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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Corporate Governance Report (Continued)

COMMUNICATION WITH

SHAREHOLDERS

The Company continues to pursue investor relations and

communications with Shareholders.

The Board adopted shareholders communication policy to set out the Company's procedures in providing the Shareholders with prompt and equal access to information

about the Company, in order to enable the Shareholders to

access the Company's overall performance, exercise their rights in an informed manner and engage actively with the Company.

The Company's senior management has undertaken the role of establishing an effective communication system. The Company also maintains a website (www.hkf.com) through which the Company's updated financial information, announcements, circulars, notices of meetings, press releases and contact details can be accessed by the Shareholders and investors. The Board believes that the Company's website provides an alternative means for the investing public to obtain information of the Company in a convenient and timely manner.

The annual general meeting also provides an important opportunity for constructive communication between the

Board and the Shareholders. The Chairman and the chairmen of the audit committee, remuneration committee and nomination committee as well as the Company's auditor maintained an on-going dialogue with the Shareholders and answered all questions raised by the Shareholders throughout the last annual general meeting held on 20 May

2013.

SHAREHOLDERS' RIGHTS

Set out below are procedures by which Shareholders may: (1) request to call an extraordinary general meeting; (2) put forward enquiries to the Board; and (3) request to circulate a resolution for an annual general meeting. These procedures are generally governed by the provisions of the Company's Articles of Association and applicable laws, rules and

regulations, which prevail over what is stated in this section

in case of inconsistencies.

1.

Procedures by which Shareholder(s) may request to call an extraordinary general meeting ("EGM")

Pursuant to the Articles of Association of the Company and the Companies Ordinance, Shareholder(s) representing at least 5% of the total voting rights of all the Shareholders having a right to

vote at general meetings of the Company (the "EGM

Requisitionist(s)") can make a request to call an EGM.

The Board must call an EGM within 21 days after the date on which it becomes subject to the requirement and the EGM so called must be held on a date

not more than 28 days after the date of the notice

convening the EGM. If the Board does not do so, the

EGM Requisitionist(s), or any of them representing more than one half of the total voting rights of all of them, may themselves convene the EGM, provided

that the EGM must be called for a date not more

than 3 months after the date on which the Board

becomes subject to the requirement to call the EGM. Any reasonable expenses incurred by the EGM Requisitionist(s) by reason of the Board's failure to duly convene the EGM shall be reimbursed to the

EGM Requisitionist(s) by the Company.