Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 49 DIRECTORS’ REPORT (CONTINUED) PERMITTED INDEMNITY PROVISION The Articles of Association of the Company provides that subject to the provisions of the Hong Kong Companies Ordinance and so far as may be permitted by the Hong Kong Companies Ordinance, every Director of the Company shall be entitled to be indemnified by the Company out of the assets of the Company against all losses or liabilities (except any liability in relation to a Director as mentioned in section 469(2) of the Hong Kong Companies Ordinance) which he may sustain or incur in or about the execution of the duties of his office or otherwise in relation thereto. The Company has taken out insurance against the liabilities and costs associated with defending any proceedings which may be brought against the Directors of the Company. SUBSTANTIAL SHAREHOLDERS As at 31 December 2020, the following persons, other than a Director or chief executives of the Company, had interests in the shares of the Company as recorded in the register of the Company required to be kept under Section 336 of the SFO: Name of shareholder Long/ short position Capacity Number of ordinary shares interested Percentage of total issued shares China Merchants Group Limited (Note 2) Long position Interest of controlled corporation 42,022,041 27.59% China Merchants Steam Navigation Company Limited (Note 3) Long position Interest of controlled corporation 42,022,041 27.59% China Merchants Holdings (Hong Kong) Company Limited (Note 1) Long position Interest of controlled corporation 42,022,041 27.59% China Merchants Finance Holdings Company Limited (Note 2) Long position Interest of controlled corporation 42,022,041 27.59% China Merchants Financial Services Limited (Note 2) Long position Interest of controlled corporation 42,022,041 27.59% Good Image Limited Long position Beneficial owner 42,022,041 27.59% Lazard Asset Management LLC Long position Investment manager 28,990,206 19.03% Note 1: China Merchants Holdings (Hong Kong) Company Limited is deemed to have corporate interests in the shares by virtue of its controlling shareholding (i.e. 99.34%) in the company whose name is set out immediately under it. Note 2: China Merchants Group Limited, China Merchants Finance Holdings Company Limited and China Merchants Financial Services Limited are deemed to have corporate interests in the shares by virtue of its entire shareholding in the company whose name is set out immediately under it. Note 3: China Merchants Steam Navigation Company Limited is deemed to have corporate interests in the shares by virtue of its controlling shareholding (i.e. 89.45%) in the company whose name is set out immediately under it. Save as disclosed above, there was no person, other than a Director or chief executives of the Company, who had an interest or short position in the shares and underlying shares of the Company as recorded in the register required to be kept under Section 336 of the SFO.