TELEVISION ORDINANCE

TELEVISION ORDINANCE

LAWS OF HONG KONG

TELEVISION ORDINANCE

CHAPTER 52





CHAPTER 52

TELEVISION ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page

PART I

PRELIMINARY

1. Short title ..........................4
2. Interpretation .......................4
2A. Service etc. of notices .............6

PART II
(Repealed)

PART III

LICENCE TO BROADCAST

6A. Grant or holding of licences to or by certain companies prohibited 6
7. Application for licence ..............7
8. Grant of licences ....................7
9. Period of validity of licence ........8
10. Competence of applicants for licences 9
11. Special conditions of licence .......10

IIA. Exceptions to special conditions of licence ...... 11
IIB. Statement of effect of sections 10, 11 and 11 A to be made in prospectus 11
12. Limitations on contracts by licensee 12
13. Renewal of licence ..................12
13A. Suspension of licence ..............12
14. Revocation of licence ...............13
15. Inquiry by Broadcasting Authority ... 14

16. Notice of intended revocation or non-renewal and power to continue licence

in force ................................15
17. Compulsory purchase of land, buildings, etc . is

PART IIIA

SHAREHOLDING AND OTHER RESTRICTIONS
AND RELATED MATTERS

17A. Licensees prohibited from holding certain shares, etc . 16





Section.................................... Page
17C........Aggregate of certain voting shares of licensee not to exceed 49% 17
17D...............................10% holding limit 17
17E...Licensee to supply to Broadcasting Authority certain information as regards
transfers of its shares and certain other particulars 19
17F..Broadcasting Authority may require licensee to distribute certain documents 21
17G...............Permission for retention of certain shares, etc . 23
17H...Particulars required as regards application to register allotments, etc . 25
171...Additional requirements regarding form and content of licensee's register 27
17J..........Provisions regarding certain entries in licensees' registers 27

17K....................................Relevant interest 27

17L.........................Interests to be disregarded 28
17M.............................Declarations-offence 29
PART IV
BROADCASTING TECHNICAL CONDITIONS
18...........................Transmission requirements 30
19...............Directions in respect of transmission requirements 31
20.............................Technical requirements 31
20A...........................Transmission facilities 31

20B..............'Must carry' provision ...................................................... 32

21.................Inspection and testing of technical equipment 33

......................PART V
....................PROGRAMMES
22.................Broadcast services .... 34

23..................................Advertising 34
24.............................Programmes for schools 36
25...................................(Repealed) 36
25A...........General requirements in respect of Government programmes 36
26............................Standards of programmes 36
27........Standards established by regulations made by Governor in Council 37
28...Standards established by Codes of Practice issued by Broadcasting Authority 37
29.......Governor in Council may issue directions to Broadcasting Authority 37
30.............................Broadcasting contests 37
31..............................Defamatory material 38

PART VI
CONTROL AND MISCELLANEOUS
32. (Repealed)
.......................................................................................................
38





Section.................................... Page
33. Material to be submitted to the Broadcasting Authority on demand 38
34. Directions of the Broadcasting Authority 39
35. Broadcasting Authority may prohibit programmes 39

36. Broadcasting Authority may prohibit broadcasting of material rendered by

certain individuals ..................39
36A.......................................Broadcasting Authority to consult affected licensees 39
36B.......................................(Repealed) 40
37. Broadcasting Authority may impose financial penalty 40
38. Appeal to the Governor in Council ....40

39. Determination of appeal ............................
41

40. Licensee to submit returns ...........41
41. Royalty ..............................42
41A.......................................(Repealed) 45
42. Powers of Financial Secretary in relation to royalty 45
43. Licensee to submit audited accounts ..46
44. Recovery of royalty and financial penalty 47
45. Investigation of licensees' business .47
45A.......................................Sections 42 and 45; supplementary provisions 48
46. Confidential material to be safeguarded 48
47. Savings and transitional .............49





CHAPTER 52

TELEVISION

To make provision for licensing companies to broadcast wireless television, for
controlling the standards of programmes broadcast by such companies and for
purposes connected therewith.

[6 November 1964]

Originally 32 of 1964 33 of 1965, 65 of 1972, 7 of 1973, L.N. 16 of 1977, 73 of 1980, 80 of
1982, L.N. 67 of 1985, 49 of 1987, 25 of 1988, 72 of 1988, R. Ed. 1988, L.N. 242 of 1989

PART 1

RRELIMINARY

1. Short title

This Ordinance may be cited as the Television Ordinance.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires-

'application' means an application for a licence made under section 7;

'broadcasting' means transmitting wireless television;

'Broadcasting Authority' means the Broadcasting Authority established by section
3 of the Broadcasting Authority Ordinance (Cap. 391); (Added 49 of 1987 s.
17)

'Code of Practice' means a Code of Practice issued by the Broadcasting Authority
under section 20 or 28; (Amended 49 of 1987 s. 17)

'disqualified person' means-

(a) an advertising agent;

(b) a company which supplies material for broadcasting by a licensee;

(c) a company-

(i) which is a licensee; or

(ii) which transmits sound or television material, whether within or
without Hong Kong; or

(d)a person who exercises control of a company specified in paragraph
(b) or (c); (Added 7 of 1973 s. 2)

'exercise control of a company' means-

(a) to hold office in that company; or

(b)to be the beneficial owner of more than 15% of the voting shares of
that company:





Provided that a person shall not be a disqualified person in relation to a
company which is a licensee by reason only that he holds office in, or more
than 15% of the voting shares in, that company; (Added 7 of 1973 s.2)

'licence' means a licence to broadcast granted under section 8;

licensee means a company granted a licence and includes such company when
making application for the licence;

'licensee's register' means the register which a licensee is required to keep by virtue
of section 95 of the Companies Ordinance (Cap. 32), and in case the licensee did
not hold the licence on 24 November 1987, the reference in section 17G(1)(b)
to the licensee's register shall, in relation to him, be construed as including a
reference to the register which he was so required to keep on that date or on any
earlier date; (Added 72 of 1988s.2)

'material' includes pictures, words, music and other sounds whether produced,
spoken or made at the time or recorded in any manner;

