nd how many shares they hold, and (b)
as regards the rest, what are the nationalities and holdings of
the beneficial owners.

With regard to companies owning British shipping, the Committee is
satisfied that the total exclusion of aliens from ownership of British
ships is not essential for national safety and is not expedient. It
therefore considers that in these companies it will be sufficient to
ensure that not more than 20 per cent. of the power of control should
be in alien hands. It thinks that there should be this, limit of 20
per cent., that not more than 20 per cent. of the share capital should
be held by aliens, and that those shares should carry no more than 20
per cent. of the voting power. Alternatively, it considers that the
alien holdings should carry no vote at all, but that is a point of
detail deserving further consideration. It follows that in this
class there must, in the opinion of the Committee, be disclosure of
nationality, which should be enforced in the manner detailed above,
which, on its own admission, is not proof against deliberate evasion.

With regard to companies carrying on "key" industries, a very
complicated system is recommended. In the first place, the question
whether a company is one to carry on a "key" industry would seldom or
never arise at the time of its registration. The modern Memorandum of
Association includes so many things that a "key" industry might be
within the powers of almost any company. The question would thus arise
when the company has got to work. And so the Committee thinks that
the Board of Trade should be empowered at any time to make an inquiry
whether any company is carrying on a "key" industry and, if it finds
that it is, then the company shall, at the direction of the Board of
Trade, require every registered member to make a declaration such as,
under the disclosure procedure already described, he would have had
to make if he were at the date of the notice about to receive an
allotment or become a transferee. Further, the holders of share
warrants to bearer would be required to surrender their warrants for
cancellation and have their names entered in the register, and
all subsequent allottees and transferees would be subject to the
obligation of disclosure, as already described, and the limits of 20
per cent. recommended in the case of merchant shipping would then be
made applicable. Under the system of disclosure it follows that bearer
shares are