DEVICE FOR DISCLOSURE 193

the point and in the large majority of cases would disclose
the extent of alien interests and control:—

(a) Every allottee of shares upon allotment and every

transferee upon transfer should be required to
make a declaration disclosing his nationality
and whether he is the beneficial owner of the
shares, and, if not, for whom he is trustee, and
what is the nationality of the beneficial owner,
and should undertake within a limited time,
after any change in the beneficial ownership, to
communicate the new facts to the company.
In default of compliance with the above, the
shares should, at the option of the company,
either (i) be liable to sale by the company and
the holder be entitled only to the proceeds ; or
(2) be liable to forfeiture and the holder be
entitled to receive payment from the company
of 10 per cent, less than the market value of the
share, or if there be no market value, then
10 per cent, less than the value at which the
share would be taken for ad valorem stamp duty
if it were the subject of transfer. In case the
company made default in exercising its power,
the Board of Trade should be authorised to
require the above sale to be made.

(b) Every director, upon coming into office, should be

required to make a declaration disclosing his
nationality and stating whether in his office
he is wholly free from the control or influence
of any alien, and if he is not so free, stating by
whose directions or under whose control or
influence he is to act and what is the nationality
of that person, and should undertake within a
limited time after any change in that state of
things to communicate the facts to the Board
arid procure a statement of the facts to be
entered in the Boaxd minutes. Any breach of
these obligations to be visited with a penalty
which should be severe.