'ordinarily resident in Hong Kong' includes

(a) in the case of a person-

(i)residence in Hong Kong for not less than 180 days in any
calendar year; or

(ii) residence in Hong Kong for not less than 300 days in any 2
consecutive calendar years; and

(b) in the case of a company, a company-

(i) which is formed and registered in Hong Kong under the
Companies Ordinance (Cap. 32);

(ii)of which the directors participating actively in the direction of
the company

(A) in case there are 2 such directors, each shall be; or

(B)in case there are more than 2 such directors, the majority
thereof shall each be,

for the time being ordinarily resident in Hong Kong and also
have been so resident for at least one continuous period of not
less than 7 years; and (Replaced 72 of 1988 s. 2)

(iii)the control and management of which is bona fide exercised in
Hong Kong; (Added 7 of 1973 s. 2)

'subsidiary company' means any company which, pursuant to section 2 of the
Companies Ordinance (Cap. 32), is, for the purposes of that Ordinance, deemed
to be a subsidiary of another company; (Added 72 of 1988s.2)

'Telecommunications Authority' means the Telecommunications Authority for the
purposes of the Telecommunication Ordinance (Cap. 106);

,'voting shares' means shares in the company which entitle the registered owner
thereof to vote at meetings of shareholders of the company.





(2) For the purposes of this Ordinance a body corporate (other than a company
within the meaning of the Companies Ordinance (Cap. 32)) established or
incorporated by Ordinance shall be regarded as being a company ordinarily resident
in Hong Kong if (but only if ) for the time being

(a)the person participating actively in the direction or management of the
body, or in case there are 2 such persons, each of those persons, or in
case there are more than 2 such persons, each of a majority of those
persons, satisfies the requirements as to residence in section
17D(1)(a); and

(b)such direction and management is bona fide exercised in Hong Kong.
(Added 72 of 1988 s. 2)

(3) When 2 or more persons have a joint interest, then for the purposes of this
Ordinance each of those persons shall be regarded as having the entire of the
interest to the exclusion of any other person. (Added 72 of 1988 s. 2)

(Amended 49 of 1987 s. 17)

2A. Service etc. of notices

(1) A notice under this Ordinance may be served or given by prepaying (where
requisite), registering and posting an envelope addressed to the person on or to
whom the notice is to be served or given at his usual or last known place of abode or
business and containing such notice; and, unless the contrary is proved, the notice
shall be deemed to have been served or given and received at the time at which such
envelope would have been delivered in the ordinary course of post.

(2) For the purposes of this section a company within the meaning of the
Companies Ordinance (Cap. 32) shall be deemed to have a usual place of abode at its
registered office, and any other body corporate shall be deemed to have a usual
place of abode at its principal office or any other place at which it carries on
business.

(Added 72 of 1988 s. 3)

PART II

(Repealed 49 of 1987 s. 17)

PART 111

LICENCE TO BROADCAST

6A. Grant or holding of licences to or
by certain companies prohibited

A licence shall neither be granted to nor held by a company which, by virtue of
section 2 of the Companies Ordinance (Cap. 32), is, for the purposes of that
Ordinance, deemed to be a subsidiary of another company.

(Added 72 of 1988 s. 4)





7. Application for licence

(1) Any company complying with section 10 may apply in writing in a form
determined by the Broadcasting Authority for a licence to broadcast.

(2) An application under subsection (1) shall be submitted to the Broadcasting
Authority at such place and within such time as may be determined by the
Broadcasting Authority in any particular case.

(Replaced 7of 1973 s. 5. Amended 49 of 1987s.17)

8. Grant of licences

(1) The Governor may appoint the Broadcasting Authority to consider
applications and to make recommendations thereon to the Governor in Council.
(Amended 49 of 1987 s. 17)

(2) (a) Having considered the recommendations submitted under

subsection (1), the Governor in Council may grant a licence which
shall be subject, in addition to the conditions set out in this
Ordinance, to such conditions as he may specify, which conditions
may relate to any matter contained in the application form submitted
by the licensee under section 7.

(b) Subject to paragraph (e) and without affecting the generality of

paragraph (a), conditions attached to a licence may include-

(i) a condition requiring the licensee to broadcast such programmes,
announcements and other material as the Broadcasting
Authority shall require and at such time or times, or within such
period or periods and on such programme service or programme
services as that authority shall specify when making the
requirement;

(ii) a condition prohibiting or restricting, in a manner specified in the
condition, the broadcasting by the licensee of advertising
material which is of a class or description so specified.

(c) (i)In case material, pursuant to a condition attached to a licence, is
required to be broadcast at any time between the hours of 7 p.m.
and 10 p.m. in any period from Monday to Friday inclusive, it
shall not, without the consent of the licensee concerned, on any
day either exceed, or exceed in the aggregate, 30 minutes in
duration.

(ii) The periods during which broadcasting material, pursuant to a
condition attached to a licence, is required to be broadcast shall
in the aggregate not exceed any of the following

(A) 2-1 hours in any period of 24 hours commencing at 6

2

a.m.;





(B)21 hours in the 15 hours between the hours of 7 p.m. and 10
p.m. in any period from Monday to Friday inclusive in any
week;

(C)in case the programme service is a Chinese service, 12 hours
in any week; and

(D)in case the programme service is an English service. 6 hours
in any week. (Replaced 72 of 1988 s. 5)

(3) A licence granted under this section shall for the purpose of section 8 of the
Telecommunication Ordinance (Cap. 106) be deemed to be a licence granted by the
Governor in Council under that Ordinance for the purposes of establishing and
operating a television broadcasting service and such associated telecommunication
services ancillary thereto as may be authorized by the Telecommunications
Authority and to authorize the possession or use of any apparatus referred to in
section 8(1)(b) of the Telecommunication Ordinance (Cap. 106) which is used for or
in connection with the operation by the licensee of such broadcasting or other
service. (Amended 7 of 1973 s. 6; 72 of 1988 s. 5)

(3A) Save in so far as a licensee shall not be required to obtain a licence under
the Telecommunication Ordinance (Cap. 106) to establish and operate any
associated telecommunication service ancillary to the operation of a television
broadcasting service he shall comply at all times with the provisions of that
Ordinance which relate to the establishment and operation of a television
broadcasting service and any associated telecommunication service ancillary
thereto. (Added 7 of 1973 s. 6)

(4) Notwithstanding the provisions of subsection (2) and section 11 a licence
may be granted to a company

(a) which is a disqualified person;

(b) in which a disqualified person exercises control; or

(c)which is a disqualified person and in which another disqualified
person exercises control,

and the licence may contain such conditions relating to the disqualified person and
to the control exercised by him as the Governor in Council may see fit to impose
under subsection (2). (Added 33 of 1965 s. 2)

9. Period of validity of licence

(1) A licence shall be-

(a)valid for such period as the Governor in Council may determine by
order; and (Amended 49 of 1987 s. 17)

(b)subject to renewal within that period of validity on such dates as may
be specified in the licence or determined by the Governor in Council
by order.

