Report of the Select Committee to Inquire into Matters ... · reasonable bounds. Work plan 2.5 At the open meeting on 29 March 2017, the Select Committee decided to conduct its inquiry

LEGISLATIVE COUNCIL OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION

Report of the Select Committee to Inquire into Matters about the Agreement between

Mr LEUNG Chun-ying and the Australian firm UGL Limited

July 2020

Annex

Legislative Council Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited

TABLE OF CONTENTS

Page Preamble

Part I Establishment of the Select Committee and its work

Chapter 1 Introduction 1 – 2

Establishment of the Select Committee 1 – 2

Chapter 2 Matters relating to the Select Committee 3 – 15

Membership of the Select Committee at the inception stage

3

Terms of reference 4

Practice and procedure 5 – 6

Work plan 6 – 7

Areas of study and issues arising therefrom 7 – 15

Part II Issues considered by the Select Committee in concluding its work

Chapter 3 Conclusion of the Select Committee based

on the information obtained 16 – 25

Obtaining information/evidence from relevant parties/witnesses to assist the Select Committee in its inquiry

16 – 21

Actions considered to be taken by the Select Committee for the purposes of the inquiry

21 – 23

Difficulties encountered by the Select Committee

23 – 24


Page Concluding the work of the Select

Committee 25

Signatures of members of the Select Committee

26 – 27

Abbreviations

30

Appendices

Appendix 1 Relevant provisions in the Rules of Procedure referred to in this Report

34 – 35

Appendix 2 Petition jointly presented by Hon Kenneth LEUNG and Hon Andrew WAN

36

Appendix 3 Extract from Hansard of the Legislative Council meeting of 2 November 2016 showing the 28 Members supporting the request for referring the petition to a select committee

37 – 38

Appendix 4 Practice and procedure of the Select Committee

39 – 49

Appendix 5 Proposed major areas of study prepared by the Legislative Council Secretariat for the Select Committee's consideration at the open meeting on 3 March 2017

50 – 51

Appendix 6 Revised proposed major areas of study prepared for the Select Committee's consideration at the open meeting on 29 March 2017

52 – 53


Page Appendix 7 Amendments proposed by Mr Holden

CHOW to the Chinese text of the revised proposed major areas of study prepared by the Legislative Council Secretariat with track changes feature

54 – 55

Appendix 8 Amendments pursued by Mr Holden CHOW after discussion on Appendix 7 at the open meeting on 25 April 2017

56

Appendix 9 Endorsed major areas of study of the Select Committee

57 – 58

Appendix 10 Wording of the motion jointly moved by Dr Junius HO and Dr Priscilla LEUNG in relation to making of statutory declaration

59 – 62

Appendix 11 Confidentiality undertaking on which seven Select Committee members had signed

63

Appendix 12 Wording of the motion moved by Mr WONG Kwok-kin proposing that the Select Committee should request Mr Kenneth LEUNG to resign from the Select Committee

64

Appendix 13 Voting result in respect of the motion requesting Mr Kenneth LEUNG to resign from the Select Committee

65 – 67

Appendix 14 List of information to be obtained by the Select Committee

68 – 70

Appendix 15 List of witnesses to be invited to assist the Select Committee in its inquiry

71

Appendix 16 Summary table on information provided by various parties upon the Select Committee's request

72 – 81


Page Appendix 17 Voting results in respect of the proposals

that the Select Committee should (a) seek the Legislative Council's authorization to exercise the powers under section 9(1) of the Legislative Council (Powers and Privileges) Ordinance (Cap. 382) and (b) invite the Department of Justice to provide any information in its possession that could assist the Select Committee's inquiry

82 – 84

Appendix 18 Summary of information obtained and relevant to the matters to be inquired by the Select Committee

85 – 92

Lists of documents

A. Documents provided by Mr LEUNG Chun-ying

97

B. Documents provided by UGL Limited

97

C. Documents provided by the Judiciary Administration

97

D. Documents provided by the Executive Council Secretariat

98

E. Documents provided by the Administration

98

F. Documents provided by Ernst & Young LLP, Joint Administrators of DTZ Holdings plc

98

G. Documents referred to by the Select Committee

99

Minutes of proceedings

102 – 118


Preamble

The Report of the Select Committee consists of the main report,

lists of relevant documents as well as the minutes of proceedings. This

Report is also accessible on the Legislative Council ("LegCo" or

"Council") website at www.legco.gov.hk.

This Report comprises two Parts. Part I (Chapters 1 and 2) is

mainly an introduction on the establishment of the Select Committee as

well as important matters relating to the work of the Select Committee.

Part II (Chapter 3) gives an account of the issues considered by the Select

Committee in concluding its work.


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Part I Establishment of the Select Committee and its work Chapter 1 Introduction Establishment of the Select Committee 1.1 At the Council meeting of 2 November 2016, Hon Kenneth

LEUNG and Hon Andrew WAN jointly presented, in accordance with

Rule 20(1) of the Rules of Procedure of LegCo ("RoP") (wording of the

provision is shown in Appendix 1), a petition (Appendix 2) in

connection with Mr LEUNG Chun-ying's receipt of payments from UGL

Limited ("UGL") and related matters ("petition"). Extract from Hansard

of the Council meeting of 2 November 2016 showing the 28 Members

supporting the request for referring the petition to a select committee is in

Appendix 3. The petition was thus referred to a select committee

pursuant to the then RoP 20(6)1 (wording of the provision is shown in

Appendix 1).

1.2 At the House Committee ("HC") meeting on 11 November 2016,

Members agreed to appoint a subcommittee to undertake preparatory

work for the operation of the Select Committee. The subcommittee

submitted a report for HC's consideration on 20 January 2017. HC

noted the subcommittee's recommendations on the name and the terms of

reference of the Select Committee, and endorsed the subcommittee's

recommendations on the membership size of the Select Committee as 1 The Select Committee was established pursuant to the referral by the Council of a

petition presented under the then RoP 20(6) before the provision was amended in December 2017.


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well as the procedure for nomination and election of Members for

appointment to the Select Committee.


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Part I Establishment of the Select Committee and its work Chapter 2 Matters relating to the Select Committee Membership of the Select Committee at the inception stage 2.1 The election of Members for appointment to the Select

Committee was held at the HC meeting on 3 February 2017. On the

recommendation of HC, on 6 February 2017, the President of LegCo

appointed the Chairman, the Deputy Chairman and members of the Select

Committee in accordance with RoP 78(2) (wording of the provision is

shown in Appendix 1). The Select Committee comprised the following

11 members2:

Hon Paul TSE Wai-chun, JP (Chairman)

Hon Holden CHOW Ho-ding (Deputy Chairman)

Dr Hon Priscilla LEUNG Mei-fun, SBS, JP

Hon WONG Kwok-kin, SBS, JP

Hon MA Fung-kwok, SBS, JP

Hon Kenneth LEUNG

Hon Alvin YEUNG

Hon Andrew WAN Siu-kin

Dr Hon Junius HO Kwan-yiu, JP

Hon LAM Cheuk-ting

Hon YUNG Hoi-yan, JP

2 Please refer to paragraphs 2.10 to 2.12 of this Report for subsequent development and

changes to the membership of the Select Committee.


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Terms of reference 2.2 At the open meeting on 3 March 2017, the Select Committee

confirmed its terms of reference as follows:

"The terms of reference of the Select Committee, which reflect

the substance of the petition jointly presented by Hon Kenneth

LEUNG and Hon Andrew WAN at the Council meeting of

2 November 2016 and referred to the Select Committee under

Rule 20(6) of the Rules of Procedure, are as follows:

To inquire into the following matters regarding

Mr LEUNG Chun-ying's signing of an agreement with

the Australian firm UGL Limited in 2011 ("UGL

Agreement") and his receipt of payments amounting to £4

million from UGL Limited ("Payments") in connection

with the UGL Agreement after assuming the office of

Chief Executive: (i) whether Mr LEUNG had complied

with the declaration requirements under Article 47 of the

Basic Law and the system of declaration of interests by

Members of the Executive Council, (ii) whether the UGL

Agreement had given rise to any conflict of interests on

the part of Mr LEUNG as the Chief Executive, and

(iii) whether the Payments were taxable under the laws of

Hong Kong."


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Practice and procedure 2.3 At the open meeting on 3 March 2017, the Select Committee

endorsed its practice and procedure, which was governed by RoP and the

relevant provisions of the Legislative Council (Powers and Privileges)

Ordinance (Cap. 382) insofar as applicable. The Select Committee's

practice and procedure was modelled on the sets of practice and

procedure adopted by previous select committees and committees which

carried out inquiries, with necessary modifications, taking into account

that the Select Committee was established pursuant to the referral of the

petition by the Council and not authorized by the Council to exercise the

powers under section 9(1) of Cap. 382. A copy of the practice and

procedure of the Select Committee is in Appendix 4.

2.4 In determining its own practice and procedure, the Select

Committee adopted the following principles:

(a) the practice and procedure should be fair and be seen to be

fair, especially to parties whose interests or reputation

may be affected by the proceedings of the Select

Committee;

(b) there should be a high level of transparency in its

proceedings as far as practicable;

(c) the practice and procedure should facilitate the

ascertaining of the facts relevant to, and within the scope


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of, its inquiry, as set out in the Select Committee's terms

of reference, which do not include the adjudication on the

legal liabilities of any parties or individuals;

(d) its proceedings should be conducted in a proper, fair and

efficient manner; and

(e) the cost of the proceedings should be kept within

reasonable bounds.

Work plan 2.5 At the open meeting on 29 March 2017, the Select Committee

decided to conduct its inquiry in three main stages3:

(a) Stage I for undertaking preparatory work, including

drawing up and determining the practice and procedure

for the Select Committee; working out the major areas of

study; deciding on the information to be obtained from

relevant parties and identifying the witnesses to be

invited; deciding on the order of the witnesses and the

main areas of evidence to be obtained;

3 Initially, the Select Committee's target was to complete the inquiry by April 2018

(The work plan of the Select Committee is set out in SC(2)(UA) Paper No.: L4). However, due to various reasons, including the difficulty in scheduling meetings of the Select Committee owing to members' unavailability for meetings at time slots proposed by the LegCo Secretariat, the storming of the LegCo Complex by some protesters on 1 July 2019 and the outbreak of the coronavirus disease 2019 (COVID-19), the Select Committee was unable to adhere to the target schedule as set out in the work plan.


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(b) Stage II for conducting hearings to obtain evidence from

witnesses and for deliberating on the evidence obtained;

and

(c) Stage III for holding internal deliberations for preparing,

discussing and finalizing the report of the Select

Committee.

Areas of study and issues arising therefrom Proposed major areas of study prepared by the LegCo Secretariat and

members' proposed amendments

2.6 Based on the Select Committee's terms of reference, the LegCo

Secretariat drew up the proposed major areas of study in order to

facilitate the Select Committee to proceed with its inquiry in a structured

manner. Appendix 5 shows the proposed major areas of study prepared

by the LegCo Secretariat for the Select Committee's consideration at the

open meeting on 3 March 2017.

2.7 After examining the proposed major areas of study at that

meeting, some members indicated their wish that the proposed major

areas of study be revised having regard to the views and comments

expressed at the meeting. Subsequently, the LegCo Secretariat

circulated the revised proposed major areas of study (Appendix 6) for the

Select Committee's consideration at the next open meeting held on

29 March 2017. Since members continued to have different views on


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whether to adopt the revised proposed major areas of study and the way

in which the document should be further revised, the Select Committee

agreed that individual members should provide their respective proposed

amendments to the proposed major areas of study for consideration at a

future meeting.

2.8 The Select Committee held its third open meeting on 25 April

2017 to discuss the amendments proposed by Mr Holden CHOW to the

revised proposed major areas of study (Appendix 7). After discussion,

Mr CHOW suggested amending items I(d) and I(e) of the revised

proposed major areas of study and adding a new item II(c) (Appendix 8).

Given members' divergent views on whether to add a new item II(c), the

Select Committee, as a result, could not come to any conclusion on the

matter at the open meeting held on 25 April 2017.

2.9 On 15 May 2017, the Select Committee held a closed meeting

to discuss matters relating to the proposed amendments provided by Mr

Holden CHOW. Some members suspected that Mr LEUNG Chun-ying

was involved in amending the proposed major areas of study as provided

by Mr CHOW and expressed concern over the credibility of the Select

Committee. On that day, no decision was reached on the matters

discussed.

2.10 The Select Committee scheduled another closed meeting on

19 May 2017 to continue its discussion on the matter as mentioned

above in paragraph 2.9. In the morning of 19 May 2017, Mr Holden


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CHOW gave notice to the Select Committee in writing of his decision to

resign from the Select Committee.

2.11 In view of the resignation of Mr Holden CHOW, who was also

the Deputy Chairman, the Select Committee agreed at the closed meeting

held on 19 May 2017 to keep the membership size at 11 and to fill the

vacancy in the membership and in the office of Deputy Chairman.

2.12 The Select Committee made recommendations to HC on

26 May 2017 to fill the vacancy in the membership and in the office of

Deputy Chairman. With HC's endorsement of the recommendations, the

nomination and election of a Member for appointment to the Select

Committee to fill the vacancy was conducted at the HC meeting on

2 June 2017. With Mr Steven HO elected for appointment to the Select

Committee, members of the Select Committee then elected amongst

themselves a new Deputy Chairman. Mr MA Fung-kwok was

subsequently elected to that office. The above election results were

endorsed by HC and submitted to the President of LegCo for appointment

on the same day. Since 2 June 2017, the membership of the Select

Committee is as follows:

Hon Paul TSE Wai-chun, JP (Chairman)

Hon MA Fung-kwok, SBS, JP (Deputy Chairman)

Dr Hon Priscilla LEUNG Mei-fun, SBS, JP

Hon WONG Kwok-kin, SBS, JP

Hon Steven HO Chun-yin, BBS

Hon Kenneth LEUNG


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Hon Alvin YEUNG

Hon Andrew WAN Siu-kin

Dr Hon Junius HO Kwan-yiu, JP

Hon LAM Cheuk-ting

Hon YUNG Hoi-yan, JP

Endorsed major areas of study of the Select Committee

2.13 The major areas of study endorsed by the Select Committee at

the open meeting on 12 July 2017 are set out in Appendix 9.

Complaint about suspected disclosure of closed-door deliberations

2.14 Dr Junius HO complained that certain Select Committee

members were in breach of the confidentiality requirement as set out in

paragraph 26 of the Select Committee's practice and procedure by having

disclosed the internal deliberations made at the closed meeting on 15 May

2017. There was a suggestion that sanction(s) for breach of

confidentiality or unauthorized disclosure of closed-door deliberations

should be imposed.


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2.15 Members noted the following information:

(a) as the Select Committee was not authorized by the

Council to exercise the powers under section 9(1) of

Cap. 382, RoP 80 and 81 (wording of the provisions is

shown in Appendix 1) were not applicable;

(b) there was no express provision in RoP or in the Select

Committee's practice and procedure on sanction(s) for

breach of confidentiality or unauthorized disclosure of

closed-door deliberations in the present case;

(c) the terms of reference of the Select Committee did not

cover investigation or sanction(s) relating to unauthorized

disclosure of closed-door deliberations; and

(d) a former select committee which was formed pursuant to

the referral by the Council of a petition under the then

RoP 20(6) and was not authorized by the Council to

exercise the powers under section 9(1) of Cap. 382 had

issued a press release to express regret following a

suspected case of unauthorized disclosure of confidential

information.

The making of statutory declaration and signing of confidentiality

undertaking


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2.16 At the open meeting on 21 June 2017, the Select Committee

discussed whether to adopt certain measures to prevent unauthorized

disclosure of confidential information in the future.

2.17 In relation to the making of statutory declaration, Dr Junius HO

and Dr Priscilla LEUNG jointly moved a motion (as set out in Appendix 10) suggesting that members who had attended the closed meeting on 15

May 2017 should each make a statutory declaration confirming that they

did not disclose or divulge any confidential information to the press or

any other person. As there was disagreement on whether to request

members to make statutory declarations, the Chairman put the motion to

vote. Six members voted in favour of the motion and four members

voted against it. The motion was carried.

2.18 Notwithstanding the passage of the above motion, members

recognized that LegCo committees had all along been operating under

an honour system and there was no precedent where members were

under a mandatory requirement to make statutory declarations. Even

though a motion was passed by the Select Committee, it was not binding

on members. As of the date of this Report, Dr Junius HO and

Dr Priscilla LEUNG have each filed a statutory declaration with the

LegCo Secretariat.

2.19 In relation to the issue of confidentiality undertaking, there was a

suggestion that in considering the proposal of requesting members to sign

a confidentiality undertaking, the Select Committee should draw

reference from the practice of the Public Accounts Committee of LegCo


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("PAC"). Given that the majority of the members of the Select

Committee considered it necessary to reinforce the Select Committee's

confidentiality requirement and that it was suggested that members

should be required to sign a confidentiality undertaking, a proforma

written confidentiality undertaking, which was based on PAC's practice,

was provided to the Select Committee for consideration. As no

members raised objection to the signing of a confidentiality undertaking

and the adoption of the version of the undertaking to be signed jointly by

all members of the Select Committee, the LegCo Secretariat made

arrangements for individual members to sign the confidentiality

undertaking. Seven members, including the Chairman, had signed the

confidentiality undertaking (see Appendix 11).

Request for Mr Kenneth LEUNG to resign from the Select Committee

2.20 Some members were concerned whether the defamation suit

brought by Mr LEUNG Chun-ying against Mr Kenneth LEUNG

(HCA 533/2017) would give rise to any potential conflict of interest,

thereby affecting Mr Kenneth LEUNG's suitability to serve as a member

of the Select Committee. At the open meeting on 12 July 2017, Mr

WONG Kwok-kin moved a motion (see Appendix 12) proposing that the

Select Committee should request Mr Kenneth LEUNG to resign from the

Select Committee. The motion was carried, with six members voting

for and four members voting against it. The voting result is in

Appendix 13. As of the date of this Report, Mr Kenneth LEUNG has

not resigned and continues to serve as a member of the Select Committee.


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Suggestion on dissolving and reconstituting the Select Committee

2.21 Some members were of the view that members of the Select

Committee had lost mutual trust based on the series of events as

mentioned above. There was a suggestion that the Select Committee

should be dissolved and reconstituted. To facilitate members'

consideration of issues relating to the proposal of dissolving and

reconstituting the Select Committee, the LegCo Secretariat provided

members with the following information:

(a) regarding the appointment of members to the Select

Committee, RoP 78(2) provided that "the President shall

decide the size of every select committee and shall appoint

the chairman, deputy chairman and members thereof,

taking into account the recommendations of the House

Committee". The President's appointment of the

Chairman, the Deputy Chairman and members of the

Select Committee was based on HC's recommendations;

(b) regarding the dissolution of a select committee, RoP 78(4)

provided that "a select committee shall, as soon as it has

completed consideration of the matter or bill referred to it,

report to the Council thereon and the committee shall

thereupon be dissolved. If the committee is of the

opinion that it will not be able to complete consideration

of the matter or bill before the end of a term, it shall so

report to the Council". RoP 78(5) also provided that "at


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the end of a term every select committee of the Council

shall be dissolved"; and

(c) RoP 78(4) and 78(5) were the only existing rules that

provided for the dissolution of select committees. At

present, no mechanism was provided under RoP for the

President to withdraw or revoke the appointment of any

member of a select committee. It was up to individual

members to decide whether they should resign from the

Select Committee.

Divided views were expressed by members on the proposal to dissolve

and reconstitute the Select Committee. No conclusion was reached.


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Part II Issues considered by the Select Committee in concluding its work

Chapter 3 Conclusion of the Select Committee based on the information obtained

Obtaining information/evidence from relevant parties/witnesses to assist the Select Committee in its inquiry

3.1 At the closed meeting on 17 July 2017, the Select Committee

discussed and agreed on the information to be obtained as well as

witnesses to be invited to appear before the Select Committee to give oral

evidence (see Appendices 14 and 15).

3.2 Relevant parties were thereon requested in writing to provide

information or to attend hearing(s) of the Select Committee to be

scheduled. The responses from the parties invited are summarized

below:

(a) the information requested by the Select Committee

(i.e. item I (a) to (h) in Appendix 14) have not been

provided by Mr LEUNG Chun-ying. Instead,

Mr LEUNG provided the Select Committee with a file

containing 12 documents, which Mr LEUNG claimed

would be sufficient in helping the Select Committee to

reach the correct conclusions. Mr LEUNG also indicated

that he would not attend any meetings of the Select

Committee;


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(b) UGL declined to provide the information requested by the

Select Committee (i.e. item II (a) to (k) in Appendix 14)

and/or to authorize any representatives to attend any

hearing(s) of the Select Committee;

(c) the Judiciary Administration replied that the Chief Justice

of the Court of Final Appeal ("Chief Justice") did not

consider it appropriate to provide the Select Committee

with the requested information (i.e. item III in

Appendix 14) and/or for the Judiciary Administrator or

her representative(s) to attend any hearing(s) of the Select

Committee;

(d) the Commissioner of Inland Revenue ("Commissioner")

declined to provide the requested information (i.e. item V

in Appendix 14) and in that connection referred to the

official secrecy provision (i.e. section 4) under the Inland

Revenue Ordinance (Cap. 112). The Commissioner also

indicated that neither himself nor any other officer of the

Inland Revenue Department would attend any hearing(s)

of the Select Committee;

(e) two letters were sent by registered post to the Royal Bank

of Scotland plc, the secured creditor of DTZ Holdings plc

("DTZ"). No response has been received;


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(f) Ernst & Young LLP, Joint Administrators of DTZ,

provided the Select Committee with a copy of a sale

agreement dated 4 December 2011 relating to shares in

certain companies and the trade marks owned by DTZ (in

administration) and a copy of the Joint Administrators'

Statement of Proposals of DTZ (in administration) issued

on 23 December 2011; and

(g) the Executive Council ("ExCo") Secretariat provided

(i) general information on the system of declaration of

interests by ExCo Members at the time when Mr LEUNG

Chun-ying assumed the office of the Chief Executive of

the Hong Kong Special Administrative Region ("CE") and

during his term of office of CE as well as (ii) records of

"Annual Declaration of Registrable Interests of Members

of the Executive Council" made by Mr LEUNG upon

assumption of office and during his term of office of CE.

