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This is one of the deficiencies in the Ordinance that hes
needs Asaded to be remedied. The mechanisms to prevent avoidance are complex, but essential. Examples of similar mechanisms in overseas legislation have been studied. In order to define certain interests in the voting shares of licensees which constitute notifiable interests for the purposes of this Bill, the Securities (Disclosure of Interests) Bill, which is currently under consideration by this Council, has been taken as the model. The Television (Amendment) Bill is not a piece of legislation aimed at the small shareholder. A licensee is required to notify
and seek the approval of the Broadcasting Authority when a
per cent 'non-local' shareholder acquires a shareholding of 20 or more of the voting shares of a licensee. At current share
that 2 per cent prices this amounts to $110 in the case of one of
ex
m million the licensee and $12 m in the case of the other. I think it would be fair to say that investors dealing with such
large amounts of money will have access to expert
professional advice.
Sir, we are not trying to discourage foreign
television investment in TV licensee companies. But we are not
dealing with a free enterprise. A television broadcasting
licence is a franchise in a highly influential field of
mass communication. Under the circumstances, some degree of control over licensees is not only justifiable but is,
indeed, a responsibility,
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/In conclusion