(2) An order made by the Governor in Council under subsection (1)(a) or (b)
shall be published in the Gazette.

(Replaced 7 of 1973 s. 7)





10. Competence of applicants for licences

A licence may be granted only to a company formed and registered under the
Companies Ordinance (Cap. 32) which complies with the following conditions

(a) the only business carried on by the company shall be-
(i) to establish and operate a television broadcasting service;

(ii) to establish and operate such associated telecommunication
services ancillary to the operation of a television broadcasting
service as may be authorized by the Telecommunications
Authority; and

(iii) to carry on such forms of business as may be directly

1 connected or associated with the foregoing;

(b)the majority of the directors of the company shall each be a person
who is for the time being ordinarily resident in Hong Kong and who
also has been so resident for at least one continuous period of not
less than 7 years; (Amended 80 of 1982 s. 2; 72 of 1988 s. 6)

(c)the majority of the directors required under paragraph (b) shall
participate actively in the direction of the company;

(d)a quorum of any meeting of the directors of the company shall have a
majority of directors each of whom shall be a person who satisfies the
requirements of paragraph (b) as to residence; (Amended 80 of 1982
s. 2; 72 of 1988 s. 6)

(e)the principal officers of the company, including the officer responsible
for the selection of programmes, shall each be a person who satisfies
the requirements of paragraph (b) as to residence; (Amended 80 of
1982 s. 2; 72 of 1988 s. 6)

(f)no disqualified person other than a person whose disqualification was
disclosed in the application for the licence shall exercise control of the
company;

(g)the company shall be prohibited under its articles of association from
registering the transfer of any of its voting shares to the nominee of
any person or company;

(h)the articles of association of the company shall (with the necessary
modifications) include a provision similar to the provisions of section
17D(1) and (2) and provide that the company shall, before registering
the transfer, allotment or issue of any of its voting shares, require to
be furnished to it a declaration signed by or on behalf of the transferee
or the person to whom the shares are to be allotted or issued stating--

(i) whether or not the transferee or such person is the nominee of
any person or of a company or other body corporate;





(ii) in the case the transferee or such person is an individual, whether
or not the person is, on the date of the transfer, allotment or
issue, ordinarily resident in Hong Kong and whether or not the
person has been so resident for at least one continuous period
of 7 years or in case the transferee or such person is a company
or other body corporate, whether or not the body is a company
ordinarily resident in Hong Kong or, where appropriate, is, by
virtue of section 2(2), to be regarded as being a company so
resident;

(iii) if the individual was not so resident or if the company or other
body is not ordinarily resident in Hong Kong or is not, by virtue
of section 2(2), to be regarded as being a company so resident,
whether or not, the transferee or the person to whom the shares
are to be allotted or issued, taking the transfer, allotment or
issue into account, has a relevant interest in 2% or more of the
voting shares of the company and where the transferee or such
person has a relevant interest in that percentage or more, also
stating the number and percentage of such shares in which he
has such interest; (Replaced 72 of 1988 s. 6)

(i)the company shall be empowered under its memorandum of
association to comply fully with the provisions of this Ordinance and
the conditions of its licence:

Provided that paragraph (g) shall not be construed as requiring the company's
articles of association to prohibit the registration of a transfer which relates to any
interest in shares which is an exempt security interest for the purposes of section
17L(1). (Added 72 of 1988 s. 6)

(Replaced 7 of 1973 s. 7)

11. Special conditions of licence

(1) Subject to section 1 11A, a licensee
(a) shall comply at all times with section 10(a) to (i);

(b) (Repealed 72 of 1988 s. 25)

(c)shall refuse to register the allotment, issue or transfer of any voting
shares of the licensee if to do so would, or would be likely to,
contravene section 17B, 17C or 17D; and (Replaced 72 of 1988 s. 7)

(d) (Repealed 72 of 1988 s. 25)

(2) Subject to section IIA, no disqualified person who exercises control of a
licensee company shall increase such control--

(a)by augmenting the percentage of voting shares of the company
which he holds as the beneficial owner thereof; or

(b) as the result of the change of office held by him in the company.





(3) Subject to section 1 11A, a licensee shall not assign its licence to any
person or company.

(Replaced 7 of 1973 s. 7)

11A. Exceptions to special conditions of licence

(1) On the application of a licensee the Governor in Council may, if he is
satisfied that the public interest so requires, approve

(a)an increase in the control exercised by a disqualified person in the
company; or

(b)the introduction of a disqualified person to exercise control of the
company. (Amended 73 of 1980 s. 3)

(2) Without prejudice to any action which may be taken against a licensee
under section 13A, 14 or 37, if because of the registration by the licensee of a
transfer, allotment or issue of shares the requirements of section 17C are
contravened, whether the registration has been effected by the licensee or not, the
licensee shall

(a)forthwith notify the Broadcasting Authority and also the secretary of
the Unified Exchange (within the meaning of the Stock Exchanges
Unification Ordinance (Cap. 361) of the transfer, allotment or issue, as
the case may be, and the contravention; and

(b)refuse to register or, where appropriate, cause to be refused the
registration of, an allotment, issue or transfer of such shares to any
other person, being a company or other body corporate or any other
person who is an unqualified person for the purposes of section 17C,
until such time as a notice in writing is received by the licensee from
the Broadcasting Authority stating that such registrations may be
resumed. (Replaced 72 of 1988 s. 8)

(3) On the application of a licensee the Governor in Council may approve the
assignment of its licence to any other company competent to apply for a licence
subject to such conditions as may be specified by the Governor in Council.