However, in line with the principle of confidentiality of

ExCo and/or to preserve the integrity of the ExCo system,

the ExCo Secretariat declined to accede to the Select

Committee's request for record(s) of declaration of

interests made by Mr LEUNG at ExCo meeting(s). The

ExCo Secretariat did not respond to the Select

Committee's request for the Clerk to ExCo or

representative(s) of the ExCo Secretariat to attend

hearing(s) of the Select Committee.


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3.3 In view of the Judiciary Administration's reply in paragraph

3.2(c), the Select Committee decided at the closed meeting on

8 November 2017 that the Judiciary Administration should be requested

to provide information on the system of declaration under Article 47 of

the Basic Law ("BL") in general (as opposed to specific information

regarding the case of Mr LEUNG Chun-ying), including:

(a) the requirements applicable to CE in relation to

declaration of assets under BL 47;

(b) whether the requirements had to be complied with only at

the assumption of office or both at the assumption of

office and throughout the term of the office;

(c) the types of assets required to be declared by CE; and

(d) whether CE was required to report any changes in the

composition or amount of the declared assets during the

term of his/her office and, if so, whether CE was required

to report at regular intervals, regardless of whether such

change had taken place (and if so, how long each interval

was), or to report only when there had been a change.

3.4 This apart, taking into account the Commissioner's reply in

paragraph 3.2(d) above, the Select Committee decided to approach the

Commissioner again to request the provision of general information, as

opposed to specific information regarding the case of Mr LEUNG


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Chun-ying, on the policy adopted and the applicable taxation principles

(including any relevant statutory provisions):

(a) in the case of payment received by a Hong Kong resident

from (i) his employer or former employer and (ii) a

non-employer entity, pursuant to a contract or other forms

of arrangement imposing restrictive covenants that sought

to, for example, prohibit the person from having any

business dealings in competition with his former employer,

or prohibit the person from soliciting employees of his

former employer; and

(b) in the case where the Hong Kong resident was required

under the contract (or other forms of arrangement) to

provide assistance in the promotion of the former

employer, regardless of whether assistance had in fact

been rendered.

3.5 In reply to the Select Committee's request for information

mentioned in paragraph 3.3 above, the Judiciary Administration advised

that the requirements for the declaration of assets by CE under BL 47

were as set out in BL 47, and that CE was obliged to provide a

declaration of his or her assets to the Chief Justice on assuming office in

accordance with BL 47. Such declaration was then kept by the Chief

Justice. As regards the Select Committee's request for information

addressed to the Commissioner mentioned in paragraph 3.4 above, the

Commissioner furnished information on the relevant taxation principles

(including relevant statutory provisions and case law) applicable to the


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cases of payment received by a Hong Kong resident specified in

paragraph 3.4(a) and (b). A table summarizing the information provided

to the Select Committee by various parties is in Appendix 16.

Actions considered to be taken by the Select Committee for the purposes of the inquiry

3.6 Members had considered seeking specialist advice on specific

issues which are technical in nature relating to the inquiry of the Select

Committee. On Mr Kenneth LEUNG's recommendations, three experts

were approached on the possibility of providing the Select Committee

with specialist advice on the following issues respectively:

(a) taxation matters, with particular emphasis on possible tax

liability in respect of the "Payments" as referred to in the

terms of reference of the Select Committee;

(b) employment law, with particular emphasis on the structure

of incentive payment and "golden handshake" in a merger

and acquisition transaction; and

(c) corporate law and fiduciary duties owed by a director,

with particular emphasis on the role of a director in a

merger and acquisition transaction.


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While one of the experts was willing to render specialist advice to the

Select Committee by way of a talk on a complimentary basis, the other

two experts declined the Select Committee's invitation having regard to

the perceived conflict of interest arising from their employment and/or

work. After discussion, members agreed to revisit the matter as and

when members were able to obtain additional response/information from

the relevant parties. The Select Committee ultimately did not follow up

on the proposal to seek specialist advice, given the difficulties

encountered by the Select Committee in gathering information/evidence

and its decision to bring the inquiry work to an end (to be explained in

paragraphs 3.10 and 3.11 below).

3.7 Some members took the view that the Select Committee should

obtain further information needed for the purposes of the inquiry. They

proposed to (a) seek the Council's authorization for the Select Committee

to exercise the powers under section 9(1) of Cap. 382 to order concerned

parties to attend before the Select Committee to give evidence, or to

produce all relevant papers, books, records or documents in their

possession or under their control; and (b) invite the Department of Justice

to provide any information in its possession that could assist the Select

Committee's inquiry. Other members, however, were of the view that

the Select Committee should not embark on a fishing expedition to obtain

more information, and that any further attempt to obtain information for

the purposes of facilitating the Select Committee's work would unlikely

yield any results, and therefore would be a waste of time and resources.


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3.8 As members had divergent views on the two proposals as

mentioned above in paragraph 3.7, a voting was conducted and both

proposals were negatived. The voting results are in Appendix 17.

3.9 The Select Committee subsequently decided that its next course

of action would be examination of and deliberation on the information

obtained. The Clerk to the Select Committee should then prepare the

draft report of the Select Committee on the basis of members'

observations and conclusions drawn from the information available to the

Select Committee.

Difficulties encountered by the Select Committee

3.10 The Select Committee had agreed to divide its inquiry into four

major areas of study.4 To facilitate members to analyse and deliberate

on the information received from various parties, the LegCo Secretariat

prepared a summary table of information relevant to the matters to be

inquired by the Select Committee under its terms of reference

(Appendix 18).

3.11 At the closed meeting on 7 May 2020, the Select Committee

discussed whether to make use of the summary table at Appendix 18 to

proceed to conducting a detailed examination of the information obtained

under each of the four major areas of study. The Select Committee,

4 Please refer to Appendix 9 for the endorsed major areas of study.


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having regard to the following considerations, decided to bring the

inquiry work to an end:

(a) the Select Committee had encountered difficulties in

obtaining relevant, sufficient and comprehensive

information/evidence 5 for the purposes of its inquiry.

Relevant parties also refused to attend hearing(s) of the

Select Committee, which prevented the Select Committee

from obtaining more information/evidence from witnesses.

Members were concerned whether it would be appropriate

to attach weight to no more than self-serving statements

produced by various parties without the opportunity to ask

relevant witnesses to clarify the issues involved; and

(b) members noted that the information available were general

in nature. They agreed that with the limited amount of

relevant/useful information on hand, it would not be

possible for the Select Committee to arrive at any

substantiated findings, observations and conclusions as

regards the matters under inquiry in a fair and objective

manner, and it would not be appropriate to either implicate

or exonerate any person/party in connection with any or

all of the allegations forming the subject matter of the

inquiry on that basis.

5 Please refer to paragraphs 3.1 to 3.5 of this Report for details.


- 25 -

Concluding the work of the Select Committee 3.12 Given the difficult circumstances under which the Select

Committee had been operating, members found it difficult to further

proceed to inquire into the matters pursuant to its terms of reference and,

specifically, to progress to the fact-finding and deliberative stages.

3.13 The Select Committee decided to draw its work to a close and

report to the Council in accordance with RoP 78(4).

- 26 -


Members of the Select Committee who did not sign the report

Kenneth LEUNG

Alvin YEUNG

Andrew WAN Siu-kin

LAM Cheuk-ting

- 27 -


Abbreviations


- 30 -

Abbreviations BL Basic Law

CE Chief Executive of the Hong Kong Special Administrative Region

Chief Justice Chief Justice of the Court of Final Appeal

Commissioner Commissioner of Inland Revenue

Council Legislative Council

DTZ DTZ Holdings plc

ExCo Executive Council

HC House Committee of the Legislative Council

LegCo Legislative Council

PAC Public Accounts Committee of the Legislative Council

petition Petition jointly presented by Hon Kenneth LEUNG and Hon Andrew WAN

RoP Rules of Procedure of the Legislative Council

UGL UGL Limited


Appendices

Relevant provisions in the Rules of Procedure ("RoP") referred to in this Report

Rules Wording

RoP 20(1) A petition may be presented to the Council only by a Member. Every petition shall be in the Chinese language or the English language.

RoP 20(6) (before it was amended in 2017)

If, immediately after a petition has been presented, a Member rises in his place and requests that the petition be referred to a select committee, the President shall call upon those Members who support the request to rise in their places. If not less than 20 Members then rise the petition shall stand referred to a select committee.

RoP 78(2) The President shall decide the size of every select committee and shall appoint the chairman, deputy chairman and members thereof, taking into account the recommendations of the House Committee.

RoP 78(4) A select committee shall, as soon as it has completed consideration of the matter or bill referred to it, report to the Council thereon and the committee shall thereupon be dissolved. If the committee is of the opinion that it will not be able to complete consideration of the matter or bill before the end of a term, it shall so report to the Council.

RoP 78(5) At the end of a term every select committee of the Council shall be dissolved.

Appendix 1

- 34 -

Rules Wording

RoP 80 Attendance of Witness

(a) Any standing committee may summon, as required when exercising its powers and functions, persons concerned to testify or give evidence; and

(b) the House Committee or a Bills Committee, Panel, select committee, investigation committee or any other committee, where so authorised by the Legislative Council, may summon, as required when exercising the committee's powers and functions, persons concerned to testify or give evidence,

but the Chief Executive may decide, in the light of security and vital public interests, whether Government officials or other personnel in charge of Government affairs should testify or give evidence before the Legislative Council or its committees.

RoP 81 Premature Publication of Evidence

(1) The evidence taken before a committee under Rule 80 (Attendance of Witness) and documents presented to the committee shall not, except in the case of meetings of the committee held in public, be published by a member of the committee or by any other person before the committee has presented its report to the Council.

(2) Any member of the committee who fails to comply with subrule (1) may be admonished or reprimanded by the Council on a motion to that effect.

- 35 -

Appendix 2 (Chinese version only)

- 36 -

cpllai

鉛筆

LEGISLATIVE COUNCIL ― 2 November 2016

Extract from Hansard of the Legislative Council meeting of

2 November 2016 showing the 28 Members supporting the request for

referring the petition to a select committee

X X X X X X X X

PRESENTATION OF PETITION

PRESIDENT (in Cantonese): Presentation of petition.

In accordance with Rule 20 of the Rules of Procedure, Mr Kenneth

LEUNG will present a petition co-signed by Mr Kenneth LEUNG and

Mr Andrew WAN to this Council.

MR KENNETH LEUNG (in Cantonese): President, noting your permission for

the presentation of this petition co-signed by Mr Andrew WAN and me, I now

outline the content of the petition.

In September 2014, it was reported by Australian media that Chief

Executive LEUNG Chun-ying had, while running for the post of Chief Executive

Election in 2011, signed a secret agreement with UGL Limited ("UGL"), an

Australian firm, and received secret payments from it. However, since then,

neither the Chief Executive nor the Administration has ever provided any

adequate information that can offer the public a detailed account of the incident.

Therefore, it is necessary for this Council to continue to follow up the incident.

Hence, I urge Members to join hands to follow up the incident, so as to

ensure the standards of probity and integrity in the Chief Executive's discharge of

duties and the protection of the core values upheld by Hong Kong.

Thank you, President.

(See Annex I for content of the petition)

(Mr Andrew WAN rose immediately)

MR ANDREW WAN (in Cantonese): President, in accordance with Rule 20(6)

of the Rules of Procedure, I request that the petition be referred to a select

committee.

Appendix 3

- 37 -

LEGISLATIVE COUNCIL ― 2 November 2016

PRESIDENT (in Cantonese): I now call upon Members who support this request

to rise in their places.

(Members supporting the request rose)

PRESIDENT (in Cantonese): Members please remain standing to allow the

Clerk to do a headcount.

(The Clerk indicated to the President that the recording of the names of those

Members who were standing had been completed)

PRESIDENT (in Cantonese): Members will please now be seated. Members

who support this request are Mr KWONG Chun-yu, Mr James TO, Mr HUI

Chi-fung, Dr YIU Chung-yim, Mr SHIU Ka-chun, Mr LEUNG Yiu-chung,

Mr LAM Cheuk-ting, Mr Andrew WAN, Dr Helena WONG, Mr IP Kin-yuen,

Prof Joseph LEE, Mr WU Chi-wai, Mr Charles Peter MOK, Mr Kenneth

LEUNG, Mr Dennis KWOK, Mr Jeremy TAM, Dr KWOK Ka-ki, Ms Claudia

MO, Ms Tanya CHAN, Mr Alvin YEUNG, Dr CHENG Chung-tai, Dr Fernando

CHEUNG, Mr CHU Hoi-dick, Mr Nathan LAW, Dr LAU Siu-lai, Mr LEUNG

Kwok-hung, Mr CHAN Chi-chuen and Dr Pierre CHAN. There are

28 Members in total. Do I miss any names of those Members who just stood

up?

(No Member made any indication)

PRESIDENT (in Cantonese): If not, we have a total of 28 Members supporting

this request.

In accordance with Rule 20(6) of the Rules of Procedure, the petition is

referred to a select committee.

X X X X X X X X

- 38 -

Practice and Procedure of the Select Committee

The procedure of the Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited ("the Select Committee") is governed by the Rules of Procedure ("RoP") of the Legislative Council ("LegCo") and the relevant provisions of the Legislative Council (Powers and Privileges) Ordinance (Cap. 382) insofar as they are applicable. By reason of operational needs and in the interest of fair conduct of business, the Select Committee has determined and established its own set of practice and procedure, as detailed in the ensuing paragraphs. The practice and procedure include those not expressly provided for in RoP and Cap. 382.

2. The terms of reference of the Select Committee are as follows:

"The terms of reference of the Select Committee, which reflect thesubstance of the petition jointly presented by Hon Kenneth LEUNGand Hon Andrew WAN at the Council meeting of 2 November 2016and referred to the Select Committee under Rule 20(6) of the Rules ofProcedure, are as follows:

To inquire into the following matters regarding Mr LEUNG Chun-ying's signing of an agreement with the Australian firm UGL Limited in 2011 ("UGL Agreement") and his receipt of payments amounting to £4 million from UGL Limited ("Payments") in connection with the UGL Agreement after assuming the office of Chief Executive: (i) whether Mr LEUNG had complied with the declaration requirements under Article 47 of the Basic Law and the system of declaration of interests by Members of the Executive Council, (ii) whether the UGL Agreement had given rise to any conflict of interests on the part of Mr LEUNG as the Chief Executive, and (iii) whether the Payments were taxable under the laws of Hong Kong."

Principles

3. In determining its own practice and procedure, the Select Committeehas drawn reference from those adopted by previous select committees andcommittees which carried out inquiries. The Select Committee adopts thefollowing principles:

Appendix 4

- 39 -

(a) the practice and procedure should be fair and be seen to be fair, especially to parties whose interests or reputation may be affected by the proceedings of the Select Committee;

(b) there should be a high level of transparency in its proceedings as

far as practicable; (c) the practice and procedure should facilitate the ascertaining of the

facts relevant to, and within the scope of, its inquiry, as set out in the Select Committee's terms of reference, which do not include the adjudication of the legal liabilities of any parties or individuals;

(d) its proceedings should be conducted in a proper, fair and efficient

manner; and (e) the cost of the proceedings should be kept within reasonable

bounds. Practice and procedure Term of office 4. In accordance with RoP 78(4) and (5), the Select Committee shall be dissolved upon reporting to the Council or at the end of the Sixth LegCo. If the Select Committee is of the opinion that it will not be able to complete consideration of the matter before the end of the Sixth LegCo, it shall so report to the Council. Chairmanship 5. All meetings and hearings of the Select Committee are chaired by the Chairman or, in his absence, by the Deputy Chairman. In accordance with RoP 79(3), in the event of the temporary absence of the Chairman and Deputy Chairman, the Select Committee may elect a chairman to act during such absence. Quorum 6. RoP 78(3) provides that the quorum of a select committee shall be one third of the members excluding the chairman, a fraction of a whole number being disregarded. If a member of the Select Committee draws to the attention of the Chairman on the absence of a quorum as and when there is such absence,

- 40 -

the Chairman shall direct the members to be summoned. If after 15 minutes have expired, a quorum is not present, the Chairman shall then close the meeting or hearing. Voting 7. Matters for the decision of the Select Committee shall be decided by a majority of the members present and voting, which is done by a show of hands. Abstentions are not counted for the purpose of determining the result of the vote. 8. In accordance with RoP 79(5), 79(6) and 79A(1), divisions in the Select Committee shall be taken by the Clerk who shall ask each member separately how he/she wishes to vote and record the votes accordingly. Neither the Chairman nor any other member presiding shall vote, unless the votes of the other members are equally divided in which case he/she shall give a casting vote, which shall not be exercised in such a way as to produce a majority vote in favour of the question put. Obtaining evidence 9. The Select Committee may invite any person or body to attend a hearing to give evidence orally. The Select Committee may also request any person or body to give evidence in writing or any person or body to produce specified paper(s), book(s), record(s) or document(s) to the Select Committee. 10. Any person attending before the Select Committee to give evidence or to produce specified paper(s), book(s), record(s) or document(s) before the Select Committee does not enjoy the privileges given to witnesses under section 14(1) of Cap. 382. Conduct of meetings General principles 11. In accordance with RoP 79(1), the deliberations of the Select Committee shall be confined to the matter or matters referred to it by the Council. The Select Committee shall focus its work on the areas of study in SC(2)(UA) Paper No.: L3, which may be subsequently amended if necessary, having regard to the terms of reference set out in paragraph 2 above. 12. A schedule of meetings for the Select Committee is usually agreed beforehand, but the Chairman has the authority to determine the agenda, and to vary the schedule by changing the date, time and venue of meetings, which

- 41 -

includes venues outside of the LegCo Complex. Members of the Select Committee will be notified by the Clerk of the agenda or any variations determined by the Chairman. 13. In accordance with RoP 79(2), meetings of the Select Committee shall be held in public unless the Chairman otherwise orders in accordance with any decision of the Select Committee. Hearings for the examination of witnesses 14. Examination of witnesses will normally be conducted in public. Exceptions to open hearings may be made as decided by the Select Committee, based on the circumstances of each occasion. 15. During open hearings, members should only ask questions for the purpose of ascertaining facts relevant to, and within the scope of, the Select Committee's inquiry. Members should not make comments or statements during these hearings. 16. Open hearings are generally conducted in the following manner:

(a) at the beginning of each open hearing, the Chairman will remind members of the public and the media that dissemination or disclosure of the evidence given at the hearing outside of the proceedings of the Select Committee is not protected under Cap. 382. Members of the public and the media should be reminded that they may obtain legal advice as to their legal responsibilities;

(b) before the examination of a witness, the Chairman will remind the

witness as appropriate that:

(i) the witness does not enjoy the privileges given to witnesses under section 14(1) of Cap. 382; and

(ii) any person appearing before the Select Committee who

intentionally gives a false answer to any question material to the subject of inquiry during the course of any examination or presents to the Select Committee any false, untrue, fabricated or falsified document with intent to deceive the Select Committee, commits an offence under section 18 of Cap. 382;

(c) facts are established by witnesses' answers to questions and other

evidence given at hearings. Usually, the Chairman will first make

- 42 -

an introduction and then ask the witness an appropriate opening question, giving him/her an opportunity to state his/her case;

(d) members wishing to ask questions should so indicate by a show of

hands and they will ask the questions when called upon by the Chairman. The Chairman will ensure, as far as possible, that members have equal opportunities to ask questions and that the hearing is conducted in a structured and fair manner;

(e) the Chairman will decide whether a question or a piece of

evidence is relevant to, and within the scope of, the Select Committee's inquiry, as set out in its terms of reference;

(f) short follow-up questions may be allowed for the purpose of

seeking further answers to the original question or clarifications to the answers given. The Chairman has the discretion to decide whether a question is a follow-up question and whether it should be allowed or otherwise; and

(g) the privileges provided in Cap. 382 are available to Members only

within the context of the hearings. All Members, including non-Select Committee Members, should refrain from making comments relating to the hearings outside of the proceedings of the Select Committee. Evidence given in closed hearings should not be made public by any members.

17. Subject to the Select Committee's decision, witnesses attending before the Select Committee may be allowed to be accompanied by other persons, including legal adviser(s), to assist the witnesses concerned. However, such accompanying person(s) may not address the Select Committee. Measures taken to avoid possible prejudice to any party's interest in pending legal proceedings 18. In accordance with RoP 41(2), a Member shall not make reference in his/her speech to a case pending in a court of law in such a way as, in the opinion of the President or the Chairman, might prejudice that case. This rule applies to the proceedings of the Select Committee by virtue of RoP 43. 19. If there are pending legal proceedings arising from matters which are related to the subject matter of the Select Committee's inquiry, the following measures will be adopted to avoid possible prejudice to any party's interest in the pending legal proceedings:

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(a) where the pending legal proceedings is a criminal matter, theDepartment of Justice will be asked to keep the Select Committeeinformed of the progress of the pending criminal proceedingsconcerned;

(b) the Chairman would explain to each witness that the function ofthe Select Committee is not to adjudicate on the legal liability ofany party or individual and advise him/her of the Chairman'spower to disallow the making of any reference to a case pending ina court of law if such reference might, in the Chairman's opinion,prejudice the case;

(c) where it is considered necessary and justified, either on anapplication by a witness or on the Select Committee's own motion,the Select Committee may determine to hold closed hearings toobtain evidence from a witness;

(d) where the Select Committee considers necessary, it will providethe Department of Justice with a copy of the draft findings andobservations of the Select Committee and request for comment onwhether the contents of the draft might prejudice the pendingcriminal proceedings; and

(e) the report of the Select Committee should not contain any materialwhich might prejudice a pending trial.

