TNAG-1818-FCO40-2579-Broadcasting-in-Hong-Kong-1988 — Page 187

C662

TELEVISION (AMENDMENT) BILL 1988

(b) Section 17B prohibits nominees holding a relevant interes

(defined in sections 17K and 17L) in voting shares of a licensee. The commencement of the section is deferred by subsection (4).

(c) Section 17C-see paragraph 1(a) above which summarises the

effect of the section.

(d) Section 17D is a restricting clause-see paragraph 1(b) above. Also, if a person who has voting shares in a licensee has shares in certain other companies, he will, for the purposes of sub- section (1), be regarded as having additional shares in the licensee. Their number will be determined by reference to a proportion (subsection (3)). In certain circumstances the voting shares of a licensee held by any subsidiary company will, for the purposes referred to, be regarded as being held by another person (subsec- tion (4)). In certain circumstances persons who jointly have a relevant interest in voting shares of a licensee will each be regarded as being disqualified under subsection (1) (subsection (5)).

(e) Section 17E requires a licensee to give to the Broadcasting

Authority-

(i) the names of the companies or other persons who, on the coming into force of the section, have a relevant interest in 2% or more of the voting shares of the licensee and the percentage of the issued voting shares of the licensee which those shares then constituted;

(ii) where the number of such voting shares held by persons fall, or cease to fall, within limits specified in the clause, certain particulars as regards the persons or holdings.

(f) Section 17F-if the Bill is to be effective the Broadcasting Au- thority must know the share holding position on the commence- ment thereof. This is what the clause is aimed at and it enables the Broadcasting Authority to require a licensee to distribute to its shareholders a document specified in a direction given by it. The clause provides that the document shall contain a declaration in a form to be determined by the Broadcasting Authority. The re- quirements of the clause have to be complied with within certain time limits and the clause contains certain provisions designed to avoid difficulties in its implementation (subsections (3), (4) and (6)).

(g) Section 17G enables applications to be made to the Broadcasting Authority for a permission to retain shares the holding of which would otherwise cause provisions of the Bill to be contravened. Applications must be brought within periods specified in the Bill; a separate period is specified as regards applications by personal representatives. Applications, which are to be made through the relevant licensee, may be allowed in whole or in part or refused (subsection (4)). Also, the Broadcasting Authority may require persons who hold shares in contravention of section 17A(1) (when enacted) or 17B (when enacted), or where an approval should has been but was not obtained under section 17A(2) (when enacted), to divest themselves of so many as are necessary to effect a cesser of the contravention in the case of section 17D (when enacted) and of all the shares in the other cases (subsection (7) ).