HONG KONG PRODUCTIVITY COUNCIL ORDINANCE

HONG KONG PRODUCTIVITY COUNCIL ORDINANCE

LAWS OF HONG KONG

HONG KONG PRODUCTIVITY COUNCIL

ORDINANCE

CHAPTER 1116





CHAPTER 1116

HONG KONG PRODUCTIVITY COUNCIL ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page

PART 1

PRELIMINARY

1. Short title ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 3
2. Interpretation ... ... ... ... ... ... ... ... ... ... ... ... ... ... 3

PART II

THE HONG KONG PRODUCTIVITY COUNCIL

3. Establishment and incorporation of the Hong Kong Productivity Council ... ...
3
4. Functions of Council ... ...
... ... ... ... ... ... ... ... ... ... ... 4
5. Powers of Council ... ... ... ... ... ... ... ... ... ... ... ... ... 4
5A. Governor in Council may give directions ... ... ... ... ... ... ... ... 7
6. Approval of salary scales by Governor ... ... ... ... ... ... ... ... 7
7. Seal of the Council ... ... ... ... ... ... ... ... ... ... ... ... ... 7
8. Certain contracts and instruments not required to be under seal ... ... ... ... 8

PART Ill

MEMBERSHIP AND PROCEDURE OF COUNCIL

9. Membership of Council ... ... ... ... ... ... ... ... ... ... ... ... 8
10. Chairman of meetings, and restriction on voting ... ... ... ... ... ... ... 9
11. Meetings of the Council ... ... ... ... ... ... ... ... ... ... ... ... 9
12. Transaction of business by circulation of papers ... ... ... ... ... ... ... 9
13. Validity of proceedings ... ... ... ... ... ... . ... ... ... ... 9

PARTIV

EXECUTIVE COMMITTEE

14. [Repealed] ... ... ... ... ... ...... ... ... ... ... ... ... ... ... 9
15. Establishment of Executive Committee ... ...
... ... ... ... ... ... 9

PART V

FINANCIAL PROVISIONS AND
REPORTS

16. Estimates ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 10
IT Accounts ... ... ... ... ... ... ... ... ... .. 1 ... ... ... ... ... 11
18. Audit ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 11
19. Reports to be laid on table of Legislative Council ... ... ... ... ... ... ... 11
20. Investment of surplus funds ... ... ... ... ... ... ... ... ... ... ... 11





Section Page
PART VI

MISCELLANEOUS

21. Prohibition of possession and use of emblem ... ... ... ... ... ... ... 12
22. Amendment of Second Schedule ... ... ... ... ... ... ... ... ... ... 12
23. Transitional ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 12

First Schedule ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 13 Second Schedule ... ... ... ... ...
... ... ... ... ... ... ... ... ... ... ... 13





CHAPTER 1116

HONG KONG PRODUCTIVITY COUNCIL

To provide for the establishment of the Hong Kong Productivity
Council and to define its powers and functions.

[20 January 1967.1

PART 1

PRELIMINARY

1. This Ordinance may be cited as the Hong Kong Productivity'
Council Ordinance.

2. In this Ordinance, unless the context otherwise requires

,,arrangement means contract, licensing agreement or agreement under
seal;

'Chairman' means the Chairman of the Hong Kong Productivity
Council appointed under section 9(1)(a) or, during the absence
from Hong Kong or incapacity of the Chairman so appointed, the
person (if any) appointed under subsection (5) of that section to
act as Chairman or, if no person has been appointed to act as
Chairman, the Deputy Chairman appointed under subsection (2) of
that section;

'company' means a company registered under the Companies
Ordinance and limited by shares;

'Council' means the Hong Kong Productivity Council established by
section 3;

'Executive Committee' means the executive committee established by
section 15;

'Executive Director' means the Executive Director appointed under
section 5(1)(h) by the Council.

