TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 228

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10

Control by Disqualified Persons

21.

It is recommended that

persons' provisions should be introduced.

Non-local Ownership

22.

no

'disqualified

a

No more than 49% of the voting shares of

licensee should be beneficially owned by 'non-local' persons, including companies (i.e. 'unqualified persons' defined in the Television (Amendment) Ordinance 1988) (See Enclosure).

Royalty

.

23.

(a)

(b)

The royalty imposed on the radio licensee should be charged on a sliding scale based on a

percentage of gross annual receipts of the licensee from radio advertising subject to a prescribed maximum flat rate.

The percentage of royalty payable shall be based on a sliding scale as indicated below

Gross receipts of advertising revenue

Rate

On the first $25m

29/

On the next $25m

On the next $25m

Exceeding $75m

4%

6%

8%

the gross

subject to a ceiling rate of 5% of the

receipts.

Licence Fee

24.

The licence fee should be $1,000 per annum.

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