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CORPORATE GOVERNANCE REPORT (CONTINUED)

COMMUNICATION WITH SHAREHOLDERS

The Company continues to pursue investor relations and communications with Shareholders.

The Board has adopted a 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 has established 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 external 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 23 May 2014.

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 Articles of Association of the Company and applicable laws, rules and regulations, which prevail over what is stated in this section in case of

inconsistencies.

1.

2.

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 provisions of 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.

Procedures for putting forward enquiries to the

Board

Shareholders may put forward enquiries to the Board through the Company Secretary who will direct the enquiries to the Board for handling. The contact details of the Company Secretary are as follows:

The Company Secretary

Hong Kong Ferry (Holdings) Company Limited 98 Tam Kon Shan Road

TYTL 102

Ngau Kok Wan

North Tsing Yi

New Territories

Hong Kong

E-Mail:

[email protected]

Telephone: (852) 2394 4294 Facsimile:

(852) 2786 9001

Hong Kong Ferry (Holdings) Company Limited Annual Report 2014