XN000022-1991-07-17 — Page 19

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WEDNESDAY, JULY 17, 1991

TELEVISION AMENDMENT BILL PASSED

* * *

THE TELEVISION { AMENDMENT} BILL 1991, WHICH PROPOSES A REGULATORY FRAMEWORK FOR NOMINEE SHAREHOLDINGS IN TELEVISION LICENSEE COMPANIES, WAS PASSED INTO LAW IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE ACTING WAS, BROADLY

IN MOVING THE SECOND READING OF THE BILL, SECRETARY FOR HOME AFFAIRS, THE HON ALBERT LAM, SAID IT SPEAKING, TO PERMIT SHARES IN TELEVISION LICENSEE COMPANIES TO BE TRANSFERRED TO, AND HELD IN THE NAMES OF NOMINEES.

AT THE SAME TIME, HE ADDED, IT WOULD ENSURE THAT INDIVIDUALS ORDINARILY RESIDENT IN HONG KONG OVER A PERIOD OF SEVEN YEARS, AND COMPANIES ORDINARILY RESIDENT IN HONG KONG, RETAIN

ΤΟ POTENTIAL

CONTROL THESE LICENSEES.

THE

"IN THE BILL WE SEEK TO DO THIS BY CONFERRING POWERS ON THE BROADCASTING AUTHORITY TO INVESTIGATE VOTING CONTROL AND ΤΟ MAKE DIRECTIONS WHERE NECESSARY.

"IN INVESTIGATING SUSPECTED BREACHES OF THE RESTRICTIONS ON UNQUALIFIED VOTING CONTROLLERS, THE AUTHORITY

MAY, IN THE PROPOSED SECTION 170, TAKE INTO ACCOUNT CONTROL BY ASSOCIATES

IF AND, NECESSARY, DIRECT SUCH ASSOCIATED VOTING CONTROLLERS TO TERMINATE THEIR CONTROL.

"WE THEREFORE PROPOSE TO EMPOWER THE BROADCASTING AUTHORITY TO QUALIFIED OR MAKE SUCH A DIRECTION TO ANY VOTING CONTROLLER, WHETHER UNQUALIFIED," MR LAM SAID.

HOC GROUP'S CONCERN AUTHORITY ΤΟ PLACE SUCH SHARES, SHOULD

MR LAM SAID HE WAS AWARE OF THE LEGCO AD THAT THE POWERS GIVEN TO THE BROADCASTING RESTRICTIONS ON SHARES, EFFECTIVELY TO "FREEZE" NOT CAUSE INNOCENT THIRD PARTIES TO BE PREJUDICED.

"THE ADMINISTRATION UNDERSTANDS THIS CONCERN AND, HAS EXPLORED VARIOUS WAYS OF INCREASING THE

OFFERED TO INVESTORS IN TELEVISION LICENSEE COMPANIES," MR LAM SAID.

THE

PROTECTION

FURTHER EXCEPTION OF

IN VIEW OF

POSSIBLE INCREASED POTENTIAL FOR ABUSE BY UNSCRUPULOUS INVESTORS, THE GOVERNMENT HAD CONCLUDED THAT ANY MODIFICATION TO THE BILL WOULD BE INADVISABLE, WITH THE A MINOR AMENDMENT TO THE PROPOSED SECTION 17-0 MOVED

AT COMMITTEE

STAGE.

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