20. In respect of pending civil proceedings, the following principles will,in addition to any applicable measures stated in paragraph 19 above, apply:

(a) references to matters awaiting adjudication in a court of lawshould be excluded if there is a risk that they might prejudice itsadjudication;

(b) "references" referred to in (a) above would include comment on,inquiry into and the making of findings on such matters;

(c) "matters awaiting adjudication" referred to in (a) above wouldinclude matters in respect of which proceedings have beeninitiated by the filing of the appropriate documents; and

(d) "prejudice" referred to in (a) above might arise from an element ofexplicit or implicit prejudgment in the proceedings of the SelectCommittee in two possible ways:

- 44 -

(i) the references might hinder the court or a judicial tribunal in reaching the right conclusion or lead it to reach other than the right conclusion; and

(ii) whether the court or judicial tribunal is affected in its

conclusion or not, the references might amount to an effective usurpation of the judicial functions of the court or judicial tribunal.

Handling of requests for classifying documents as confidential 21. If requests are made by witnesses for classifying certain information or documents as confidential, the Select Committee shall consider carefully the circumstances of each case and the justifications provided. Handling of information contained in classified documents or obtained at closed hearings 22. In fairness to persons who have provided classified documents to the Select Committee, if information contained in such documents is to be used at a public hearing, the source of the information will only be disclosed if it is necessary to do justice to the witness or to enable him to understand a question. 23. If closed hearings are held to obtain evidence from a witness who is a party to pending legal proceedings, information obtained in these closed hearings should be used with care, and the identity of the witness who has provided the information should not be disclosed if it is so decided by the Select Committee. 24. Where the Select Committee is inclined to refer to information obtained in closed hearings in the Select Committee's report, an extract of the relevant part of the report in draft form should be provided to the witness concerned for comment. The comments received will be carefully considered by the Select Committee before its report is finalized. 25. Any information obtained by way of oral evidence or in the form of documents provided at closed hearings must not be disclosed. Internal deliberations 26. Subject to RoP 79(2), the Select Committee may hold closed meetings to deliberate on procedural matters, progress of its work, the logistical arrangements for hearings, the evidence obtained, the draft report of the Select Committee and any other matters relevant to the Select Committee's work.

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Members including the Chairman and the Deputy Chairman should not disclose any information about the internal deliberations held or documents considered at these meetings. The Select Committee Chairman or the Deputy Chairman are the only persons authorized to handle media enquiries. Handling of documents 27. All documents produced to the Select Committee will be given a document number and will be paginated. Each member of the Select Committee will be given a copy of the documents produced to the Select Committee, unless advised otherwise with the consent of the Select Committee. Where a document is classified as confidential, members should not make copy of it, in whole or in part. Disclosure of interests 28. RoP 83A and 84 relating to Members' pecuniary interest shall apply to the proceedings of the Select Committee. 29. In addition, there may be situations in which a member wishes to declare non-pecuniary interests. In such a case, he/she should write to the Chairman to declare such interests. Where appropriate, the Chairman may announce at public meetings or hearings of the Select Committee the nature of interests so declared by individual members. Participation of Non-Select Committee Members 30. Non-Select Committee Members may attend meetings or hearings held in public but may not speak at these meetings or hearings. If a non-Select Committee Member wishes to direct any questions to a witness, he/she should put his/her questions in writing and pass them to the Chairman without interrupting the proceedings, and the Chairman will decide whether or not the Chairman will ask the questions. 31. Non-Select Committee Members are not allowed to be present at closed meetings or closed hearings of the Select Committee. Minutes of proceedings of the Select Committee 32. All proceedings of hearings and meetings are sound-recorded. Members of the public may obtain copies of the sound recordings of hearings and meetings held in public upon the payment of a fee.

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33. Minutes of evidence, usually in the form of a verbatim transcript, are kept for each hearing at which witnesses are examined. Relevant parts of the draft transcript are forwarded to the person or body giving evidence for sight and comment, if any, before being incorporated into the minutes of evidence, subject to their signing of an undertaking that they would not make any copy of the draft and would return it to the Select Committee before a specified date. The procedures in the Annex, which apply to witnesses, shall also apply to persons or bodies, other than the witnesses giving evidence, requesting copies of transcripts of evidence. Any person may obtain a copy of the finalized form of transcript for hearings held in public upon the payment of a fee. 34. For closed hearings, no transcripts will be provided to any person including the witnesses concerned. All witnesses however are provided with the relevant parts of the draft transcripts of evidence for sight and comment. The undertaking they are required to sign includes an additional requirement that any part of the draft transcript in question must not be divulged. 35. For meetings not attended by any non-LegCo Members, the minutes of meetings are normally presented in a condensed form, recording the Select Committee's decisions, follow-up actions required, procedural matters and declarations of interests made by members. Verbatim record of such meetings may be prepared on the direction of the Select Committee. Report of the Select Committee 36. The draft report of the Select Committee is considered by the Select Committee at closed meetings. In accordance with RoP 79(9), the minutes of proceedings of the Select Committee record all proceedings on the consideration of the report and on every amendment proposed thereto, with a note of divisions, if divisions were taken in the Select Committee, showing the names of members voting in the division or declining to vote. 37. In order to ensure that the procedure is fair and is seen to be fair in particular to people whose interests or reputations may be affected by its proceedings, any party, person or organization against whom adverse comments are intended to be made in the Select Committee's report will be given an opportunity to comment on the relevant parts of the draft findings and observations of its report. The comments received will be carefully considered by the Select Committee before its report is finalized. 38. In accordance with RoP 79(10), a report of the Select Committee, with the minutes of proceedings and the minutes of evidence, if evidence was taken, shall be laid on the Table of the Council by the Chairman of the Select Committee.

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Premature publication of evidence 39. The evidence taken before the Select Committee and documents presented to it shall not, except in the case of its meetings or hearings held in public, be published by a member of the Select Committee or by any other person before the Select Committee has presented its report to the Council.

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Provision of Transcripts of Evidence

The following procedures shall apply to the provision of transcripts of evidence taken by the Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited ("the Select Committee"):

(a) where considered appropriate, the Select Committee maypermit copies of the transcripts of evidence taken in public beprovided to witnesses and prospective witnesses on request;

(b) where copies of transcripts of evidence taken in public areprovided to witnesses or prospective witnesses, theunpublished and/or draft status of the transcripts shall bestated clearly; and

(c) provision of unpublished and/or draft transcripts of evidencetaken in public to witnesses or prospective witnesses ifappropriate should be made on the condition that they shallnot make public use of the transcripts; that they shall notquote directly from the transcripts; and that they shall not usethe transcripts in a manner prejudicial to the interest of theSelect Committee or other persons.

Annex to Appendix 4

- 49 -

Proposed major areas of study prepared by the Legislative Council Secretariat for the Select Committee's consideration at

the open meeting on 3 March 2017

I. Background, nature and details of the agreement between MrLEUNG Chun-ying and the Australian firm UGL Limited ("UGL")signed in 2011 ("UGL Agreement"), including:

(a) major terms and conditions of the UGL Agreement;

(b) the amount and nature of the payments made to Mr LEUNGby UGL ("Payments"), the payment method(s) and timing ofpayment(s); and

(c) whether Mr LEUNG had provided any service or assistance toUGL as per the terms of the UGL Agreement, after he hadbecome the Chief Executive.

II. Declaration requirements under Article 47 of the Basic Law ("BL")and the system of declaration of interests by Members of theExecutive Council

(a) what were the requirements applicable to the Chief Executive inrelation to declaration of interests under BL 47 and the relevantsystem of declaration of interests of the Executive Council at thetime Mr LEUNG assumed the office of the Chief Executive;

(b) whether such requirements had to be complied with at theassumption of office or whether such requirements had to becomplied with at the assumption of office and throughout the termof the office;

(c) whether the Payments fell within the scope of interests required tobe declared under BL 47 and the relevant system of declaration ofinterests of the Executive Council; and

(d) if so, whether Mr LEUNG had complied with those requirementsto declare his interests in receiving the Payments, uponassumption or during the term of the office of the ChiefExecutive.

Appendix 5

- 50 -

III. Conflict of interests

(a) whether the terms of the UGL Agreement were still in force and the rights and obligations under the UGL Agreement were still capable of being enforced after Mr LEUNG had assumed the office of the Chief Executive; and, if so, whether such fact had given rise to any conflict of interests on the part of Mr LEUNG;

(b) the nature and effect of the term under the UGL Agreement "to

provide such assistance in the promotion of the UGL Group and the DTZ Group as UGL may reasonably require, including but not limited to acting as a referee and adviser from time to time" ("Term");

(c) whether the Term had been modified in any way and, if so, the effect of the Term as modified;

(d) whether Mr LEUNG's commitment pursuant to the Term, or the

Term as modified, had given rise to any conflict of interests, whether actual or potential;

(e) whether Mr LEUNG provided any service or assistance to UGL

pursuant to the UGL Agreement during his term of office as the Chief Executive which had given rise to any actual or potential conflict of interests; and

(f) whether there were other aspects of the UGL Agreement that had

given rise to any actual or potential conflict of interests.

IV. Taxation issues

(a) whether the Payments or any part(s) of the Payments were taxable under the laws of Hong Kong; and

(b) if the answer to IV(a) above is in the affirmative, whether

Mr LEUNG had complied with the taxation laws in force.

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Revised proposed major areas of study prepared for the Select Committee's consideration at the open meeting

on 29 March 2017

I. Background, nature and details of the agreement betweenMr LEUNG Chun-ying and the Australian firm UGL Limited("UGL") signed in 2011 ("UGL Agreement"), including:

(a) whether or not Mr LEUNG and UGL signed and/or executed theUGL Agreement;

(b) if so, what were the major terms and conditions of the UGLAgreement;

(c) whether or not Mr LEUNG received any payment(s) from UGLpursuant to the UGL Agreement and if Mr LEUNG did receivepayment(s), the amount and nature of the payment(s) made to MrLEUNG by UGL ("Payments"), the payment method(s) andtiming of payment(s);

(d) the nature and effect of the term under the UGL Agreement "toprovide such assistance in the promotion of the UGL Group andthe DTZ Group as UGL may reasonably require, including but notlimited to acting as a referee and adviser from time to time"1

("Term"); and

(e) whether the Term had been modified in any way and, if so, bywhom and the effect of the Term as modified.



1 The original text of the Term is in English and the text in Chinese is a translated version (see Official Record of Proceedings of the Legislative Council meeting of 5 November 2014, Pages 1157 and 1169 in Hansard (Chinese version)). Readers should refer to the original English text as it appeared in the copy of the purported UGL Agreement (Appendix II to IN03/16-17) for the authentic version.

Appendix 6

- 52 -

(b) whether such requirements had to be complied with at theassumption of office or whether such requirements had to becomplied with at the assumption of office and throughout the termof the office;

(c) whether the Payments fell within the scope of interests required tobe declared under BL 47 and the relevant system of declaration ofinterests of the Executive Council; and

(d) if so, whether Mr LEUNG had complied with those requirementsto declare his interests in receiving the Payments, uponassumption or during the term of the office of the ChiefExecutive.


(a) whether the terms of the UGL Agreement were still in force andthe rights and obligations under the UGL Agreement were stillcapable of being enforced after Mr LEUNG had assumed theoffice of the Chief Executive; and, if so, whether such fact hadgiven rise to any conflict of interests on the part of Mr LEUNG;

(b) whether Mr LEUNG's commitment pursuant to the Term, or theTerm as modified, had given rise to any conflict of interests,whether actual or potential;

(c) whether Mr LEUNG had provided any service or assistance toUGL pursuant to the UGL Agreement after he assumed the officeof the Chief Executive and if so, whether this had given rise toany actual or potential conflict of interests; and

(d) whether there were other aspects of the UGL Agreement that hadgiven rise to any actual or potential conflict of interests.

IV. Taxation issues

(a) whether the Payments or any part(s) of the Payments were taxableunder the laws of Hong Kong; and

(b) if the answer to IV(a) above is in the affirmative, whetherMr LEUNG had complied with the taxation laws in force.

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Amendments proposed by Mr Holden CHOW to the Chinese text of the revised proposed major areas of study

prepared by the Legislative Council Secretariat with track changes feature

擬議主要研究範疇

(截至2017年3月27日的修訂本)

I. 梁振英先生於2011年與澳洲企業UGL Limited("UGL")所訂協議("UGL

協議")的背景、性質及詳情，包括：

（ａ）澳洲傳媒公開的UGL協議文本的完整性及真偽，以及該協議的性質、主要

條款及條件為何梁先生與UGL有否簽訂及/或執行UGL協議；

（ｂ）梁先生與UGL有否簽訂及/或執行此份澳洲傳媒公開的協議，若有，梁先

生簽訂UGL協議的當日是否已當選行政長官主要條款及條件為何；

（ｃ）梁先生有否根據UGL協議從 UGL收取任何款項，以及若梁先生曾收取款

項，UGL向梁先生支付的款項("該款項")的金額及性質，以及UGL付款的方式及

時間；

（ｄ）UGL協議中＂按UGL的合理要求提供協助，以推廣UGL集團及戴德梁行集

團，包括但不限於不時擔當推薦人及顧問的角色＂此一條款（＂該條款＂）的背

景、原意、性質及效力；及

（ｅ）在澳洲傳媒公開的協議文本中，上文第(d) 段所述該條款曾否以任何方式

作出修改，以及若曾作出修改（即，以手寫方式加入「只會在不造成利益衝突的

情況下提供相關協助」），此修改的真偽，由誰人作出，修改及該修改的原意和

作用，以及條款經修改修改後的效力；及

( f ) UGL就該協議在2014年發出的公開聲明的真偽及可信性。。

II. 《基本法》第四十七條財產申報及行政會議成員利益申報制度下的

申報規定

(a) 梁先生就任行政長官時，《基本法》第四十七條財產申報及行政會議相關利

益申報制度下適用於行政長官的利益申報規定為何；

(b) 該等規定是否須在就任之時予以遵從，或該等規定是否須在就任之時和整個

任期內予以遵從；

(c) 《基本法》第四十七條要求行政長官就任時申報財產的原意，以及該款項在

《基本法》第四十七條是否屬於須予申報的財產；

(dc) 該款項在《基本法》第四十七條及行政會議相關利益申報制度下是否屬於須

予申報的利益；及

(ed) 若是，梁先生就任行政長官之時或在其行政長官任期內，有否按照該等規

定，就收取該款項一事申報利益。

Appendix 7 (Chinese version only)

- 54 -

III. 利益衝突

(a) 在UGL完成收購DTZ及梁先生就任行政長官後，UGL協議的全部或部份條款

是否依然有效，若只是部份條款有效，哪些條款有效；以及UGL 協議所訂的權

利及責任是否依然可予執行；若是，此事實與梁先生的身份有否構成任何利益衝

突；

(b)梁先生依據該條款或經修改的該條款，或已完成的條款所作的承諾有否構成任

何實質或潛在的利益衝突；

(ｃ)在梁先生就任行政長官後，他有否根據UGL協議向UGL提供任何服務或協助；

UGL在2014年發出的聲明指梁先生沒有提供任何服務或協助，此等聲明的真偽及

可信性；若梁先生有向UGL提供服務或協助有，此舉有否構成任何實質或潛在的

利益衝突；及

(ｄ) UGL協議在其他方面有否構成任何實質或潛在的利益衝突。

IV. 稅務問題

(a) 該款項或該款項的任何部分根據香港法例是否應予課稅；及

(b) 若上文第IV(a)項的答案為"是"，梁先生有否遵照當時有效的稅務法例行事。

- 55 -

Amendments pursued by Mr Holden CHOW after discussion on Appendix 7 at the open meeting on 25 April 2017

(a) in relation to item I(d), inserting "背景、原意、 " before "性質

及效力 " ;

(b) in relation to item I(e), subject to further revision where

necessary, amending it to read "在該協議文本中，上文

第 (d)段所述條款曾否作出修改……若有，由誰人作出，

該修改的原意和作用，以及條款經修改後的效力；" ; and

(c) adding a new item II(c) "《基本法》第四十七條要求行政

長官就任時申報財產的原意，以及該款項在《基本法》

第四十七條是否屬於須予申報的財產；".

Appendix 8

- 56 -

Endorsed major areas of study of the Select Committee

I. Background, nature and details of the agreement betweenMr LEUNG Chun-ying and the Australian firm UGL Limited("UGL") signed in 2011 ("UGL Agreement"), including:

(a) whether or not Mr LEUNG and UGL signed and/or executed theUGL Agreement;

(b) if so, what were the major terms and conditions of the UGLAgreement;

(c) whether or not Mr LEUNG received any payment(s) from UGLpursuant to the UGL Agreement and if Mr LEUNG did receivepayment(s), the amount and nature of the payment(s) made to MrLEUNG by UGL ("Payments"), the payment method(s) andtiming of payment(s);

(d) the nature and effect of the term under the UGL Agreement "toprovide such assistance in the promotion of the UGL Group andthe DTZ Group as UGL may reasonably require, including but notlimited to acting as a referee and adviser from time to time"1

("Term"); and

(e) whether the Term had been modified in any way and, if so, bywhom and the effect of the Term as modified.



1 The original text of the Term is in English and the text in Chinese is a translated version (see Official Record of Proceedings of the Legislative Council meeting of 5 November 2014, Pages 1157 and 1169 in Hansard (Chinese version)). Readers should refer to the original English text as it appeared in the copy of the purported UGL Agreement (Appendix II to IN03/16-17) for the authentic version.

Appendix 9

- 57 -

(b) whether such requirements had to be complied with at the assumption of office or whether such requirements had to be complied with at the assumption of office and throughout the term of the office;

(c) whether the Payments fell within the scope of interests required to be declared under BL 47 and the relevant system of declaration of interests of the Executive Council; and

(d) if so, whether Mr LEUNG had complied with those requirements to declare his interests in receiving the Payments, upon assumption or during the term of the office of the Chief Executive.


(a) whether the terms of the UGL Agreement were still in force and the rights and obligations under the UGL Agreement were still capable of being enforced after Mr LEUNG had assumed the office of the Chief Executive; and, if so, whether such fact had given rise to any conflict of interests on the part of Mr LEUNG;

(b) whether Mr LEUNG's commitment pursuant to the Term, or the Term as modified, had given rise to any conflict of interests, whether actual or potential;

(c) whether Mr LEUNG had provided any service or assistance to

UGL pursuant to the UGL Agreement after he assumed the office of the Chief Executive and if so, whether this had given rise to any actual or potential conflict of interests; and

(d) whether there were other aspects of the UGL Agreement that had

given rise to any actual or potential conflict of interests.

IV. Taxation issues

(a) whether the Payments or any part(s) of the Payments were taxable under the laws of Hong Kong; and

(b) if the answer to IV(a) above is in the affirmative, whether

Mr LEUNG had complied with the taxation laws in force.

- 58 -

在 2017 年 6 月 21 日的會議上就議程項目 I"有關閉門會議內容懷疑外泄的投訴"通過的議案

Motion passed under agenda item I "Complaint about suspected disclosure of closed-door deliberations" at the meeting on 21 June 2017

(議案中文措辭 )

本人動議就調查梁振英先生與澳洲企業 UGL Limited 所訂協議的事宜專責委員會 2017 年 5 月 15 日議決將閉門會議保密，其後懷疑有人泄密，本會通過議案，建議出席委員會的議員按何君堯議員草擬

經梁美芬議員修正的法定聲明 (見附件 )做法定聲明書。

動議人：何君堯議員 , JP 梁美芬議員 , SBS, JP

(English translation of the motion)

I move that, in relation to the suspected disclosure of closed-door deliberations subsequent to the decision of the Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited made at the meeting on 15 May 2017 to keep such deliberations confidential, a motion be passed by this Committee to suggest that Members present at the meeting should make statutory declaration as per the statutory declaration proforma drafted by Dr Hon Junius HO Kwan-yiu and amended by Dr Hon Priscilla LEUNG Mei-fun (see Annex).

Moved by : Dr Hon Junius HO Kwan-yiu, JP Dr Hon Priscilla LEUNG Mei-fun, SBS, JP

Appendix 10

- 59 -

IN THE MATTER of the Oaths and

Declarations Ordinance, Chapter 11.

___________________

STATUTORY DECLARATION OF [NAME]

I, [NAME], (holder of Hong Kong Identity Card No.[] of Room [],

Legislative Council Complex, 1 Legislative Council Road, Central, Hong Kong, do

solemnly and sincerely and declare and say as follows :-

1. I am one of the members of the Select Committee to Inquire into Matters

about the Agreement between Mr LEUNG Chun-ying and the Australian

firm UGL Limited ("the Select Committee").

2. My duties as a member of the Select Committee are to inquire into the

following matters regarding Mr LEUNG Chun ying's signing of an

agreement with the Australian firm UGL Limited in 2011 ("UGL

Agreement") and his receipt of payments amounting to £4 million from

UGL Limited ("Payments") in connection with the UGL Agreement after

assuming the office of Chief Executive: (i) whether Mr LEUNG had

complied with the declaration requirements under Article 47 of the Basic

Law and the system of declaration of interests by Members of the

Executive Council, (ii) whether the UGL Agreement had given rise to any

conflict of interests on the part of Mr LEUNG as the Chief Executive,

and (iii) whether the Payments were taxable under the laws of Hong

Kong.

3. I hereby confirm that since the resolution of the Select Committee made

on 15th May 2017 that all matters, e.g., the liaison between Mr LEUNG

Chun-ying and Mr. Holden Chow Ho-ding over the draft scope of

Annex toAppendix 10

(English version only)

- 60 -

investigation of the Select Committee under discussion, at the closed door

meeting on that day should be kept in strict confidence and not to be

disclosed or divulged without any prior consent of the Select Committee.

4. Subsequent to the said meeting of the Select Committee, somehow

information as referred to in the foregoing paragraph subject to

confidentiality were fully blown out in the public.

5. In compliance of the resolution of the Select Committee for investigating

the likely source of leakage of the confidential information as aforesaid,

each member of the Select Committee is to make a Statutory Declaration

to confirm that he or she did not disclose the said confidential

information to others without the approval of the Committee.

6. In the circumstances, I hereby confirm that I did not disclose or divulge

any confidential information to the press or any other person between the

date of the meeting of the Select Committee held on 15th May 2017 and

up to and inclusive of 1st June 2017.

AND I make this declaration conscientiously believing the same to be

true and by virtue of the Oaths and Declaration Ordinance, Chapter 11.