(Replaced, 57 of 1985, s. 2)

PART 11

THE HONG KONG PRODUCTIVITY COUNCIL

3. There is hereby established a council to be called the Hong
Kong Productivity Council which shall, in that name, be a body
corporate with perpetual succession and shall be capable of suing and
being sued and, subject to this Ordinance, of doing and suffering all
such other acts and things as bodies corporate may lawfully do and
suffer.





4. (1) The functions of the Council shall be-

(a)to promote the increased productivity of industry in Hong
Kong and to encourage the more efficient utilization of
resources therein;

(b)to consider matters affecting productivity of industry in Hong
Kong;

(c)to advise the Governor concerning the productivity of industry
in Hong Kong and measures designed to increase it;

(d)to consult with, co-ordinate and assist the activities of persons
or organizations, either in Hong Kong or elsewhere, engaged in
the study, development or dissemination of programmes,
methods or techniques designed to increase productivity in'
industry; and

(e)to take on productivity related assignments elsewhere than in
Hong Kong subject to the conditions specified in subsection
(2).

(2) The Council shall not carry out any work in pursuance of the
function referred to in subsection (1)(e) unless

(a)the work can be carried out without prejudice to the
performance by the Council of the functions referred to in
subsection (1)(a), (b),(c) and (d); and

(b)the minimum rate charged by the Council for the work is
sufficient to recover all costs incurred in carrying out that
work, which costs shall include direct costs (recurrent and
capital) and overhead costs.

(3) In favour of a person dealing with the Council in good faith, any
transaction decided on by the Council in pursuance, or purporting to be
in. pursuance, of the function referred to in subsection (1)(e) shall be
deemed to be one which it is within the power of the Council to enter
into, and the power of the Council to so enter into that transaction shall
be deemed to be free of any limitation referred to in subsection(2), and a
party to such a transaction shall not be bound to inquire as to the
power of the Council to enter into it or as to any limitation referred to in
subsection (2) on the Council to enter into it or to carry it out, and shall
be presumed to have acted in good faith unless the contrary is proved.

(Replaced, 57 of 1985, s. 3)

5. (1) Subject to subsections (IA), (IB) and (2), the Council may do
all such things as are calculated to facilitate, or as are incidental or
conducive to, the better carrying out of its functions and may in
particular, but without prejudice to the generality of the foregoing





(a)acquire, take on lease, purchase, hold and enjoy any property
and sell, let or otherwise dispose of the same;

(b) enter into any contract;

(c)to meet expenditure on any item shown in the estimates of
expenditure of the Council approved by the Governor under
section 16, borrow or otherwise raise money on such security
as may be necessary, and for that purpose, charge all or any of
the property of the Council, but without the prior approval of
the Financial Secretary no sum shall be borrowed or otherwise
raised under this paragraph which itself, or together with all
other sums previously borrowed or otherwise raised under
this paragraph and still outstanding, exceeds, or in the
aggregate exceed, 10 per cent of the total estimated
expenditure approved by the Governor under section 16 for
the current financial year;

(d)become a member of, act as agent for or otherwise take part in
the activities of any association or institution (other than any
association or institution which is a company) which is, either
wholly or in part, concerned with any matter relating to
productivity of industry;

(e)found scholarships, make research grants or otherwise give
financial or other assistance to persons engaged in study or
research into any matter relating to productivity of industry;

hold classes, seminars, demonstrations, exhibitions, lectures
or any other form of instructional or promotional activity and
charge fees therefor;

(g)publish periodicals, booklets or other written material, and
produce or sponsor the production of documentary films or
other audio-visual material, and distribute the same by sale or
by loan, hire or otherwise with or without charge as the
Council thinks fit;

(h)from time to time and subject to section 6, appoint an
Executive Director to be the chief administrative officer of the
Council and such other officers, servants and agents as it
considers necessary for the efficient performance of its
functions; and employ any professional person to advise the
Council on any point arising out of or in connexion with any
of the functions or powers of the Council;

