Cap. 411

An Ordinance to establish the “Employees’ Compensation Insurance Levies Management Board” as a body corporate, to provide for the imposition of a levy on insured persons and to provide for the collection and distribution of the levy remitted by insurers and for matters incidental thereto. (Amended E.R. 5 of 2020)[29 May 1990] L.N. 166 of 1990(Format changes—E.R. 5 of 2020)(Enacting provision omitted—E.R. 5 of 2020) Part I Preliminary 1. Short title (Amended E.R. 5 of 2020)(1) This Ordinance may be cited as the Employees’ Compensation Insurance Levies Ordinance.(2) (Omitted as spent—E.R. 5 of 2020) 2. Interpretation In this Ordinance, unless the context otherwise requires—Board (管理局) means the Employees’ Compensation Insurance Levies Management Board established under section 3;Chairman (主席) means the Chairman of the Board appointed under section 3(2)(a) or any other person when acting as Chairman;financial year (財政年度) means the period fixed as the financial year of the Board under section 9(1);insurance policy (保險單) means a policy of insurance issued for the purposes of Part IV of the Employees’ Compensation Ordinance (Cap. 282) and includes any endorsement to that policy;insured (受保人) means any person to whom an insurance policy is issued or by whom such policy has been renewed, and includes any agent or broker acting on behalf of that person;insurer (承保人) has the meaning assigned to it in the Employees’ Compensation Ordinance (Cap. 282);issues (發出), in relation to an insurance policy, includes renews, and issued shall be construed accordingly;levy (徵款) means the levy imposed under section 14;premium (保費) means an amount paid or payable to an insurer in respect of an insurance policy issued in any relevant period before deducting any sum for reinsurance ceded and any commissions of agents or brokers but after deducting any discount specified in such policy or any refund made in respect of the termination or reduction of risks under that policy;relevant period (有關期間) means any period of 3 months determined by the Board under section 9(1);Secretary (局長) means the Secretary for Labour and Welfare. (Replaced L.N. 106 of 2002. Amended L.N. 130 of 2007) Part II Establishment of the Employees’ Compensation Insurance Levies Management Board 3. Establishment of the Board (1) There shall be established a body corporate, to be called the “Employees’ Compensation Insurance Levies Management Board”, which shall have such powers and functions as are conferred and imposed on it under this Ordinance. (Amended E.R. 5 of 2020)(2) The Board shall consist of—(a) a Chairman who shall be appointed by the Chief Executive for a term not exceeding 3 years;(b) not more than 2 other members not being public officers who, in the opinion of the Chief Executive, represent employers and who shall be appointed by the Chief Executive for a term not exceeding 3 years;(c) not more than 2 other members not being public officers who, in the opinion of the Chief Executive, represent employees and who shall be appointed by the Chief Executive for a term not exceeding 3 years;(d) a member not being a public officer who, in the opinion of the Chief Executive, is connected with the insurance industry in Hong Kong and who shall be appointed by the Chief Executive for a term not exceeding 3 years;(e) a member for the time being of the Occupational Safety and Health Council who shall be appointed by the Chief Executive for a term not exceeding 3 years; (Amended 54 of 1991 s. 47)(ea) a member for the time being of the Employees Compensation Assistance Fund Board who shall be appointed by the Chief Executive for a term not exceeding 3 years; (Added 54 of 1991 s. 47. Amended 21 of 1995 s. 43)(eb) a member for the time being of the Occupational Deafness Compensation Board who shall be appointed by the Chief Executive for a term not exceeding 3 years; and (Added 21 of 1995 s. 43)(f) not more than 2 other members being public officers each of whom shall be appointed by the Chief Executive and hold office at the discretion of the Chief Executive. (Amended 56 of 2000 s. 3)(3) The members of the Board appointed under subsection (2) shall be the governing body of the Board and shall comprise its managing committee with authority, in the name of the Board, to exercise and perform the powers and functions conferred and imposed on the Board under this Ordinance.(4) Schedule 1 shall have effect as respects the Board and the members thereof. 4. Functions of the Board The functions of the Board are—(a) to collect the levy remitted by insurers;(b) to make recommendations to the Chief Executive in Council with respect to the rate of levy; (Amended 56 of 2000 s. 3)(c) to distribute the net resources of the Board (within the meaning of Part III) to the bodies specified in Schedule 2 in accordance with section 7(1); and(d) to perform such other functions as are imposed on it under this Ordinance. 5. General powers of the Board (1) The Board may do such things as are expedient for or conducive to the attainment of the functions referred to in section 4 or which in the opinion of the Board are necessary to facilitate the proper carrying out of the functions of the Board.