United Democrats of Hong Kong
In the wake of the landslide victory of the liberal forces led by the United Democrats of Hong Kong (UDHK) in the first ever direct election of the Legislative Council in 1991, Lee formed the Co-operative Resources Centre (CRC), a conservative parliamentary group with other appointed and indirectly elected members from the business sectors. He subsequently resigned as Senior Member among accusation of conflict of roles. The CRC later transformed into the Liberal Party in 1993, where he was the founding chairman.