(i)appoint a committee for such general or special purpose as in
the opinion of the Council would be better regulated and
managed by a committee;

(j)subject to subsection (3), by instrument in writing, delegate to
the Executive Committee or the Executive Director such of its
powers and functions as it deems expedient for the efficient
performance of the Council's functions, and to





any committee appointed under paragraph (i) such of its other
powers and functions as it deems expedient for the efficient
performance of the Council's functions, and in so doing shall
determine the limit of expenditure which may be incurred,
without further authorization, in the exercise of any power so
delegated:

Provided that no delegation made hereunder shall
preclude the Council from exercising or performing at any
time any of the powers or functions so delegated;

(k)patent any invention invented by, or with the assistance of,
the Council and sell, let, license or otherwise dispose of the
same; (Added, 57 of 1985, s. 4)

(l)enter into an arrangement with any company engaged in
industry for the establishment, management and control by
such company either alone or jointly with the Council of a
scheme calculated to facilitate, or be incidental or conducive
to, the better carrying out of the functions of the Council; and
(Added, 57 of 1985, s. 4)

(m)undertake any project relating to productivity of industry not
otherwise provided for in this section.; (Added, 57 of 1985,s.4)

(Aniended, 57 of 1985, s. 4)

(1A) For the purposes of subsection (1)(l), the Council may become
a member of, act as agent for or otherwise take part in the activities of or,
subject to subsection (1 B), acquire shares of any company which is,
either wholly or in part, concerned with any matter relating to
productivity of industry. (Added, 57 of 1985, s.4)

(1B) For the purposes of subsection (1)(l), the Council shall not
acquire any interest in a company other than to acquire from that
company, without any payment by the Council, shares of that company
in return for the Council entering into an arrangement with that
company: (Added, 57 of 1985, s. 4)

(2) The Council may, with the approval of the Governor, establish,
manage and control, or enter into an arrangement with an insurance
company or association for the establishment, management and control
by such company or association either alone or jointly with the Council
of a provident fund scheme for the benefit of all or any of the officers
and servants of the Council or of any specified class of officer or
servant of the Council, and if so required by the rules governing such
scheme may make contributions thereto in accordance with such rules.

(3) Subsection (1)(j) shall not permit the delegation of the power

(a)to approve the annual programme or estimates of income and
expenditure of the Council, or





(b)to authorize the annual report or statements of income and
expenditure and of assets and liabilities of the Council, or

(c) [Deleted, 83 of 1974, s. 21

(d)to approve general terms and conditions of service of officers
or servants of the Council, or

(e)to transfer, under section 16(4)(a), any sum exceeding the
amount specified in Part I of the Second Schedule from any
major head of expenditure to any other major head or heads of
expenditure in the approved estimates of expenditure of the
Council, or (Amended, 57 of 1985, s. 4)

(f)to establish or enter into any arrangement for the
establishment of a provident fund scheme under subsection
(2),

and shall not permit the delegation to any committee appointed under
subsection (1)(i) of the power to transfer any sum from any sub-head of
expenditure to any other sub-head in the approved estimates of
expenditure of the Council.

5A. (1) The Governor in Council may, if he considers the public
interest so requires, give directions in writing to the Council with
respect to the exercise of its powers and the performance of its
functions under this Ordinance, and the Council shall comply with
those directions. (Amended, 57 of 1985, s. 5)

(2) No such direction shall be inconsistent with any provision of
this Ordinance.

(Added, 70 of 1979, s. 3)

6. (1) The Council shall, before establishing or varying any salary
scale (including any scale of allowances and other pecuniary benefits)
for any officer or servant or class of officer or servant of the Council,
submit for the approval of the Governor particulars thereof, and the
Governor may confirm the same either generally in respect of the -
relevant class of officer or servant or specially in respect of a particular
officer or servant or a particular post.

(2) No officer or servant of the Council shall be paid any salary
other than a salary in the appropriate scale approved by the Governor
under subsection (1).