(Added 7 of 1973 s. 7)

11B.Statement of effect of sections 10, 11
and 11A to be made in prospectus

A licensee shall ensure that a clear statement of the effect of sections 10, 11 and
1 11A is made in any prospectus within the meaning of the Companies Ordinance
(Cap. 32) which may be issued at any time in respect of the company.

(Added 7 of 1973 s. 7)





12. Limitations on contracts by licensee

(1) A licensee shall not, except in respect of material for broadcasting for
the supply of which it is contracting, agree to broadcast or to refrain from
broadcasting any material. (Replaced 49 of 1987 s. 17)
(2) Any provision in a contract which requires a licensee to broadcast or
to refrain from broadcasting any material, other than material to be supplied
under the contract, shall not be enforceable against the licensee.

13. Renewal of licence

(1) Not less than 12 months before the date of renewal of a licence the
Broadcasting Authority shall submit recommendations to the Governor in
Council concerning the renewal of the licence and the terms and conditions
subject to which it maybe renewed. (Amended 49 of 1987 s. 17)
(2) Having considered the recommendations submitted under subsec-
tion (1), the Governor in Council may-
(a)renew a licence subject to such terms and conditions as he may
specify; or
(b)renew a licence by means of granting a new licence in substitution
therefor, and in doing so, may-
(i) impose such terms and conditions as he may specify; and
(ii) direct that the period of validity of the new licence shall date
from the date on which the existing licence was granted.
(Replaced 7 of 1973 s. 8)

13A. Suspension of licence

(1) Subject to the provisions of this section, the Broadcasting Authority
may suspend a licence under this Ordinance for such period, being a period not
exceeding 30 days, as is specified in the suspension.
(2) A licence shall only be suspended under this section where, if having
regard to such of the following as is or are appropriate in the particular case,
namely, the number of penalties imposed on the licensee under section 37 since
the issue of the licence, the number of occasions on which, since such issue, the
requirements of this Ordinance (apart from section 37) have, in relation to the
licensee, been contravened, any failure by the licensee, whether by act or
omission, to comply with a condition attached to the licence, or any such failure
to comply with any direction or order applicable to the licensee and given or
made by the Broadcasting Authority either under this Ordinance or under a
provision of a Code of Practice, the Broadcasting Authority is satisfied that the
licence should be suspended.
(3) (a)The following provisions shall apply in relation to the suspension
under this section of a licence-





(i)the Broadcasting Authority shall not suspend the licence unless
and until it has given to the holder of the licence notice in writing
stating that that authority has under consideration the
suspension of the licence and the grounds upon which and any
other reason why such suspension is being considered; and

(ii) the Broadcasting Authority shall consider any representation or
objection made to it as regards the proposed suspension.

(b)The notice referred to in paragraph (a) shall, in addition to stating the
matters required by that paragraph, state that representations and
objections as regards the proposed suspension may be made to the
Broadcasting Authority during such period (being a period of not less
than 28 days beginning on the date of the notice) as shall be specified
in the notice (which representations and objections are hereby
authorized to be made either orally or in writing).

(4) In case the Broadcasting Authority suspends a licence under this section
the holder of the licence may, within the period of 21 days beginning on the date of
the suspension, appeal to the Governor in Council by way of petition against the
suspension.

(5) Where a licence is suspended under this section the suspension shall not
come into force before

(a)in case such an appeal is not taken, the expiration of the period during
which such an appeal may be taken; or

(b)in case such an appeal is taken, the appeal is either withdrawn or
determined.

(Added 72 of 1988 s. 9)

14. Revocation of licence

(1) Where the Governor in Council considers that there may be cause for
revoking a licence he may order the Broadcasting Authority to conduct an inquiry
and submit recommendations concerning the revocation of the licence, and, after
considering such recommendations and such other information, matter and advice as
he may see fit, may revoke the licence. (Amended 49 of 1987s.17)

(2) The revocation of a licence under subsection (1) shall take effect subject to
the notice required to be given under section 16.

(3) Notwithstanding subsections (1) and (2), the Governor in Council may at
any time revoke a licence

(a)for failure by the licensee to pay, within one month after payment
thereof has been demanded, any royalty owing by him or to pay any
financial penalty imposed on him under section 37;





(b)if having regard to such of the following as is or are appropriate in
the particular case, namely, the number of times the licence has been
suspended, the number of penalties imposed on the licensee under
section 37 since the issue of the licence,the number of occasions on
which, since such issue, the requirements of this Ordinance (apart
from section 37) have, in relation to the licensee, been contravened,
any failure by the licensee, whether by act or omission, to comply
with a condition attached to the licence, or any such failure to comply
with any direction or order applicable to the licensee and given or
made by the Broadcasting Authority either under this Ordinance or
under a provision of a Code of Practice, he is satisfied that the licence
should be revoked; (Replaced 72 of 1988 s. 10)

(M) if the licensee--

(i) goes into compulsory liquidation or into voluntary liquidation
other than for the purpose of amalgamation or reconstruction;
or

(ii) makes any assignment to, or composition with, its creditors; or
(Added 7 of 1973 s. 9)

(c)if it appears to him that the security of Hong Kong so requires,
(Amended 49 of 1987 s. 17)

and such revocation shall take effect forthwith or on such day as the Governor in
Council specifies.

15. Inquiry by Broadcasting Authority

(1) When so ordered under section 14(1) the Broadcasting Authority shall
conduct an inquiry for the purpose of making recommendations concerning the
revocation of the licence specified in the order.

(2) The Broadcasting Authority may consider information and matter received
from any source.

(3) The following provisions shall apply in relation to the making of
recommendations under this section

(a)the Broadcasting Authority shall not recommend the revocation of a
licence unless and until it has given to the holder of the licence
notice in writing stating that that authority has under consideration
the making of such a recommendation and the grounds upon which
and any other reason why such a recommendation is being
considered; and

(b)the Broadcasting Authority shall consider any representation or
objection made to it as regards the proposed recommendation.
(Replaced 72 of 1988 s. 11)





(4) The notice referred to in subsection (3) shall, in addition to stating the
matters required by that subsection, state that representations and objections as
regards the proposed recommendation may be made to the Broadcasting Authority
during such period (being a period of not less than 28 days beginning on the date of
the notice) as shall be specified in the notice (which representations and objections
are hereby authorized to be made either orally orinwriting). (Replaced 72 of 1988
s.]])

