2013 — Page 107

23 CAPITAL AND RESERVES (Continued)

(b) Share capital

Authorised:

Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

Number of shares

2013

Nominal value

2012

2013

HK$'000

2012

HK$'000

Ordinary shares of HK$1 each

550,000,000 550,000,000

550,000

550,000

Issued and fully paid:

Ordinary shares of HK$1 each

356,273,883 356,273,883

356,274

356,274

There was no movement in share capital during the years ended 31 December 2013 and 2012.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's

residual assets.

(c)

Nature and purpose of reserves

(i)

Share premium

The application of the share premium account is governed by section 48B of the Hong Kong Companies

Ordinance.

(ii)

Securities revaluation reserve

(iii)

The securities revaluation reserve comprises the cumulative net change in the fair value of available- for-sale securities held at the balance sheet date and is dealt with in accordance with the accounting

policies adopted for the revaluation of securities (see note 1(f)).

Other capital reserves

The other capital reserves comprise the unrealised profit on inter-company interest capitalised under

investment properties.

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