### Mass Transit Railway Ordinance 《香港鐵路條例》

3. Appointed day
The Secretary for Transport may, by notice in the Gazette, designate a day to be the appointed day for the purposes of this Ordinance*.
(Amended L.N. 106 of 2002) Editorial Note:
* Appointed day: 30 June 2000 (see G.N. 3903 of 2000).

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 Merger Date— (Amended 11 of 2007 s. 6)
(a) to operate the Mass Transit Railway, including any extension to the Mass Transit Railway;
(b) to construct any extension to the Mass Transit Railway;
(c) to construct any other railway (other than an extension to the Mass Transit Railway) which the Secretary has authorized the Corporation to construct;
(d) to operate any railway constructed under paragraph (c); and
(e) to operate the KCRC Railways. (Amended 11 of 2007 s. 6)
(1A) For the avoidance of doubt and without affecting the generality of subsection (1)(e), the franchise granted under subsection (1) covers the operation of the KCRC Railway for the carriage of goods and passengers to and from a place outside Hong Kong. (Added 11 of 2007 s. 6)
(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 the operation by the Corporation of the TSA bus service during the franchise period and any provision of the operating agreement relating to the extension of the franchise), the Corporation’s franchise should be extended. (Amended 11 of 2007 s. 7)
(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.

### Mass Transit Railway Ordinance 《香港鐵路條例》

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. 622), the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) and any other law, and any document, shall be construed subject to this section. (Amended 28 of 2012 ss. 912 & 920)

9. Corporation to maintain proper and efficient service
(1) The Corporation shall maintain a proper and efficient service at all times during the franchise period in accordance with this Ordinance and the operating agreement. (Amended 11 of 2007 s. 8)
(2) Where the Corporation operates the TSA bus service during the Concession Period, the Corporation shall ensure that the TSA bus service is operated properly and efficiently under—
(a) this Ordinance and all other applicable laws; and
(b) the operating agreement. (Added 11 of 2007 s. 8)

### Mass Transit Railway Ordinance 《香港鐵路條例》

10. Secretary may obtain information
(1) The Secretary may, by notice in writing to the Corporation, require the Corporation—
(a) to afford the Secretary sufficient facilities for obtaining information with respect to the business and affairs of the Corporation in connection with the franchise; and
(b) in the manner and at the reasonable times specified in the notice, to furnish the Secretary with information with respect to the matters specified in paragraph (a) and afford to him facilities for the verification of that information,
and to do so within a period specified in the notice, being a period that is reasonable in the circumstances.
(2) In subsection (1), reference to information is a reference to information which the Secretary may reasonably require for verifying that the Corporation has complied with the provisions of this Ordinance, the operating agreement and any direction, specification or requirement given under this Ordinance or the operating agreement.
(3) If the Corporation, without reasonable excuse, fails to comply with a notice given under this section the Corporation commits an offence and is liable to a fine at level 4.

11. Records
(1) The Corporation shall keep, to the satisfaction of the Secretary, records in respect of the following matters relating to the railway—
(a) the number and carrying capacity of trains in use or under maintenance;
(b) the number of journeys undertaken and the total distance travelled;
(c) the number of passengers carried;
(d) the receipts;
(e) details of any incident causing a service breakdown of 20 minutes or more;
(f) the maintenance of trains;
(g) the number and types of trains, and their carrying capacity, on order or under construction together with details of the likely availability of such trains for use in the operation of the railway.
(2) The Secretary may, by notice in writing to the Corporation, require the Corporation—
(a) to furnish to the Secretary, at the reasonable times and in the form specified in the notice, copies of the records kept by the Corporation in accordance with subsection (1);
(b) to permit the Secretary, or any other person authorized in writing by him, to inspect at any reasonable time all records kept by the Corporation in accordance with subsection (1),
and to do so within a period specified in the notice, being a period that is reasonable in the circumstances.
(3) The Secretary or other person authorized by the Secretary may make copies of records inspected under subsection (2)(b).
(4) If the Corporation, without reasonable excuse, fails to comply with subsection (1), or with a notice given under subsection (2), the Corporation commits an offence and is liable to a fine at level 4.