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The following is issued on behalf of the Broadcasting Authority:
The Broadcasting Authority ("BA") at its meeting today (July 11) approved the application from Asia Television Limited ("ATV") for a change in its shareholding structure involving unqualified voting controllers (UVC), i.e. voting controllers who do not meet the residence requirement under the Broadcasting Ordinance.
One of our broadcasting policy objectives is to encourage investment in the industry. As such, our regulatory regime does not restrict foreign ownership of a licensee company. Our restriction of persons and companies exercising voting control of a licensee is based on residence requirements to ensure that Hong Kong viewers' taste and interests are safeguarded.
Dragon Viceroy Limited currently holds 46% of the total issued ordinary shares of ATV. The proposed change in shareholding involved a transfer of shares from the existing shareholders of Dragon Viceroy Limited to Today's Asia Limited through its wholly-owned subsidiary company, Vital Media Holdings Limited. The proposed transaction is contingent on the grant of BA's pre-requisite regulatory approval. Mr Liu Changle owns over 93% of Today's Asia Limited. Mr Liu will indirectly control 46% of the total voting control of ATV after the completion of the transaction.
Although Mr Liu Changle is ordinarily resident in Hong Kong, he has yet to have been so resident for at least one continuous period of not less than 7 years. Thus, he does not satisfy the definition of "qualified voting controller"(Note 1) under the Broadcasting Ordinance. After the completion of the transaction, Mr Liu's voting control of ATV will be exercised indirectly via Today's Asia Limited, Vital Media Holdings Limited and Dragon Viceroy Limited. As such all three companies are UVCs who are able to exercise 46% of the total voting control of ATV. BA's prior written approval under section 20 of Schedule 1 to the Broadcasting Ordinance is therefore required.
In considering ATV's application, the BA is satisfied that notwithstanding granting the approval to Mr Liu and the three companies, ATV will remain to be controlled by persons and companies which are sensitive to Hong Kong viewers' taste and interests in view of the following -
(a) The majority of ATV's shareholders, directors and Principal Officers, in particular, the principal officer responsible for the selection, production or scheduling of programmes will continue to be in the hands of Hong Kong permanent residents. The BA is therefore satisfied that the management and control of ATV will continue to be bona fide exercised by persons or companies ordinarily resident in Hong Kong; and
(b) There is sufficient safeguard in the Broadcasting Ordinance to ensure that the total voting control exercised by UVC would not exceed, in the aggregate, 49% of the total voting control exercised by both qualified voting controllers and UVCs at any general meeting of the licensee company.
At the same meeting, the BA also endorsed the recommendations of its Complaints Committee.
ATV was given a "strong advice" for the programme "Histeria" broadcast on Home on 18.5.2002 at 5:30pm - 6:00pm in which the Chinese translations of the name of a scientist and that of a country were found to be inaccurate.
TVB was given an "advice" for the programme "Kids' Sunday" broadcast on Jade on 12.5.2002 at 4:25pm - 4:55pm. The programme host erroneously used the term "centripetal force" when referring to a force which made objects move outwards when spinning around.
RTHK was given an "advice" for the programme "After The Rain" broadcast on TVB Jade on 1.6.2002 at 7:35pm - 8:05pm. The BA recognised the educational value of the programme, but was nevertheless concerned that the programme contained an expression, which might be considered vulgar by an average viewer. The BA therefore considered that broadcasting the programme during family viewing hours was not the best arrangement.
Metro was given a "strong advice" for the programme "Stock Exchange Live (Part 1)" broadcast on Metro Finance on 26.4.2002 at 10:00am - 1:00pm. The programme contained crude expressions, which were contextually unjustified and unacceptable for the programme.
Note 1: Under section (1)1 of Schedule 1 to the Broadcasting Ordinance, an individual qualified voting controller has to be ordinarily resident in Hong Kong and has been so resident for at least one continuous period of not less than 7 years. For an individual, "ordinarily resident in Hong Kong" means residence in Hong Kong for not less than 180 days in any calendar year; or residence in Hong Kong for not less than 300 days in any 2 consecutive calendar years.
End/Thursday, July 11, 2002
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