DECLARED at the office of

) ) ) ) ) )

Before me,

- 61 -

Dated the day of 2017

___________________

IN THE MATTER of the Oaths and

Declarations Ordinance, Chapter 11.

___________________

*****************************************

STATUTORY DECLARATION

OF

[NAME]

*****************************************

- 62 -

Appendix 11

- 63 -

在 2017 年 7 月 12 日的會議上就議程項目 I"要求梁繼昌議員辭去專責委員會職務"通過的議案

Motion passed under agenda item I "Request for Hon Kenneth LEUNG to resign from the Select Committee" at the meeting on 12 July 2017

(議案中文措辭 )

為免影響本專責委員會的公信力，本人建議專責委員會要求梁繼昌

議員辭任專責委員會委員。

動議人：黃國健議員 , SBS, JP


In order to prevent the credibility of this Select Committee from being affected, I propose that the Select Committee should request Mr Kenneth LEUNG to resign from the Select Committee.

Moved by : Hon WONG Kwok-kin, SBS, JP

Appendix 12

- 64 -

Voting result in respect of the motion requesting Mr Kenneth LEUNG to resign from the Select Committee

LC Paper No. CB(2)2152/16-17

Ref : CB2/SC/16

Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited

Extract from the minutes of meeting held on Wednesday, 12 July 2017, at 8:45 am

in Conference Room 2B of the Legislative Council Complex

Members : Hon Paul TSE Wai-chun, JP (Chairman) present Hon MA Fung-kwok, SBS, JP (Deputy Chairman)

Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon WONG Kwok-kin, SBS, JP Hon Steven HO Chun-yin, BBS Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Dr Hon Junius HO Kwan-yiu, JP Hon LAM Cheuk-ting Hon YUNG Hoi-yan

Clerk in : Miss Josephine SO attendance Chief Council Secretary (2) 2

Staff in : Miss Flora TAI attendance Assistant Secretary General 2

Mr Timothy TSO Senior Assistant Legal Adviser 1

Miss Joyce CHAN Assistant Legal Adviser 1

Appendix 13

- 65 -

Mr Raymond LAM Senior Council Secretary (2) 7 Miss Michelle TANG Council Secretary (2) 2 Miss Cally LAI Legislative Assistant (2) 2

X X X X X X X X

4.. Members discussed Mr WONG Kwok-kin's request for Mr Kenneth LEUNG to resign from the Select Committee. 5.. Mr WONG Kwok-kin moved the following motion:

(議案中文措辭)

"為免影響本專責委員會的公信力，本人建議專責委員會要求梁繼昌議員辭任專責委員會委員。"


"In order to prevent the credibility of this Select Committee from being affected, I propose that the Select Committee should request Mr Kenneth LEUNG to resign from the Select Committee."

6.. The Chairman put Mr WONG Kwok-kin's motion to vote. The Deputy Chairman requested a division. The following members voted in favour of the motion: Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mr MA Fung-kwok, Mr Steven HO, Dr Junius HO and Ms YUNG Hoi-yan. (six members) The following members voted against the motion: Mr Kenneth LEUNG, Mr Alvin YEUNG, Mr Andrew WAN and Mr LAM Cheuk-ting. (four members)

- 66 -

7.. The Chairman declared that six members voted in favour of the motion and four members voted against it. He declared that the motion was carried.

X X X X X X X X

Council Business Division 2 Legislative Council Secretariat 3 October 2017

- 67 -

I. From Mr LEUNG Chun-ying

(a) copy of the agreement(s) entered into between Mr LEUNG Chun-yingand the Australian firm UGL Limited ("UGL") in 2011 ("UGLAgreement"); and related agreement(s), if any, entered into by the twoparties subsequent to the signing of the UGL Agreement ("relatedagreement(s)");

(b) record(s) of declaration made by Mr LEUNG Chun-ying under Article47 of the Basic Law;

(c) record(s) of declaration of interests by Mr LEUNG Chun-ying to theExecutive Council ("ExCo");

(d) record(s) of payment(s) received by Mr LEUNG Chun-ying pursuantto the UGL Agreement and/or any related agreement(s);

(e) record(s) of taxation payment(s) submitted by Mr LEUNG Chun-ying,if any, to the Inland Revenue Department relating to the UGLAgreement and/or any related agreement(s);

(f) copy of correspondence(s) between Mr LEUNG Chun-ying and otherrelevant parties (including but not limited to representative(s) of UGL,DTZ Holdings plc ("DTZ"), DTZ's creditor(s) and administrator(s))concerning the negotiation process(es) in respect of the UGLAgreement and/or any related agreement(s);

(g) copy of minutes of and document(s) presented at meeting(s) of theboard of directors of DTZ and/or its annual general meeting(s) and/orextraordinary general meeting(s) that covered discussion(s) and/orresolution(s) relating to the UGL Agreement and/or any relatedagreement(s), including the sale of the business and assets of DTZ toUnited Group Europe Limited, a subsidiary of UGL ("the sale ofDTZ"); and

(h) press statement(s) issued by the Chief Executive's Office on behalf ofMr LEUNG Chun-ying relating to the UGL Agreement and/or anyrelated agreement(s).

Appendix 14

List of information to be obtained by the Select Committee

- 68 -

II. From UGL Limited

(a) copy of the UGL Agreement and/or any related agreement(s); (b) record(s) of payment(s) to Mr LEUNG Chun-ying pursuant to the

UGL Agreement and/or any related agreement(s); (c) record(s) of request(s) from UGL for service and assistance by

Mr LEUNG Chun-ying, if any, since December 2011;

(d) copy of minutes of and document(s) presented at meeting(s) of the board of directors of DTZ and/or its annual general meeting(s) and/or extraordinary general meeting(s) that covered the discussion(s) and/or resolution(s) relating to the UGL Agreement and/or any related agreement(s), including the sale of DTZ;

(e) copy of correspondence(s) and/or document(s) relating to the UGL Agreement and/or any related agreement(s) which had been submitted by Mr LEUNG Chun-ying to the board of directors and/or the management team of DTZ;

(f) press statement(s) issued by UGL and/or DTZ relating to the UGL Agreement and/or any related agreement(s);

(g) copy of letter(s) and/or document(s) issued by UGL and/or DTZ to DTZ's shareholder(s) and/or creditor(s) and/or administrator(s) and/or liquidator(s) relating to the UGL Agreement and/or any related agreement(s);

(h) copy of letter(s) and/or document(s) issued by DTZ's creditor(s)

and/or administrator(s) to UGL and/or DTZ relating to the UGL Agreement and/or any related agreement(s);

(i) information on DTZ's respective scope of business in Hong Kong

before and after the sale of DTZ;

(j) information on UGL's respective scope of business in Hong Kong before and after the sale of DTZ; and

(k) DTZ's Annual Reports and Accounts for respective financial years

since 2006.

- 69 -

III. From the Judiciary Administration

Record(s) of Mr LEUNG Chun-ying's declaration under Article 47 of the Basic Law to the Chief Justice of the Court of Final Appeal.

IV. From the Executive Council Secretariat

(a) information on the system of declaration of interests by Members of

ExCo at the time when Mr LEUNG Chun-ying assumed the office of Chief Executive ("CE") and during his term of office of CE;

(b) record(s) of declaration of interests made by Mr LEUNG Chun-ying upon assumption of office and during his term of office of CE; and

(c) record(s) of declaration of interests made by Mr LEUNG Chun-ying at ExCo meeting(s).

V. From the Inland Revenue Department Requirements and relevant provisions under the taxation laws of Hong Kong which are relevant to the UGL Agreement and/or any related agreement(s).

VI. From the Joint Administrators of DTZ Holdings plc who conducted the sale of DTZ (a) copy of letter(s) and/or document(s) issued by the Joint

Administrators of DTZ relating to the sale of DTZ, the UGL Agreement and/or any related agreement(s); and

(b) copy of the Joint Administrators' Statement of Proposals of DTZ (in administration) issued in 2011.

VII. From the secured creditor of DTZ Holdings plc, i.e. The Royal Bank

of Scotland plc Copy of the board resolution(s), press statement(s), letter(s) and/or document(s) issued by the secured creditor of DTZ relating to the sale of DTZ, the UGL Agreement and/or any related agreement(s).

- 70 -

List of witnesses to be invited to assist the Select Committee in its inquiry

I. Background, nature and details of the agreement(s) entered intobetween Mr LEUNG Chun-ying and the Australian firm UGL Limited

Mr LEUNG Chun-ying

Mr Richard LeupenThe then Managing Director and CEOUGL Limited(or the representative(s) of UGL Limited)

Mr Tim Melville-RossThe then ChairmanDTZ Holdings plc

The representative(s) from the Chief Executive's Office

II. Declaration requirements under Article 47 of the Basic Law and thesystem of declaration of interests by Members of the ExecutiveCouncil and issues relating to possible conflict of interests

Mr LEUNG Chun-ying

Judiciary Administrator

Clerk to the Executive CouncilChief Executive's Office, Executive Council Secretariat

The representative(s) from the Chief Executive's Office

III. Taxation issues

Mr LEUNG Chun-ying

Commissioner of Inland Revenue

Appendix 15

- 71 -

Sele

ct C

omm

ittee

to In

quir

e in

to M

atte

rs a

bout

the A

gree

men

t bet

wee

n M

r L

EU

NG

Chu

n-yi

ng a

nd th

e Aus

tral

ian

firm

UG

L L

imite

d ("

Sele

ct C

omm

ittee

")

L

ist o

f inf

orm

atio

n av

aila

ble

to th

e Se

lect

Com

mitt

ee

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

Mr

LE

UN

G

Chu

n-yi

ng

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

I.M

ajor

Are

a of

Stu

dy –

Bac

kgro

und,

nat

ure

and

deta

ils o

f th

e ag

reem

ent

betw

een

Mr

LE

UN

G C

hun-

ying

and

the

Aus

tral

ian

firm

UG

LL

imite

d ("

UG

L")

sign

ed in

201

1 ("

UG

L A

gree

men

t")

1.

Cop

y of

the

UG

L A

gree

men

t; an

d re

late

d ag

reem

ent(s

), if

any,

ent

ered

in

to b

y th

e tw

o pa

rties

sub

sequ

ent

to

the

sign

ing

of

the

UG

L A

gree

men

t ("r

elat

ed a

gree

men

t(s)"

)

A co

py o

f the

le

tter p

urpo

rted

to b

e th

e U

GL

Agr

eem

ent i

s av

aila

ble

in th

e pu

blic

dom

ain1

1 O

n 8

Oct

ober

201

4, F

airf

ax M

edia

Lim

ited,

an

Aus

tralia

n m

edia

age

ncy,

pub

lishe

d fo

r the

firs

t tim

e a

deta

iled

repo

rt on

the

UG

L A

gree

men

t on

The

Sydn

ey M

orni

ng H

eral

d an

d Th

e A

ge.

A

copy

of a

lette

r fro

m M

r Ric

hard

Leu

pen,

Man

agin

g D

irect

or &

CEO

of U

GL,

to M

r LEU

NG

Chu

n-yi

ng d

ated

2 D

ecem

ber 2

011

and

purp

orte

dly

sign

ed b

y M

r LEU

NG

at t

he e

nd o

f th

e le

tter

on th

e sa

me

day,

was

atta

ched

to th

e ne

ws

repo

rt (h

ttp://

imag

es.th

eage

.com

.au/

file/

2014

/10/

08/5

8581

00/le

ung-

lette

r.pdf

?ran

d=14

1275

2076

979)

and

pur

porte

d to

be

the

UG

L A

gree

men

t. Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

Leg

end Th

e re

ques

ted

info

rmat

ion

was

pro

vide

d.

The

requ

e ste

d in

form

atio

n w

as n

ot p

rovi

ded.

No

requ

est w

as ra

ised

with

thes

e pa

rties

for t

he p

rovi

sion

of t

he in

form

atio

n se

t out

on

the

left.

App

endi

x 16

- 72 -

http://images.theage.com.au/file/2014/10/08/5858100/leung-letter.pdf?rand=1412752076979

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

Mr

LE

UN

G

Chu

n-yi

ng

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

2.

Rec

ord(

s) o

f pa

ymen

t(s)

rece

ived

by

Mr L

EUN

G C

hun-

ying

pur

suan

t to

the

UG

L A

g ree

men

t an

d/or

any

re

late

d ag

reem

ent(s

)

-

3.

Cop

y of

cor

resp

onde

nce(

s) b

etw

een

Mr

LEU

NG

Chu

n-yi

ng a

nd o

ther

re

leva

nt p

artie

s (in

clud

ing

but

not

limite

d to

repr

esen

tativ

e(s)

of U

GL,

D

TZ H

oldi

ngs

plc

("D

TZ")

, DTZ

's cr

edito

r(s)

and

adm

inis

trato

r(s))

co

ncer

ning

th

e ne

gotia

tion

proc

ess(

es)

in r

espe

ct o

f th

e U

GL

Agr

eem

ent

and/

or

any

rela

ted

agre

emen

t(s)

-

4.

Cop

y of

m

inut

es

of

and

docu

men

t(s)

pres

ente

d at

m

eetin

g(s)

of t

he b

oard

of d

irect

ors

of D

TZ a

nd/o

r its

ann

ual

gene

ral

mee

ting(

s)

and/

or

extra

ordi

nary

ge

nera

l m

eetin

g(s)

th

at

cove

red

disc

ussi

on(s

) an

d/or

re

solu

tion(

s)

rela

ting

to

the

UG

L A

gree

men

t an

d/or

an

y re

late

d ag

reem

ent(s

), in

clud

ing

the

sale

of

the

busi

ness

an

d as

sets

of D

TZ to

Uni

ted

Gro

up

Euro

pe

Lim

ited,

a

subs

idia

ry

of

UG

L ("

the

sale

of D

TZ")

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 73 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

Mr

LE

UN

G

Chu

n-yi

ng

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

5.

Cop

y of

cor

resp

onde

nce(

s) a

nd/o

r do

cum

ent(s

) re

latin

g to

the

UG

L A

gree

men

t an

d/or

an

y re

late

d ag

reem

ent(s

) w

hich

ha

d be

en

subm

itted

by

Mr

LEU

NG

Chu

n-yi

ng to

the

boar

d of

dire

ctor

s and

/or

the

man

agem

ent t

eam

of D

TZ

-

6.

Cop

y of

le

tter(s

) an

d/or

do

cum

ent(s

) is

sued

by

UG

L an

d/or

D

TZ

to

DTZ

's sh

areh

olde

r(s)

and/

or

cred

itor(s

) an

d/or

ad

min

istra

tor(s

) and

/or l

iqui

dato

r(s)

rela

ting

to

the

UG

L A

gree

men

t an

d/or

any

rela

ted

agre

emen

t(s)

-

7.

Cop

y of

le

tter(s

) an

d/or

do

cum

ent(s

) is

sued

by

D

TZ's

cred

itor(s

) an

d/or

ad

min

istra

tor(s

) to

UG

L an

d/or

DTZ

rel

atin

g to

the

UG

L A

gree

men

t and

/or a

ny re

late

d ag

reem

ent(s

)

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 74 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

Mr

LE

UN

G

Chu

n-yi

ng

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

8.

Cop

y of

le

tter(s

) an

d/or

do

cum

ent(s

) is

sued

by

th

e Jo

int

Adm

inis

trato

rs o

f D

TZ r

elat

ing

to

the

sale

of

D

TZ,

the

UG

L A

gree

men

t an

d/or

an

y re

late

d ag

reem

ent(s

)

One

do

cum

ent

was

pr

ovid

ed2

[LC

Pap

er

No.

C

B(2)

218/

17

-18(

06)]

-

9.

Cop

y of

the

boa

rd

reso

lutio

n(s)

, pr

ess

stat

emen

t(s),

lette

r(s)

and/

or

docu

men

t(s)

issu

ed b

y th

e se

cure

d cr

edito

r of D

TZ r

elat

ing

to th

e sa

le

of

DTZ

, th

e U

GL

Agr

eem

ent

and/

or a

ny re

late

d ag

reem

ent(s

)

No

resp

onse

-

10.

Cop

y of

the

Joi

nt A

dmin

istra

tors

' St

atem

ent o

f Pr

opos

als

of D

TZ (

in

adm

inis

tratio

n) is

sued

in 2

011

[LC

Pap

er

No.

C

B(2)

218/

17

-18(

06)]

-

2 Th

e do

cum

ent p

rovi

ded

was

a c

opy

of th

e sa

le a

nd p

urch

ase

agre

emen

t ent

ered

into

bet

wee

n D

TZ (i

n ad

min

istra

tion)

, the

Joi

nt A

dmin

istra

tors

of D

TZ a

nd U

nite

d G

roup

Eur

ope

Lim

ited

in re

spec

t of t

he sa

le o

f DTZ

dat

ed 4

Dec

embe

r 201

1.

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 75 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

Mr

LE

UN

G

Chu

n-yi

ng

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

11.

DTZ

's A

nnua

l R

epor

ts

and

Acc

ount

s fo

r re

spec

tive

finan

cial

ye

ars s

ince

200

6

The

requ

este

d A

nnua

l Re

ports

and

A

ccou

nts a

re

avai

labl

e on

th

e w

ebsit

e of

th

e Co

mpa

nies

H

ouse

of t

he

Uni

ted

Kin

gdom

3

12.

Pres

s st

atem

ent(s

) is

sued

by

UG

L an

d/or

DTZ

rel

atin

g to

the

UG

L A

gree

men

t an

d/or

an

y re

late

d ag

reem

ent(s

)

-

13.

Pres

s st

atem

ent(s

) is

sued

by

th

e C

hief

Exe

cutiv

e's O

ffice

on

beha

lf of

Mr

LEU

NG

Chu

n-yi

ng r

elat

ing

to t

he U

GL

Agr

eem

ent

and/

or a

ny

rela

ted

agre

emen

t(s)

The

requ

este

d pr

ess

stat

emen

ts

are

avai

labl

e on

the

web

site

of

the

HK

SAR

G

over

nmen

t

3 Th

e C

ompa

nies

Hou

se is

the

com

pani

es re

gist

ry o

f the

Gov

ernm

ent o

f the

Uni

ted

Kin

gdom

. D

TZ's

Ann

ual R

epor

ts a

nd A

ccou

nts

for r

espe

ctiv

e fin

anci

al y

ears

bet

wee

n 20

06 a

nd 2

011

are

acce

ssib

le th

roug

h th

e C

ompa

nies

Hou

se's

onlin

e se

rvic

e (h

ttps:

//bet

a.co

mpa

nies

hous

e.go

v.uk

/).

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 76 -

https://beta.companieshouse.gov.uk/

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

M

r L

EU

NG

C

hun-

ying

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

14.

Doc

umen

ts p

rovi

ded

by M

r LEU

NG

Chu

n-yi

ng in

his

lette

r dat

ed 1

5 Se

ptem

ber 2

017

(LC

Pap

er N

o. C

B(2)

218/

17-1

8(01

)) w

hich

are

no

t req

uest

ed b

y th

e Se

lect

Com

mitt

ee:

(a)

"CY

Leu

ng: U

GL

Q&

A" p

ublis

hed

by T

he S

ydne

y M

orni

ng H

eral

d da

ted

8 O

ctob

er 2

014;

(b) U

GL'

s Med

ia R

elea

se d

ated

9 O

ctob

er 2

014;

(c

) U

GL'

s Med

ia R

elea

se d

ated

14

Oct

ober

201

4;

(d

) "Ex

ecut

ives

qui

t des

pite

CY

Leu

ng's

secr

et m

ulti-

mill

ion

dolla

r dea

l" p

ublis

hed

by T

he S

ydne

y M

orni

ng H

eral

d da

ted

15 O

ctob

er

2014

;

(e)

Offi

cial

Rec

ord

of P

roce

edin

gs P

ages

121

and

122

of

the

Cou

ncil

Mee

ting

of 5

Nov

embe

r 20

14 (

Spee

ch o

f th

e th

en C

hief

Se

cret

ary

in re

spon

se to

a M

embe

r's M

otio

n un

der t

he L

egis

lativ

e C

ounc

il (P

ower

s and

Priv

ilege

s) O

rdin

ance

) (C

hine

se v

ersi

on);

(f)

Offi

cial

Rec

ord

of P

roce

edin

gs P

ages

123

2 to

123

6 of

the

Cou

ncil

Mee

ting

of 5

Nov

embe

r 201

4 (S

peec

h of

the

then

Act

ing

Chi

ef

Secr

etar

y in

resp

onse

to a

Mem

ber's

Mot

ion

unde

r the

Leg

isla

tive

Cou

ncil

(Pow

ers a

nd P

rivile

ges)

Ord

inan

ce) (

Chi

nese

ver

sion

); (g

) Offi

cial

Rec

ord

of P

roce

edin

gs P

ages

158

and

159

of

the

Cou

ncil

Mee

ting

of 2

0 N

ovem

ber

2014

(Sp

eech

of

the

then

Chi

ef

Secr

etar

y in

resp

onse

to a

Mem

ber's

Mot

ion

unde

r the

Leg

isla

tive

Cou

ncil

(Pow

ers a

nd P

rivile

ges)

Ord

inan

ce) (

Chi

nese

ver

sion

);

(h) O

ffici

al R

ecor

d of

Pro

ceed

ings

Pag

es 2

55 t

o 25

9 of

the

Cou

ncil

Mee

ting

of 2

0 N

ovem

ber

2014

(Sp

eech

of

the

then

Chi

ef

Secr

etar

y in

resp

onse

to a

Mem

ber's

Mot

ion

unde

r the

Leg

isla

tive

Cou

ncil

(Pow

ers a

nd P

rivile

ges)

Ord

inan

ce) (

Chi

nese

ver

sion

);

(i) L

ette

r fro

m S

it, F

ung,

Kw

ong

& S

hum

("SF

KS"

) to

the

Chi

ef E

dito

r of A

pply

Dai

ly d

ated

26

Sept

embe

r 201

6; a

nd

(j)

Sta

tem

ent i

ssue

d by

SFK

S da

ted

30 S

epte

mbe

r 201

6 (in

Chi

nese

).

