Hong Kong Ordinances

WESTERN HARBOUR CROSSING ORDINANCE - SECT 59

Revocation of the franchise

(1) Where-

   (a)  the Secretary reports to the Governor in Council that the Company has
        failed to comply with a notice served under section 58(2); or

   (b)  it appears to the Governor in Council that the Company is in default,
        the Governor in Council may direct the Secretary to serve a notice
        under subsection (2).

(2) The notice referred to in subsection (1) shall-

   (a)  in the case of a default arising before the discharge date, be served
        on the persons specified in section 58(2)(a); and

   (b)  in the case of a default arising on or after the discharge  date, be
        served on the persons specified in section 58(2)(b), and shall specify
        whether it is served for the purposes of subsection

(1)(a) or for the purposes of subsection (1)(b).

(3) A notice served under subsection (2)-

   (a)  for the purposes of subsection (1)(a), shall give particulars of the
        notice referred to in that subsection and brief particulars of the
        report of the Secretary;

   (b)  for the purposes of subsection (1)(b), shall specify the nature of the
        default, and shall require the Company to show cause, in writing and
        within 28 days beginning on the date of service, as to why the
        Governor in Council should not exercise his powers under subsection
        (5).

(4) Where a notice is served under subsection (2), any person on whom it is
served or any other person who is a shareholder of the Company or a financier
within the meaning of section 58, may, within the period specified in
subsection (3) or such further period as the Governor in Council may allow, by
representations made to the Governor in Council, show cause as to why the
Governor in Council should not exercise his powers under subsection (5).

(5) Where, after considering any representations made under subsection (4)
and, where applicable, any matter referred to in subsection

(6), the Governor in Council is of the opinion that sufficient cause has not
been shown as to why he should not exercise his powers under this subsection,
he may, by order-

   (a)  if it appears to him that a notice should have been served under
        section 58 and was not served, or the terms of any notice served were
        unreasonable, unless it appears to him that the default is no longer
        capable of being remedied, direct the Secretary to serve a notice or,
        as the case may be, a further notice, under that section, in such
        terms as may be determined by the Governor in Council; or

   (b)  in any other case, but subject to subsection (9), revoke the
        franchise, if it is just and reasonable to do so.

(6) Where the notice under subsection (2) is served as regards a default
referred to in section 57(a) or (b), in exercising his powers under subsection
(5), the Governor in Council shall take into consideration the extent to which
the construction works have been carried out and whether any failure or
likelihood of failure to complete the construction works within the period
referred to in section 13(a) or extended period referred to in section 13(b),
as the case may be, was or is occasioned by circumstances beyond the control
of the Company (the want of sufficient funds or inclement weather not being
regarded as a circumstance beyond its control for the purposes of this
subsection).

(7) Where the Governor in Council exercises his powers under subsection (5)(b)
he may order that a franchise for the purposes of section 4 shall be granted
to such other person (being a person willing and able to accept such grant) on
such terms and conditions, being terms and conditions consistent with this
Ordinance, as he may think fit, and upon the publication of that order in the
Gazette such franchise shall vest in such other person.

(8) An order made under-

   (a)  subsection (5)(a) shall be sent to the Secretary and a copy thereof
        shall be attached to the Secretary's notice under section 58(2);

   (b)  subsection (5)(b) shall be served-

        (i)    if the default takes place before the discharge date, on the
               Company and the Guarantors; or

        (ii)   in any other case, on the Company, and shall, as soon as
               practicable thereafter, be published in the Gazette.

(9) Where the proceedings described in this section relate to a matter in
respect of which a notice referred to in section 66(1) has been given, the
Governor in Council shall not make an order under subsection

(5)(b) until the determination or, where appropriate, abandonment of the
proceedings in respect of which such notice has been given. (Enacted 1993)