(2) Without restricting the generality of subsection (1) the Board may—(a) appoint such employees as it may determine on such terms and conditions of service as the Board thinks fit including the payment of allowances, benefits, gratuities, pensions and remuneration;(b) make or provide ex gratia payments to any employee of the Board, or to the personal representative of a deceased employee of the Board or to any other person who was dependent on such employee at his death; and(c) exercise any of its powers either alone or in association with any person or persons. Part III Financial 6. Resources of the Board and authorized deductions (1) In relation to any relevant period, the resources of the Board shall consist of—(a) subject to any deductions that may be made under section 15(5), all amounts of levy (or such amounts equivalent thereto) remitted to and received by the Board during that relevant period; and(b) all other moneys, including grants, fees, and interest paid to and received by the Board during that relevant period for or in connection with the carrying out of its functions.(2) All resources received by the Board under subsection (1) shall be deposited with any bank within the meaning of the Banking Ordinance (Cap. 155) nominated by the Board as the Financial Secretary may approve.(3) The Board may deduct from the resources of the Board referred to in subsection (1)—(a) any expenses incurred by the Board during the relevant period;(b) any reimbursement of levy or amount equivalent thereto made under section 20(3) or (4), as the case may be, during that relevant period in accordance with a request by an insurer;(c) any sums payable by the Board by virtue of or under this Ordinance in respect of any obligation which arose during that relevant period; and(d) any other sums paid by the Board during that relevant period into a contingency fund established under section 8,and the balance of those resources (referred to in this Part and Schedule 2 as net resources of the Board (管理局資源淨額)) shall be distributed in accordance with section 7(1). 7. Distribution of net resources of the Board (1) The Board shall, not later than 3 months after the end of any relevant period, distribute to the bodies specified in the second column of Schedule 2, in the proportions specified in the third column opposite thereto, the net resources of the Board in respect of that relevant period.(2) The Public Finance Ordinance (Cap. 2) shall not apply to any distribution of the net resources of the Board under subsection (1). 8. Contingency fund (1) Subject to subsection (2), the Board may establish, pay into and maintain a contingency fund—(a) to provide for any expenditure of an unexpected or urgent nature; and(b) to meet any outgoings of a kind specified in section 6(3)(a), (b) or (c) if the resources of the Board received under that section are insufficient to meet those outgoings.(2) The Board shall not pay into the contingency fund established under this section any sum which would, if added to the fund as then existing, increase the level of the fund beyond—(a) an amount equal to twice the average monthly expenses of the Board; or(b) such other greater amount as may be approved by the Secretary from time to time. 9. Financial year and estimates (1) The Board shall fix any period of 12 months to be the financial year of the Board and for the purposes of the payment, receipt and remittance of levy under Part IV, the Board shall divide the financial year as so fixed into such 4 equal periods of 3 months as it may determine.(2) The Board shall, in each financial year, adopt estimates of income and expenditure in respect of the following financial year and, before a date to be appointed by the Secretary, send them to the Secretary for his approval together with a programme of its activities for that following financial year.(3) The Secretary may require the resubmission of estimates of income and expenditure or a programme of activities referred to in subsection (2), modified as he may direct. 10. Accounts and statements The Board shall keep proper books of account, vouchers, receipts and other records in relation to the accounts and shall cause to be prepared for each financial year statements of the accounts of the Board which shall—(a) include an income and expenditure account and balance sheet; and(b) be signed by the Chairman. 11. Auditor (1) The Board shall appoint an auditor, who shall be entitled at any time—(a) to have access to all books of account, vouchers, receipts and other records of the Board referred in section 10; and(b) to require such information and explanations,as he considers necessary to discharge his functions.(2) The auditor shall, as soon as is practicable and in any case not later than 4 months after the end of each financial year, audit the accounts prepared under section 10 and shall submit a report on the accounts to the Board. 12. Director of Audit’s examination (1) Notwithstanding the appointment of an auditor under section 11, the Director of Audit may carry out such examination as he thinks fit into the economy, efficiency and effectiveness with which the Board has used its resources in discharging its functions and exercising its powers.