(5) The Broadcasting Authority shall consider any recommendations submitted
by the licensee and such further information and matter as it may consider necessary
by reason for such representations.

(6) The Broadcasting Authority shall make recommendations to the Governor in
Council.

(Amended 49 of 1987 s. 17)

16. Notice of intended revocation or non-renewal

and power to continue licence in force

(1) Where it is decided not to renew, or to revoke pursuant to section 14(1), a
licence under this Ordinance, the Governor in Council shall cause notice in writing of
the decision to be given to the licensee concerned, and

(a)in case the decision is a decision not to renew a licence, the notice
shall be given at least 18 months prior to the day on which the licence
will expire; and

(b)in case the decision is a decision to revoke a licence, the decision shall
come into effect on the day specified therein which shall be a day
which is not earlier than the 60th day after the date of the decision.
(Replaced 72 of 1988 s. 12)

(2) Where it is necessary for the due compliance with this section the Governor
in Council may extend the term of any licence:

Provided that such extension shall not continue in force any exclusive right to
broadcast.

17. Compulsory purchase of land, buildings, etc.

(1) Where

(a) notice is given under section 16; or

(b) a licence is or has been, or is to be, revoked under section 14(3), the
Governor in Council may direct The Financial Secretary Incorporated to acquire by
purchase any lands (including any interest in land), buildings, installations and
equipment belonging to and used by the licensee for the purposes of his licence.

(2) Not less than 6 months nor more than 12 months after the giving of notice
under section 16 or, where a licence is or has been, or is to be, revoked





under section 14(3), at any time within 12 months after the giving of the direction
under subsection (1), The Financial Secretary Incorporated may acquire by purchase
such parts of the lands, buildings, installations and equipment belonging to and
used by the licensee for the purposes of his licence as may be specified by The
Financial Secretary Incorporated. In the event of the price offered by The Financial
Secretary Incorporated being refused, the price shall be determined by an arbitrator
appointed for the purpose by the Secretary of State.

(3) Where land is purchased under subsection (2), The Financial Secretary
Incorporated shall, within 1 month after the purchase, register in the Land Office by
memorial a declaration that it has been so purchased.

(4) All the property purchased under subsection (2) shall, as the case may be,
vest in The Financial Secretary Incorporated

(a)on the date of the termination of the licence after notice of
revocation;

(b)upon the expiry of the licence after notice of a decision not to renew;

(c)where the licence is revoked under section 14(3), when the revocation
takes effect or when a price is offered by The Financial Secretary
Incorporated, whichever is the later,

and thereupon all rights in such property on the part of the licensee shall cease and
determine.

(5) Nothing in this section shall confer on the licensee any right to require The
Financial Secretary Incorporated to purchase any part of his lands, buildings,
installations or equipment.

PART IIIA

SHAREHOLDING AND OTHER RESTRICTIONS AND
RELATED MATTERS

17A. Licensees prohibited from holding certain shares, etc.

(1) A licensee shall not hold, either directly or indirectly, shares in any company
which

(a)carries on any business or other activity which, in the opinion of the
Broadcasting Authority, is not directly connected with television
broadcasting; or

(b)is a company less than 51 % of the issued shares of which are
registered in, and only in, the name of the licensee or a subsidiary
company of the licensee and where management is not under the
control of the licensee.

(2) A licensee shall not acquire an interest in any other company unless the
acquisition has previously been approved by the Broadcasting Authority.





17B.*

17C. Aggregate of certain voting shares
of licensee not to exceed 49%

(1) The aggregate of the voting share of a licensee each of which is a voting
share to which this section applies shall not exceed 49% of the total number of
voting shares of the licensee.

(2) This section applies to a voting share of a licensee

(a)whose relevant entry in the licensee's register contains the name of
any person who is an unqualified person for the purposes of this
section; and

(b)in relation to which the voting right carried by the share is for the
time being exercisable as regards any question or other matter
whatsoever which may be determined by a poll at any general
meeting of the licensee.

(3) A person shall be an unqualified person for the purposes of this section if

(a)in case the person is an individual, he either is not for the time being
ordinarily resident in Hong Kong or has not been so resident for at
least one continuous period of not less than 7 years;

(b)in the case the person is a company or other body corporate, the
body is not a company ordinarily resident in Hong Kong.

17D. 10% holding limit

(1) Subject to section 17G, the following shall not hold a relevant interest in
more than 10% of the voting shares of a licensee

(a)an individual person who either is not for the time being ordinarily
resident in Hong Kong or has not been so resident for at least one
continuous period of not less than 7 years; and

(b)a company or other body corporate which is not either a company
ordinarily resident in Hong Kong or a body corporate which, by
virtue of section 2(2), is to be regarded as being a company so
resident.

(2) Subject to section 17G(6), where for the time being a person to whom the
restriction in subsection (1) applies has a relevant interest in more than 10% of the
voting shares of a licensee, notwithstanding anything contained in the articles of
association of the licensee or any provision of the laws of Hong Kong apart from
this subsection, he shall, as regards the licensee, be qualified, and be qualified only,
to exercise, or cause to be exercised, in relation to any question

To be added by 72 of 1988 s.
14.





or matter arising at a general meeting of the licensee, voting rights which do not
exceed in their aggregate the number of voting rights which 10% of the voting
shares of the licensee carry.

(3) Where

(a)a person has a relevant interest in 35% or more of the shares of a
company or other body corporate whether incorporated or otherwise
formed in or outside Hong Kong; and

(b)the company or other body corporate or a subsidiary company
thereof, has a relevant interest in 2% or more of the voting shares of a
licensee,

then for the purposes only of subsection (1) the person shall be regarded as having
a relevant interest in voting shares of the licensee (in addition to any other such
interest which he has either apart from this subsection or by virtue of another
application in relation to him of this subsection) and the number of those shares in
which he shall be regarded by this subsection as having a relevant interest shall be
the number which bears the same proportion to the number of voting shares of the
licensee in which the company or other body corporate mentioned in paragraph (b)
has a relevant interest as the number of shares, being shares mentioned in paragraph
(a) and as regards which he has a relevant interest, bears to the aggregate of the
voting shares issued by the company mentioned in paragraph (a).

