TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 58

HONG KONG

LEGAL REPORT

Enciwure 1.......

2

TELECOMMUNICATION (AMENDMENT) ORDINANCE 1989

(No. 51 of 1989)

This Ordinance amends the Telecommunication Ordinance to provide more comprehensive statutory control over commercial sound broadcasting. A new Part IIIA, which consists of 15 new sections, is added. It deals exclusively with sound broadcasting licences.

2. Only companies incorporated in Hong Kong which are not subsidiaries and which are empowered to comply with the Telecommunication Ordinance and sound broadcasting licence (section 13F) may apply for a broadcasting licence (section 13B). The Governor in Council is the authority who grants such a licence and a licence is granted subject to conditions (section 13C). A "royalty" may be charged for the licence (section 13L).

3.

Sections 13G and 13H limit the control that may be exercised in a licensee by disqualified persons (defined in section 13A). Section 131 limits foreign ownership of a licensee to 49%. Section 13J provides that within 3 years following the grant of a licence, more than 15% of the voting shares of the licensee may not be transferred or acquired without the consent of the Broadcasting Authority. Section 13K empowers the Broadcasting Authority to give directions for prohibiting exercise of voting rights of shares in certain circumstances.

4. The Governor in Council may prohibit the broadcasting of any programme where the peace or good order of Hong Kong is in his opinion threatened thereby (section 13M).

5. Regulations can be made to secure compliance with the new regulatory provisions (section 13N) and in relation to standards and technical requirements (section 130).