(2) The Director of Audit shall have a right of access at all reasonable times to all such documents in the custody or under the control of the Board as the Director may reasonably require for the purpose of carrying out any examination under subsection (1) and shall be entitled to require from any person holding or accountable for any such document such information and explanations (if any) as are reasonably necessary for that purpose.(3) The Director of Audit may, as soon as practicable, submit to the Legislative Council the results of any examination carried out by him under subsection (1). 13. Annual report The Board shall, not later than 9 months or such longer period as the Chief Executive may determine after the end of each financial year, submit—(a) a report on the activities and affairs of the Board for that year;(b) a copy of its statements of the accounts therefor; and(c) the auditor’s report on the accounts,to the Chief Executive who shall cause the same to be laid on the table of the Legislative Council.(Amended 56 of 2000 s. 3) Part IV Levy 14. Imposition of levy (1) A levy, to be known as the “Employees’ Compensation Insurance Levy”, shall be payable on each premium payable by an insured in respect of any insurance policy issued by an insurer on or after the effective date. (Amended E.R. 5 of 2020)(2) The Chief Executive in Council may by order published in the Gazette prescribe the rate of the levy and that rate shall come into effect on such date as the Chief Executive in Council may determine. (Amended 56 of 2000 s. 3)(3) In this section, effective date (生效日期) means 30 days after this section comes into operation*. Editorial Note: * In operation on 29 May 1990. 15. Insurer to receive and remit levy to Board (1) Where during any relevant period a levy is payable on a premium by an insured under section 14—(a) the insured shall pay the levy to the insurer or the agent of the insurer at the time of paying the premium;(b) the insurer or his agent, as the case may be, shall receive that levy;(c) in the case of an agent who receives the levy under paragraph (b), the agent shall, as soon as practicable, pay that levy to the insurer (whose agent he is) and that insurer shall receive that levy; and(d) the insurer who receives the levy under paragraph (b) or (c) shall deal with that levy according to subsection (4).(2) Subject to subsection (3), where during any relevant period an insurer issues an insurance policy to an insured but no payment of levy is made to the insurer in accordance with subsection (1)(a) or (c), the insurer shall, during that relevant period, be deemed to have received from that insured the levy payable on the premium payable in respect of that policy and shall deal with it according to subsection (4).(3) Where during any relevant period an insured, in accordance with subsection (1)(a), pays to the agent of the insurer a premium together with the levy payable thereon at the prescribed rate, the insurer shall, during that relevant period, be deemed to have received from that insured the levy so payable and shall deal with it according to subsection (4).(4) Subject to subsections (5) and (6), an insurer who, during any relevant period, receives any levy under subsection (1), or who is deemed under subsection (2) or (3) to have so received that levy, shall—(a) hold that levy as so received, or an amount equivalent thereto deemed to have been so received, as the case may be, on behalf of the Board;(b) deposit those sums in any bank within the meaning of the Banking Ordinance (Cap. 155); and(c) not later than 2 months after the end of that relevant period, remit those sums to the Board.(5) Where during any relevant period amounts of levy have been received by an insurer under subsection (1), or are deemed under subsection (2) or (3) to have been so received by him, the insurer may deduct from the sums to be remitted to the Board under subsection (4)—(a) a handling charge to be calculated as prescribed by the Secretary for Financial Services and the Treasury from time to time; (Amended L.N. 106 of 2002)(b) the amount of any refund of levy paid to an insured during that relevant period under section 20(1); and(c) subject to subsections (6) and (9) and section 17(3), the amount of any levy deemed under subsection (2) or (3) to have been received by him but not actually so received on expiry of a period of 3 months from the date of issue of the insurance policy to which that levy related.(6) Any levy payable on a premium under section 14 in respect of an insurance policy and so received by an insurer after a deduction has been made under subsection (5)(c) in respect of that levy (as then unpaid or, if paid, not then received by him) shall be remitted forthwith by that insurer to the Board together with such information as may be necessary to identify that policy.(7) Any person who, without reasonable excuse, contravenes subsection (1)(a), (b) or (c) or (4)(a) or (b) commits an offence and is liable to a fine at level 3. (Amended E.R. 5 of 2020)(8) An insurer who, without reasonable excuse, contravenes subsection (4)(c) or (6) commits an offence and is liable to a fine at level 3 or 20 times the amount of levy that was not remitted to the Board, whichever is the greater. (Amended E.R. 5 of 2020)(9) No deduction under subsection (5)(c) shall be made by any insurer in respect of any levy not actually received by that insurer once a period of 12 months has elapsed from the date of issue of the insurance policy to which that levy related.