34

WEDNESDAY, MAY 2, 1990

IF VOTES IN THE HANDS OF UNQUALIFIED PERSONS EXCEEDED 49 PER CENT OF THE TOTAL VOTING SHARES OF THE LICENSEE, ARRANGEMENTS WOULD MORE THAN 49 BE MADE, BY A VOTE WEIGHTING SYSTEM, TO ENSURE THAT NO

EXERCISABLE BY SUCH PERSONS AT PER CENT OF THE VOTING RIGHTS WERE GENERAL MEETINGS OF THE LICENSEE COMPANIES.

IN THE

PROVISIONS UNDER THE EXISTING TRANSFERS OF SHARES OF A LICENSEE MAY NOT BE REGISTERED OF A NOMINEE.

TELEVISION

ORDINANCE, IN THE NAME

UNQUALIFIED

CENT

WITH

THE RELEVANT INTEREST IN SHARES HELD BY INDIVIDUAL

LESS

PER THAN 10 PERSONS IS RESTRICTED TO A HOLDING OF

FOR INDIVIDUAL BROADCASTING AUTHORITY'S APPROVAL HAVING TO BE SOUGHT

SIX PER HOLDINGS AT THE LOWER LEVELS OF TWO PER CENT, FOUR PER CENT, CENT AND EIGHT PER CENT.

THE

OF

OF

"THE CHANGES HAVE BEEN PROPOSED AFTER CAREFUL CONSIDERATION POSSIBLE INHIBITING EFFECT THE

ON RESTRICTION

NOMINEE SHAREHOLDINGS MAY HAVE ON THE OPERATION

NORMAL MARKET PRACTICES RELATING TO SHARE PURCHASE AND REGISTRATION IN THE CASE OF TELEVISION LICENSEE COMPANIES," THE SPOKESMAN SAID.

"NONETHELESS, ADEQUATE SAFEGUARDS PRESERVE THE BASIC POLICY AIM THAT HONG SHOULD BE CONTROLLED BY HONG KONG PEOPLE."

MUST BE PUT IN PLACE TO KONG TELEVISION COMPANIES

THE REVIEW

"THE THRESHOLDS FOR BROADCASTING AUTHORITY'S APPROVAL FOR INDIVIDUAL HOLDINGS AND THE OVERALL 10 PER CENT RESTRICTION SHOULD

WILL BE

ΤΟ TAKEN REMAIN BUT THE OPPORTUNITY

EXISTING LEGISLATION WHERE THE CURRENT USE OF THE CONCEPT OF 'RELEVANT INTEREST' APPEARS TO BE UNNECESSARILY COMPLEX, LEADING TO AVOIDABLE CONFUSION FOR SHAREHOLDERS, THE SPOKESMAN ADDED.

"

THE ESSENCE OF THE PROPOSAL IS TO CHANGE THE SYSTEM OF CONTROL FROM REGULATING THE AGGREGATE REGISTERED OWNERSHIP OF SHARES BY SUCH PERSONS UNQUALIFIED PERSONS TO REGULATING THE VOTING CONTROL OF

PERSONS AT GENERAL MEETINGS OF THE LICENSEE, TO ENSURE THAT QUALIFIED ALWAYS HAVE THE POTENTIAL TO CONTROL TELEVISION COMPANIES.

AMENDMENTS TO RELEVANT SECTIONS ARE BEING DRAFTED AS A PRIORITY ITEM.

OF THE TELEVISION ORDINANCE

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