(4) Where a person has control of a company, whether directly or indirectly,
and that company or a subsidiary company thereof has a relevant interest in voting
shares of a licensee, then for the purposes of subsection (1) (and for no other
purpose) the person shall be regarded as having, to the exclusion of the company or
the subsidiary company, as may be appropriate, a relevant interest in those shares.

(5) Where 2 or more persons jointly have a relevant interest in voting shares of
a licensee and one or more (but not all) of those persons either is or are not for the
time being resident in Hong Kong or has or have not been so resident for at least
one continuous period of not less than 7 years, for the purposes only of this section
the other such person or, where appropriate, each of the other such persons shall be
regarded as being restricted under subsection (1).

(6) Without limiting the generality of subsection (4), for the purposes only of
that subsection a person shall be regarded as having control of a company if the
control is exercisable through a nominee or results from, or is exercised by means of,
a trust, agreement, arrangement, understanding or practice and whether or not the
means has legal or equitable force or is based on legal or equitable rights.

(7) Subsection (1) shall not be construed as affecting the ability of a person to
transfer a relevant interest in a voting share of a licensee pursuant to the
requirements of a notice under section UG(7).





certain information as regards transfers of its
shares and certain other particulars

(1) If on the commencement of this section a company or other body corporate
or any other person to whom the restriction in section 17D applies has a relevant
interest in 2% or more of the voting shares of a licensee, the licensee shall, as soon
as may be, give to the Broadcasting Authority in writing the following particulars,
namely, the name of the person, the number of the shares registered in his name on
such commencement, and the percentage of the issued voting shares of the licensee
which those shares then constituted.

(2) If-

(a) (i) voting shares of a licensee are allotted or issued (whether severally
or jointly); or

(ii) an application is made to register (whether severally or jointly) a
transfer of such voting shares,

to a company or other body corporate or any other person to whom
the restriction in section 17D applies (in this subsection
subsequently referred to as 'the relevant person'); and

(b)either the shares allotted or issued or to which the application relates,
at the time of the allotment or issue or at the time of the application, in
themselves, or those shares together with other such voting shares
registered (whether severally or jointly) in the licensee's register in
the name of the relevant person, when added together, comprise

(i)at least 2% of, but less than 4% of, the voting shares of the
licensee; or

(ii) at least 4% of, but less than 6% of, such voting shares; or (iii)
at least 6% of, but less than 8% of, such voting shares; or (iv) 8
% or more of such voting shares; and

(c)by reason only of the allotment, issue or transfer, as may be
appropriate, the shares to which the allotment, issue or application
relates or, as may be appropriate, the aggregate referred to paragraph
(b) comes within a limit specified in paragraph (b)(i), (ii), (iii) or (iv),

the licensee, whether or not, in the case of such an application, the application has
been made to him, shall, as soon as may be, give to the Broadcasting Authority in
writing the particulars mentioned in subsection (4) and the allotment or issue or the
transfer to which the application relates shall not be registered in the licensee's
register unless and until the licensee receives a notice in writing from the
Broadcasting Authority to the effect that the registration has the approval of that
authority.





(3) Where-

(a)particulars have been given under subsection (2) to the Broadcasting
Authority as regards an application described in that subsection
(which application is in this subsection subsequently referred to as
'the earlier application'); and

(b)an application is received to register the transfer of voting shares of
the licensee who, as regards the earlier application, was the relevant
licensee, and the person by whom the shares are transferred was
(whether he acted on his own or jointly with others), in relation to the
earlier application, the relevant person within the meaning of
subsection (2); and

(e)by reason only of the transfer either such person has no holding of
such voting shares or the holding or combined holdings of such
shares which caused the requirements of subsection (2) to apply is or
are reduced so that the holding or, where appropriate, the holdings
together, either--

(i) come within none of the limits specified in subsection (2)(b); or

(ii) come within any particular such limit, the licensee, whether or not
the application was made to him, shall, as soon as may be, give to the Broadcasting
Authority in writing the particulars mentioned in subsection (4).

(4) The particulars referred to in subsection (2) or (3) are-

(a)in relation to an allotment, issue or application referred to in
subsection (2)

(i) the name of the relevant person within the meaning of that
subsection;

(ii) the total number of voting shares of the relevant licensee which
will stand registered in the name of such relevant person
(whether severally or jointly) in that licensee's register
immediately after registration of the shares allotted, issued or
transferred should that registration have the approval of the
Broadcasting Authority; and

(b) in relation to an application mentioned in subsection (3)--

(i) the name of the person referred to in. subsection (3)(b); and

(ii)the total number of voting shares (if any) of the relevant licensee
held by the person referred to in subparagraph (i) immediately
after registration of the transfer; and

(c)in relation to any application mentioned in this section, the
percentage (if any) of the issued voting shares of the relevant
licensee which the shares mentioned in paragraph (a)(ii) or (b)(ii), as
may be appropriate, comprise.





(5) Where

(a)a licensee sends to the Broadcasting Authority by registered post
particulars required to be given to that authority by subsection (2);
and

(b)within the period of 21 days, beginning on the day on which the
particulars were so posted, the Broadcasting Authority does not give
notice to the licensee of its decision as regards giving an approval for
the purposes of that subsection,

for the purposes of this section, a decision by the Broadcasting Authority to give
the approval shall be regarded as having been made on the last day of that period.

(6) (a)Particulars contained in a declaration made for the purposes of this
section shall be confidential and apart from those it is appropriate to
enter in a licensee's register or in a register kept for the purposes of
this Ordinance by a licensee (if the licensee thinks fit to keep such a
register or to enter therein such particulars) shall neither be entered in
any register, other than a register kept for the purposes of this
Ordinance by the Broadcasting Authority (if the Broadcasting
Authority thinks fit either to keep such a register or to enter therein
such particulars), nor be disclosed either by the person by whom they
are received or by any employee of that person.

