1995 — Page 106

REPORT OF THE DIRECTORS

4.

Mr Charles Lui Chung Yuen and members of his family together have an interest in certain private trusts which beneficially held 1,299,965 ordinary shares in the Company.

As at 31 December 1995, none of the Directors or chief executive had any non-beneficial interest in the share capital of the Company.

DIRECTORS' SERVICE CONTRACT

No Director proposed for re-election at the forthcoming Ordinary Yearly Meeting has an unexpired service contract with the Company which is not determinable by the Company within one year without payment of compensation, other than normal statutory obligations.

INTERESTS IN CONTRACTS

No contract of significance to which the Company was a party and in which a Director of the Company had a material interest subsisted at the end of the year or at any time during the year.

ARRANGEMENTS TO PURCHASE SHARES OR DEBENTURES

At no time during the year was the Company a party to any arrangement to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

SUBSTANTIAL INTERESTS IN THE SHARE CAPITAL OF THE COMPANY

The Company has been notified of the following interests in the Company's issued shares at 31 December 1995 amounting to 10% or more of the ordinary shares in issue:

Sun Hung Kai Properties Limited

Arklake Limited

Kowloon Development Company Limited

37

THE KOWLOON MOTOR BUS COMPANY (1933) LIMITED

Ordinary

Shares Held

Percentage

of Total

Issued Shares

130,402,306

32.31%

62,664,285

15.52%

44,605,369

11.05%