(10) Subject to section 20, this section shall not apply—(a) to an insurer or his agent who has received any levy payable under section 14 on a premium payable by an insured in respect of an insurance policy; or(b) to an insurer who is deemed under subsection (2) or (3) to have received any levy so payable,where that insurance policy is not in force for whatever reason, or has been cancelled by the insurer and the insurer or his agent, as the case may be, has, as soon as practicable, returned or refunded the premium and, where the levy thereon has been paid, that levy in respect of that policy to the insured. 16. Protection of levy in the hands of the insurer No winding-up proceedings under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) or bankruptcy proceedings under the Bankruptcy Ordinance (Cap. 6) brought in respect of an insurer shall affect any levy (or an amount equivalent thereto) in the hands of that insurer and such levy (or equivalent amount) shall not be treated as part of the assets or property of that insurer for the purposes of such proceedings under those Ordinances.(Amended 28 of 2012 ss. 912 & 920) 17. Insurer to keep records and submit report (1) In relation to any relevant period, every insurer shall—(a) keep and maintain in respect of every insurance policy issued by him in that relevant period a record of—(i) the number identifying the policy;(ii) the name, address and place of business of the insured;(iii) the amount of premium paid or payable and the date of its receipt;(iv) the amount of any refund of premium paid to an insured and the date of its payment;(v) the amount of levy received or deemed to have been so received and the date of its receipt or deemed receipt;(vi) the amount of any refund of levy paid to an insured and the date of its payment; and(vii) the date of remittance to the Board of the amount of levy so received, or an amount equivalent thereto deemed to have been so received, as the case may be; and(b) submit to the Board not later than 2 months after the end of that relevant period a report containing such information relating to the levy in such form as may be prescribed.(2) In relation to any financial year, every insurer shall submit to the Board, not later than 3 months after the end of that financial year, a statement, in such form and certified in such manner as may be prescribed, containing—(a) the amounts of premium received during that financial year;(b) the amounts of levy received during that year under section 15(1) or deemed under section 15(2) or (3) to have been so received;(c) the amounts of levy or such amounts equivalent thereto remitted during that year; and(d) the amounts of levy refunded during that year.(3) Where an insurer has made a deduction in accordance with section 15(5)(c) in respect of a levy payable on a premium payable by an insured in respect of an insurance policy, the insurer shall submit to the Board at the same time as he makes a remittance to the Board in respect of which the deduction is made the following information—(a) the number identifying the insurance policy in respect of which the levy payable on the premium payable by that insured in respect of that policy has not actually been received by him;(b) the name, address and place of business of the insured to whom that policy was issued;(c) the amount of premium paid and the date of its receipt;(d) the amount of levy deemed under section 15(2) or (3) to have been received (but not actually so received) and the date of its deemed receipt; and(e) the date of remittance to the Board of an amount equivalent to the levy payable but not so received.(4) Any insurer who, without reasonable excuse, contravenes subsection (1)(a) or (3) commits an offence and is liable to a fine at level 3. (Amended E.R. 2 of 2014)(5) Any insurer who, without reasonable excuse, contravenes subsection (1)(b) or (2) commits an offence and is liable to a fine at level 5 and an additional fine of $3,000 for each day during which the offence continues. (Amended E.R. 2 of 2014) 18. Request for information (1) Subject to subsection (3), the Board may, by notice in writing, require any insured to provide, either by statutory declaration or in other form, information specified in the notice relating to—(a) the amount of premium and the amount of levy paid or payable to an insurer or to the agent of an insurer, as the case may be, in respect of an insurance policy issued and in force at the date of the notice or at a date specified in that notice; and(b) the trade or occupation of the employees covered by that insurance policy and the numbers and categories of the employees so covered.(2) Any person who, without reasonable excuse, fails to comply with a notice under subsection (1) within 14 days after the notice is served commits an offence and is liable to a fine at level 2 and an additional fine of $500 for each day during which the offence continues. (Amended E.R. 2 of 2014)(3) An insured is not required to provide any information under subsection (1) in respect of an insurance policy if the date specified by the Board in its notice is earlier than 3 years preceding the date of the notice.