tered in the name of any enemy. (Br. Cap. 12/14, s. 8; Br. Cap. 79/15, s. 3; Interp. "Enemy.")

(4) Any violation of any provision of this order shall be an offense against these Orders and Regulations.

7. If a stipendiary magistrate is satisfied, on information on oath laid on behalf of the Secretary of State, that there is reasonable ground for suspecting that an offense under any of orders 2 to 6, inclusive, of these Orders and Regulations has been or is about to be committed by any person who is within the territorial jurisdiction of said stipendiary magistrate, he may issue a warrant authorizing any person appointed by the Secretary of State and named in the warrant to inspect all books or documents belonging to or under the control of that person, and to require any person able to give any information with respect to the business or trade of the suspected person, to give that information, and if accompanied by a police officer to enter and search any premises used in connection with the business or trade, and to seize any such books or documents as aforesaid: Provided, That if it appears to the Secretary of State that the case is one of great emergency and that in the interests of the State immediate action is necessary, the Secretary of State may, by written order, give to a person appointed by him the like authority as may be given by a warrant of a stipendiary magistrate under this section. [Br. Cap. 87/14, s. 2 (1).]

8. (1) Where it appears to the Secretary of State

(a) That one of the partners in a firm was immediately before or at any time since the commencement of the present war a subject of, or resident or carrying on business in, a State for the time being at war with His Majesty; or

(b) That one-third or more of the issued share-capital or the directorate of a company immediately before or at any time since the commencement of the present war was held by or on behalf of or consisted of persons who were subjects of, or residents or carrying on business in, a State for the time being at war with His Majesty; or

(c) That a person, firm, or company was or is acting as agent for any person, firm, or company trading or carrying on business in a State for the time being at war with His Majesty;

The Secretary of State may, if he thinks it expedient for the purpose of satisfying himself that the person, firm, or company is not trading with the enemy, by written order given to a person appointed by him, without any warrant from a stipendiary magistrate, authority to inspect all books and documents belonging to or under the control of the person, firm, or company, and to require any person able to give

information with respect to the business or trade of that person, firm, or company, to give that information. [Br. Cap. 87/14, s. 2 (2).]

(2) No action shall be brought or other proceedings commenced by a company, the books and documents of which are liable to inspection under this order, unless notice in writing has previously been given by the company to the Custodian of their intention. (Br. Cap. 79/15, s. 4.)

9. Any person who, having the custody of any book or document which a person is authorized to inspect under orders 7 or 8 hereof, refuses or willfully neglects to produce it for inspection, and any person who being able to give any information which may be required to be given under said orders 7 or 8 refuses or willfully neglects when required to give that information, shall be guilty of an offense against these Orders and Regulations.

10. For the purposes of order 8 hereof any person authorized in that behalf by the Secretary of State may inspect the register of members of a company at any time, and any shares in a company for which share warrants to bearer have been issued shall not be reckoned as part of the issued share capital of the company. [Br. Cap. 87/14, s. 2 (2).]

11. Where a person has given any information to a person appointed to inspect the books and documents of a person, firm, or company, under orders 7 or 8 hereof, the information so given may be used in evidence against him in any proceedings relating to offenses of trading with the enemy within the meaning of these Orders and Regulations, notwithstanding that he only gave the information on being required so to do by the inspector, in pursuance of his powers under the said Orders. (Br. Cap. 12/14, s. 13.)

12. Where, on the report of an inspector appointed to inspect the books and documents of a person, firm, or company, under orders 7 or 8 hereof, it appears to the Secretary of State that it is expedient that the business should be subject to frequent inspection or constant supervision, the Secretary of State may appoint that inspector or some other person to supervise the business, with such powers as the Secretary of State may determine, and any remuneration payable and expenses incurred, whether for the original inspection or the subsequent supervision, to such amount as may be fixed by the Secretary of State, shall be paid by the said person, firm, or company. [Br. Cap. 12/14, sec. 12 (1).]

13. (1) Where it appears to the Secretary of State in reference to any person, firm, or company—

(a) That an offense against any of these Orders and Regulations has

been or is likely to be committed in connection with his or its trade or business; or

(b) That the control or management of said trade or business has been or is likely to be so affected by the state of war as to prejudice the effective continuance thereof and that it is in the public interest that the said trade or business should continue to be carried on; or

(c) That it is expedient in the public interest owing to circumstances or considerations arising out of the present war that a controller or manager of said trade or business should be appointed.

The Secretary of State may apply to the same court as would, within the Province wherein said person, firm, or company carries on said trade or business, have jurisdiction to appoint a receiver under the Companies Winding-Up Act of Canada for the appointment of a controller of the firm or company, and said court shall have power to appoint such a controller for such time and subject to such conditions and with such powers as the court thinks fit; and the powers so conferred shall be either those of a receiver and manager or those powers subject to such modifications, restrictions, or extensions as the court thinks fit (including, if the court considers it necessary or expedient for enabling the controller to borrow money, power, after a special application to the court for that purpose, to create charges on the property of the firm or company in priority to existing charges).

