RP01/04-05 Management of Government Investment Incomes 26 January 2005 Prepared by Jackie WU Research and Library Services Division Legislative Council Secretariat 5th Floor, Citibank Tower, 3 Garden Road, Central, Hong Kong Telephone : (852) 2869 9644 Facsimile : (852) 2509 9268 Website : http://www.legco.gov.hk E-mail :
[email protected] C O N T E N T S Page Executive Summary Chapter 1 - Introduction 1 Background 1 Selection of bodies studied 2 Scope of the research 4 Additional information requested by the Financial Affairs Panel 5 Methodology 7 Chapter 2 - Kowloon-Canton Railway Corporation 8 Background information 8 Legislation enacted to establish the Kowloon-Canton Railway 8 Corporation Principal activities undertaken 8 Background and rationale for allowing the railway corporations to 10 undertake property development projects and commercial activities not related to their principal function of railway operations Possible merger of the Kowloon-Canton Railway Corporation and the 10 MTR Corporation Limited Financial arrangements 12 Financial highlights of the Kowloon-Canton Railway Corporation for 12 the period 1997 to 2003 Payment of dividends and other incomes for the Government 13 Role of the Legislative Council in monitoring the financial 17 arrangements of the Kowloon-Canton Railway Corporation Corporate governance 18 The Board 18 Committees carrying out major functions of the Board 20 Extent of authority of the Chairman and senior management staff over 21 the annual budget and financing of the Kowloon-Canton Railway Corporation