TELECOMMUNICATION (AMENDMENT) BILL 1989
Temporary restriction on disposal or acquisition
C687
13J. (1) Except with the consent of the Broadcasting Authority, any right, title or interest to or in shares exceeding in the aggregate 15% of the total number of voting shares in a licensee as at the date of the grant of the licence to the licensee may not be transferred or acquired, directly or indirectly, within the period of 3 years following the date of the grant of the licence to the licensee.
(2) Any transaction, settlement, agreement or understanding the effect of which would but for this subsection, constitute a contravention of subsection (1) is void.
(3) Any person exercising or purporting to exercise any right to dispose of or acquire any right, title or interest to or in voting shares referred to in subsection (1) where the result of such disposition or acquisition would to his knowledge, but for subsection (2), constitute a contravention of subsection (1) commits an offence and is liable to a fine of $100,000.
(4) Nothing in this section shall apply to—
(a) a transfer or acquisition by any person pursuant to the bona fide exercise by him of his functions as a personal representative, liquidator, receiver or trustee in bankruptcy;
(b) a transfer to a person who is—
(i) an authorized financial institution;
(ii) an insurer who is authorized within the meaning of the Insurance Companies Ordinance (Cap. 41); or
(iii) a stockbroker, exempt dealer or registered dealer within the meaning of the Securities Ordinance (Cap. 333),
by way of security only for the purposes of a transaction entered into in the ordinary course of his business as such a person.
(5) In subsection (4)(b) “authorized financial institution" means an "author- ized institution" within the meaning of the Banking Ordinance (Cap. 155).
Directions by Broadcasting Authority
13K. (1) Where any transaction, settlement, agreement or understanding (whether having legal effect or not) has been entered into, the effect of which is to constitute a contravention of section 13G, 13H, or 131, the Broadcasting Authority may with respect to the voting shares which are the subject of the transaction, settlement, agreement or understanding in question—
(a) direct, by notice in writing served on the licensee, that the voting rights which those voting shares carry, notwithstanding anything contained in the articles of association of the licensee or any provision of the laws of Hong Kong apart from this subsection, shall not be exercised in relation to any matter at general meetings of the licensee for such period as may be specified in the notice;
(b) serve on any person having any right, title or interest to or in such voting shares a notice in writing directing that person, within a period specified in the notice and beginning on the date of receipt by him of the notice (being a period of not less than 60 days), to transfer or otherwise to dispose of such right, title or interest in favour of a person who is not an unqualified or disqualified person (as the case may require) or to so transfer or dispose of so much thereof as is necessary to effect a cesser of the contravention.