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MDHIAN 2474
8. THESE DECISIONS WERE TAKEN HAVING REGARD TO THE NEED FOR THE
CONTROL OF LOCAL TELEVISION STATIONS TO BE IN THE HANDS OF LOCAL PEOPLE AND THE WISH OF THE EXECUTIVE COUNCIL NOT TO RESTRICT FOREIGN INVESTMENT UNNECESSARILY.NTHE 10 PERCENT RULE IS DESIGNED TO ENSURE THAT A FOREIGN COMPANY DOES NOT GAIN CONTROL OF A TV COMPANY WITH A MINORITY SHAREHOLDING SINCE IN TODAY'S CIRCUMSTANCES A SHAREHOLDER CAN BE IN A POSITION OF SUBSTANTIAL INFLUENCE IF HE HOLDS 10-15 PERCENT OF THE SHARES IN A COMPANY. COUPLED WITH THE 2 PERCENT APPROVAL RULE, THE RISK OF SEVERAL FOREIGN OWNERS ACTING IN CONCERT TO GAIN CONTROL OF A LOCAL TV COMPANY WILL BECOME RATHER REMOTE.
9 ANY EXISTING
·
AND ATV HOLDING
FOREIGN SHAREHOLDER HOLDING INTERESTS IN HK-TVB LTD (THE TWO PUBLICLY-LISTED HOLDING COMPANIES) MAY APPLY TO THE BA TO RETAIN HIS LEVE OF INVESTMENT IN THE LICENSEE COMPANY AS AT 24 NOVEMBER 1987. THE CUT-OFF DATE WAS CHOSEN BECAUSE ON THAT DAY, THE PUBLIC WAS WARNED IN A PRESS RELEASE THAT THE GOVERNOR-IN COUNCIL WAS CONSIDERING LIMITATIONS ON FOREIGN OWNERSHIP OF THE LICENSEE COMPANIES.
LEGISLATION IN OTHER COUNTRIES
10. RESTRICTIONS ON FOREIGN OWNERSHIP AND CONTROL OF TELEVISION STATIONS ARE IMPOSED IN LEGISLATION IN MANY OVERSEAS COUNTRIES. IN USA, FOREIGN OWNERSHIP IS LIMITED TO NO MORE THAN 20 PERCENT: IN AUSTRALIA NO MORE THAN 25 PERCENT AND IN NEW ZEALAND NO MORE THAN
5 PERCENT.
LICENSING CONDITIONS FOR CABLE TELEVISION
11. LICENSING CONDITIONS FOR CABLE TELEVISION HAVE YET TO BE DECIDED. AS CABLE TELEVISION IS AN ENTIRELY NEW VENTURE, DIFFERENT CONSIDERATIONS WILL HAVE TO BE TAKEN INTO ACCOUNT IN RESPECT OF
LICENSING CONDITIONS.
LINE TO TAKE
12. THE NEW RESTRICTIONS ON CORPORATE STRUCTURE ARE NOT BEING INTRODUCED TO ACHIEVE NEW PURPOSES, BUT TO PLUG LOOPHOLES IN THE EXISTING LEGISLATION IN ORDER THAT THE ORIGINALLY DECLARED PURPOSES
CAN BE ACHIEVED.
13.
TELEVISION IS RECOGNISED WORLD WIDE AS BEING A POWERFUL PERVAS- IVE MEDIUM OF MASS COMMUNICATION AND IT IS REASONABLE TO RESTRICT CONTROL OF IT TO THE LOCAL COMMUNITY IN THE PUBLIC INTEREST.
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