TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 106

5. Part IV contains provisions dealing with the Road

and Rail Companies. Clause 11 entitling the Government to

appoint not less than 2 directors on the board of the Road

Company. Clause 12 specifies the minimum share capital of

the companies and clause 13 gives the Government a holding

in the equity of the Road Company 5 per cent initially

and 7.5 per cent after a trunk road to Shatin under Tate's

Cairn is opened. Clause 14 confers tax privileges on the

Road and Rail Company so that the Companies are treated for

tax purposes as if they had constructed the works which

they have the right to maintain under the Bill.

6.

Part V deals with the duties of the Road Company

and the Government in carrying out the project. All

construction works are to be by, and at the expense of, the

Road Company (clause 15). This Part also provides for the

start of construction (clause 16) and the period within

which the works are to be constructed. The period is 42

months from the start of construction and can be extended

by the Governor in Council and by the Director to deal with

untoward events arising (clause 17). Land provided for the

project is to be supplied by the Government, free of charge

(but subject to clause 20) in the case of the land needed

for the construction works and at a premium in other case