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WEDNESDAY, JUNE 29, 1988
EXAMPLES WERE THE PROHIBITION ON NOMINEE SHAREHOLDERS, IN SECTION 10(G) OF THE ORDINANCE, AND THE PROHIBITION ON DISQUALIFIED PERSONS EXERCISING CONTROL OF THE COMPANY UNDER SECTION 10(F).
THEY ALSO INCLUDED THE PROVISION UNDER SECTION 11(1)(B) RESTRICTING FOREIGN OWNERSHIP TO 49 PER CENT AND, UNDER THE SAME SECTION, THE PROHIBITION ON A LICENSEE ACQUIRING A CONTROLLING INTFREST IN ANY COMPANY THE BUSINES9 OF WHICH WAS NOT DIRECTLY CONNECTED OR ASSOCIATED WITH TELEVISION BROADCASTING.
AS THE HOLDING COMPANIES WERE NOT SUBJECT TO THE ABOVE PROHIBITIONS, MR TSAO SAID THEY MIGHT AND IN FACT DID HAVE NOMINEE SHAREHOLDERS, AND WERE NOT LEGALLY PREVENTED FROM SETTING UP OR ACQUIRING BUSINESSES UNRELATED TO BROADCASTING.
ON ROYALTIES, MR TSAO SAID CURRENTLY THEY WERE CALCULATED THE BASIS OF PROFITS.
ON
"SINCE AIR-WAVES ARE A COMMUNITY PROPERTY, THE LICENSERS SHOULD BE REQUIRED TO PAY FOR THEIR USE IRRESPECTIVE OF WHETHER PROFIT IS MADE," HE SAID.
"THE PROPOSALS IN THE BILL ARE FOR ROYALTY ΤΟ BE PAYABLE ON GROSS INCOME FROM TELEVISION ADVERTISING, ACCORDING ΤΟ A SLIDING SCALE, BUT SUBJECT TO AN OVERALL CEILING OF 12 PER CENT OF THE OVERALL INCOME FROM TELEVISION ADVERTISING.'
TO PREVENT AVOIDANCE, ROYALTY WOULD BE PAYABLE ON THE AMOUNT THAT WOULD BE EXPECTED TO BE DUE TO A LICENSEE AT PUBLISHED MARKET RATES FOR PARTICULAR TRANSACTIONS, THAT IS ANY SPECIAL DISCOUNTS GIVEN IN PARTICULAR INSTANCES WOULD NOT BE DEDUCTED IN THE CALCULATION OF THE ROYALTY DUE.
A
"THE NEW SYSTEM OF CALCULATION IS NOT, HOWEVER, INTENDED TO BE MEANS OF INCREASING REVENUE, BUT RATHER TO ENSURE THAT THE COMMUNITY BENEFITS FROM THE LICENSERS' PRIVILEGED USE OF A COMMUNITY PROPERTY," MB TSAO SAID.
+
MR TSAO STRESSED THE TELEVISION (AMENDMENT) BILL WAS NOT A PIECE OF LEGISLATION AIMED AT THE SMALL SHAREHOLDER.
A LICENSEE WAS REQUIRED TO NOTIFY AND SEEK THE APPROVAL OF THE BROADCASTING AUTHORITY WHEN A "NON-LOCAL" SHAREHOLDER ACQUIRED A SHAREHOLDING OF TWO PER CENT
OR MORE OF THE VOTING SHARES OF A LICENSEE.
MILLION IN
"AT CURRENT SHARE PRICES THIS AMOUNTS TO OVER $110 THE CASE OF ONE OF THE LICENSEES AND $12 MILLION IN THE CASE OF THE OTHER," MR TSAO SAID.
I THINK IT WOULD BE FAIR TO SAY THAT SUCH LARGE AMOUNTS OF MONEY WILL HAVE ACCESS ADVICE."
INVESTORS
DEALING WITH
TO
EXPERT
PROFESSIONAL
/MR TSAO