(4) The Board may, by notice in writing, require an insurer to make available at his place of business, to a person designated in writing by the Board for the purpose of this subsection, the records or information specified in section 17(1)(a) or (3), and the insurer shall permit any person so designated to inspect and copy those records or that information at any reasonable time.(5) Any insurer who contravenes subsection (4) commits an offence and is liable to a fine at level 3. (Amended E.R. 2 of 2014)(6) The Board may, by notice in writing, require an insurer to furnish to the Board, in such manner (including furnishing by statutory declaration) as shall be specified in the notice, such information relating to an insurance policy issued by the insurer as shall be so specified.(7) Any person who, without reasonable excuse, fails to comply with a notice under subsection (6) within 14 days after the notice is served commits an offence and is liable to a fine at level 3 and an additional fine of $1,000 for each day during which the offence continues. (Amended E.R. 2 of 2014)(8) Save as provided in subsection (9), no person (including a person designated for the purpose of subsection (4)) shall disclose to any other person, other than a member of the Board or another person so designated and acting in the course of his duties, any information obtained under this section.(9) Subsection (8) shall not apply to the disclosure of information—(a) where ordered by a court or magistrate;(b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, whether under this Ordinance or otherwise; or(c) in connection with any other legal proceedings arising out of this Ordinance.(10) Any person who contravenes subsection (8) commits an offence and is liable to a fine at level 4. (Amended E.R. 2 of 2014) 19. Recovery of levy (1) Any amount of levy due and payable under this Ordinance shall be recoverable as a civil debt due to the Board.(2) An action under subsection (1) may be brought in the District Court notwithstanding that the amount claimed exceeds the limit in that respect provided in the District Court Ordinance (Cap. 336). 20. Refund and reimbursement of levy (1) Where an insured is entitled to receive from an insurer a refund of an amount of premium paid in respect of an insurance policy which relates to a period during which the insurer has not been at risk under that policy, and in respect of which premium the insured has paid to the insurer the appropriate amount of levy, the insurer shall refund to the insured that amount of premium together with that amount of levy.(2) Where an insured is entitled to receive from an insurer a refund of an amount of premium paid in respect of an insurance policy which relates to a period during which the insurer has not been at risk under that policy, but in respect of which premium the insured has not paid to the insurer the appropriate amount of levy, the insurer shall refund to the insured that amount of premium less the appropriate amount of levy (if any) payable by the insured which relates to the period (if any) during which the insurer has been at risk under that policy.(3) Where the insurer has remitted to the Board an amount of levy payable on a premium in respect of an insurance policy which relates to a period during which that insurer has not been at risk under that policy, the Board shall, if requested by that insurer, reimburse the insurer with that amount of levy.(4) Subject to subsection (5), where the insurer has remitted to the Board an amount equivalent to the levy payable on a premium in respect of an insurance policy and deemed under section 15(2) or (3) to have been received by him from the insured, but no such levy has actually been so received by him on expiry of the period of 3 months referred to in section 15(5)(c), and no deduction has been made under that subsection in respect of any remittance by that insurer, the Board shall, if requested by that insurer, reimburse him with that equivalent amount.(5) No reimbursement of an equivalent amount under subsection (4) shall be made by the Board to an insurer once a period of 12 months has elapsed from the date of issue of the insurance policy referred to in that subsection unless a request for such reimbursement is made to the Board by that insurer before expiry of that period. Part V Miscellaneous 21. Offences (1) Any person who is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of the payment of a levy, whether due from him or from any other person, commits an offence and is liable on conviction to a fine at level 3 or 20 times the amount of levy that was or was intended to be evaded by his conduct, whichever is the greater.(2) Any person who—(a) lodges, produces, supplies or sends for the purposes of this Ordinance or otherwise makes use for those purposes of any declaration or other document, or record, which to his knowledge is false in a material particular;(b) in keeping or maintaining any record for the purposes of this Ordinance, makes an entry which to his knowledge is false in a material particular; or(c) in providing any information for the purposes of this Ordinance, makes any statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular,commits an offence and is liable to a fine at level 3 or, where such conduct resulted in or was intended by the person to result in the non-payment or non-remittance of any amount of levy, 20 times such amount of levy, whichever is the greater.