as well as of the shareholdings of the directors and chief executives of such companies. The making of these rules facilitates the identification of transactions within group of companies that involve financial assistance and hence may reduce the scope for the type of abuse described at paragraph 33(c) above. The Administration considers that although the Securities (Stock Exchange Listing) Rules are only applicable to publicly listed companies and their related companies, there are advantages in applying them to all broadcasting licensees. whether public or private. The Administration therefore proposes to study this possibility further and to seek the Executive Council's advice after consulting the Television Advisory Board (TVAB) in the near future.
39
In view of the above arguments, the Administrations considers that there is inadequate justification to introduce the legislation proposed by the BRB, and recommends against the adoption of these proposals. The Administration believes that if a Broadcasting Authority is created as proposed in paragraph 27 above, this Authority will be able to regulate the practices of the commercial licensees and ensure that they operate wholly within the law. If moreover the future Authority considers that there are genuine grounds for concern it will be at liberty to seek the advice of the Executive and Legislative Councils on proposals to change the law.
change the law. The Administration also notes that the Securities (Stock Exchange Listing) Rules 1986 provide a basis for the fuller disclosure of
of company information, and will seek Executive Council's advice on their possible application to broadcasting companies in the near future.
RENEWAL OF THE COMMERCIAL TELEVISION LICENCES
40
The BRB recommended that before the
the expiry of the existing television broadcasting licences in 1988, an open competition should be held to award new licences, as a means to stimulate competition and ensure
ensure that licences are awarded to the most suitable applicants.
41
The Administration has studied the advantages and disadvantages of a competitive licence tender as well as of two further options, namely a short term extension of the existing licences or a full term renewal. The Administration's findings are described below.
An Open Tender for New Licences
Advantages
42
It
success of
is arguable Hong Kong's
that, notwithstanding the general industry, the present
television
CONFIDENTIAL
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