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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Corporate Governance Report (Continued)

BOARD OF DIRECTORS (Continued)

Responsibility and delegation (Continued)

All Directors have been provided, on a monthly basis, with

the Group's management information updates, giving a

balanced and understandable assessment of the Group's performance, position, and budget, to keep them abreast

of the Group's affairs and facilitate them to discharge their duties under the relevant requirements of the Listing Rules.

BOARD COMPOSITION

The Board comprises ten directors including two executive directors, four non-executive directors and four independent

non-executive directors. The names of the Directors of the

Company are as follows:

Executive Directors

Mr. Lam Ko Yin, Colin (Chairman)

Mr. Li Ning

Non-executive Directors

Mr. Au Siu Kee, Alexander

Mr. Lau Yum Chuen, Eddie

Dr. the Hon. Lee Shau Kee

Mr. Wong Man Kong, Peter

Independent Non-executive Directors

Mr. Ho Hau Chong, Norman

Mr. Leung Hay Man

Ms. Wong Yu Pok, Marina

Mr. Wu King Cheong

The biographical details of the Directors are set out in the section headed "Directors' and Senior Management's Profile" of this annual report on pages 3 to 7.

Dr. Lee Shau Kee and Mr. Li Ning are deemed as having

substantial interests in the issued share capital of the Company under Part XV of the Securities and Futures Ordinance ("SFO"). Dr. Lee is the father-in-law of Mr. Li

Ning. Dr. Lee Shau Kee, Messrs. Lam Ko Yin, Colin, Li Ning, Au Siu Kee, Alexander, Lau Yum Chuen, Eddie, Leung Hay

Man and Wu King Cheong are directors of Henderson Land Development Company Limited ("HLD"). Messrs. Leung Hay Man, Wu King Cheong and Au Siu Kee, Alexander are independent non-executive directors of HLD. HLD has discloseable interests under the provisions of the SFO in the Company.

Prior to the implementation of the new code provision in Board Diversity in September 2013, the Company has already complied and adopted the board diversity policy (the "Board Diversity Policy") setting out the approach to achieve diversity on the Board in August 2013. The

Nomination Committee of the Company will monitor the implementation of the Board Diversity Policy and review the

policy as appropriate.

Save as disclosed above, there is no financial, business, family or other material or relevant relationship among the

Directors.

APPOINTMENT AND RE-ELECTION OF DIRECTORS

The Nomination Committee of the Company (the

"Nomination Committee”) has been established on 20 March

2012 to review the structure, size and composition of the Board, identify suitable candidates to the Board, and to

make recommendations on any matters in relation to the appointment or re-appointment of members of the Board. Appointment of new Directors is reserved for the Board's

approval.

The Nomination Committee ensures that the Board

comprises members with mixed skills and experience with appropriate knowledge necessary to accomplish the Group's business development, strategies, operation, challenges and opportunities. The Nomination Committee takes into account that person's skills, qualifications and expected contributions to the Company before making any recommendations to the Board in relation to the appointment or re-appointment of members of the Board.

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