Cathay Pacific 1999 Annual Report Download - page 25

29CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
Directors’ Report
Year 2000
The Year 2000 (Y2K) or millennium date change issue arose because many computer systems and electronic devices
which store date information based on a two-digit year sequence were considered unable to accurately process dates for the
Year 2000 and beyond.
Cathay Pacific started to address the Y2K issue in 1996 and on 30th June 1999 it achieved Y2K compliance. By this it
meant, in relation to its own mission critical equipment and systems, the modification or replacement of all such equipment
and systems that failed its Y2K compliance test and, in respect of suppliers of such equipment and systems, it meant that all
critical suppliers had passed its Y2K compliance audit, or had been replaced where possible by those that had.
Cathay Pacific has not experienced any significant Y2K problems and its operations proceeded smoothly through the
millennium changeover period.
The aggregate cost of Cathay Pacific’s Y2K programme, calculated to be HK$514 million, has been authorised by the
Directors of the Company. As at 31st December 1999, Cathay Pacific has spent HK$507 million in replacing systems with
upgraded versions, which the vendors have represented as being Y2K compliant, and in other costs relating to the Y2K
programme. HK$303 million of the amount spent has been capitalised as assets.
Corporate governance
The Company has complied throughout the year with the Code of Best Practice as set out in the Listing Rules of
The Stock Exchange of Hong Kong Limited.
In compliance with the additional requirement of The Stock Exchange of Hong Kong Limited to its Code of Best Practice,
on 30th October 1998 the Company established an Audit Committee with written terms of reference.
Directors’ interests
At 31st December 1999, the register maintained under Section 29 of the Securities (Disclosures of Interests) Ordinance
(“SDI”) showed that Directors held the following beneficial interests in the shares of Cathay Pacific Airways Limited:
Shares
Personal Family Other Total
Philip Chen 9,000 – – 9,000
Lee Hon Chiu 10,000 – – 10,000
Peter Sutch 20,000 – – 20,000
Tony Tyler 5,000 – – 5,000
Raymond Yuen 9,000 – – 9,000
Neither during nor prior to the year under review, has any right been granted to, or exercised by, any Director of
Cathay Pacific Airways Limited, or to or by the spouse or minor children of any Director, to subscribe for shares, warrants
or debentures of Cathay Pacific Airways Limited.
Other than as stated above, no Director of Cathay Pacific Airways Limited held any interest, whether beneficial or
non-beneficial, in the share capital or warrants of Cathay Pacific Airways Limited or any of its associated corporations
(within the meaning of the SDI).
At no time during the year did any Director, other than as stated in this report, have a beneficial interest, whether directly
or indirectly, in a contract to which Cathay Pacific Airways Limited, or any of its associated corporations, was a party which
was of significance and in which the Director’s interest was material.
At no time during the year was Cathay Pacific Airways Limited or any of its associated corporations, 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.