(Amended E.R. 5 of 2020) 22. Evidence by certificate A certificate purporting to be signed by the Chairman or any member authorized by the Board—(a) that any information required to be submitted under section 17(1)(b) or (3) has or has not been submitted or has or has not been submitted at any date;(b) that any notice received by or under this Ordinance has or has not been given or has or has not been given at any date; or(c) that any amount of levy due under this Ordinance has not been paid,shall be sufficient evidence of that fact until the contrary is proved. 23. Chief Executive may give directions (1) The Chief Executive may give to the Board such directions as he thinks fit in relation to the performance of the Board’s functions or the exercise of the Board’s powers and the Board shall comply with those directions. (Amended 56 of 2000 s. 3)(2) No such direction shall be inconsistent with any provision of this Ordinance. 24. Service by post Any document required to be served under this Ordinance may be served by post. 25. Financial Secretary may charge fees The Financial Secretary may charge fees for any service provided to the Board by the Government. 26. Regulations (1) The Chief Executive in Council may by regulation provide— (Amended 56 of 2000 s. 3)(a) for records to be kept by every insurer, agent of the insurer or insured;(b) for information to be supplied by every insurer, agent of the insurer or insured;(c) for any matter or any form which is to be or may be prescribed; and(d) generally, for the better carrying out of the provisions and purposes of this Ordinance.(2) Regulations under this section may provide that a contravention of any specified provision of any such regulation shall be an offence and may provide penalties therefor not exceeding a fine at level 3. (Amended E.R. 5 of 2020) 27. Amendment of Schedules The Chief Executive in Council may, by notice in the Gazette, amend Schedules 1 and 2.(Amended 56 of 2000 s. 3) 28. Protection of members, etc. of Board (1) No—(a) member of the Board;(b) member of any committee of the Board;(c) employee of the Board;(d) person exercising powers in association with the Board under section 5(2)(c),acting in good faith shall be personally liable for any act done or default made by—(i) the Board;(ii) any committee of the Board;(iii) any such member, employee or person,in the exercise and performance (or the purported exercise and performance) of the powers and functions conferred and imposed on the Board under this Ordinance.(2) The protection afforded under subsection (1) to any member, employee or other person in respect of any act or default shall not affect any liability of the Board for that act or default. 29. Transitional (1) Subject to subsection (2), notwithstanding the amendment or repeal by this Ordinance of—(a) the provisions of the Occupational Safety and Health Council Ordinance (Cap. 398); and(b) the Occupational Safety and Health Council Levy (Rate of Levy) Order (Cap. 398 sub. leg. A),those provisions and that order shall, in respect of any insurance policy (referred to in that Ordinance and in force immediately before the date the levy under section 14 becomes payable), the premium payable in respect thereof, the levy imposed under that Ordinance and payable on such a premium and the rate of levy applicable thereto, continue to apply to such policy, premium, levy and rate of levy, respectively, to the same extent that those provisions and that order applied immediately before their amendment or repeal.(2) This section shall not apply to any insurance policy referred to in subsection (1) which is renewed after the date the levy under section 14 becomes payable. 30. (Omitted as spent—E.R. 5 of 2020) 31. (Omitted as spent—E.R. 5 of 2020) Schedule 1 [ss. 3(4) & 27](Amended 6 of 2010 s. 28)Provisions with respect to the Board and Members thereof 1. The Board shall have a common seal. 2. The Board shall not be regarded as a servant or agent of the Government or as enjoying any status, immunity or privilege of the Government. (Amended 23 of 2002 s. 36) 3. (1) Subject to subparagraph (3), a member of the Board shall hold and vacate his office in accordance with the terms of his appointment and shall, on ceasing to be a member, be eligible for re-appointment.(2) Any member appointed under section 3(2)(a), (b), (c), (d) or (e) may at any time—(a) resign his office by notice in writing to the Chief Executive; or(b) be removed from office by the Chief Executive for permanent incapacity or other sufficient cause, and upon such resignation or removal the term for which he was appointed shall be deemed to have expired.(3) Where any member appointed under section 3(2)(a), (b), (c), (d) or (e) is precluded by temporary incapacity or other cause from exercising his functions as a member for any period, the Chief Executive may appoint another person to act in place of that member during that period.