For decision
on 31 May 1988
7 JUNE
CONFIDENTIAL
XCC (88) 58
ра
7
Copy No.
29.
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HKC 191
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MEMORANDUM FOR EXECUTIVE COUNCIL
Telephone Ordinance (Chapter 269)
TRANSFER OF PART OF THE UNDERTAKING OF HONG KONG TELEPHONE COMPANY LIMITED (TELCO)
THE PROBLEM
Section 35 of the Telephone Ordinance (Chapter 269) requires the prior approval of the Governor in Council to the transfer, lease, assignment, mortgage, charging or disposal of any part of the undertaking of Hong Kong Telephone Company Limited (Telco). Telco's undertaking is very broadly defined in Section 2 of the Ordinance to include all property belonging to the company.
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On 3 November 1987 Members were informed of the re-organisation of Cable and Wireless Public Limited Company (CWplc)'s interests in Hong Kong (Memorandum XCCI(87)54). This involved the setting up of a new holding company Hong Kong Telecommunications Limited (HongKong Telecom) which was
to acquire the interests of Telco, its subsidiaries and associated companies as well as those of Cable and Wireless (Hong Kong) Limited (CWHK).
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the subsidiary and
Under the new organisation, associated companies (1) of Telco which provide competitive
services ancillary to the exclusive services provided by Telco under its franchise will become (with Telco itself) subsidiaries or associated companies of Hong Kong Telecom. This involves the disposal by Telco to HongKongTelecom of Telco's shareholdings in its subsidiaries and associates.
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to
be a disposal of
Such a disposal is considered part of the Telco undertaking and requires the approval of the Governor in Council under Section 35 of the Ordinance.
(1) Telco has a 100% interest in Communication Services Limited (CSL), Integrated Business Systems Limited (IBS) and Telco Properties Limited (TPL); 91.7% interest in Computasia
Limited (CAL) and 38% interest in Television Hong Kong Limited (CTHK).
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