7. (1) The Council shall have a common seal, and the fixing of the
seal shall

(a) be authorized or ratified by resolution of the Council; and

(b)be authenticated by the signatures of any 2 members of the
Council, authorized by resolution of the Council either
generally or specially to act for that purpose.





(2) Any document purporting to be a document duly executed
under the seal of the Council shall be received in evidence and shall,
unless the contrary is proved, be deemed to be a document so executed.

8. Any contract or instrument which, if entered into or executed by
a person not being a body corporate, would not be required to be under
seal may be entered into or executed on behalf of the Council by any
person generally or specially authorized by the Council for that purpose.

PART III

MEMBERSHIP AND PROCEDURE OF
COUNCIL

9. (1) The Council shall consist of not more than 21 members to be
appointed by the Governor, of whom

(a)one shall be appointed by the Governor as Chairman of the
Council;

(b)not more than 14 shall be appointed to represent management,
labour and professional or academic interests. and

not more than 6 shall be public officers. (Replaced, 83 ol'
1974,s.3)

(2) There shall be a Deputy Chairman of the Council who shall be
appointed by the Governor from amongst the members.

(3)(a) Every member of the Council who is a public officer shall
hold office during the pleasure of the Governor.

(b)Without prejudice to section 42 of the Interpretation and
General Clauses Ordinance, every member of the Council who
is not a public officer shall be appointed for a period of 2 years
or for such lesser period as the Governor may in any particular
case appoint, but may from time to time be reappointed.

(4) Any member who is not a public officer may at any time by
notice in writing to the Governor or resign from the Council.

p

(5) If the Chairman of the Council is absent from Hong Kong or is,
for any other reason unable to act as chairman, the Governor may
appoint a member of the Council to act as Chairman during the absence
or incapacity of the Chairman.

(6) If any member other than the Chairman is absent from Hong
Kong, or is for any other reason unable to exercise the powers or
perform the duties of his office as a member of the Council, the Governor
may appoint another person to be a temporary member of the Council
during the absence or incapacity of that member.





10. The Chairman or, in his absence from any meeting, the
Deputy Chairman appointed under section 9(2) shall preside at every
meeting of the Council but the person presiding at a meeting shall not
vote thereat except in the case of an equality of votes when he shall
have a casting vote.

11. (1) Meetings of the Council shall be held at such times and
places as the Chairman may from time to time appoint.

(2) The Chairman shall, if requested by notice in writing signed by
not fewer than 4 members of the Council, convene a meeting of the
Council within 14 days of that notice.

(3) At all meetings of the Council a majority of the members shall
form a quorum.

(4) All questions arising at any meeting of the Council shall be
decided by a majority of votes of the members present and voting
thereon.

(5) Subject to this Ordinance, the Council may by resolution make
rules for the procedure at and conduct of its meetings.

12. The Council may, if it thinks fit, transact any of its business by
the circulation of papers, and a resolution in writing approved in writing
by a majority of the members thereof shall be as valid and effectual as if
it had been passed at a meeting of the Council by the votes of the
members so approving the resolution.

13. The validity of any proceeding of the Council shall not be
affected by any defect in the appointment of any member or by the
absence of any member from the meeting at which such proceeding
occurred or by any vacancy among members of the Council.

PART IV

EXECUTIVE COMMITTEE

(Amended, 57 of 1985, s. 6)

14. [Repealed, 57 of 1985, s. 7]

15. (1) The Council shall, in the furtherance of its functions,
establish an Executive Committee. (Replaced, 57 of 1985, s. 8)

(2) The Executive Committee shall be responsible to the Council
and shall execute the policies of the Council and be subject to the
directions of the Council in relation thereto and be accountable table to
the Council for all funds made available to it. (Amended, 57 of 1985, s.
8)

(3) The Executive Committee shall consist of the Executive Director
and 9 other members who shall be appointed by the Council from
amongst its members, of whom at least- (Amended, 70 of 1979, s. 4)





(a)one shall be a public officer, or his representative, who
shall also be a public officer;

(b) one shall be appointed to represent management;

(c) one shall be appointed to represent labour; and

(d)one shall be appointed to represent professional or aca-
demic interests. (Replaced, 83 of 1974, s. 4)

(4) The chairman of the Executive Committee shall be ap-
pointed by the Council from amongst the members of the Executive
Committee specified in subsection (3)(b), (c) and (d).

