HONG KONG LEGISLATIVE COUNCIL -28 June 1989 香港立法局 一九八九年六月二十八日
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differences. In the case of cross-media ownership, or "disqualified persons" provisions, we are proposing the adoption of a less stringent regulatory framework. The definitions relating to the disqualified persons provisions in this Bill have not been easy to draft, and in case of any doubt I should like to state clearly the intention of the Bill. That is, that persons or companies with specified interests related to broadcasting, including persons who supply material for broadcasting by a licensee, broadcasting organizations, advertising agents or persons who exercise control over companies or organizations engaged in such businesses, should be permitted to own up to 35% of the voting shares in a radio licensee, except that one radio licensee in Hong Kong will be limited to a 15% shareholding in another radio licensee. A television licensee in Hong Kong will of course need to ensure that it remains in compliance with the provisions of the Television Ordinance.
"Foreign" ownership
Sir, under the present regulatory framework for radio, there are no specific restrictions on shareholdings by persons who do not satisfy certain Hong Kong residential requirements. This is in contrast to the restrictions under the Television Ordinance on shareholdings held by persons (including companies) who are regarded as being "unqualified" because they are not ordinarily resident in Hong Kong as defined in the Ordinance and in the case of individuals, have not been so resident for a continuous period of at least seven years.
Sir, I believe there is a strong case for the control of broadcasting licensees in Hong Kong to be in the hands of people who are most likely to have Hong Kong's best interests at heart. On the other hand, we should not discourage unduly foreign investment.
The Bill proposes a ceiling of 49% of the voting shares in a radio licensee company in which "unqualified" persons or companies may have an interest. The same residential requirements as those stipulated in the Television Ordinance are used to determine who is "unqualified". This 49% limit, in conjunction with proposed restrictions on the residential status of directors and principal officers of a licensee, which it is proposed to include in the radio licences, should make clear the intent of the Bill that licensees should first and foremost serve Hong Kong's interests.
Temporary restrictions on disposal of shares
The Bill also disallows, without the approval of the Broadcasting Authority, the disposal of more than 15% of the voting shares in a radio licensee for the first three years following the grant of the licence. This is to ensure that the