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 77 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

M

r L

EU

NG

C

hun-

ying

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

II.

Maj

or A

rea

of S

tudy

– D

ecla

ratio

n re

quir

emen

ts u

nder

Art

icle

47

of t

he B

asic

Law

("B

L")

and

the

sys

tem

of

decl

arat

ion

of in

tere

sts

by

Mem

bers

of t

he E

xecu

tive

Cou

ncil

("E

xCo"

) 15

. R

ecor

d(s)

of

decl

arat

ion

mad

e by

M

r LE

UN

G

Chu

n-yi

ng

unde

r

B

L 47

to

the

Chi

ef J

ustic

e of

the

C

ourt

of F

inal

App

eal

-

16.

Gen

eral

inf

orm

atio

n on

the

sys

tem

of

dec

lara

tion

unde

r BL

47

[LC

Pap

er

No.

C

B(2)

596/

17

-18(

02)]

-

17.

Rec

ord(

s) o

f dec

lara

tion

of in

tere

sts

mad

e by

Mr

LEU

NG

Chu

n-yi

ng

upon

as

sum

ptio

n of

of

fice

and

durin

g hi

s te

rm o

f of

fice

of t

he

Chi

ef E

xecu

tive

("C

E")

[LC

Pap

er

No.

C

B(2)

596/

17-1

8(03

)]

-

18.

Rec

ord(

s) o

f dec

lara

tion

of in

tere

sts

mad

e by

Mr

LEU

NG

Chu

n-yi

ng a

t Ex

Co

mee

ting(

s)

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 78 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

M

r L

EU

NG

C

hun-

ying

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

19.

Info

rmat

ion

on

the

syst

em

of

decl

arat

ion

of i

nter

ests

by

ExC

o M

embe

rs

at

the

time

whe

n

M

r LE

UN

G

Chu

n-yi

ng

assu

med

th

e of

fice

of C

E an

d du

ring

his t

erm

of

offi

ce o

f CE

[LC

Pap

er

No.

C

B(2)

596/

17-1

8(03

)]

-

20.

Doc

umen

ts p

rovi

ded

by M

r LEU

NG

Chu

n-yi

ng in

his

lette

r dat

ed 1

5 Se

ptem

ber 2

017

(LC

Pap

er N

o. C

B(2)

218/

17-1

8(01

)) w

hich

are

no

t req

uest

ed b

y th

e Se

lect

Com

mitt

ee:

(a)

Offi

cial

Rec

ord

of P

roce

edin

gs P

ages

12

to 1

9 of

the

Cou

ncil

Mee

ting

of 2

9 O

ctob

er 2

014

(Ora

l que

stio

n ra

ised

by

Hon

Alb

ert

HO

on

"Dec

lara

tion

of In

tere

sts b

y C

hief

Exe

cutiv

e an

d M

embe

rs o

f Exe

cutiv

e C

ounc

il") (

Chi

nese

ver

sion

); an

d

(b) O

ffici

al R

ecor

d of

Pro

ceed

ings

Pag

es 5

6 to

62

of th

e C

ounc

il M

eetin

g of

5 Ju

ly 2

017

(Ora

l que

stio

n ra

ised

by

Hon

And

rew

WA

N

on "I

ssue

s aris

ing

from

the

agre

emen

t bet

wee

n M

r LEU

NG

Chu

n-yi

ng a

nd th

e Aus

tralia

n fir

m U

GL

Lim

ited"

) (C

hine

se v

ersi

on).

-

III.

Maj

or A

rea

of S

tudy

– C

onfli

ct o

f int

eres

ts

21.

Rec

ord(

s) o

f re

ques

t(s)

from

UG

L fo

r se

rvic

e an

d as

sist

ance

by

Mr

LEU

NG

Chu

n-yi

ng,

if an

y, s

ince

D

ecem

ber 2

011

-

22.

Info

rmat

ion

on

DTZ

's re

spec

tive

scop

e of

bus

ines

s in

Hon

g K

ong

befo

re a

nd a

fter t

he sa

le o

f DTZ

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 79 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

M

r L

EU

NG

C

hun-

ying

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

23.

Info

rmat

ion

on

UG

L's

resp

ectiv

e sc

ope

of b

usin

ess

in H

ong

Kon

g be

fore

and

afte

r the

sale

of D

TZ

- IV

. M

ajor

Are

a of

Stu

dy –

Tax

atio

n is

sues

24

. R

ecor

d(s)

of

taxa

tion

paym

ent(s

) su

bmitt

ed b

y M

r LE

UN

G C

hun-

ying

, if

any,

to th

e In

land

Rev

enue

D

epar

tmen

t re

latin

g to

th

e U

GL

Agr

eem

ent

and/

or

any

rela

ted

agre

emen

t(s)

-

25.

Req

uire

men

ts

and

rele

vant

pr

ovis

ions

und

er t

he t

axat

ion

law

s of

Hon

g K

ong

whi

ch a

re re

leva

nt to

th

e U

GL

Agr

eem

ent

and/

or

any

rela

ted

agre

emen

t(s)

-

26.

Gen

eral

inf

orm

atio

n on

the

pol

icy

adop

ted

and

the

appl

icab

le ta

xatio

n pr

inci

ples

(in

clud

ing

any

rele

vant

st

atut

ory

prov

isio

ns)

in a

situ

atio

n w

here

a

paym

ent

rece

ived

by

a H

ong

Kon

g re

side

nt fr

om:

(a)

his

empl

oyer

or

fo

rmer

em

ploy

er; a

nd

[LC

Pap

er

No.

C

B(2)

596/

17-1

8(04

)]

-

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 80 -

No.

Prov

isio

n of

the

requ

este

d in

form

atio

n

Rem

arks

M

r L

EU

NG

C

hun-

ying

UG

L L

imite

d Jo

int

Adm

inis

trat

ors

of D

TZ

Hol

ding

s plc

Secu

red

cred

itor

of

DT

Z H

oldi

ngs p

lc

(The

Roy

al

Ban

k of

Sc

otla

nd p

lc)

Judi

ciar

y A

dmin

istr

atio

n E

xecu

tive

Cou

ncil

Secr

etar

iat

Inla

nd

Rev

enue

D

epar

tmen

t

(b)

a no

n-em

ploy

er

entit

y,

purs

uant

to a

con

tract

or o

ther

fo

rms

of

arra

ngem

ent

impo

sing

re

stric

tive

cove

nant

s th

at s

eek

to,

for

exam

ple,

pro

hibi

t th

e pe

rson

fro

m

havi

ng

any

busi

ness

de

alin

gs i

n co

mpe

titio

n w

ith

his

form

er

empl

oyer

, or

pr

ohib

it th

e pe

rson

fro

m

solic

iting

em

ploy

ees

of

his

form

er e

mpl

oyer

;

and

whe

re th

e H

ong

Kon

g re

side

nt

is r

equi

red

unde

r th

e co

ntra

ct (

or

othe

r fo

rms

of

arra

ngem

ent)

to

prov

ide

assi

stan

ce in

the

prom

otio

n of

the

for

mer

em

ploy

er r

egar

dles

s of

whe

ther

ass

ista

nce

has

in f

act

been

rend

ered

.

C

ounc

il Bu

sine

ss D

ivis

ion

2 Le

gisl

ativ

e C

ounc

il Se

cret

aria

t 10

Janu

ary

2019

Des

crip

tion

of

info

rmat

ion

Part

ies

appr

oach

ed

- 81 -

Voting results in respect of the proposals that the Select Committee should (a) seek the Legislative Council's authorization to exercise the

powers under section 9(1) of the Legislative Council (Powers and Privileges) Ordinance (Cap. 382) and (b) invite the Department of

Justice to provide any information in its possession that could assist the Select Committee's inquiry

LC Paper No. CB(2)841/18-19

Ref : CB2/SC/16


Extract from the minutes of the closed meeting held on Thursday, 10 January 2019, at 4:30 pm

in Conference Room 5 of the Legislative Council Complex


Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon WONG Kwok-kin, SBS, JP Hon Steven HO Chun-yin, BBS Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Dr Hon Junius HO Kwan-yiu, JP Hon LAM Cheuk-ting Hon YUNG Hoi-yan




Appendix 17

- 82 -

Miss Joyce CHAN Assistant Legal Adviser 1 Mr Raymond LAM Senior Council Secretary (2) 7 Miss Michelle TANG Council Secretary (2) 6 Miss Cally LAI Legislative Assistant (2) 2

X X X X X X X X

15.. The Chairman said that as members had divergent views on the proposals that the Select Committee should (a) seek the Council's authorization to exercise the powers under section 9(1) of Cap. 382 and (b) invite DoJ to provide any information in its possession that could assist the Select Committee's inquiry, he would invite members to decide by voting. 16.. The Chairman first put to vote the proposal that the Select Committee should seek authorization from the Council to exercise the powers under section 9(1) of Cap. 382. The following members voted in favour of the proposal: Mr Kenneth LEUNG, Mr Alvin YEUNG, Mr Andrew WAN and Mr LAM Cheuk-ting. (four members) The following members voted against the proposal: Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mr MA Fung-kwok, Mr Steven HO, Dr Junius HO and Ms YUNG Hoi-yan. (six members) 17. The Chairman announced that four members voted in favour of the proposal and six members voted against it. He declared that the proposal was negatived.

- 83 -

18.. The Chairman then put to vote the proposal that the Select Committee should invite DoJ to provide any information in its possession that could assist the Select Committee's inquiry. The following members voted in favour of the proposal: Mr Kenneth LEUNG, Mr Alvin YEUNG, Mr Andrew WAN and Mr LAM Cheuk-ting. (four members) The following members voted against the proposal: Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mr MA Fung-kwok, Mr Steven HO, Dr Junius HO and Ms YUNG Hoi-yan. (six members) 19. The Chairman announced that four members voted in favour of the proposal and six members voted against it. He declared that the proposal was negatived.

X X X X X X X X Council Business Division 2 Legislative Council Secretariat 20 February 2019

- 84 -

Sele

ct C

omm

ittee

to In

quir

e int

o M

atte

rs a

bout

the A

gree

men

t bet

wee

n M

r LEU

NG

Chu

n-yi

ng a

nd th

e Aus

tral

ian

firm

UG

L Li

mite

d

Sum

mar

y of

info

rmat

ion

obta

ined

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

1.W

heth

er M

r LE

UN

G C

hun-

ying

("M

r LE

UN

G")

ha

d co

mpl

ied

with

th

e de

clar

atio

nre

quire

men

ts un

der A

rticl

e 47

of

the

Basic

Law

("B

L")

and

the

syste

m o

f dec

lara

tion

of in

tere

stsby

Mem

bers

of

the

Exec

utiv

eCo

unci

l ("E

xCo"

)

I.Ba

ckgr

ound

, na

ture

and

det

ails

of t

heag

reem

ent b

etw

een

Mr L

EUN

G a

nd th

eA

ustra

lian

firm

UG

L Li

mite

d ("

UG

L")

signe

d in

201

1 ("

UG

L A

gree

men

t")

(a)

whe

ther

or

not

Mr

LEU

NG

and

UG

Lsig

ned

and/

or

exec

uted

th

e U

GL

Agr

eem

ent;

(b)

if so

, w

hat

wer

e th

e m

ajor

ter

ms

and

cond

ition

s of t

he U

GL

Agr

eem

ent;

(c)

whe

ther

or

not

Mr

LEU

NG

rec

eive

dan

y pa

ymen

t(s)

from

UG

L pu

rsua

nt t

oth

e U

GL

Agr

eem

ent a

nd if

Mr L

EUN

Gdi

d re

ceiv

e pa

ymen

t(s),

the

amou

nt a

ndna

ture

of

the

paym

ent(s

) m

ade

to M

rLE

UN

G

by

UG

L ("

Paym

ents"

), th

epa

ymen

t m

etho

d(s)

an

d tim

ing

ofpa

ymen

t(s);

(d)

the

natu

re a

nd e

ffect

of

the

term

und

erth

e U

GL

Agr

eem

ent

"to

prov

ide

such

assis

tanc

e in

the

prom

otio

n of

the

UG

LG

roup

and

the

DTZ

Gro

up a

s UG

L m

ayre

ason

ably

req

uire

, in

clud

ing

but

not

limite

d to

act

ing

as a

refe

ree

and

advi

ser

from

tim

e to

tim

e"1 ("

Term

"); a

nd

(e)

whe

ther

the

Term

had

bee

n m

odifi

ed in

any

way

and

, if

so,

by w

hom

and

the

effe

ct o

f the

Ter

m a

s mod

ified

.

1.1

Repl

y da

ted

15 S

epte

mbe

r 201

7 fro

m M

r LEU

NG

(Eng

lish

vers

ion

only

) [CY

1] to

geth

er w

ith 1

2 en

clos

ures

[CY

1.1

to C

Y1.

12]

(a)

in th

e se

cond

par

agra

ph o

f CY

1, M

r LEU

NG

stat

ed th

at:

"All

info

rmat

ion

rele

vant

to th

e so

-cal

led

maj

or a

reas

of

study

can

be

foun

d in

or

dedu

ced

from

the

vario

us s

tate

men

ts an

dre

ports

alre

ady

in c

ircul

atio

n fo

r so

me

time

in t

he p

ublic

dom

ain.

I

appe

nd a

file

con

tain

ing

copi

es o

f tw

elve

rel

evan

tdo

cum

ents

(see

inde

x at

tach

ed)."

;

(b)

CY1.

1 to

CY

1.4

cont

aine

d m

edia

's re

ports

on

UG

L's

resp

onse

s in

rel

atio

n to

med

ia s

pecu

latio

n co

ncer

ning

the

UG

LA

gree

men

t an

d M

r LE

UN

G's

rece

ipt

of t

he P

aym

ents

amou

ntin

g to

£4

mill

ion

from

UG

L in

con

nect

ion

with

the

UG

LA

gree

men

t afte

r ass

umin

g th

e of

fice

of C

E, a

nd U

GL'

s m

edia

rele

ases

on

the

sam

e su

bjec

t mat

ter.

The

par

ts re

leva

nt to

the

back

grou

nd, n

atur

e an

d de

tails

of t

he U

GL

Agr

eem

ent a

re e

xtra

cted

as f

ollo

ws:

(i)"T

he a

rrang

emen

t was

a s

tand

ard

non-

poac

h, n

on-c

ompe

te a

rrang

emen

t. It

was

ent

ered

sol

ely

to e

nsur

e CY

LEU

NG

did

not m

ove

to a

com

petit

or o

r set

up

or p

rom

ote

any

busin

ess

in c

ompe

titio

n w

ith D

TZ, o

r poa

ch a

ny p

eopl

e fro

mD

TZ, a

nd h

ence

to e

nsur

e th

e bu

sines

s ret

aine

d its

val

ue a

fter U

GL

acqu

isitio

n. I

t is s

tand

ard

busin

ess

prac

tice

to p

ayfo

r su

ch u

nder

taki

ngs,

as y

ou a

re r

equi

ring

the

indi

vidu

al to

take

on

oblig

atio

ns a

nd to

for

go f

utur

e op

portu

nitie

s."[C

Y1.

1];

(ii)

"The

agr

eem

ent e

nsur

ed b

oth

non-

com

pete

and

non

-poa

ch a

rrang

emen

ts, to

ens

ure

key

pers

onne

l rem

aine

d w

ith D

TZpo

st th

e ac

quisi

tion,

as d

emon

strat

ed b

y th

e fa

ct th

at p

aym

ent w

as su

bjec

t to

satis

fact

ion

of th

ese

prov

ision

s (in

clud

ing

a pr

opor

tiona

l red

uctio

n fo

r eac

h se

nior

man

ager

that

left

DTZ

's em

ploy

men

t dur

ing

the

term

of t

he a

gree

men

t)."

[CY

1.1]

;

(iii)

"UG

L en

tere

d in

to a

n ag

reem

ent w

ith M

r LEU

NG

to p

rote

ct U

GL'

s co

mm

erci

al in

tere

sts in

Nor

th A

sia b

y pr

even

ting

him

from

com

petin

g w

ith D

TZ o

r em

ploy

ing

DTZ

sta

ff fo

r tw

o ye

ars

follo

win

g U

GL'

s ac

quisi

tion

of th

e su

bsid

iarie

sof

DTZ

Hol

ding

s pl

c.

Paym

ents

wer

e sta

gger

ed o

ver

this

perio

d to

ens

ure

that

thes

e no

n-co

mpe

te a

nd n

on-p

oach

oblig

atio

ns w

ere

met

and

the

agre

emen

t pro

vide

d m

echa

nism

s to

red

uce

thes

e pa

ymen

ts if

key

indi

vidu

als

left

DTZ

over

this

perio

d." [

CY1.

2];

(iv)

"The

agr

eem

ent a

lso p

rote

cted

UG

L's r

ight

to o

pera

te in

the

regi

on b

y en

surin

g ex

istin

g lic

enci

ng a

rrang

emen

ts he

ld b

yM

r LE

UN

G w

ere

mai

ntai

ned

and

trans

ferre

d to

UG

L.

Aga

in th

e ag

reem

ent w

as in

acc

orda

nce

with

nor

mal

mar

ket

prac

tices

and

term

s." [C

Y1.

2]; a

nd

(v)

"The

arti

cle

erro

neou

sly m

akes

ref

eren

ce t

o 'se

cret

pay

men

ts'.

This

is a

base

less

and

misl

eadi

ng r

efer

ence

as

the

arra

ngem

ents

wer

e m

ade

with

Mr L

EUN

G, t

hen

a pr

ivat

e in

divi

dual

, on

com

mer

cial

term

s and

with

full

know

ledg

e of

the

vend

or, i

n ke

epin

g w

ith st

anda

rd b

usin

esse

s pra

ctic

e fo

r non

-com

pete

and

non

-poa

ch a

gree

men

ts. S

uch

agre

emen

tsar

e co

mm

on c

onfid

entia

l com

mer

cial

arra

ngem

ents

whe

n a

busin

ess i

s bei

ng a

cqui

red.

" [CY

1.2]

; and

1 The

orig

inal

text

of t

he T

erm

is in

Eng

lish

and

the

text

in C

hine

se is

a tr

ansla

ted

vers

ion

(see

Offi

cial

Rec

ord

of P

roce

edin

gs o

f the

Leg

islat

ive

Coun

cil m

eetin

g of

5 N

ovem

ber 2

014,

Pag

es 1

157

and

1169

in H

ansa

rd (C

hine

se v

ersio

n)).

Read

ers

shou

ld re

fer t

o th

e or

igin

al

Engl

ish te

xt a

s it a

ppea

red

in th

e co

py o

f the

pur

porte

d U

GL

Agr

eem

ent (

App

endi

x II

to IN

03/1

6-17

) for

the

auth

entic

ver

sion.

App

endi

x 18

- 85 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

(c)

CY1.

5 to

CY

1.10

con

tain

ed s

peec

hes

of t

he t

hen

Chie

f Se

cret

ary

for

Adm

inist

ratio

n ("

CS")

del

iver

ed a

t va

rious

Cou

ncil

mee

tings

in re

spec

t of t

he U

GL

Agr

eem

ent a

nd M

r LEU

NG

's re

ceip

t of t

he P

aym

ents

amou

ntin

g to

£4

mill

ion

from

UG

L in

co

nnec

tion

with

the

UG

L A

gree

men

t afte

r ass

umin

g th

e of

fice

of C

E. T

he p

arts

rele

vant

to th

e ba

ckgr

ound

, nat

ure

and

deta

ils

of th

e U

GL

Agr

eem

ent a

re e

xtra

cted

as f

ollo

ws:

(i)

"Mr L

EUN

G C

hun-

ying

was

the

Asia

Pac

ific

Dire

ctor

of D

TZ b

efor

e he

sto

od fo

r the

Chi

ef E

xecu

tive

elec

tion.

He

anno

unce

d hi

s re

signa

tion

from

the

post

of D

irect

or a

nd o

ther

offi

ces

he h

eld

in D

TZ o

n 24

Nov

embe

r 201

1. I

n vi

ew

of h

is re

signa

tion,

UG

L, w

hich

was

at

that

tim

e try

ing

to a

cqui

re D

TZ, c

oncl

uded

with

Mr

LEU

NG

a r

esig

natio

n ag

reem

ent o

n 2

Dec

embe

r 201

1. U

nder

the

agre

emen

t, U

GL

unde

rtook

to m

ake

paym

ents

to M

r LEU

NG

ove

r a tw

o-ye

ar p

erio

d an

d to

und

erw

rite

for

DTZ

the

pay

men

t of

out

stand

ing

agre

ed b

onus

to

Mr

LEU

NG

, su

bjec

t to

key

pe

rson

nel r

emai

ning

with

DTZ

dur

ing

the

two

year

s sub

sequ

ent t

o M

r LEU

NG

's re

signa

tion.

" [Pa

ge 1

232

of C

Y1.

7];

(ii

) "T

he fa

ct is

that

the

resig

natio

n ag

reem

ent s

igne

d be

twee

n M

r LEU

NG

and

UG

L on

2 D

ecem

ber 2

011

was

sim

ply

a no

n-co

mpe

te a

rrang

emen

t be

twee

n U

GL

and

Mr

LEU

NG

, w

here

by U

GL

wou

ld p

ay a

tot

al o

f £4

mill

ion

to M

r LE

UN

G o

ver a

two-

year

per

iod,

sub

ject

to k

ey p

erso

nnel

rem

aini

ng w

ith D

TZ d

urin

g th

e tw

o ye

ars

subs

eque

nt to

Mr

LEU

NG

's re

signa

tion.

Of t

he s

aid

tota

l sum

of p

aym

ent,

£2 m

illio

n w

as p

aid

to e

nsur

e th

at M

r LEU

NG

wou

ld n

ot b

e in

com

petit

ion

with

UG

L, a

nd a

noth

er £

2 m

illio

n w

as th

e co

mpe

nsat

ion

for h

is un

derta

king

not

to p

oach

em

ploy

ees."

[P

age

1233

of C

Y1.