PART V

FINANCIAL PROVISIONS AND REPORTS

16. (1) Each financial year, before a date to be appointed by
the Governor, the Council shall forward to the Financial Secretary,
for the approval of the Governor, a programme of its proposed
activities for the next financial year together with or incorporating
estimates of its income and expenditure for the next financial year in
the form required by subsections (2) and (3):

Provided that the programme and estimates of income and
expenditure for the first financial year of the Council shall be
forwarded as soon as is practicable after the commencement of this
Ordinance.

(2) The estimates required by subsection (1) shall set out the
source of all income, and shall show the distribution of expenditure
under the following major heads-

(a)staff emoluments (including provision for provident fund
contributions and benefits, medical expenses and other
ancillary pecuniary benefits);

(b)capital expenditure exceeding the amount specified in Part
11 of the Second Schedule on any one item; (Amended, 57
of 1985, s. 9) 1

(c)recurrent expenditure other than expenditure shown under
head (a) aforesaid, and capital expenditure other than
expenditure shown under head (b) aforesaid;

(d)non-recurrent expenditure other than capital expenditure
shown under head (b) or (c) aforesaid.

(3) Each major head of expenditure shall show clearly the
destination of all moneys and where several matters are dealt with
under the one head each such matter shall be itemized and be shown
in a separate sub-head relating to similar items of expenditure.

(4) Notwithstanding the approval of the Governor of the
estimates of the Council, the Council may at any time or from time
to time and with or without specifying the purpose of the transfer-





(a)transfer to head (b), (c) or (d), or to each such head, from any
other major head of expenditure a sum not exceeding or sums
in the aggregate not exceeding 20 per cent of the amount
approved for the head to which such sum is or sums are
transferred; and (Amended, 57 of 1985, s. 9)

(b)transfer any sum or sums, without restriction, from any sub-
head to any other sub-head or sub-heads within the same
head of expenditure,

but save as permitted by paragraph (a) no sum shall be transferred from
one major head to any other major head of expenditure without the
approval of the Governor.

17. (1) The Council shall keep proper accounts of all income and
expenditure and shall maintain proper and adequate records thereof.

(2) As soon as may be convenient after the end of each financial
year the Council shall cause to be drawn up a statement of income and
expenditure during such financial year and a statement of the assets and
liabilities of the Council on the last day thereof.

18. (1) The Council shall appoint auditors who shall be entitled at
any time to have access to all books of account, vouchers and other
financial records of the Council and to require such information and
explanations thereon as they think fit.

(2) The auditors shall audit the statements drawn up under section
17(2) as soon as possible and shall make a report thereon to the Council.

19. (1) The Council shall as soon as possible after the end of each
financial year, but not later than 6 months after the end of each financial
year or such longer period as the Governor may as to any particular year
allow, make to the Governor a report on its activities and shall transmit
to the Governor therewith a copy of the statements drawn up under
section 17(2) and the report made under section 18(2). (Amended, 57 of
1985, s. 10)

(2) The Governor shall cause to be laid on the table of Legislative
Council the reports and statements received by him under subsection
(1).

20. All funds of the Council that are not immediately required shall
be deposited on fixed deposit in any bank or savings bank nominated
by the Financial Secretary, either generally or in any particular case, for
that purpose, or, subject to the prior approval of the Financial Secretary,
shall be invested in such investments as the Council thinks fit.





