34
To reduce the possibility of such abuses the BRB proposed a number of legislative changes, notably that future broadcasting companies should be independent companies solely concerned with broadcasting, that they should not be related to other companies and should not be allowed to form or acquire subsidiaries without prior approval.
Comment
35
The Administration, though sharing the BRB's concern that existing legislation may not be wholly adequate to prevent the occurrence of the types of abuse described above, considers that the BRB's proposed legislative changes, even if improved upon, would not in themselves be sufficient to eradicate completely all scope for abuse or unfair practice.
36
Furthermore, although there are claims that the strong market position enjoyed by TVB could be the result of advantages conferred by TVB's corporate
corporate links, it cannot be denied that TVB's commercial success is essentially the result of a very enterprising management which has been consistently able to produce programmes that command great public popularity, as well as the natural advantage gained from being the first off-air television broadcaster in Hong Kong. Indeed, the BRB itself paid tribute in its Report to TVB's pioneering role in the development of a successful home-grown television industry in Hong Kong.
37
The Administration therefore concludes that the BRB's proposals, if implemented could be regarded by some as penalising commercial success which has been legitimately earned. To compel TVB to dismantle its corporate links would be considered by the business community in general, and TVB in particular, as an attempt to improve competition in the broadcasting industry by bringing TVB down to a common level of unprofitability rather than allowing the less successful ATV to attract investment and improve its position by means of similar corporate arrangements. It is noted too that the corporate structure of the HK-TVB group was created with the knowledge of the Administration and was considered to be within the letter of the law. Now to introduce legislation which will damage the interests of TVB without necessarily achieving its desired effects is unlikely to inspire confidence within the business community or the broadcasting industry.
38
The Administration further notes that the Securities Commission has recently made the Securities (Stock Exchange Listing) Rules
Rules 1986 aimed at requiring
requiring timely disclosure of company information. These rules enable the investing public to have accurate knowledge of material transactions carried out between publicly listed companies and their related companies,
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