7];

(ii

i) "[

U]n

der t

he 'A

dditi

onal

Com

mitm

ents'

of t

he re

signa

tion

agre

emen

t, M

r LEU

NG

had

agr

eed

to –

as

the

agre

emen

t is

in E

nglis

h, I

will

rea

d ou

t the

orig

inal

pro

visio

n in

Eng

lish

– 'p

rovi

de s

uch

assis

tanc

e in

the

prom

otio

n of

the

UG

L G

roup

and

the

DTZ

Gro

up a

s UG

L m

ay re

ason

ably

requ

ire, i

nclu

ding

but

not

lim

ited

to a

ctin

g as

a re

fere

e an

d ad

vise

r fro

m ti

me

to ti

me'.

Non

ethe

less

, I w

ould

like

to d

raw

Mem

bers

' atte

ntio

n to

the

follo

win

g re

mar

ks a

dded

spe

cific

ally

by

Mr L

EUN

G to

this

prov

ision

whe

n sig

ning

the

resig

natio

n ag

reem

ent,

that

is, '

prov

ided

that

suc

h as

sista

nce

does

no

t cre

ate

any

conf

lict o

f int

eres

t'." [

Page

15

of C

Y1.

5]; a

nd

(iv

) "T

his

agre

emen

t is

kept

as

a co

nfid

entia

l com

mer

cial

arra

ngem

ent i

n lin

e w

ith c

omm

on c

omm

erci

al p

ract

ices

." [P

age

121

of C

Y1.

6].

1.2

Repl

y da

ted

24 N

ovem

ber 2

017

from

Mr L

EUN

G (E

nglis

h ve

rsio

n on

ly) [

CY2]

Mr L

EUN

G st

ated

that

: "A

ll in

form

atio

n re

leva

nt to

the

so-c

alle

d m

ajor

are

as o

f stu

dy c

an b

e fo

und

in o

r ded

uced

from

the

vario

us s

tate

men

ts an

d re

ports

al

read

y in

circ

ulat

ion

for s

ome

time

in th

e pu

blic

dom

ain.

I h

ave

prov

ided

the

Sele

ct C

omm

ittee

with

a fi

le o

f tw

elve

rele

vant

doc

umen

ts w

hich

are

suf

ficie

nt in

hel

ping

the

Sele

ct C

omm

ittee

to

reac

h th

e co

rrect

con

clus

ions

."

1.3

Repl

y da

ted

16 O

ctob

er 2

017

from

UG

L (E

nglis

h ve

rsio

n on

ly) [

U1]

UG

L sta

ted

that

: "U

GL'

s po

licy

is to

co-

oper

ate

with

any

reg

ulat

ory

or o

ther

inv

estig

ativ

e bo

dy.

To

ensu

re t

hat

UG

L's

conf

iden

tialit

y an

d le

gal

prof

essio

nal p

rivile

ge is

pre

serv

ed in

any

inve

stiga

tion

UG

L w

ill o

nly

co-o

pera

te in

acc

orda

nce

with

the

rele

vant

bod

y's a

utho

rity

and

pow

ers a

nd p

ursu

ant t

o sp

ecifi

c le

gal r

equi

rem

ents.

"

- 86 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

1.4

Repl

y da

ted

27 O

ctob

er 2

017

from

UG

L (E

nglis

h ve

rsio

n on

ly) [

U2]

UG

L sta

ted

that

:

"[I]t

is U

GL'

s pol

icy

to c

o-op

erat

e w

ith a

ny re

gula

tory

or o

ther

inve

stiga

tive

body

. A

t the

sam

e tim

e, U

GL

cons

ider

s it e

ssen

tial t

o be

ab

le to

rel

y on

its

right

s to

con

fiden

tialit

y an

d le

gal p

rofe

ssio

nal p

rivile

ge, a

mon

gst o

ther

s, w

hen

co-o

pera

ting

with

reg

ulat

ory

and

inve

stiga

tive

bodi

es.

UG

L re

spec

tfully

dec

lines

to m

eet t

he te

rms o

f the

Com

mitt

ee's

requ

ests

set o

ut in

you

r let

ter d

ated

1 S

epte

mbe

r 201

7."

II.D

ecla

ratio

n re

quire

men

ts un

der

BL 4

7an

d th

e sy

stem

of

de

clar

atio

n of

inte

rests

by

ExCo

Mem

bers

(a)

wha

t w

ere

the

requ

irem

ents

appl

icab

leto

th

e Ch

ief

Exec

utiv

e ("

CE")

in

rela

tion

to d

ecla

ratio

n of

inte

rests

und

erBL

47

an

d th

e re

leva

nt

syste

m

ofde

clar

atio

n of

int

eres

ts of

ExC

o at

the

time

Mr L

EUN

G a

ssum

ed th

e of

fice

ofCE

;

(b)

whe

ther

suc

h re

quire

men

ts ha

d to

be

com

plie

d w

ith

at

the

assu

mpt

ion

ofof

fice

or w

heth

er su

ch re

quire

men

ts ha

dto

be

com

plie

d w

ith a

t th

e as

sum

ptio

nof

offi

ce a

nd th

roug

hout

the

term

of t

heof

fice;

(c)

whe

ther

the

Pay

men

ts fe

ll w

ithin

the

scop

e of

in

tere

sts

requ

ired

to

bede

clar

ed u

nder

BL

47 a

nd t

he r

elev

ant

syste

m o

f de

clar

atio

n of

int

eres

ts of

ExCo

; and

(d)

if so

, w

heth

er

Mr

LEU

NG

ha

dco

mpl

ied

with

tho

se r

equi

rem

ents

tode

clar

e hi

s in

tere

sts i

n re

ceiv

ing

the

Paym

ents,

upo

n as

sum

ptio

n or

dur

ing

the

term

of t

he o

ffice

of C

E.

1.5

Repl

y da

ted

15 S

epte

mbe

r 201

7 fro

m M

r LEU

NG

(Eng

lish

vers

ion

only

) [CY

1]

The

parts

in C

Y1.

5 to

CY

1.10

rel

evan

t to

the

decl

arat

ion

requ

irem

ents

unde

r BL

47

and

the

syste

m o

f de

clar

atio

n of

inte

rests

by

ExCo

Mem

bers

are

ext

ract

ed a

s fol

low

s:

(a)

"Arti

cle

47 o

f the

Bas

ic L

aw st

ipul

ates

that

the

Chie

f Exe

cutiv

e, o

n as

sum

ing

offic

e, sh

all d

ecla

re h

is or

her

ass

ets t

o th

e Ch

ief

Justi

ce o

f the

Cou

rt of

Fin

al A

ppea

l of t

he H

ong

Kon

g Sp

ecia

l Adm

inist

rativ

e Re

gion

(CJ)

, and

that

this

decl

arat

ion

shal

l be

put o

n re

cord

. O

n as

sum

ing

offic

e, th

e Ch

ief E

xecu

tive

mad

e su

ch d

ecla

ratio

n to

the

CJ in

acc

orda

nce

with

the

Basic

Law

.Th

e te

rm 'a

sset

s' is

not

spec

ifica

lly d

efin

ed u

nder

the

Bas

ic L

aw.

The

rel

evan

t de

clar

atio

n is

conf

iden

tial."

[Pa

ge 1

3 of

CY1.

5];

(b)

"As

Pres

iden

t of t

he E

xecu

tive

Coun

cil,

the

Chie

f Exe

cutiv

e ob

serv

es th

e sy

stem

of d

ecla

ratio

n of

inte

rests

for t

he E

xecu

tive

Coun

cil

Mem

bers

, in

clud

ing

the

requ

irem

ent

for

regu

lar

decl

arat

ions

. T

he C

hief

Exe

cutiv

e ha

s de

clar

ed h

is re

gistr

able

inte

rests

ann

ually

for

pub

lic in

spec

tion.

H

e ha

s al

so m

ade

decl

arat

ions

on

his

finan

cial

inte

rests

ann

ually

on

a co

nfid

entia

lba

sis d

epos

ited

with

the

Cler

k to

the

Exec

utiv

e Co

unci

l. A

s w

ith o

ther

Exe

cutiv

e Co

unci

l Mem

bers

, the

Chi

ef E

xecu

tive

wou

ld n

otify

the

Cler

k to

the

Exec

utiv

e Co

unci

l of a

ny c

hang

es to

the

inte

rests

dec

lare

d in

acc

orda

nce

with

the

syste

m."

[Pag

e13

of C

Y1.

5];

(c)

"[T]

he a

gree

men

t an

d pa

ymen

ts co

ncer

ned

aros

e fro

m M

r LE

UN

G's

resig

natio

n fro

m D

TZ, n

ot a

ny f

utur

e se

rvic

e to

be

prov

ided

by

him

. U

nder

the

curre

nt s

yste

m o

f de

clar

atio

n of

inte

rests

by

Mem

bers

of

the

Exec

utiv

e Co

unci

l, th

ere

is no

requ

irem

ent f

or M

r LEU

NG

to d

ecla

re th

e sa

id re

signa

tion

agre

emen

t. M

oreo

ver,

both

Mr L

EUN

G's

resig

natio

n fro

m D

TZan

d co

nclu

sion

of th

e ag

reem

ent w

ith U

GL

took

pla

ce b

efor

e he

was

ele

cted

as

the

Chie

f Exe

cutiv

e, a

nd a

t the

mat

eria

l tim

e,he

had

alre

ady

resig

ned

from

the

Exec

utiv

e Co

unci

l." [P

age

13 o

f CY

1.5]

;

(d)

"[T]

here

is n

o re

quire

men

t for

Mr L

EUN

G to

dec

lare

such

pay

men

ts un

der t

he c

urre

nt sy

stem

of d

ecla

ratio

n of

inte

rests

by

the

Exec

utiv

e Co

unci

l Mem

bers

." [P

age

14 o

f CY

1.5]

; and

(e)

"Reg

ardi

ng D

TZ s

hare

s he

ld b

y th

e Ch

ief E

xecu

tive,

the

Chie

f Exe

cutiv

e ha

s tra

nsfe

rred

all h

is sh

ares

of D

TZ H

oldi

ngs

Plc

and

its s

ubsid

iarie

s to

a t

rust.

Th

e tru

stee

is a

prac

tisin

g ac

coun

tant

. T

he C

hief

Exe

cutiv

e ha

s de

clar

ed s

uch

inte

rests

acco

rdin

g to

the

syste

m o

f dec

lara

tion

of in

tere

sts b

y th

e Ex

ecut

ive

Coun

cil M

embe

rs, a

nd th

e re

leva

nt d

ecla

ratio

n ha

s alre

ady

been

upl

oade

d to

the

Exec

utiv

e Co

unci

l web

site.

" [Pa

ge 1

4 of

CY

1.5]

(see

also

EC1

.2 a

nd p

arag

raph

1.8

bel

ow).

1.6

Repl

y da

ted

11 O

ctob

er 2

017

from

the

Judi

ciar

y A

dmin

istra

tion

[J1]

The

Judi

ciar

y A

dmin

istra

tion

advi

sed

that

hav

ing

rega

rd to

the

rele

vant

circ

umsta

nces

, CJ

did

not c

onsid

er it

app

ropr

iate

to p

rovi

de

the

Sele

ct C

omm

ittee

with

a c

opy

of th

e re

cord

(s) o

f Mr L

EUN

G's

decl

arat

ion

unde

r BL

47.

- 87 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

1.7

Repl

y da

ted

28 N

ovem

ber 2

017

from

the

Judi

ciar

y A

dmin

istra

tion

[J2]

In r

espo

nse

to th

e Se

lect

Com

mitt

ee's

requ

est f

or in

form

atio

n on

the

syste

m o

f de

clar

atio

n un

der

BL 4

7 in

gen

eral

, the

Jud

icia

ry

Adm

inist

ratio

n ad

vise

d th

at:

"The

req

uire

men

ts fo

r th

e de

clar

atio

n ar

e as

set

out

in

Arti

cle

47 o

f th

e Ba

sic L

aw.

In a

ccor

danc

e w

ith t

his

Arti

cle,

the

Chi

ef

Exec

utiv

e is

oblig

ed to

pro

vide

a d

ecla

ratio

n of

his

or h

er a

sset

s to

the

Chie

f Jus

tice

on a

ssum

ing

offic

e. S

uch

decl

arat

ion

is th

en k

ept

by th

e Ch

ief J

ustic

e."

1.8

Repl

y da

ted

14 N

ovem

ber 2

017

from

the

ExCo

Sec

reta

riat [

EC1]

toge

ther

with

two

encl

osur

es [E

C1.1

and

EC1

.2]

Th

e Ex

Co S

ecre

taria

t pro

vide

d th

e fo

llow

ing

info

rmat

ion:

(a)

a no

te is

sued

in Ju

ne 2

012

by th

e CE

's O

ffice

out

linin

g th

e sy

stem

of d

ecla

ratio

n of

inte

rests

by

ExCo

Mem

bers

[EC1

.1].

The

sy

stem

was

also

app

licab

le to

CE

who

was

the

Pres

iden

t of E

xCo;

(b)

five

sets

of th

e A

nnua

l Dec

lara

tion

of R

egist

rabl

e In

tere

sts o

f Mem

bers

of t

he E

xecu

tive

Coun

cil (

"Ann

ual D

ecla

ratio

n") m

ade

by M

r LEU

NG

upo

n as

sum

ptio

n of

offi

ce a

nd a

nnua

lly th

erea

fter d

urin

g hi

s ter

m o

f offi

ce o

f CE

[EC1

.2]:

(i)

in

eac

h se

t of

Ann

ual D

ecla

ratio

n, M

r LE

UN

G h

ad d

ecla

red

"Chi

ef E

xecu

tive,

Hon

g K

ong

Spec

ial A

dmin

istra

tive

Regi

on" a

s the

sole

item

of r

egist

rabl

e in

tere

st un

der "

Rem

uner

ated

Em

ploy

men

ts, O

ffice

s, Tr

ades

, Pro

fess

ion,

etc

.";

(ii

) in

the

Ann

ual D

ecla

ratio

n m

ade

in 2

012,

Mr

LEU

NG

had

mad

e th

e fo

llow

ing

decl

arat

ion

of r

egist

rabl

e in

tere

sts (

in

extra

ct)

unde

r "N

ame

of C

ompa

nies

(bo

th li

sted

and

unlis

ted

ones

) or

oth

er b

odie

s in

whi

ch th

e M

embe

r ha

s, to

his

know

ledg

e, e

ither

him

self

or w

ith o

r on

beh

alf

of h

is sp

ouse

or

child

ren,

a b

enef

icia

l int

eres

t in

shar

ehol

ding

s of

a

nom

inal

val

ue g

reat

er th

an 1

% o

f the

issu

ed sh

are

capi

tal."

:

"I a

m a

shar

ehol

der o

f the

follo

win

g co

mpa

nies

:- (1

) D

TZ H

oldi

ngs P

lc a

nd it

s sub

sidia

ries –

Pro

perty

Con

sulta

ncy

Com

pany

.

(2)

Win

track

Wor

ldw

ide

Ltd

(BV

I) an

d its

subs

idia

ries –

inve

stmen

t com

pany

.

(3)

…";

and

(iii)

in e

ach

set o

f the

Ann

ual D

ecla

ratio

n m

ade

betw

een

2013

and

201

6, M

r LEU

NG

had

resp

ectiv

ely

mad

e th

e fo

llow

ing

decl

arat

ion

of r

egist

rabl

e in

tere

sts (

in e

xtra

ct)

unde

r "N

ame

of C

ompa

nies

(bo

th l

isted

and

unl

isted

one

s) o

r ot

her

bodi

es in

whi

ch th

e M

embe

r ha

s, to

his

know

ledg

e, e

ither

him

self

or w

ith o

r on

beh

alf

of h

is sp

ouse

or

child

ren,

a

bene

ficia

l int

eres

t in

shar

ehol

ding

s of a

nom

inal

val

ue g

reat

er th

an 1

% o

f the

issu

ed sh

are

capi

tal."

:

"(1)

…

(2)

I ha

ve tr

ansf

erre

d al

l my

shar

es o

f W

intra

ck W

orld

wid

e (B

VI)

and

its s

ubsid

iarie

s, an

d al

l my

shar

es o

f D

TZ

Hol

ding

s Pl

c an

d its

sub

sidia

ries,

to a

trus

t. T

he tr

uste

e is

a pr

ofes

siona

l pra

ctic

ing

acco

unta

nt.

The

bene

ficia

ry

of th

e tru

st is

my

wife

."; a

nd

- 88 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

(c)

in r

espo

nse

to t

he S

elec

t Co

mm

ittee

's re

ques

t fo

r th

e re

cord

(s)

of d

ecla

ratio

n of

int

eres

ts m

ade

by M

r LE

UN

G a

t Ex

Co

mee

ting(

s), t

he E

xCo

Secr

etar

iat a

dvise

d th

at in

line

with

the

prin

cipl

e of

con

fiden

tialit

y of

ExC

o an

d to

pre

serv

e th

e in

tegr

ity

of t

he E

xCo

syste

m,

the

Gov

ernm

ent

did

not

disc

lose

the

con

tent

of

ExCo

dis

cuss

ions

(w

heth

er i

n th

e fo

rm o

f Ex

Co

mem

oran

da,

min

utes

or

othe

rwise

) or

any

dec

lara

tions

in

resp

ect

of i

ndiv

idua

l ite

ms

disc

usse

d by

ExC

o.

The

ExCo

Se

cret

aria

t was

thus

una

ble

to a

cced

e to

the

Sele

ct C

omm

ittee

's re

ques

t for

pro

visio

n of

thos

e re

cord

s. [P

arag

raph

(c) o

f EC1

].

2.

W

heth

er

the

UG

L A

gree

men

t ha

d gi

ven

rise

to a

ny c

onfli

ct o

f in

tere

sts

on

the

part

of

Mr

LEU

NG

as C

E

III.

Conf

lict o

f int

eres

ts (a

) w

heth

er

the

term

s of

th

e U

GL

Agr

eem

ent

wer

e sti

ll in

for

ce a

nd t

he

right

s an

d ob

ligat

ions

und

er t

he U

GL

Agr

eem

ent

wer

e sti

ll ca

pabl

e of

bei

ng

enfo

rced

afte

r Mr L

EUN

G h

ad a

ssum

ed

the

offic

e of

CE;

and

, if

so,

whe

ther

su

ch f

act h

ad g

iven

rise

to a

ny c

onfli

ct

of in

tere

sts o

n th

e pa

rt of

Mr L

EUN

G;

(b

) w

heth

er

Mr

LEU

NG

's co

mm

itmen

t pu

rsua

nt t

o th

e Te

rm,

or t

he T

erm

as

mod

ified

, had

giv

en ri

se to

any

con

flict

of

inte

rests

, whe

ther

act

ual o

r pot

entia

l;

(c)

whe

ther

Mr

LEU

NG

had

pro

vide

d an

y se

rvic

e or

ass

istan

ce to

UG

L pu

rsua

nt to

th

e U

GL

Agr

eem

ent

afte

r he

ass

umed

th

e of

fice

of C

E an

d if

so, w

heth

er th

is ha

d gi

ven

rise

to a

ny a

ctua

l or p

oten

tial

conf

lict o

f int

eres

ts; a

nd

(d

) w

heth

er th

ere

wer

e ot

her

aspe

cts

of th

e U

GL

Agr

eem

ent t

hat h

ad g

iven

rise

to

any

actu

al

or

pote

ntia

l co

nflic

t of

in

tere

sts.

2.1

Repl

y da

ted

15 S

epte

mbe

r 201

7 fro

m M

r LEU

NG

(Eng

lish

vers

ion

only

) [CY

1] to

geth

er w

ith 1

2 en

clos

ures

[CY

1.1

to C

Y1.

12]

(a

) Th

e pa

rts in

CY

1.1

to C

Y1.

4 re

leva

nt to

the

issue

of p

oten

tial c

onfli

ct o

f int

eres

ts on

the

part

of M

r LEU

NG

aris

ing

from

the

UG

L A

gree

men

t are

ext

ract

ed a

s fol

low

s:

(i)

"If

CY L

EUN

G r

etur

ned

to U

GL'

s em

ploy

men

t, th

e ar

rang

emen

t w

as i

nval

idat

ed, a

s th

ere

was

the

n no

iss

ue w

ith

com

petit

ion

or p

oach

ing.

A

t th

e tim

e of

the

neg

otia

tions

, m

edia

cov

erag

e su

gges

ted

that

oth

er c

andi

date

s w

ere

favo

ured

to b

e el

ecte

d, s

o th

e po

ssib

ility

of

CY L

EUN

G s

ecur

ing

offic

e w

as n

ot th

e fo

cus

of U

GL'

s ne

gotia

tions

." [C

Y1.

1];

(ii

) "I

t sho

uld

be n

oted

that

at t

he ti

me

of e

nter

ing

in th

e ag

reem

ent,

Mr L

EUN

G w

as n

ot a

n el

ecte

d of

ficia

l of H

ong

Kon

g,

and

UG

L ha

d no

reas

on to

exp

ect t

hat h

is ca

mpa

ign

for C

hief

Exe

cutiv

e of

Hon

g K

ong

wou

ld b

e su

cces

sful

. In

any

ev

ent t

he sa

me

com

mer

cial

pro

tect

ions

for U

GL

and

DTZ

wer

e ne

cess

ary.

" [CY

1.2]

;

(iii)

"Dur

ing

the

two

year

per

iod

betw

een

2011

and

201

3 an

d su

bseq

uent

, UG

L di

d no

t req

uest

Mr L

EUN

G to

und

erta

ke

any

task

wha

tsoev

er o

n ou

r beh

alf,

nor d

id M

r LEU

NG

offe

r to

perfo

rm a

ny ta

sks."

