In view of the above, it is considered unnecessary to int roduce
restrictions on advertising, programme promotional materials and announcements in the public interest.
41
new
The BRB recommended increasing the 10 per cent limit on advertising time permissible on radio to 12 per cent. It is considered reasonable for CRHK to offset the expected loss of revenue from tobacco and liquor advertising. Moreover, such an increase is defensible because it is unlikely to arouse adverse
reaction and in any case, the listener has the option of switching to the public broadcaster which does not carry advertising, and this act s as a discouragement to excessive advertising on the commercial radio services.
42
It is proposed to permit
to permit advertising breaks during news programmes, but not to allow sponsorship of news programmes
the radio. This follows
BA's the
revised recommendation with regard to television which
which will be the subject of a separate memorandum to the Council.
on
Schedule H : General Compliance and Residential Requirements for Directors (Recommendations 34-54)
43
The general compliance conditions above are primarily conditions adapted from
the current radio licence, new television licences and Television Ordinance. They are concerned generally with
with operational and regulatory matters which do not involve any issues of principle and should not be controversial. The residential requirements for directors and principal officers follow closely those conditions imposed on the wireless television licensees. They should serve to ensure that commercial radio broadcasting retains its essentially Hong Kong character.
Disposal of shares
44
It is proposed (Recommendation 47(b)) that the principal shareholders of the licensee should not be permitted to dispose of
of an aggregate of more than 15% of
of the voting shares of the licensee for a period of three years after the licence has been granted, unless the prior approval of the BA has been obtained. The purpose of this is to ensure that an application for a licence is made in good faith, and that the persons who appear as the owners of a radio station when applying for a licence and who are expected to make commitment s regarding e.g. capital investment, are not able to sell off their interests at will once the licence has been granted. Our experience with the events surrounding the transaction of ATV shares led the BA to
conclude that such a condition is
necessary.
CONFIDENTIAL