TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 18

MASS TRANSIT RAILWAY CORPORATION BILL

The Corporation has power to do whatever is expedient for or con- ducive to the attainment of its purposes (clause 6(1)). Certain specific powers are spelt out in clause 6(2) and (3).

The person appointed under clause 4(1) as Chairman of the Board is at the same time the chief executive of the Corporation and as such is employed by the Corporation on such conditions as the Governor may determine (clause 7(1)). Clause 7(2), (3) and (4) provides for the appoint- ment of a Managing Director and other staff and advisers.

Pensions, gratuities, retirement and welfare benefits may be granted by the Corporation (clause S(1), (2) and (3)) and it may provide housing for its staff and advisers (clause 8(4)).

Provision is made concerning the documents of the Corporation and their mode of execution (clause (9)).

C129

PART III-FINANCIAL

The Corporation has an authorized capital of $2,000,000,000 (clause 10(1)) which may be increased by order made by the Governor and published in the Gazette (clause 10(2)). The shares shall be allotted to the Government as required by the Financial Secretary (clause 10(3)).

The Corporation has power for certain specified purposes (clause 11(3)) to borrow money and issue securities (clause 11(1)) and to buy on credit (clause 11(2)).

The Government may guarantee the debts and securities of the Corporation (clause 12(1)). There is a charge on the general revenue of the Colony of sums required to fulfill such guarantee (clause 12(2)). If the Government pays off a creditor of the Corporation it is entitled to the same security and priority in ranking as that creditor had (clause 12(3)).

The Corporation is to operate as a commercial undertaking and balance revenue with expenditure (clause 13(1)). "Expenditure" in this respect is amplified by clause 13(3).

Reserve funds may be established (clause 14).

The Financial Secretary is to approve the type of securities in which the Corporation may invest (clause 15).

Accounts are to be prepared by the Corporation in respect of each year (clause 16(1)) and, after audit, must be furnished to the Financial Secretary for tabling in the Legislative Council along with the auditor's report and a report on the affairs of the Corporation (clause 16(4) ).

The Corporation is to reimburse the Government (clause 17(1)), in an amount to be quantified by the Financial Secretary (clause 17(2)) and in such manner as he directs (clause 17(3)), for certain expenditure (clause 17(4)) of the Government in connexion with the railway project. This amount may be used by the Government to pay for shares in the Corporation allotted to it (clause 10(3)).

The Corporation will not be a Government agency (clause 18), but the Governor may obtain information about its property and affairs (clause 19) and, subject to compensating it in certain circumstances, may give general directions to the Corporation (clause 20).