Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 48 DIRECTORS’ REPORT (CONTINUED) EQUITY-LINKED AGREEMENTS No equity-linked agreements were entered into by the Company at any time during the year or subsisted at the end of the year. ARRANGEMENTS TO ACQUIRE SHARES OR DEBENTURES At no time during the year was the Company, its parent company, its subsidiaries or fellow subsidiaries, a party to any arrangements to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. DIRECTORS’ INTERESTS IN TRANSACTIONS, ARRANGEMENTS OR CONTRACTS OF SIGNIFICANCE Details of the sub-participation scheme are set out on pages 32 to 37 of the Annual Report. Save as disclosed, no transactions, arrangements or contracts of significance, to which the Company, its parent company, its subsidiaries or fellow subsidiaries was a party and in which a Director of the Company or his/her connected entities had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. COMPETING INTERESTS Mr. ZHANG Jian is a Director of and Mr. ZHANG Rizhong is the Director and Chief Executive Officer of China Merchants Capital Investment Co., Ltd. which is actively involved in direct investments and which may compete, either directly or indirectly, with business of the Group. Ms. KAN Ka Yee, Elizabeth and Mr. CHU Lap Lik, Victor (being alternate to Ms. KAN Ka Yee, Elizabeth) are Directors of various companies within First Eastern Investment Group which is actively involved in direct investments in the PRC and which may compete, either directly or indirectly, with business of the Group. However, the Company is capable of carrying on its business independently of, and at arm’s length from, the businesses of China Merchants Capital Investment Co., Ltd. and First Eastern Investment Group. If conflict of interest arises on the part of Mr. ZHANG Jian, Mr. ZHANG Rizhong, Ms. KAN Ka Yee, Elizabeth, or Mr. CHU Lap Lik, Victor, as the case may be, he or she shall, pursuant to the Articles of Association of the Company, not vote nor be counted in the quorum on the relevant resolution of the Board. Save as disclosed, in so far as the Directors are aware, none of the Directors or any of their respective associates has an interest in a business that competes or may compete with the business of the Group. DIRECTORS’ SERVICE CONTRACTS The Directors proposed for re-election at the forthcoming annual general meeting do not have service contracts which are not determinable by the Company within one year without payment of compensation (other than statutory compensation).