[CY

1.2]

;

(iv)

"The

ven

dor,

the

Roya

l Ba

nk o

f Sc

otla

nd, a

nd th

eir

advi

sors

wer

e fu

lly a

war

e of

UG

L's

inte

ntio

n to

ent

er i

nto

an

arra

ngem

ent w

ith M

r LEU

NG

and

DTZ

Hol

ding

s plc

pla

yed

a sig

nific

ant r

ole

in in

itiat

ing

and

nego

tiatin

g th

ose

term

s w

ith M

r LEU

NG

. A

s par

t of t

hese

neg

otia

tions

and

with

the

full

agre

emen

t of t

he v

endo

r tea

m, t

he a

mou

nt to

be

paid

by

UG

L to

acq

uire

the

subs

idia

ries

of D

TZ H

oldi

ngs

plc

was

redu

ced

to a

llow

for t

he p

aym

ents

to M

r LEU

NG

. Th

is

had

no im

pact

on

the

othe

r cre

dito

rs a

nd s

hare

hold

ers

of D

TZ H

oldi

ngs

plc,

as

the

full

bene

fit o

f the

pur

chas

e pr

ice,

bo

th b

efor

e an

d af

ter t

he p

aym

ent r

educ

tion,

flow

ed to

the

Roya

l Ban

k of

Sco

tland

and

no

othe

r par

ty."

[CY

1.2]

; and

(v)

"UG

L re

conf

irms

that

the

ven

dor

of D

TZ H

oldi

ngs

plc,

the

Roy

al B

ank

of S

cotla

nd,

and

thei

r ad

viso

rs p

laye

d a

signi

fican

t rol

e in

initi

atin

g an

d ne

gotia

ting

term

s w

ith M

r LEU

NG

prio

r to

the

ultim

ate

sale

of D

TZ H

oldi

ngs

plc

to

UG

L Li

mite

d." [

CY1.

4]; a

nd

(b

) Th

e pa

rts in

CY

1.5

to C

Y1.

10 re

leva

nt to

the

issue

of p

oten

tial c

onfli

ct o

f int

eres

ts on

the

part

of M

r LEU

NG

aris

ing

from

the

UG

L A

gree

men

t are

ext

ract

ed a

s fol

low

s: (i)

"A

s M

r LE

UN

G w

as e

lect

ed a

s th

e Ch

ief

Exec

utiv

e in

Mar

ch 2

012,

he

wou

ld n

ot a

nd s

houl

d no

t pro

vide

the

said

as

sista

nce

to U

GL;

and

that

is e

xact

ly th

e ca

se.

As

conf

irmed

by

UG

L in

its

state

men

t, M

r LEU

NG

has

not

pro

vide

d an

y se

rvic

e to

UG

L af

ter s

igni

ng th

e ab

ove

agre

emen

t. H

ence

, giv

en su

ch c

ircum

stanc

es, M

r LEU

NG

did

not

con

sider

it

nece

ssar

y to

resc

ind

the

agre

emen

t." [P

age

15 o

f CY

1.5]

;

(ii)

"Mor

eove

r, as

the

agre

emen

t had

bee

n sig

ned

befo

re M

r LEU

NG

was

ele

cted

Chi

ef E

xecu

tive,

it s

houl

d ha

ve n

othi

ng

to d

o w

ith M

r LEU

NG

's pe

rform

ance

of h

is p

ublic

dut

ies."

[Pag

e 12

35 o

f CY

1.7]

; and

- 89 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

(iii)

"Ano

ther

sal

ient

poi

nt in

the

mot

ion

is M

r LEU

NG

's sh

areh

oldi

ng o

f DTZ

Jap

an.

As

poin

ted

out b

y M

embe

rs, a

s M

r LE

UN

G s

till h

eld

shar

es o

f DTZ

Jap

an a

fter h

e as

sum

ed th

e of

fice

as th

e Ch

ief E

xecu

tive,

and

a c

lient

of D

TZ J

apan

ha

d bu

sines

s in

the

loca

l tel

evisi

on in

dustr

y an

d pr

oper

ty in

dustr

y on

Lan

tau

Isla

nd, t

hey

ques

tion

if th

at c

onsti

tute

d a

conf

lict o

f int

eres

t in

Mr L

EUN

G's

perfo

rman

ce o

f pub

lic d

utie

s…A

s I h

ave

said

in m

y re

spon

se e

arlie

r, M

r LEU

NG

ha

d al

read

y tra

nsfe

rred

all h

is sh

ares

of D

TZ H

oldi

ngs

plc

and

its s

ubsid

iarie

s to

a tr

ust.

The

trus

tee

is a

prof

essio

nal

prac

tisin

g ac

coun

tant

. M

r LEU

NG

had

dec

lare

d th

e af

ores

aid

inte

rest

acco

rdin

g to

the

requ

irem

ent o

f the

sys

tem

of

decl

arat

ion

of in

tere

sts fo

r Exe

cutiv

e Co

unci

l Mem

bers

and

the

decl

arat

ion

has b

een

uplo

aded

to th

e Ex

ecut

ive

Coun

cil

web

site.

It

is w

orth

men

tioni

ng t

hat

the

truste

e m

anag

es t

he t

rust

inde

pend

ently

in

acco

rdan

ce w

ith t

he t

rust

prov

ision

s. A

s the

con

signo

r, M

r LEU

NG

doe

s not

hav

e th

e po

wer

to m

ake

any

tradi

ng d

ecisi

ons r

egar

ding

the

shar

es

unde

r the

trus

t, in

clud

ing

thos

e of

DTZ

Hol

ding

s plc

and

its s

ubsid

iarie

s." [P

ages

256

-257

of C

Y1.

9].

2.2

Repl

y da

ted

16 O

ctob

er 2

017

from

UG

L (E

nglis

h ve

rsio

n on

ly) [

U1]

UG

L sta

ted

that

: "U

GL'

s po

licy

is to

co-

oper

ate

with

any

reg

ulat

ory

or o

ther

inv

estig

ativ

e bo

dy.

To

ensu

re t

hat

UG

L's

conf

iden

tialit

y an

d le

gal

prof

essio

nal p

rivile

ge is

pre

serv

ed in

any

inve

stiga

tion

UG

L w

ill o

nly

co-o

pera

te in

acc

orda

nce

with

the

rele

vant

bod

y's a

utho

rity

and

pow

ers a

nd p

ursu

ant t

o sp

ecifi

c le

gal r

equi

rem

ents.

" 2.

3 Re

ply

date

d 27

Oct

ober

201

7 fro

m U

GL

(Eng

lish

vers

ion

only

) [U

2]

U

GL

state

d th

at:

"[I]t

is U

GL'

s pol

icy

to c

o-op

erat

e w

ith a

ny re

gula

tory

or o

ther

inve

stiga

tive

body

. A

t the

sam

e tim

e, U

GL

cons

ider

s it e

ssen

tial t

o be

ab

le to

rel

y on

its

right

s to

con

fiden

tialit

y an

d le

gal p

rofe

ssio

nal p

rivile

ge, a

mon

gst o

ther

s, w

hen

co-o

pera

ting

with

reg

ulat

ory

and

inve

stiga

tive

bodi

es.

UG

L re

spec

tfully

dec

lines

to m

eet t

he te

rms o

f the

Com

mitt

ee's

requ

ests

set o

ut in

you

r let

ter d

ated

1 S

epte

mbe

r 201

7."

2.4

Repl

y da

ted

19 S

epte

mbe

r 20

17 f

rom

Ern

st &

You

ng L

LP,

Join

t A

dmin

istra

tors

("J

oint

Adm

inist

rato

rs")

of

DTZ

Hol

ding

s pl

c ("

DTZ

") (E

nglis

h ve

rsio

n on

ly) [

EY1]

toge

ther

with

two

encl

osur

es [E

Y1.

1 an

d EY

1.2]

(a)

the

Join

t Adm

inist

rato

rs p

rovi

ded

(i) a

cop

y of

a sa

le a

gree

men

t dat

ed 4

Dec

embe

r 201

1 re

latin

g to

shar

es in

cer

tain

com

pani

es

and

the

trade

mar

ks o

wne

d by

DTZ

(in

adm

inist

ratio

n) [

EY1.

1] a

nd (

ii) a

cop

y of

the

Joi

nt A

dmin

istra

tors

' Sta

tem

ent

of

Prop

osal

s of D

TZ (i

n ad

min

istra

tion)

issu

ed o

n 23

Dec

embe

r 201

1 ("

the

Stat

emen

t of P

ropo

sals"

) [EY

1.2]

;

(b)

in th

e St

atem

ent o

f Pro

posa

ls, th

e Jo

int A

dmin

istra

tors

sta

ted

that

on

4 D

ecem

ber 2

011,

they

com

plet

ed a

sal

e of

the

busin

ess

and

asse

ts of

DTZ

to U

nite

d G

roup

Eur

ope

Lim

ited

(a s

ubsid

iary

of

UG

L) f

or a

tota

l con

sider

atio

n of

up

to £

96.5

mill

ion.

A

ppen

dix

A of

the

Sta

tem

ent

of P

ropo

sals

show

ed t

hat

Mr

LEU

NG

res

igne

d fro

m t

he p

ost

of d

irect

or o

f D

TZ o

n 24

N

ovem

ber 2

011.

His

then

shar

ehol

ding

in D

TZ w

as 6

563

775

shar

es [P

ages

3 a

nd 1

5 of

EY

1.2]

; and

(c

) re

gard

ing

the

UG

L A

gree

men

t and

rela

ted

agre

emen

t(s),

if an

y, th

e Jo

int A

dmin

istra

tors

adv

ised

that

they

wer

e no

t aw

are,

nor

w

as D

TZ p

arty

to a

ny a

gree

men

t(s) b

etw

een

Mr L

EUN

G a

nd U

GL.

[Par

agra

ph (a

) of E

Y1]

- 90 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

3.W

heth

er

the

Paym

ents

wer

eta

xabl

e un

der

the

law

s of

Hon

gK

ong

IV.

Taxa

tion

issue

s

(a)

whe

ther

the

Paym

ents

or a

ny p

art(s

) of

the

Paym

ents

wer

e ta

xabl

e un

der

the

law

s of H

ong

Kon

g; a

nd

(b)

if th

e an

swer

to

IV(a

) ab

ove

is in

the

affir

mat

ive,

whe

ther

Mr

LEU

NG

had

com

plie

d w

ith

the

taxa

tion

law

s in

forc

e.

3.1

Repl

y da

ted

15 S

epte

mbe

r 201

7 fro

m M

r LEU

NG

(Eng

lish

vers

ion

only

) [CY

1] to

geth

er w

ith 1

2 en

clos

ures

[CY

1.1

to C

Y1.

12]

In re

spon

se to

a q

uesti

on a

s to

whe

ther

CE

had

paid

tax

for t

he p

aym

ents

paid

to h

im b

y U

GL

in a

ccor

danc

e w

ith th

e re

quire

men

ts un

der t

he re

leva

nt le

gisla

tion,

the

then

Act

ing

CS a

dvise

d th

at:

"Las

t yea

r, M

r LEU

NG

sou

ght a

dvic

e fro

m a

pra

ctisi

ng a

ccou

ntan

t on

the

need

or o

ther

wise

for h

im to

pay

sal

arie

s ta

x in

resp

ect o

f th

e af

ores

aid

paym

ents,

and

the

acc

ount

ant's

pro

fess

iona

l ad

vice

was

tha

t un

der

the

rele

vant

pro

visio

n of

Hon

g K

ong'

s In

land

Re

venu

e O

rdin

ance

, sal

arie

s tax

was

app

licab

le to

inco

me

arisi

ng in

or d

eriv

ed fr

om H

ong

Kon

g fro

m a

ny e

mpl

oym

ent,

as w

ell a

s the

pe

nsio

n so

der

ived

. A

s suc

h, M

r LEU

NG

did

not

hav

e to

pay

sala

ries t

ax fo

r the

rele

vant

pay

men

ts. A

s reg

ards

the

bonu

s con

cern

ed,

he h

ad to

pay

sal

arie

s ta

x in

acc

orda

nce

with

the

afor

esai

d re

quire

men

t. M

r LE

UN

G h

as a

lread

y m

ade

the

rele

vant

tax

paym

ent

acco

rdin

gly.

" [Pa

ges 1

234-

1235

of C

Y1.

7]

3.2

Repl

y da

ted

12 O

ctob

er 2

017

from

the

Inla

nd R

even

ue D

epar

tmen

t ("I

RD")

(Eng

lish

vers

ion

only

) [A

1]

In re

spon

se to

the

Sele

ct C

omm

ittee

's re

ques

t for

info

rmat

ion

on th

e re

quire

men

ts an

d re

leva

nt p

rovi

sions

und

er th

e ta

xatio

n la

ws

of

Hon

g K

ong

whi

ch w

ere

rele

vant

to th

e U

GL

Agr

eem

ent a

nd r

elat

ed a

gree

men

t(s),

IRD

adv

ised

that

the

Com

miss

ione

r of

Inl

and

Reve

nue

("Co

mm

issio

ner"

) and

offi

cers

of I

RD w

ere

subj

ect t

o th

e of

ficia

l sec

recy

pro

visio

n un

der s

ectio

n 4

of th

e In

land

Rev

enue

O

rdin

ance

(Cap

.112

) ("I

RO")

. H

avin

g co

nsid

ered

that

the

Com

miss

ione

r or o

ffice

rs o

f IRD

wou

ld li

kely

be

disc

losin

g in

form

atio

n re

latin

g to

the

affa

irs o

f Mr L

EUN

G th

at c

ame

to th

eir k

now

ledg

e in

the

perfo

rman

ce o

f the

ir du

ties

unde

r IRO

, and

that

they

wou

ld

be s

usce

ptib

le to

bre

achi

ng th

e of

ficia

l sec

recy

pro

visio

n un

der s

ectio

n 4(

1) o

f IRO

, IRD

cou

ld n

ot a

cced

e to

the

Sele

ct C

omm

ittee

's re

ques

t and

nei

ther

the

Com

miss

ione

r nor

any

oth

er o

ffice

r of I

RD w

ould

atte

nd th

e he

arin

gs o

f the

Sel

ect C

omm

ittee

.

3.3

Repl

y da

ted

4 D

ecem

ber 2

017

from

IRD

[A2]

In re

spon

se to

the

Sele

ct C

omm

ittee

's re

ques

t for

gen

eral

info

rmat

ion

on th

e po

licy

adop

ted

and

the

appl

icab

le ta

xatio

n pr

inci

ples

on

certa

in c

ases

of p

aym

ent r

ecei

ved

by a

Hon

g K

ong

resid

ent,

IRD

pro

vide

d th

e fo

llow

ing

rele

vant

taxa

tion

prin

cipl

es:

(a)

sect

ion

8(1)

of I

RO im

pose

d th

e ch

arge

to sa

larie

s tax

upo

n ev

ery

pers

on in

resp

ect o

f inc

ome

arisi

ng in

or d

eriv

ed fr

om H

ong

Kon

g fro

m a

ny o

ffice

or

empl

oym

ent

of p

rofit

and

any

pen

sion.

Th

e ch

arge

mad

e no

dist

inct

ion

betw

een

a H

ong

Kon

gre

siden

t and

a n

on-H

ong

Kon

g re

siden

t;

(b)

no g

ener

al ru

les

wer

e gi

ven

in IR

O fo

r det

erm

inin

g w

heth

er in

com

e "a

rises

in o

r is

deriv

ed fr

om H

ong

Kon

g".

It ha

d lo

ngbe

en a

ccep

ted

that

it w

as n

eces

sary

to e

stabl

ish th

e pl

ace

whe

re th

e em

ploy

men

t, th

e so

urce

of i

ncom

e, w

as lo

cate

d. I

RD h

adac

cept

ed th

at in

the

grea

t maj

ority

of t

he c

ases

, the

que

stion

of H

ong

Kon

g or

non

-Hon

g K

ong

empl

oym

ent c

ould

be

reso

lved

by c

onsid

erin

g th

ree

fact

ors,

nam

ely,

(a)

whe

re t

he c

ontra

ct o

f em

ploy

men

t w

as n

egot

iate

d an

d en

tere

d in

to,

and

was

enfo

rcea

ble,

(b) r

esid

ence

of t

he e

mpl

oyer

, and

(c) p

lace

of p

aym

ent o

f rem

uner

atio

n. D

epar

tmen

tal I

nter

pret

atio

n &

Pra

ctic

eN

otes

No.

10

(Rev

ised)

"The

Cha

rge

to S

alar

ies T

ax"2 se

t out

IRD

's vi

ew a

nd p

ract

ice

in d

eter

min

ing

sour

ce o

f em

ploy

men

t;

(c)

sect

ion

9(1)

(a)

of I

RO d

efin

ed in

com

e fro

m a

n of

fice

or e

mpl

oym

ent t

o in

clud

e w

ages

, sal

ary,

leav

e pa

y, f

ee, c

omm

issio

n,bo

nus,

grat

uity

, per

quisi

te, o

r allo

wan

ce, w

heth

er d

eriv

ed fr

om th

e em

ploy

er o

r oth

ers.

A s

um re

ceiv

ed b

y a

taxp

ayer

from

ape

rson

oth

er th

an h

is em

ploy

er c

ould

be

taxa

ble

prov

ided

that

it w

as a

n in

com

e fro

m h

is e

mpl

oym

ent;

2 The

Dep

artm

enta

l Int

erpr

etat

ion

& P

ract

ice

Not

es N

o.10

(Rev

ised)

"The

Cha

rge

to S

alar

ies T

ax" i

s now

ava

ilabl

e at

http

s://w

ww.

ird.g

ov.h

k/en

g/pd

f/dip

n10.

pdf.

- 91 -

Mat

ters

to b

e in

quir

ed

by th

e Se

lect

Com

mitt

ee

unde

r its

term

s of r

efer

ence

Maj

or a

reas

of s

tudy

co

rres

pond

ing

to th

e m

atte

r on

the l

eft

Info

rmat

ion

rele

vant

to th

e m

atte

r on

the

left

[SC

Pap

er N

o.]

(d)

for a

pay

men

t to

be c

harg

eabl

e to

sal

arie

s ta

x, it

was

not

suf

ficie

nt to

say

that

the

empl

oyee

wou

ld n

ot h

ave

rece

ived

the

sum

in q

uesti

on if

he

had

not b

een

an e

mpl

oyee

3;

(e)

char

geab

le in

com

e w

as n

ot c

onfin

ed to

inco

me

earn

ed in

the

cour

se o

f em

ploy

men

t but

also

em

brac

ed p

aym

ents

mad

e in

retu

rn fo

r act

ing

as o

r bei

ng a

n em

ploy

ee, o

r as

a re

war

d fo

r pas

t ser

vice

s or

as

an in

duce

men

t to

ente

r int

o em

ploy

men

t and

prov

ide

futu

re se

rvic

es4 ;

(f)th

e ap

plic

able

test

was

whe

ther

the

paym

ent i

n qu

estio

n w

as "f

rom

em

ploy

men

t"5 ;

(g)

whe

re th

e pa

ymen

t was

not

mad

e pu

rsua

nt to

any

ent

itlem

ent u

nder

the

empl

oym

ent c

ontra

ct b

ut w

as m

ade

in c

onsid

erat

ion

ofth

e em

ploy

ee a

gree

ing

to su

rrend

er o

r for

go h

is pr

e-ex

istin

g co

ntra

ctua

l rig

hts,

it m

ight

not

be

taxa

ble6 ; a

nd

(h)

in g

ener

al, a

pay

men

t mad

e fo

r pos

t-em

ploy

men

t res

trict

ive

cove

nant

s w

as n

ot c

harg

eabl

e to

sal

arie

s ta

x7 . W

here

ther

e w

ere

term

s in

the

cont

ract

or

arra

ngem

ent o

ther

than

the

givi

ng o

f th

e re

stric

tive

cove

nant

s, it

was

ess

entia

lly a

que

stion

of

fact

whe

ther

the

paym

ent w

as e

ntire

ly a

ttrib

utab

le to

the

givi

ng o

f the

restr

ictiv

e co

vena

nts

or th

e pa

ymen

t was

par

tly m

ade

for

som

ethi

ng e

lse8 .

In th

e ca

se o

f th

e la

tter,

it w

as n

eces

sary

to d

ecid

e w

heth

er th

at p

art o

f th

e pa

ymen

t tha

t was

mad

e fo

rso

met

hing

else

was

"inc

ome

from

em

ploy

men

t".

IRD

em

phas

ized

that

the

taxa

tion

prin

cipl

es s

et o

ut a

bove

wer

e ge

nera

l prin

cipl

es o

nly

and

whe

ther

a p

aym

ent w

as in

com

e fro

m

empl

oym

ent a

nd th

us ta

xabl

e co

uld

only

be

dete

rmin

ed u

pon

cons

ider

atio

n of

all

the

rele

vant

fact

s and

circ

umst

ance

s.

Coun

cil B

usin

ess D

ivisi

on 2

Le

gisla

tive

Coun

cil S

ecre

taria

t 6

May

202

0

3 Fuc

hs v

CIR

(201

1) 1

4 H

KCF

AR

74, p

arag

raph

16,

quo

ting

Hoc

hstra

sser

(Ins

pect

or o

f Tax

es) v

May

es [1

960]

AC

376.

4 I

bid,

par

agra

ph 1

7.

5 Ibi

d, p

arag

raph

18.

6 I

bid,

par

agra

ph 2

2 an

d he

adno

te.

7 Bea

k v

Robs

on [1

943]

1 A

ll ER

46,

app

lied

in C

IR v

Yun

g Ts

e K

won

g [2

004]

3 H

KLR

D 1

92.

8 CIR

v Y

ung

Tse

Kwon

g [2

004]

3 H

KLR

D 1

92, p

arag

raph

s 11-

20.

- 92 -


Lists of documents

- 96 -

Lists of documents A. Documents provided by Mr LEUNG Chun-ying




E. Documents provided by the Administration

F. Documents provided by Ernst & Young LLP, Joint Administrators

of DTZ Holdings plc


- 97 -

A. Documents provided by Mr LEUNG Chun-ying

Documents Select Committee reference no.