(2) The court shall have power to direct how and by whom the costs of any proceedings under this order, and the remuneration, charges, and expenses of the controller, shall be borne, and shall have power, if it thinks fit, to charge such costs, charges, and expenses on the property of the firm or company in such order of priority, in relation to any existing charges thereon, as it thinks fit. [Br. Cap. 87/14, sec. 3, and Br. Cap. 12/14, sec. 11 (1) and 11 (2).]

14. Where the Secretary of State certifies that it appears to him that a company registered within Canada is carrying on business either directly or through an agent, branch, or subsidiary company outside Canada, and that in carrying on such business it has entered into or done acts which, if entered into or done within Canada, would constitute the offense of trading with the enemy, the Secretary of State may present a petition for the winding-up of the company by the court under the Companies Winding-Up Act of Canada, and the issue of such a certificate shall be a ground on which the company may be wound up by the court, and the certificate shall, for the purposes of the petition, be evidence of the facts therein stated. (Br. 1916, sec. 11.)

15. No company shall during the continuance of the present war,

without the license of the Secretary of State previously obtained, acquire or attempt to acquire the whole or any part of the undertaking of a person, firm, or company the books and documents of which are liable to inspection under order 7 or 8 hereof. [Br. 12/14, sec. 9 (1).]

16. Any company which in violation of order 15 hereof acquires or attempts to acquire the whole or any part of the undertaking of a person, firm, or company the books and documents of which are liable to inspection under order 7 or 8 hereof shall, without prejudice to any other liability, be guilty of an offense against these Orders and Regulations.

17. (1) Where it appears to the Secretary of State that the business carried on within Canada by any person, firm, or company is, by reason of the enemy nationality or enemy association of that person, firm, or company, or of the members of that firm or company or any of them, or otherwise carried on wholly or mainly for the benefit of or under the control of enemy subjects, the Secretary of State shall, unless for any special reason it appears to him inexpedient to do so, make an order either

(a) Prohibiting the person, firm, or company from carrying on the business, except for the purposes and subject to the conditions, if any, specified in the order; or

(b) Requiring the business to be wound up.

(2) The Secretary of State may at any time revoke or vary any such order, and may in any case where he has made an order prohibiting or limiting the carrying on of the business, at any time, if he thinks it expedient, substitute for that order an order requiring the business to be wound up. [Br. 1916, sec. 1 (1).]

(3) Where the Secretary of State makes any such order he may at the same time or at any time subsequently appoint a controller to control and supervise the carrying out of the order; and, if the case requires, to conduct the winding-up of the business; and in any case where it appears expedient to the Secretary of State, he may, as occasion requires, confer on the controller such powers as are exercisable by a liquidator in a voluntary winding-up of a company (including power in the name of the person, firm, or company, or in his own name, and by deed or otherwise to convey or transfer any property and power to apply to the court having jurisdiction in winding-up proceedings under the Companies Winding-Up Act of Canada, or a judge thereof, to determine any question arising in the carrying out of the order, or those powers subject to such modifications, restrictions, or extensions as the Secretary of State thinks necessary or convenient for the purpose of giving full effect to the order, and the

remuneration of and costs, charges and expenses incurred by the controller, and any remuneration payable and costs, charges and expenses incurred in connection with the supervision or inspection of the business, to such amount as may be approved by the Secretary of State, shall be defrayed out of the assets of the business and shall be charged on such assets in priority to any other charges thereof. [Br. 1916, sec. 1 (2).]

(4) The distribution of any sums or other property resulting from the realization of any assets of the business, whether these assets are realized as the result of an order requiring the business to be wound up or as the result of an order prohibiting or limiting the carrying on of the business, shall be subject to the same rules as to preferential payments as are applicable to the distribution of the assets of a company which is being wound up under the Companies Winding-Up Act of Canada, and those assets shall, so far as they are available for discharging unsecured debts, be applied in discharging such debts due to creditors who are not enemies in priority to the unsecured debts due to creditors who are enemies; and any balance, after providing for the discharge of liabilities, shall be distributed amongst the persons interested therein in such manner as the Secretary of State may direct: Provided, That any sums or other property which, had a state of war not existed, would have been payable or transferable under this subsection to enemies, whether as creditors or otherwise, shall be paid or transferred to the Custodian, to be dealt with by him in like manner as money paid to him under these Orders and Regulations. [Br. 1916, sec. 1 (3).]

(5) Where there are assets of the business in enemy territory, the controller shall cause an estimate to be prepared of the value of those assets, and also of the liabilities of the business to creditors, whether secured or unsecured, in enemy territory, and of the claims of persons in enemy territory to participate in the distribution of any balance available for distribution, and such liabilities and claims shall, for the purposes of this order, be deemed to have been satisfied out of such assets so far as they are capable of bearing them, and the balance (if any) of such liabilities and claims shall alone rank for payment out of the other assets of the business. A certificate by the controller as to the amount of such assets, liabilities, claims, and balance shall be conclusive for the purposes of determining the sums available for discharging the other liabilities and for distribution amongst other persons claiming to be interested in the business: Provided, That nothing in this provision shall affect the rights of creditors of and other persons interested in the business against the assets of the business in enemy territory. (Br. 1916, sec. 4.)