TNAG-1817-FCO40-2578-Broadcasting-in-Hong-Kong-1988 — Page 6

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At present, restrictions on foreign ownership and control of a television licensee

company are provided for under Sections 10(b), (d), (e) & (f), 11(1)(b) & (c), and

11(1)(b) 11A (2)(b) & (4) (a) of the Television Ordinance. In essence, it is required that -

(a)

(b)

television

not less than 51% of the shares in a licensee

company shall be held by people or companies ordinarily resident in Hong Kong; and

the majority of the directors and the principal officers of a licensee company shall be Commonwealth citizens ordinarily resident

in Hong Kong.

The current concept of what is Section 2 of the Ordinance.*

is "local" is provided for in

*Footnote

The concept of "local" as defined in Section 2 of the existing Television Ordinance

is a

person Οι a company being "ordinarily resident in Hong Kong". "Ordinarily resident in Hong Kong" means

(a) in the case of a person

(b)

(i)

(ii)

resident in Hong Kong for not less than 180 days in any calendar year; or

resident in Hong Kong for not less than 300 days in any 2 consecutive calendar years; and

in the case of a company, a company

(i) which is formed and registered in Hong Kong

under the Companies Ordinance;

(ii)

the

of which the majority of the directors participating actively in the direction of company are Commonwealth citizens ordinarily resident in Hong Kong as defined in paragraph (a); and

(iii) the control and management of which is bona fide exercised in Hong Kong.