1. Reply dated 15 September 2017 from Mr LEUNG Chun-ying (English version only) together with 12 enclosures

CY1 (Enclosures:

CY1.1 to CY1.12)

2. Reply dated 24 November 2017 from Mr LEUNG Chun-ying (English version only)

CY2



1. Reply dated 16 October 2017 from UGL Limited (English version only)

U1

2. Reply dated 27 October 2017 from UGL Limited (English version only)

U2



1. Reply dated 11 October 2017 from the Judiciary Administration

J1

2. Reply dated 28 November 2017 from the Judiciary Administration

J2

- 98 -



1. Reply dated 14 November 2017 from the Executive Council Secretariat together with two enclosures

EC1 (Enclosures:

EC1.1 and EC1.2) E. Documents provided by the Administration


1. Reply dated 12 October 2017 from the Inland Revenue Department (English version only)

A1

2. Reply dated 4 December 2017 from the Inland Revenue Department

A2

F. Documents provided by Ernst & Young LLP, Joint Administrators of

DTZ Holdings plc


1. Reply dated 19 September 2017 from Ernst & Young LLP, Joint Administrators of DTZ Holdings plc (English version only) together with two enclosures

EY1 (Enclosures:

EY1.1 and EY1.2)

- 99 -



1. Work plan L4 2. Indexing system for Select Committee papers L5 3. Extract from the minutes of the meeting of the House

Committee on 17 October 2014 on a proposal to appoint a select committee to inquire into the alleged receipt of secret payments by Mr LEUNG Chun-ying from an Australian firm

L6

4. Extract from the Hansard of the Council meeting of 29 October 2014 on an oral question on declaration of interests by Chief Executive and Members of Executive Council

L7

5. Extract from the Hansard of the Council meeting of 5 November 2014 on a motion under the Legislative Council (Powers and Privileges) Ordinance (Cap. 382) to appoint a select committee

L8

6. Extract from the Hansard of the Council meeting of 20 November 2014 on a written question on taxation issues related to remunerations received under business agreements with overseas companies

L9

7. Extract from the Hansard of the Council meeting of 15 January 2015 on the Chief Executive's Question and Answer Session

L10

8. Extract from the Hansard of the Council meeting of 22 October 2015 on the Chief Executive's Question and Answer Session

L11

9. Extract from the Hansard of the Council meeting of 14 July 2016 on the Chief Executive's Question and Answer Session

L12

10. Extract from the Hansard of the Council meeting of 11 January 2017 on an oral question on declaration of interests by public officers

L13

11. Information note entitled "The UGL Incident" prepared by the Research Office of the Legislative Council Secretariat (LC Paper No. IN03/16-17)

--


Minutes of proceedings

LC Paper No. CB(2)1296/19-20

Ref : CB2/SC/16


Minutes of the closed meeting held on Thursday, 11 June 2020, at 4:30 pm

in Conference Room 5 of the Legislative Council Complex


Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon WONG Kwok-kin, SBS, JP Hon Steven HO Chun-yin, BBS Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Dr Hon Junius HO Kwan-yiu, JP Hon LAM Cheuk-ting Hon YUNG Hoi-yan, JP




Miss Joyce CHAN Assistant Legal Adviser 1

Mr Clement HAU Council Secretary (2) 2

Miss Michelle TANG Council Secretary (2) 6

- 102 -

Miss Cally LAI Legislative Assistant (2) 2

X X X X X X X X II. Consideration and endorsement of the report of the Select

Committee paragraph by paragraph (LC Paper No. CB(2)1166/19-20(01))

3. Mr Kenneth LEUNG declared that Mr LEUNG Chun-ying had brought a defamation suit (HCA 533/2017) against him. Mr LAM Cheuk-ting also declared that he might be involved in litigation with Mr LEUNG Chun-ying in the future. 4. The Chairman said that at the last closed meeting on 7 May 2020, members had agreed that the Clerk should proceed to draft the report of the Select Committee according to the directions proposed by members. The draft report so prepared (LC Paper No. CB(2)1166/19-20(01)) had been issued to members on 9 June 2020. The Chairman reminded members that the content of and the Select Committee's upcoming discussion on the draft report should be kept confidential. 5. The Chairman gave a brief introduction on the layout of the draft report. 6. In accordance with RoP 79(7)(a), the Chairman put to members the question that the draft report (LC Paper No. CB(2)1166/19-20(01)) be adopted as the Chairman's report and accepted as a basis for discussion. The question was agreed to. 7. The Chairman then proposed that the Chairman's report be read a second time paragraph by paragraph. As the question was also agreed to, the Chairman led members through the Chinese version of the report. Preamble 8.. Preamble read and agreed to. Part I - Chapter 1 9.. Paragraphs 1.1 to 1.4 read. Members expressed views on the structure of Chapter 1 "Introduction". Some members suggested that

- 103 -

paragraphs 1.3 and 1.4 under the heading "Establishment of the Select Committee" should be moved to the beginning of Chapter 1, and that paragraphs 1.1 and 1.2 under the heading "Background" and subheading "The UGL incident and the UGL Agreement" should be moved to the later part of the report. 10. Some members did not see a need to provide detailed information about the history and business development of DTZ Holdings plc ("DTZ") and suggested deleting footnote 4 under paragraph 1.1. Some other members, however, considered it necessary to refer to the events leading to the sale of DTZ to UGL Limited to facilitate readers' understanding. These members opined that should footnote 4 be deleted in its entirety, other paragraphs of the report should be amended to ensure that relevant information was included in the report. (At this juncture, the voting bell started ringing. At 5:14 pm, the Chairman ordered that the closed meeting be suspended in order to allow members to return to the Chamber to take part in the voting. The closed meeting resumed at 5:27 pm.) 11. Members continued to consider paragraphs 1.1 to 1.4 of the report. The Deputy Chairman and Dr Priscilla LEUNG suggested that:

(a) a footnote be added to the relevant paragraph to specify that Mr LEUNG Chun-ying was the fourth term Chief Executive, who served his term of office from 1 July 2012 to 30 June 2017;

(b) the provisions of RoP that had been referred to in the report

(including RoP 20(1)) be set out in full; and (c) the names of the 28 Members in support of the request to refer

the petition presented at the Council meeting of 2 November 2016 to a select committee be shown in the report.

12. After discussion, the Chairman suggested that the Clerk be directed to amend Chapter 1 and other parts of the report (if necessary) according to the views expressed and suggestions made by members at this meeting. Members raised no objection. Part I - Chapter 2 13. Paragraphs 2.1 to 2.4 read and agreed to.

- 104 -

14. Paragraph 2.5 read. The Deputy Chairman and Dr Priscilla LEUNG suggested that the last line of footnote 8 under this paragraph be amended to make it clear that the Select Committee was unable to adhere to the schedule as set out in the work plan. Members raised no objection to their proposal. 15. Paragraphs 2.6 and 2.7 read and agreed to. 16. Paragraphs 2.8 to 2.12 read. Some members suggested trimming down the contents of paragraphs 2.8 to 2.29 as these paragraphs covered peripheral issues. Some other members, however, objected to the proposal, on the basis that the events described in paragraphs 2.8 to 2.29 provided a factual account of all matters relevant to the operation of the Select Committee.

17. After discussion, the Chairman suggested that the Clerk be directed to amend paragraphs 2.8 to 2.29 according to the views expressed and suggestions made by members at this meeting. Members raised no objection. 18. The Chairman said that as it was approaching the appointed end time of the meeting at 6:30 pm, he would declare the meeting closed. The Chairman suggested and members agreed that the Select Committee should hold another closed meeting on Thursday, 18 June 2020 at 4:30 pm to continue its discussion on the unfinished items on the agenda.

(Post-meeting note: To allow sufficient time for discussion, the Chairman had, after the meeting, directed that the next closed meeting started at 2:30 pm and ended at 6:30 pm.)

19.. The meeting ended at 6:24 pm. Council Business Division 2 Legislative Council Secretariat 3 July 2020

- 105 -

LC Paper No. CB(2)1297/19-20

Ref : CB2/SC/16


Minutes of the closed meeting

held on Thursday, 18 June 2020, at 2:30 pm in Conference Room 5 of the Legislative Council Complex


Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon WONG Kwok-kin, SBS, JP Hon Steven HO Chun-yin, BBS Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Hon LAM Cheuk-ting Hon YUNG Hoi-yan, JP

Member : Dr Hon Junius HO Kwan-yiu, JP absent Clerk in : Miss Josephine SO attendance Chief Council Secretary (2) 2 Staff in : Miss Flora TAI attendance Assistant Secretary General 2

Mr Timothy TSO Senior Assistant Legal Adviser 1 Miss Joyce CHAN Assistant Legal Adviser 1 Mr Clement HAU Council Secretary (2) 2

- 106 -

Miss Michelle TANG Council Secretary (2) 6 Miss Cally LAI Legislative Assistant (2) 2

X X X X X X X X

II. Consideration and endorsement of the report of the Select Committee paragraph by paragraph (LC Paper No. CB(2)1210/19-20(03))

5. The Chairman recapitulated that at the last closed meeting on 11 June 2020, members had taken the decisions to (a) adopt the draft report prepared by the Clerk and issued on 9 June 2020 (LC Paper No. CB(2)1166/19-20(01)) ("the first draft report") as the Chairman's report and to accept it as the basis for discussion; and (b) start reading the first draft report a second time paragraph by paragraph ("the two decisions made at the last closed meeting"). Thereafter, members had expressed various views and made suggestions to amend the first draft report. The Clerk had amended the first draft report accordingly. The amended version of the draft report (as at 16 June 2020) (LC Paper No. CB(2)1210/19-20(03)) had been issued to members on 16 June 2020 ("the amended draft report"). Before proceeding to consider the amended draft report, the Chairman reminded members that the content of and the Select Committee's upcoming discussion on the amended draft report should be kept confidential.

6.. The Chairman drew members' attention to RoP 79(7)(a) which stated that when the question that the Chairman's report be read a second time paragraph by paragraph had been agreed to, the same question should not be proposed on further reports but portions thereof might be offered as amendments to the report under consideration if they were relevant to it. Since the first draft report had been substantially amended, the Select Committee had to rescind the two decisions made at the last closed meeting and put afresh the questions to adopt the amended draft report as the Chairman's report and to accept it as the basis for discussion in order to carry on with the consideration of the report.

- 107 -

(At this juncture, the quorum bell was ringing to summon Members back to the Chamber to attend the Council meeting held concurrently. At 2:37 pm, the Chairman ordered that the closed meeting be suspended for a short while in order to allow members to return to the Chamber. The closed meeting resumed at 2:47 pm.) 7.. The Chairman put the proposal of rescinding the two decisions made at the last closed meeting to vote. Two members voted in favour of the proposal, two members voted against it and no member abstained. The Chairman exercised his casting vote in accordance with RoP 79(6) and RoP 79A(1) and declared that the proposal was negatived. (At 2:59 pm, the Chairman ordered that the closed meeting be suspended to allow him to discuss procedural matters with the Clerk and the Legal Adviser to the Select Committee. The closed meeting resumed at 3:10 pm.) 8.. The Select Committee continued its consideration and endorsement of the first draft report paragraph by paragraph. 9. After discussion, to allow time for members to consider whether to propose amendments to the first draft report and if so, to prepare their proposed amendments, the Chairman suggested and members agreed that the Select Committee should hold another closed meeting on Wednesday, 24 June 2020 from 9:00 am to 11:00 am to continue the discussion on the unfinished items on the agenda. Members also agreed that if individual members wished to propose amendments to the first draft report, their proposed amendments should be provided to the Secretariat by close of play on Monday, 22 June 2020.

10.. At members' request, the Chairman instructed the Clerk to send the electronic copy of the Chinese version of the first draft report to members to facilitate their preparation of proposed amendments, if any. Members were reminded to observe the confidentiality requirement when making use of the electronic file(s) in preparing their respective proposed amendments. 11.. The meeting ended at 4:16 pm. Council Business Division 2 Legislative Council Secretariat 3 July 2020

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LC Paper No. CB(2)1298/19-20

Ref : CB2/SC/16



held on Wednesday, 24 June 2020, at 9:00 am in Conference Room 4 of the Legislative Council Complex


Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon WONG Kwok-kin, SBS, JP Hon Steven HO Chun-yin, BBS Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Hon LAM Cheuk-ting Hon YUNG Hoi-yan, JP

Member : Dr Hon Junius HO Kwan-yiu, JP absent Clerk in : Miss Josephine SO attendance Chief Council Secretary (2) 2 Staff in : Miss Flora TAI attendance Assistant Secretary General 2


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I. Consideration and endorsement of the report of the Select

Committee paragraph by paragraph (LC Paper Nos. CB(2)1166/19-20(01) and CB(2)1248/19-20(01))

Members continued to consider paragraph by paragraph the Chinese version of the report of the Select Committee adopted at the closed meeting on 11 June 2020 as the Chairman's report (LC Paper No. CB(2)1166/19-20(01)) ("the report"). The Chairman reminded members that the content of and the Select Committee's upcoming discussion on the report should be kept confidential. 2. The Chairman said that after the last closed meeting on 18 June 2020 at which members agreed to defer the discussion on the report pending members' submission of proposed amendments, he had received proposed amendments from Ms YUNG Hoi-yan (issued to members vide LC Paper No. CB(2)1248/19-20(01) on 23 June 2020). 3. Mr LAM Cheuk-ting and Mr Kenneth LEUNG said that both of them as well as Mr Alvin YEUNG and Mr Andrew WAN did not agree with the amendments proposed by Ms YUNG Hoi-yan. They would not participate in the ensuing discussion. Mr LAM and Mr LEUNG further said that they, together with Mr YEUNG and Mr WAN, were considering presenting a minority report to the Council. (At this juncture, Mr Kenneth LEUNG, Mr Alvin YEUNG, Mr Andrew WAN and Mr LAM Cheuk-ting withdrew from the meeting.) 4. Members noted that Ms YUNG Hoi-yan had proposed amendments to paragraphs 2.1, 2.3, 2.6 and 2.7 of the report. As the Preamble, paragraphs 2.1 to 2.4 and paragraphs 2.6 and 2.7 had already been read and endorsed at the closed meeting on 11 June 2020, members agreed that Ms YUNG's proposed amendments to paragraphs 2.1, 2.3, 2.6 and 2.7 would not be dealt with. Members continued to consider the remaining paragraphs by reference to the original paragraph numbers/headings/subheadings as printed in the report (LC Paper No. CB(2)1166/19-20(01)).

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Part I - Chapter 1 5.. Heading and subheading immediately preceding paragraph 1.1 read and deleted. 6. Paragraphs 1.1 and 1.2 read and deleted. 7. Paragraph 1.3 (updated paragraph number as 1.1) read, amended and agreed to. 8. Paragraph 1.4 (updated paragraph number as 1.2) read and agreed to. Part I - Chapter 2 9. The Chairman reminded members that at the closed meeting on 11 June 2020, the content of paragraph 2.5 was agreed to, subject to a minor amendment to be made to the last line of the footnote under this paragraph. He invited members to note Ms YUNG Hoi-yan's proposed amendments to the footnote. After discussion, the Chairman proposed and members agreed to amend the last line of the footnote under paragraph 2.5 (updated as footnote 3) by adding "所載列的目標時序" before "行事。". 10. Paragraph 2.5 read, amended and agreed to. 11. Heading after paragraph 2.5 read, amended and agreed to. 12. Subheading immediately preceding paragraph 2.8 read and deleted. 13. Paragraph 2.8 read, amended and agreed to. 14. Paragraph 2.9 read and deleted. 15. Paragraph 2.10 (updated paragraph number as 2.9) read, amended and agreed to. 16. Paragraphs 2.11 and 2.12 read and deleted. 17. Heading and subheading immediately preceding paragraph 2.13 (updated paragraph number as 2.10) read and deleted.

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18. Paragraphs 2.13 and 2.14 (updated paragraph numbers as 2.10 and 2.11) read, amended and agreed to. 19. Paragraph 2.15 (updated paragraph number as 2.12) read and agreed to. 20. Paragraph 2.16 (updated paragraph number as 2.13) read, amended and agreed to. 21. Paragraph 2.17 read and deleted. 22. Paragraphs 2.18 and 2.19 (updated paragraph numbers as 2.14 and 2.15) read, amended and agreed to. 23. Paragraph 2.20 (updated paragraph number as 2.16) read, amended and agreed to. 24. Paragraph 2.21 read and deleted. 25. Paragraph 2.22 (updated paragraph number as 2.17) read, amended and agreed to. 26. Paragraph 2.23 (updated paragraph number as 2.18) read and agreed to. 27. Members agreed to amend paragraphs 2.24 and 2.25, and to merge the two paragraphs into one (updated paragraph number as 2.19). The updated paragraph 2.19 read and agreed to. 28. Paragraph 2.26 read and deleted. 29.. Members agreed to delete paragraph 2.28, and to amend and merge paragraphs 2.27 and 2.29 into one (updated paragraph number as 2.20). The updated paragraph 2.20 read and agreed to. 30.. Members agreed to amend paragraphs 2.30 and 2.31, and to merge the two paragraphs into one (updated paragraph number as 2.21). The updated paragraph 2.21 read and agreed to. Part II - Chapter 3 31.. Paragraphs 3.1 and 3.2 read, amended and agreed to. 32.. Paragraphs 3.3 and 3.4 read and agreed to.

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33.. Paragraph 3.5 read, amended and agreed to. 34.. Paragraph 3.6 read and agreed to. 35.. Paragraphs 3.7 and 3.8 read, amended and agreed to. 36.. Paragraph 3.9 read and deleted. 37.. Paragraph 3.10 (updated paragraph number as 3.9) read, amended and agreed to. 38. Paragraphs 3.11 and 3.12 (updated paragraph numbers as 3.10 and 3.11) read, amended and agreed to. 39.. Paragraphs 3.13 and 3.14 (updated paragraph numbers as 3.12 and 3.13) read and agreed to. Table of contents 40.. Table of contents read, amended and agreed to. Abbreviations, appendices and lists of documents 41. Members noted that the amended paragraphs, as endorsed, would entail consequential changes to the list of abbreviations, appendices and lists of documents. Members agreed that subject to the Chairman's concurrence and where necessary, the Secretariat could make corresponding amendments to these three sections. Other textual/editorial amendments 42. Members agreed that the Chairman and the Secretariat be authorized to make textual and editorial amendments to the Chinese version of the report, if necessary. 43.. The Chairman advised that the Select Committee had completed consideration and endorsement of the Chinese version of the report paragraph by paragraph. The question that the Chinese version of the report, as amended, be adopted as the Select Committee's report for presentation to the Council was proposed, put and agreed to.

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44. Members noted and agreed that all minutes of proceedings on consideration and endorsement of the report would be circulated to members for confirmation and appended to the Select Committee's report after it had been finalized.

X X X X X X X X Council Business Division 2 Legislative Council Secretariat 3 July 2020

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LC Paper No. CB(2)1299/19-20

Ref : CB2/SC/16



held on Tuesday, 30 June 2020, at 2:30 pm in Conference Room 5 of the Legislative Council Complex

Members : Hon Paul TSE Wai-chun, JP (Chairman) present Hon WONG Kwok-kin, SBS, JP

Hon Steven HO Chun-yin, BBS Hon YUNG Hoi-yan, JP

Members : Hon MA Fung-kwok, SBS, JP (Deputy Chairman) absent Dr Hon Priscilla LEUNG Mei-fun, SBS, JP Hon Kenneth LEUNG Hon Alvin YEUNG Hon Andrew WAN Siu-kin Dr Hon Junius HO Kwan-yiu, JP Hon LAM Cheuk-ting Clerk in : Miss Josephine SO attendance Chief Council Secretary (2) 2 Staff in : Miss Flora TAI attendance Assistant Secretary General 2


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I. Consideration and endorsement of the English version of the

report of the Select Committee paragraph by paragraph (LC Paper No. CB(2)1272/19-20(01))

The Chairman said that at the closed meeting on 24 June 2020, members had completed consideration and endorsement of the Chinese version of the report of the Select Committee ("the report") paragraph by paragraph. 2. The Chinese version of the endorsed report (LC Paper No. CB(2)1272/19-20(01)), as finalized after some textual and editorial amendments and issued to members on 26 June 2020, was confirmed. 3.. The Chairman invited members to consider and endorse paragraph by paragraph the English version of the report which was prepared based on the Chinese version. 4.. In accordance with Rule 79(7)(a) of the Rules of Procedure, the Chairman put to members the question that the English version of the report (LC Paper No. CB(2)1272/19-20(01)) be adopted as the Chairman's report and accepted as a basis for discussion. The question was agreed to. 5.. The Chairman then proposed that the Chairman's report be read a second time paragraph by paragraph. As the question was also agreed to, the Chairman led members through the English version of the report. Preamble 6.. Preamble read and agreed to. Part I - Chapter 1 7.. Paragraphs 1.1 and 1.2 read and agreed to. Part I - Chapter 2 8.. Paragraph 2.1 read and agreed to.

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9.. Paragraph 2.2 read and agreed to. 10.. Paragraphs 2.3 and 2.4 read and agreed to. 11.. Paragraph 2.5 read and agreed to. 12.. Paragraphs 2.6 to 2.12 read and agreed to. 13.. Paragraph 2.13 read and agreed to. 14.. Paragraphs 2.14 and 2.15 read and agreed to. 15.. Paragraphs 2.16 to 2.19 read and agreed to. 16.. Paragraph 2.20 read and agreed to. 17.. Paragraph 2.21 read and agreed to. Part II - Chapter 3 18.. Paragraphs 3.1 to 3.5 read and agreed to. 19.. Paragraphs 3.6 to 3.9 read and agreed to. 20.. Paragraphs 3.10 and 3.11 read and agreed to. 21.. Paragraphs 3.12 and 3.13 read and agreed to. Table of contents 22.. Table of contents read and agreed to. Abbreviations 23. The list of abbreviations read and agreed to. Appendices 24. Appendices 1 to 18 to the report read and agreed to. Lists of documents 25. The lists of documents read and agreed to.

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26. As the English version of the report was endorsed without any amendments, it was confirmed as the finalized English version of the endorsed report. 27.. The Chairman concluded that the Select Committee had completed consideration and endorsement of the English version of the report paragraph by paragraph. The question that the English version of the report be adopted as the Select Committee's report for presentation to the Council was proposed, put and agreed to. 28. Members noted that the minutes of proceedings on consideration and endorsement of the English version of the report would be circulated to members for confirmation and appended to the Select Committee's report accordingly.

X X X X X X X X Council Business Division 2 Legislative Council Secretariat 3 July 2020

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