
banking in Her Majesty's Possessions beyond
the limits of the United Kingdom; and my
Lords apprehend that very serious considera-
tions may arise from that proceeding as affect-
ing legislation for local purposes under powers
conferred by Parliament on many of Her
Majesty's Colonies and Possessions.

In the case of a Bank established for the
purpose of carrying on business in a foreign
country, as in that of the London and Brazilian
Banking Company, the same questions would
not arise. Whatever may be the propriety or
legality of an understanding of this nature,
promoted under the assumed authority of Acts
of the Imperial Parliament, the authority of
those Acts cannot extend beyond the limits of
the British empire, and persons carrying on
business in a foreign country under the direc-
tion of a Company incorporated in London,
must be subject to the laws of the country in
which the business is transacted.

But in the case of a British possession, the
authority of the Crown and of Parliament may
still have force, notwithstanding the concession
of the right of separate legislation.

As, for example, it has been held that even
after Parliament had conferred on the East
India Company the power of granting Charters
of Incorporation to Banking Companies in
India, the inherent right of the Crown to
grant similar charters was not thereby res-
trained. A Company incorporated therefore
under the laws of this country may possess the
rights of an incorporated body in British Pos-