Hong Kong Ordinances

MASS TRANSIT RAILWAY ORDINANCE - SECT 18

Revocation of franchise

(Past version on 30/06/2000).

(1) Where-

   (a)  the Secretary reports to the Chief Executive in Council that the
        Corporation has failed to comply with a notice served under
        section 17;

   (b)  it appears to the Chief Executive in Council that the Corporation is
        in default otherwise than by reason of section 16(1)(c), and the
        Secretary has reported to the Chief Executive in Council that the
        default is not one which is capable of being remedied; or

   (c)  it appears to the Chief Executive in Council that the Corporation is
        in default by reason of section 16(1)(c), (Added 11 of 2007 s. 14) the
        Chief Executive in Council may direct the Secretary to serve on the
        Corporation a notice requiring the Corporation to show cause why an
        order should not be made under subsection (5). (Amended 11 of 2007 s.
        14)

(2) A notice served under subsection (1) shall specify whether it is given in
relation to subsection (1)(a), (b) or (c) and shall, in addition- (Amended 11
of 2007 s. 14)

   (a)  if given in relation to subsection (1)(a), give particulars of the
        notice referred to in that paragraph and brief particulars of the
        report of the Secretary;

   (b)  if given in relation to subsection (1)(b) or (c), specify the nature
        of the default. (Amended 11 of 2007 s. 14)

(3) The Corporation may, within the period of 28 days from the date of service
of the notice under subsection (1), or within a further period as the Chief
Executive in Council may allow, make representations in writing to the Chief
Executive in Council showing cause why an order should not be made under
subsection (5).

(4) Before making an order under subsection (5) the Chief Executive in Council
shall consider any representations made under subsection (3) and, if
applicable, any matter referred to in subsection (6).

(5) Where the Chief Executive in Council is of the opinion that sufficient
cause has not been shown as to why an order under this subsection should not
be made, he may, by order-

   (a)  if it appears to him that the default is one which was capable of
        being remedied and that-

        (i)    a notice should have been served under section 17 and was not
               served, or that the terms of any notice served were
               unreasonable; and

        (ii)   the default is still capable of being remedied,
direct the Secretary to serve a notice, or a further notice, under section 17,
in terms determined by the Chief Executive in Council; or

   (b)  in any other case of default, if it appears to him just and reasonable
        to do so, but subject to subsections (8) and (8A), revoke the
        franchise. (Amended 11 of 2007 s. 14)

(6) In exercising his powers under subsection (5), the Chief Executive in
Council shall take into consideration the extent to which the default was or
is occasioned by circumstances beyond the control of the Corporation.

(7) An order made-

   (a)  under subsection (5)(a) shall be sent to the Secretary and a copy of
        the order shall be attached to the Secretary's notice under
        section 17;

   (b)  under subsection (5)(b) shall be served on the Corporation and shall
        be published in the Gazette, as soon as practicable after that
        service.

(8) Where the proceedings described in this section relate to a matter which
is the subject of an appeal under section 53(1), the Chief Executive in
Council shall not make an order under subsection (5)(b) until the appeal has
been determined or abandoned.

(8A) Where an order is made under subsection (5)(b) only due to a default
committed by reason of section 16(1)(c), the order shall have effect on the
franchise only to the extent that the franchise relates to the KCRC Railways.
(Added 11 of 2007 s. 14)

(9) The Government is not liable to pay any compensation in respect of the
revocation of the franchise under this section, except for any compensation
payable under section 20.