(4) Where any question arises under subparagraph (2)(b) or (3) as to whether any incapacity or cause exists or whether any incapacity is temporary or permanent or any cause sufficient, the decision of the Chief Executive shall be final.(Amended 56 of 2000 s. 3) 4. If the Chief Executive is satisfied that a member of the Board appointed under section 3(2)(a), (b), (c), (d) or (e)—(a) has failed to attend 3 consecutive meetings of the Board without the permission of the Board; or(b) has become bankrupt or made an arrangement with his creditors; or(c) is incapacitated by physical or mental illness; or(d) is otherwise unable or unfit to discharge the functions of a member,the Chief Executive may declare his office as a member of the Board to be vacant, and shall notify that fact in such manner as the Chief Executive thinks fit and upon such declaration the office shall become vacant.(Amended 56 of 2000 s. 3) 5. The quorum of the Board shall be 4 and, while a member is disqualified from taking part in a decision or deliberation of the Board in respect of a matter, he shall be disregarded for the purposes of constituting a quorum of the Board for deciding, or deliberating on, that matter. 6. (1) Subject to the foregoing provisions of this Schedule and to subparagraphs (2) to (5), the Board shall have power to regulate its own procedure including the manner in which decisions of the Board may be made by a quorum of its members otherwise than at a meeting of the Board.(2) Meetings of the Board shall be held at such times and places as the Chairman may appoint.(3) The Chairman shall preside at any meeting of the Board.(4) If the Chairman is absent from any meeting of the Board, the members present at the meeting shall elect one of their number to act as Chairman in his place.(5) The Chairman or the member acting in his place shall have a deliberative vote on all matters coming before the Board and in the case of an equality of votes he shall also have a casting vote. 7. The Board may transact any of its business by circulation of papers amongst members whether any such member is in or outside Hong Kong, and a resolution in writing which is approved in writing by a majority of the members shall be as valid and effectual as if it had been passed at a meeting of the Board. 8. (1) The Board may create, and appoint the members of, such committees for the better carrying out of the powers and functions of the Board as it thinks fit.(2) Persons who are not members of the Board are eligible for appointment to committees.(3) The Chairman of a committee created under subparagraph (1) shall be appointed by the Board and the number of members of a committee shall be determined by the Board.(4) Subject to the terms of any delegation by the Board or to any directions of the Board, a committee—(a) may exercise and perform the delegated powers and functions with the same effect as if it were the Board itself;(b) shall be presumed to be acting in accordance with the terms of the delegation in the absence of proof to the contrary;(c) may regulate its own procedure.(5) The proceedings of any committee created under subparagraph (1) shall not be invalidated by any defect in the appointment of any member thereof, the absence of any member from the meeting at which any such proceeding occurred or any vacancy amongst such members. 9. (1) Subject to subparagraph (2), the Board may, with or without restrictions or conditions as it thinks fit, delegate in writing any of its powers to any committee created under paragraph 8(1).(2) The Board shall not delegate the power—(a) to create any committee;(b) to determine matters relating to the remuneration and terms and conditions of appointment or employment of the employees of the Board;(c) to establish, manage and control, or enter into an arrangement for the establishment, management and control of any fund or scheme for the purpose of providing for the payment of allowances, benefits, gratuities, pensions and remuneration to the employees of the Board; or(d) to furnish after the expiry of the financial year, a report on the activities and affairs of the Board for that year, a copy of its statements of accounts therefor and the auditor’s report on the accounts. 10. Every document purporting to be an instrument made or issued by or on behalf of the Board and to be duly executed under the seal of the Board or to be signed or executed by a person authorized by the Board to act in that behalf, shall be received in evidence and deemed, without further proof, to be so made or issued unless the contrary is shown. 11. The Board may engage the services of technical and professional advisers as it thinks fit, and may determine all matters relating to their remuneration and terms and conditions of engagement. Schedule 2 [ss. 4, 6(3), 7(1) & 27]Bodies Specified for the Purposes of Section 7(1) Item Specified body Proportion of the net resources of the Board to be distributed for a relevant period 1. The Occupational Safety and Health Council 20/58 2. The Employees Compensation Assistance Fund Board 31/58 3. The Occupational Deafness Compensation Board 7/58 (Schedule 2 replaced 6 of 2010 s. 29) Schedule 3 (Omitted as spent—E.R. 5 of 2020) Schedule 4 (Omitted as spent—E.R. 5 of 2020)