(b)Paragraph (a) shall not be construed as prohibiting the disclosure of
information

(i) to the Broadcasting Authority;

(ii) to the Secretary for Recreation and Culture; or (Amended L.N.
242 of 1989)

(iii) with a view to the institution of or otherwise for the purpose of or
in connection with legal proceedings.

to distribute certain documents

(1) (a)Subject to subsection (3), for the purpose of enabling section 17C(1)
to be complied with, the Broadcasting Authority may, at any time
within the period of 3 months beginning on the commencement of
this section, by a direction in writing, require a licensee, within such
period as is specified in the direction (being a period of not less than
90 days beginning on the date of the direction), to

(i) distribute, within such period as is so specified (being a period of
not less than 21 days beginning on such date), to each person
whose name stood entered in the licensee's





register immediately before such commencement a copy of a
document the form and contents of which shall be specified
in the direction; and
(ii)as regards the direction, comply with the following
requirements of this section.
(b)Without limiting the generality of paragraph (a), a document to
which a direction under this section relates shall have attached
thereto a declaration and contain instructions the form and terms
of which shall be specified in the direction.
(2) In case the Broadcasting Authority gives a direction under this
section, the following provisions shall apply-
(a)the licensee to whom the direction is given shall comply with the
direction;
(b)each of the persons to whom the document specified in the
direction is distributed shall complete the declaration attached to
the document and return it to such licensee so that it is received
by him not later than the date specified in that regard in the
instructions in the document.
(3) Where 2 or more names are recorded in an entry in a licensee's
register, the requirements of a direction under this section, in so far as they
require the licensee concerned to distribute a document, shall be regarded as
having been complied with as regards those names if such licensee sends a
document specified in the direction to one of the persons whose names are so
recorded.
(4) Where a document is distributed by a licensee pursuant to a direction
under this section and-
(a)the declaration attached thereto is not returned to and received
by the licensee concerned on or before the date specified in that
regard in the instructions in the document; or
(b)the document or the form of declaration is duly returned but
in relation to it either no declaration is made or there is a
declaration which is not properly made,
any voting rights attached to shares of the licensee and in relation to which the
person to whom the document was distributed is for the time being registered
(whether solely or jointly) in the licensee's register shall not be exercisable until
a declaration similar to that which was attached to the document is properly
made by the person or persons concerned and received by the licensee.
(5) (a)As soon as may be after the date specified under this section for
the receipt by a licensee of documents distributed by the licensee
pursuant to a direction under this section, the licensee shall
furnish to the Broadcasting Authority the following-
(i) the particulars contained in the declarations required by the
direction to be attached to such documents and which have





been properly made by the persons concerned and duly
returned to the licensee; and

(ii) a statement of the number of such forms of declaration which
were so distributed but were either not so made or so returned,
together with a statement of the number of the licensee's voting
shares as regards which the provisions of subsection (4) apply.

(b)Where the provisions of subsection (4) cease to apply to voting
rights, the licensee shall inform the Broadcasting Authority in writing
of the cesser and also the total number of the voting shares of the
licensee which carry in their aggregate the voting rights to which the
cesser relates.

(c)The Broadcasting Authority may give to a licensee a direction in
writing, specifying the manner in which the obligations imposed on
the licensee by paragraph (b) are to be discharged, and in case the
Broadcasting Authority gives such a direction, the licensee
concerned shall comply with it.

(6) Where for the time being, as regards a licensee
(a) the aggregate specified in section 17C(1) is exceeded; and

(b)by virtue of subsection (4) voting rights attached to shares of the
licensee are not exercisable; and

(c)a declaration of the kind last referred to in subsection (4) is received
by the licensee,

the voting rights shall begin and continue to become exercisable in, and only in,
such manner as will enable the requirements of section 17C(1) to be complied with
at all times and the licensee's register shall be dealt with accordingly.

17G. Permission for retention of certain shares, etc.

(1) Where-

(a)a company or other body corporate or any other person to whom the
restriction in section 17D applies holds voting shares of a licensee;
and

(b)an application for registration in the licensee's register of the transfer
to him of the shares was received on or before 24 November 1987;
and

(c)because of the number of shares held by him the requirements of
section 17D are contravened,

if, but only if, he has previously made as regards the shares a declaration referred to
in section 17F(2)(b) he may, within the period of 6 months beginning on the day on
which section 17D came into operation, apply in accordance with subsection (3) to
the Broadcasting Authority in writing for a permission under this section.





(2) Where, within the period mentioned in subsection (1), a person who
is the holder of shares described in that subsection dies, his personal
representative may, within the period of 6 months beginning on the day on
which representation is raised in Hong Kong to the person's estate (and
whether the period mentioned in subsection (1) has expired or not), apply in
accordance with subsection (3) to the Broadcasting Authority for a permission
under this section.
(3) An application under this section shall be made through the relevant
licensee and in case a licensee receives such an application, he shall, as soon as
may be, forward the application to the Broadcasting Authority.
(4) Where an application is made under this section to the Broadcasting
Authority, the applicant shall, by way of a declaration signed by him or on his
behalf, disclose to that authority the number of voting shares of the relevant
licensee in which he has a relevant interest, together with the particulars which
would be required by section 17H to be so declared were the application one to
register a transfer of the shares, and that authority, having considered the
application, may-
(a)grant a permission under this section as regards all of such shares
which were acquired by the applicant, or where appropriate,
the relevant deceased person, on or before 24 November 1987
and in which, but for the permission, the applicant would
continue to have a relevant interest in contravention of the
requirements of section 17D (which shares shall be referred
to in the permission by reference to a certificate number or
otherwise); or
(b)grant such a permission as regards some only of the shares
described in paragraph (a) and specify in the permission, by
reference to a certificate number or otherwise, the particular
shares to which the permission relates; or
(c) refuse to grant a permission.
(5) (a)Where the Broadcasting Authority gives a permission under
subsection (4), it may declare that paragraph (b) is to apply to all
or any of the shares to which the permission relates.
(b)Where a declaration under paragraph (a) is made by the
Broadcasting Authority, subsection (6)(b) shall not apply as
regards any share to which the declaration relates.
(6) (a)Where a permission under this section is granted by the
Broadcasting Authority, then for so long, but only for so long, as
the applicant for the permission continues to have a relevant
interest in a share to which the permission relates, this Ordinance
shall not be regarded as being contravened in so far, and only in
so far, as it applies to the share or to the applicant's having a
relevant interest in the share.





