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Cathay board observers designated


Carlson Tong and Rimsky Yuen have been designated as observers of the Board of Cathay Pacific Airways Limited with immediate effect, the Government announced today.

 

The appointment was made in accordance with the relevant agreement on the Government's investment in the Cathay Group.
 

Financial Secretary Paul Chan said Mr Tong has been active in public and community services, possesses extensive knowledge and significant experience in the financial services sector, was an Airport Authority board member and is familiar with the Hong Kong aviation industry's operation.

 

He added that Mr Yuen is a seasoned legal expert in commercial and civil matters with vast experience in public services and administration.

 

The Financial Secretary also said both men are suitable candidates to serve as observers to the board and will help safeguard the Government's investment interest in the group.

 

In June 2020, the Government decided to invest $27.3 billion in the Cathay Group through the Land Fund, comprising preference shares with detachable warrants of $19.5 billion and a bridge loan of $7.8 billion to uphold Hong Kong's status as an international aviation hub amid the threat arising from COVID-19.

 

As part of the investment agreement, the Government may designate two observers to the group's Board of Directors, until the group repays the Government in full the drawn bridge loan and interest and redeems all preference shares from the Government.

 

The designated observers have no voting rights at board meetings. They shall have the right to receive notice of board meetings, attend and speak at all board meetings, receive all information and papers distributed to the board, and have access to management and to all information about the company. 


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