Orders of the Day — Government of India Bill. – in the House of Commons at on 27 March 1935.
Mr Arthur Molson
, Doncaster
I beg to move, in page 69, line 18, after "Act," to insert:
or proposed to be incorporated after the passing of this Act.
The Clause as drafted provides that a British subject domiciled in the United Kingdom shall be deemed to comply with so much of any Federal and Provincial law as imposes in regard to companies incorporated, whether before or after the passing of the Act, by or under the laws of British India, certain requirements or conditions. It would still be possible for Indian legislatures to prohibit the incorporation of a company unless it satisfied certain requirements such as that a majority of its shareholders or of its directors should be Indians. I think it is the intention of the Clause that no discrimination of that kind should be possible and I hope the Government will be prepared to accept the Amendment.
Mr Donald Somervell
, Crewe
I understand that my hon. Friend is apprehensive lest there might be legislation relating to steps which have to be taken prior to incorporation by which the intention of the Clause might be defeated. He fears that legislation might discriminate in matters connected with steps which have to be taken before incorporation as a result of which you could not get incorporated and therefore the provisions of the Clause would be rendered inoperative. We are grateful to him for putting down the Amendment but I ask him not to press it in this form at this stage. We think he has raised a point which requires consideration and if there is any ground for his apprehension we shall certainly see that it is remedied at a later stage.
Mr Thomas Inskip
, Fareham
I beg to move, in page 69, line 32, at the end, to insert:
(2) If and in so far as, in the case of any such companies as aforesaid, any total or partial exemption from taxation imposed by or under any Federal or Provincial law depends on compliance with conditions as to any of the matters afore said then, so far as regards such members of its governing body and such of its shareholders, officers, agents, and servants as are British subjects domiciled in the United Kingdom, any such company shall be deemed to satisfy those conditions and he entitled to the exemption accordingly, so long as the taxation imposed by or under the Laws of the United Kingdom on companies incorporated by or under those laws does not, as regards such of the members of a company's governing body or such of its shareholders, officers, agents, or servants, as are British subjects domiciled in British India, depend on compliance with conditions as to any of the matters aforesaid.
This Amendment and the Amendment which follows it on the Paper are designed to do for companies incorporated in India but with British capital and British directors, precisely the same as is done by Clause 113 for companies registered in the United Kingdom but carrying on business in India. The effect is to put these two classes of companies on the same basis.
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