I
PO
SATURDAY, JUNE 25, 1988
IN CALCULATING VOTING SHARES AND THEREBY VOTING RIGHTS, THE CONCEPT OF RELEVANT INTEREST HAS BEEN INCORPORATED IN THE BILL. THIS IS THE SAME CONCEPT AS THAT IN THE SECURITIES (DISCLOSURE OF INTERESTS) BILL WHICH WAS RECENTLY INTRODUCED INTO THE LEGISLATIVE COUNCIL.
"UNDER A NEW SECTION 17D(3) IN THE BILL, IF A PERSON HOLDS 35 PER CENT OR MORE OF THE SHARES OF A COMPANY AND THAT COMPANY IN TURN HOLDS TWO PER CENT OR MORE OF THE SHARES OF A LICENSEE, HE IS TO BE REGARDED AS HAVING A RELEVANT INTEREST IN THE VOTING SHARES OF THAT LICENSEE UNDER A SIMPLE FORMULA WHICH IS A MULTIPLE OF THE TWO PERCENTAGES.
"FURTHER, A PERSON WHO HAS CONTROL OF A COMPANY IS DEEMED ΤΟ HAVE A RELEVANT INTEREST IN ALL OF THE VOTING SHARES WHICH THAT COMPANY HOLDS IN A LICENSEE. THIS IS TO AVOID HIDDEN CONTROL OF A LICENSEE COMPANY, THE SPOKESMAN EXPLAINED.
THE BILL ALSO PROPOSES THAT A PERSON WHO DOES NOT MEET THE NECESSARY RESIDENTIAL QUALIFICATION MUST SEEK THE APPROVAL OF THE BROADCASTING AUTHORITY IN ORDER TO INCREASE THE PERCENTAGE OF HIS VOTING SHAREHOLDING IN A LICENSEE IF, AS A RESULT OF THE INCREASE, THE SHAREHOLDING EXCEEDS TWO PER CENT, FOUR PER CENT, SIX PER CENT OR EIGHT PRR CENT OF THE TOTAL VOTING SHARES.
THE SPOKESMAN ADDED THAT THE BROADCASTING AUTHORITY MUST ALSO BE NOTIFIED IF THE SHAREHOLDING WERE TO BE DECREASED BELOW ONE OF THESE LEVELS.
"THE RESTRICTIONS MAY NOT APPLY AS REGARDS THE WIOLE OR PART OF SHAREHOLDINGS ACQUIRED ON OR BEFORE NOVEMBER 21, 1987, IF AN APPLICATION IS MADE TO THE BROADCASTING AUTHORITY AND IT SO APPROVES, HE SAID.
IN ORDER TO ENSURE THE PRACTICAL EFFECTIVENESS OF THE 49 PER CENT LIMIT, THE BULL CONTAINS PROVISIONS FOR THE LICENSEE ΤΟ REQUIRE ITS SHAREHOLDERS ΤΟ MAKE DECLARATIONS ON CERTAIN PARTICULARS INCLUDING RESIDENTIAL STATUS BEFORE ANY OF ITS VOTING SHARES CAN BE TRANSFERRED.
"THE LICENSEE SHALL REFUSE TO REGISTER THE TRANSFER OF ANY OF ITS VOTING SHARES IF TO REGISTER THEM WOULD CONTRAVENE THE 49 PER CENT OR 10 PER CENT LIMITS.
**
THE BILL ALSO SETS OUT PROCEDURES TO BE FOLLOWED WHEN AN APPLICATION IS MADE TO REGISTER AN ALLOTMENT. ISSUE ок TRANSFER OF VOTING SHARES.
ON THE
PROVISIONS
GOVERNING
CORPORATE STRUCTURE,
THE
GOVERNMENT SPOKESMAN POINTED OUT THAT A LICENSEE MUST NOT BE HELD RY A HOLDING COMPANY,
"THE BILL