XN000022-1988-06-25 — Page 2

SATURDAY, JUNE 25, 1988

TELEVISION AMENDMENT BILL GAZETTED

THE GOVERNMENT TODAY (SATURDAY) GAZETTED THE TELEVISION (AMENDMENT} BILL 1988 WHICH SEEKS TO PROVIDE AN APPROPRIATE LEGAL FRAMEWORK FOR IMPLEMENTING THE TERMS AND CONDITIONS UNDER WHICH NEW OFF-AIR TELEVISION LICENCES WILL BE GRANTED FOR A PERIOD OF 12 YEARS,

YEAR.

THE CURRENT LICENCES ARE DUE TO EXPIRE ON DECEMBER 1 THIS

DETAILS OF THE MAIN TERMS AND CONDITIONS WERE ANNOUNCED IN MARCH THIS YEAR FOLLOWING DECISIONS BY THE EXECUTIVE COUNCIL.

EXPLAINING DETAILS OF THE BILL, A GOVERNMENT SPOKESMAN SAID: "THE OBJECTIVE OF ONE OF THE KEY PROVISIONS OF THE BILL IS ΤΟ ENSURE THAT CONTROL OF THE OFF-AIR TELEVISION LICENCES IS IN THE HANDS OF PERSONS WHO HAVE THE BEST INTERESTS OF HONG KONG AT HEART.'

"THE LEVEL OF SHAREHOLDINGS IN A LICENCEE HELD BY PERSONS (INCLUDING COMPANIES) WHO DO NOT SATISFY CERTAIN HONG KONG RESIDENT REQUIREMENTS ARE SUBJECT TO LIMITS, HE NOTED.

UNDER THE BILL, THE RESIDENTIAL QUALIFICATION USED ΤΟ DIFFERENTIATE BETWEEN LOCAL AND FOREIGN OWNERSHIP IS BASED ON WHETHER OR NOT A PERSON HAS BEEN ORDINARILY RES I DENT IN HONG KONG FOR AT LEAST ONE CONTINUOUS PERIOD OF NOT LESS THAN SEVEN YEARS AND IS BEING ORDINARILY RESIDENT IN HONG KONG.

IN THE CASE OF A COMPANY, THE BILL PROVIDES THAT THE MAJORITY OF THE DIRECTORS PARTICIPATING ACTIVELY IN THE DIRECTION OF THE COMPANY MUST EACH SATISFY THE RESIDENTIAL QUALIFICATION, HE SAID.

THIS REPLACES THE EXISTING REQUIREMENT THAT SUCII DIRECTORS MUST BE "COMMONWEALTH CITIZENS ORDINARILY RESIDENT IN HONG KONG".

"THE CRITERIA FOR 'ORDINARY RESIDENCE' WITH RESPECT то AN INDIVIDUAL REMAIN AS THEY ARE NOW IN SECTION 2 OF THE TELEVISION ORDINANCE, BRING RESIDENCE IN HONG KONG FOR AT LEAST 180 DAYS IN ANY CALENDAR YEAR, OR AT LEAST 300 DAYS IN TWO CONSECUTIVE CALENDAR YEARS, HE POINTED OUT.

FOR PERSONS AND COMPANIES WHO/WHICH DO NOT MEET SUCH RESIDENCE REQUIREMENTS, THE PERCENTAGE OF VOTING SHARES OF A LICENCEE THAT THEY MAY HOLD IN AGGREGATE AT ANY TIME WOULD BE LIMITED TO 19 PER CENT UNDER THE BILL.

"THE BILL. FURTHER SEEKS TO RESTRICT THE PERCENTAGE OF SUCH VOTING SHARES WHICH MAY BE HELD BY ANY INDIVIDUAL PERSON (INCLUDING A COMPANY) WHO DOES NOT MEET THE RESIDENTIAL QUALIFICATION ΤΟ 10 PER CENT, THE GOVERNMENT SPOKESMAN SAID.

/IN CALCULATING