# Mass Transit Railway Ordinance/Part II

PART II Grant and Extension of Franchise
4. Grant of franchise to Corporation to operate railway
(1) Subject to this Ordinance, the Corporation is granted the franchise, for a period of 50 years from the appointed day—
    (a) to operate the Mass Transit Railway, including any extension to the railway;
    (b) to construct any extension to the railway.
(2) The terms and conditions agreed between the Government and the Corporation as having effect with respect to the franchise granted under this section are those set out in the operating agreement.
5. Extension of franchise
(1) At any time or times during the franchise period, but not later than 5 years before the expiry of that period, the Corporation may apply to the Chief Executive in Council for an extension of the franchise.
(2) An application for extension of the franchise under this section—
    (a) shall be made by notice to the Secretary; and
    (b) shall be accompanied by all materials that the Corporation wishes to put forward in support of the application.
(3) The Secretary shall submit to the Chief Executive in Council a report setting out his recommendation as to whether, having regard to all relevant considerations (including any provision of the operating agreement relating to the extension of the franchise), the Corporation’s franchise should be extended.
​(4) The Chief Executive in Council may approve an extension of the franchise, but shall only do so if he is satisfied that the Corporation is capable of maintaining a proper and efficient service under this Ordinance and the operating agreement.
(5) Notice of any extension of the franchise granted under this section shall be published in the Gazette.
6. Restriction on transfer of franchise
The Corporation shall not transfer the franchise or any part of it without the approval of the Chief Executive in Council.
7. Directors of Corporation
Unless the Chief Executive in Council otherwise permits, a majority of those directors of the Corporation who are not additional directors appointed under section 8 must be persons ordinarily resident in Hong Kong.
8. Chief Executive may appoint additional directors
(1) The Chief Executive may appoint, for a period he directs, not more than 3 persons to be additional directors of the Corporation (in this section referred to as “additional director”).
(2) An additional director may not be removed from office except by the Chief Executive.
(3) Subject to this Part, an additional director shall be treated for all purposes as if he had been appointed at a general meeting of the Corporation as a director of the Corporation.
(4) Without affecting the generality of subsection (3), an additional director shall, in the same manner and to the same extent as any other director of the Corporation, be entitled—
    (a) to participate in meetings of the Corporation and the board of directors of the Corporation;
    (b) to have access to all material concerning the affairs of the Corporation; and
    (c) to be furnished with such information with respect to the affairs of the Corporation as he may specify.
(5) The Companies Ordinance (Cap. 32) and any other law, and any document, shall be construed subject to this section.