TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 51

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TELECOMMUNICATION (AMENDMENT) BILL 1989

and the licence may contain such conditions relating to the disqualified person ar to the control exercised by him as the Governor in Council may impose und section 13C.

Increase of control by disqualified persons

13H. (1) Subject to subsection (2), no disqualified person who exercises control of a corporation that is a licensee shall augment the basis of such control-

(a) by augmenting the percentage of voting shares in the corporation which he

holds as the beneficial owner thereof; or

(b) by a change of the office held by him in the corporation.

(2) On the application of a licensee that is a corporation the Governor in Council may, if he is satisfied that the public interest so requires, permit—

(a) the licensee to augment the basis of the control of the corporation

exercised by a disqualified person; or

(b) the licensee to enable a disqualified person to exercise control of the

corporation.

Unqualified persons

131. (1) The aggregate of the voting shares in a licensee to or in which unqualified persons have, directly or indirectly, any right, title or interest, shall not at any time exceed 49% of the total number of voting shares in the licensee.

(2) Subsection (1) applies to voting shares in a licensee where the voting rights carried by such shares are for the time being exercisable as regards any question or other matter whatsoever which may be determined by a poll at general meetings of the licensee.

(3) For the purposes of this section, a person shall be an "unqualified person" unless-

(a) he is a person who is for the time being ordinarily resident in Hong Kong and has at any time been resident for a continuous period of not less than 7 years; or

(b) that person is a company that is ordinarily resident in Hong Kong.

(4) For the purposes of this section, a corporation established or incorporated by Ordinance shall be regarded as being a company that is ordinarily resident in Hong Kong if (but only if) for the time being—

(a) every person who takes an active part in the management of the corpora- tion, or if there are more than 2 such persons each of a majority of those persons, is for the time being ordinarily resident in Hong Kong and has at any time been resident for a continuous period of not less than 7 years; and (b) the management of the corporation is bona fide exercised in Hong Kong. (5) For the purposes of this section, where any one or more of 2 or more persons having a joint right, title or interest to or in voting shares is or are unqualified persons, then the unqualified person or persons shall be regarded as having the entire right, title or interest to the exclusion of any other person.