PART VI

MISCELLANEOUS

21. (1) Except with the authority of the Council, no person shall use
or have in his possession

(a)the emblem of the Council, which emblem is portrayed in the
First Schedule, or any copy or replica of such emblem;
(Amended, 5 7 of 1985, s. 11)

(b)any emblem or device containing the words 'Hong Kong
Productivity Council'; or

(c)any emblem or other device which so resembles the emblem or
any device of the Council as to be capable of being mistaken
for such emblem or device.

(2) Any person who contravenes subsection (1) shall be guilty of
an offence and shall be liable on conviction to a fine of $1,000.

(Added, 83 of 1974, s. 5)

22. The Governor may by order published in the Gazette amend the
Second Schedule.

(Added, 57 of 1985, s. 12)

23. (1) The person who was, immediately before the
commencement* of the Hong Kong Productivity Council (Amendment)
Ordinance 1985 ('the amending Ordinance'), the Executive Director
within the meaning of this Ordinance as in force immediately before that
commencement shall, on and from that commencement, be the Executive
Director within the meaning of this Ordinance as amended by the
amending Ordinance as though the Council had, on that
commencement, appointed him to that office under section 5(1)(h).

(2) The members of the Executive Committee within the meaning of
this Ordinance as in force immediately before the commencement of the
amending Ordinance shall, on and from that commencement, be the
members of the Executive Committee within the meaning of this
Ordinance as amended by the amending Ordinance as though they had,
on that commencement, been appointed under section 15(3) to the
respective membership on the secondmentioned Executive Committee
they held on the first-mentioned Executive Committee for the remainder
of the term of office they had left to serve as members of that first-
mentioned Executive Committee, or until any such appointment is
otherwise terminated by the Council, and, for that purpose, any
instruments under this Ordinance as in force at any time before that
commencement appointing those members to that first-mentioned
Executive Committee shall continue in force accordingly.

(57 of 1985, s. 15 incorporated)





FIRST SCHEDULE [s. 2 L]
(Added, 83 of 1974, s. 6.Amended, 57 qf 1985, s. 13)

SECOND SCHEDULE [ss. 5(3)(e),
16(2)(b) and 22.]
SPECIFIED AMOUNTS
PART I
$200,000
PART II
575.000

(Added, 57 qf 1985, s.
14)
Originally 2 of 1967. 83 of 1974. 70 of 1979. 57 of 1985. Short title. Interpretation. (Cap. 32.) Establishment and incorporation of the Hong Kong Productivity Council. Function of Council. Power of Council. Second Schedule. Governor in Council may give directions. Approval of salary scales by Governor. Seal of the Council. Certain contracts and instruments not required to be under seal. Membership of Council. (Cap. 1.) Chairman of meetings, and restriction on voting. Meetings of the council. Transaction of business by circulation of papers. Validity of proceedings. Establishment of Executive Committee. Estimates. Second Schedule. Accounts. Audit. Reports to be laid on table of Legislative Council. Investment of surplus funds. Prohibition of possession and use of emblem. First Schedule. Amendment of Second Schedule. Transitional. (57 of 1985) [*9.8.85.]

Originally 2 of 1967. 83 of 1974. 70 of 1979. 57 of 1985. Short title. Interpretation. (Cap. 32.) Establishment and incorporation of the Hong Kong Productivity Council. Function of Council. Power of Council. Second Schedule. Governor in Council may give directions. Approval of salary scales by Governor. Seal of the Council. Certain contracts and instruments not required to be under seal. Membership of Council. (Cap. 1.) Chairman of meetings, and restriction on voting. Meetings of the council. Transaction of business by circulation of papers. Validity of proceedings. Establishment of Executive Committee. Estimates. Second Schedule. Accounts. Audit. Reports to be laid on table of Legislative Council. Investment of surplus funds. Prohibition of possession and use of emblem. First Schedule. Amendment of Second Schedule. Transitional. (57 of 1985) [*9.8.85.]

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