TNAG-1078-FCO40-1328-Policy-of-the-Hong-Kong-Government-on-television-services-1981 — Page 62

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About control of the holding company board, it is written into the television ordinance which governs television stations in HK that the company which owns more than 51% of the shareholding of the licensing company must be ordinarily resident in HK. For the purposes of the ordinance, the company must be registered in HK and the majority of shareholders must be British subjects, ordinary residents in HK for more than six months of the year.

Further requirement for the

ordinary residence of the company, is that the Board of the company should hold all its meetings in HK and that the exercise of control and management of the company is exercised in HK, in other words it is not dictated to from outside. This is a requirement of them all. Executive Council will probably be asking searching questions about to what extent are the Australian companies going to be dictated to the Hong Kong holding company. We shall need assurances on this point.

We did realise it was necessary to nominate Hong Kong residents, as directors of that Board and this had to be done in somewhat of a hurry. We have used a firm of solicitors to nominate one of their people on their staff, with whom our people have had contact, as an interim but the Conzinc Asia Holdings organisation is in the process of establishing a person in Hong Kong.