We give you our voting recommendations for the Kowloon and New Territories electricity monopoly, and urge you to vote against the general issue mandate.

CLP voting recommendations
6 May 2003

Company: CLP Holdings Limited (CLP)
Stock code: 0002
Date of meeting: 22-Apr-04
Time of meeting: 11:00
Advice date:  08-Apr-04
Noticeof Meeting: Click here
Proxy form: Click here
Voting method: The Chairman will require a poll, all proxies will be counted

Note to journalists:
We have up to 4 proxy seats available inside this AGM. Please contact us if you want one.

Item Description Vote
1 Adopt the accounts FOR
2.a Declare a final dividend of $0.65 per share FOR
2.b Declare a special final dividend of $0.10 per share FOR
3.a Re-elect Veron Francis Moore (INED) FOR
3.b Re-elect Rudolf Bischof (NED) FOR
3.c Re-elect Hansen Loh Chung Hon (INED) FOR
3.d Re-elect William Elkin Mocatta (NED) FOR
3.e Elect Lee Yui Bor (ED) FOR
4 Re-appoint PriceWaterhouseCoopers FOR
5 Amend the Articles of Association FOR
6 Approve the retirement by rotation of executive directors FOR
7 Re-elect Peter Tse Pak Wing as executive director FOR
8(a) Revise the remuneration of the Chairman, Vice Chairman and other non-executive directors from 1-Jul-04 FOR
8(b) Provide additional remuneration to those NEDs who serve on committees, effective 1-Jul-04 FOR
9 Mandate the directors to issue additional shares AGAINST
10 Mandate the directors to repurchase shares FOR
11 Mandate the directors to issue repurchased shares AGAINST


Items 9 and 11

Webb-site.com urges all investors to vote against the general issue mandate for all listed companies, for the reasons explained in Project Vampire, unless they comply with the recommendations set out in that article. The board is asking you to waive your rights to participate in future cash share issues, and to allow placees to benefit from the discount on new shares at your expense.

We note that the general mandate sought by CLP is limited to 10% of issued shares, rather than the 20% common in Hong Kong, but this still falls short of the 5% standard set by international best practice (in the UK), and no maximum discount for the issue price has been set, unlike the 5% maximum in the UK.

So far this year within the 33-member Hang Seng Index, Hang Seng Bank Ltd (0011) has joined Johnson Electric Holdings Ltd (0179) and HSBC Holdings plc (0005) in cutting its cash issue mandate to 5%, as recommended by Project Vampire. We hope CLP will catch up with this evolving standard next year.

© Webb-site.com, 2003

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