CAP. 393]
Tate's Cairn Tunnel
[1988 Ed.
(2) Nothing in section 6 or subsection (1) shall apply to any mortgage, charge, assignment or other arrangement entered into by the Company, which secures any debt or obligation of the Company upon the right to receive the tolls under Part VIII.
(3) Where the enforcement of any mortgage or charge to which subsection (1) applies has the effect of transferring the franchise from a person who was the Company, immediately prior to the transfer, to any other person who thereby becomes the Company, the Secretary shall give notice thereof in the Gazette.
(4) A notice under subsection (3) shall specify the name of such other person and the date of the transfer.
PART IV
PROVISIONS RELATING TO THE COMPANY
Directors and paid up share capital of the Company
8. (1) A majority of the directors of the Company shall be persons who are ordinarily resident in Hong Kong.
(2) The Governor shall have power, notwithstanding any provision of the Companies Ordinance (Cap. 32) or any other law, the memorandum or articles of the Company or other instrument, to appoint 2 directors to the board of the Company.
(3) On the road operating date the issued and fully paid up share capital of the Company shall be $600,000,000.
Royalty payments
9. (1) The Company shall pay to the Government a royalty at the rate of-
(a) 2.5 per cent of the operating receipts for a period of 5 years after the road operating date; and
(b) thereafter, for the duration of the franchise, 5 per cent of the operating receipts.
(2) The Company shall pay to the Government a further royalty at the rate of-
(a) 15 per cent of the net operating receipts in excess of the projected net operating receipts for a period of 5 years after the road operating date; and
(b) thereafter, for the duration of the franchise, 30 per cent of the net operating receipts in excess of the projected net operating receipts.
(3) Payment of such royalty or further royalty, as the case may be, shall be due in respect of each period of-
(a) 6 months or part thereof, in the case of the royalty payable under subsection (1); and