(b)Without affecting the generality of paragraph (a) but subject to
subsection (5)(b), section 17B(2) shall not have effect in relation to
the exercise of any voting right attached to a share to which a
permission under this section relates.

(7) (a)Where a person has a relevant interest in voting shares of a licensee
in contravention of the requirements of section 17D and the person is
registered in the licensee's register as the holder of the shares
(whether solely or jointly), the Broadcasting Authority may serve on
the person a notice in writing requiring the person, within a period
specified in the notice and beginning on the date thereof (being a
period of not less than 60 days), to transfer or otherwise dispose of
so many of the shares as are necessary to effect a cesser of the
contravention.

(b) Where-

(i) a licensee holds shares in contravention of section 17A(1) or as a
result of acquiring an interest in a company for which an
approval was required by section 17A(2) but was not obtained;
or

(ii) a person to whom the restriction in section 17B(1)(a) applies has
an interest in any voting shares of a licensee and the person is
registered in the licensee's register as the holder of the shares,

the Broadcasting Authority may serve on the licensee or other
person, as may be appropriate, a notice in writing requiring the
person, within a period specified in accordance with the requirements
in that regard in paragraph (a), to transfer or otherwise dispose of the
shares.

(8) (a)Where a notice under subsection (7) is served on a person, the
person may apply to the Broadcasting Authority for an extension, or
a further extension, of the period within which the requirements of the
notice are to be complied with.

(b)Where an application is made under this subsection the Broadcasting
Authority shall only grant an extension or further extension if it is
satisfied that, having regard to the circumstances of the case, the
application is reasonable.

(9) Where a notice under subsection (7) is served on a person, subject to
subsection (8), the person shall comply with the requirements of the notice.

to register allotments, etc.

(1) Where an application is made to register an allotment, issue or transfer of
voting shares of a licensee, the following provisions shall apply





(a)the person making the application shall deliver with the application a
declaration signed by him or on his behalf or, in case the applicant is
a company or other body corporate, signed by a director or similar
officer of the body, stating whether or not all of the shares have been
allotted, issued or transferred to a nominee, and in case those shares,
or any of them, have been so allotted, issued or transferred, the
declaration shall also declare the name of the person or persons
entitled to the relevant interest in the shares so allotted, issued or
transferred; and

(b)in case the person or persons to whom the shares have been allotted,
issued or transferred is an individual or are individuals, the
declaration shall also declare whether that person or each of those
persons has been ordinarily resident in Hong Kong for at least one
continuous period of not less than 7 years and whether he or each of
them, as may be appropriate, is ordinarily resident in Hong Kong on
the date of the declaration; and

(c)in case the person making the application is a company or other body
corporate, the aforesaid declaration shall state whether the body
corporate is a company ordinarily resident in Hong Kong or, where
appropriate, it is, by virtue of section 2(2), to be regarded as being a
company so resident; and

(d)where the shares have been transferred to a person who is by virtue
of section 17B(3) to be regarded as having a relevant interest in
voting shares of a licensee, the declaration referred to in paragraph
(a) shall state the number of voting shares of the licensee in which
the person is, by virtue of section 17D(3), to be regarded as having a
relevant interest; and

(e)where the shares have been transferred to a person described in
section 17D(4), the declaration so referred to shall also state the name
of the company or subsidiary company in whose shares of the
relevant licensee, by virtue of that section, the person is for the
purposes of this Ordinance to be regarded as having a relevant
interest together with the number of those shares.

(2) The Governor in Council may by regulations provide that, in addition to the
particulars required to be given by any of the provisions of this section, particulars
specified in the regulations shall be given in writing to the person specified in the
regulations by the person from whom any application described in this section is
received, or shall be so given as regards a particular application if a requirement in
that behalf is made as regards the application in writing by a person so specified,
and such particulars may be specified generally in relation to applications so
described or in relation to applications so described which are of a particular class or
description specified in the regulations.





and content of licensee's register

(1) A licensee's register shall be in such form and contain such particulars as are
specified by the Broadcasting Authority in a notice published for the purposes of
this section in the Gazette and not withdrawn.

(2) The requirements of this section are in addition to, and not in substitution
for, the requirements of section 95 of the Companies Ordinance (Cap. 32).

17J. Provisions regarding certain entries
in licensees' registers

Unless the contrary appears either from a declaration referred to in section
17F(2)(b) or for some other reason, then for the purposes only of sections 17D and
17E, the following provisions shall apply in relation to any entry, other than an entry
which relates to an exempt security interest for the purposes of section l7L(1) which
was in a licensee's register immediately before the commencement of this section

(a)the person whose name appears in the entry shall be regarded as
having a relevant interest in each of the shares to which the entry
relates and for so long as his name continues after such
commencement so to appear as regards any such share he shall be
regarded as having a relevant interest in that share; and

(b)in case the names of 2 or more persons appear in the entry, each of
those shall be regarded as being solely entitled to a relevant interest
in each of the shares to which the entry relates.

17K. Relevant interest

(1) Subject to section 17L, the following provisions of this section shall be
applied to determine, for the purposes of this Ordinance, whether or not a person
has a relevant interest in a share of a licensee or other company.

(2) Any reference in this Ordinance to a relevant interest, in relation to shares, is
to be read as including a reference to an interest of any kind whatsoever in the
shares; and accordingly there are to be disregarded any restraint or restriction to
which the exercise of any right attached to the interest is or may be subject.

(3) Where property is held on trust and an interest in shares is comprised in the
property, a beneficiary of the trust who, apart from this subsection, does not have
an interest in the shares is, for the purposes of this Ordinance, to be taken as having
a relevant interest in them.

(4) For purposes of this Ordinance, a person is taken to have a relevant interest
in shares if





(a)he enters into a contract for their purchase by him (whether for cash
or other consideration); or

(b)not being the registered holder, he is entitled to exercise any right
conferred by the holding of the shares or is entitled to control the
exercises of any such right.

(5) For the purposes of this Ordinance, a person is taken to have a relevant
interest in shares if, otherwise than by virtue of having an interest under a trust

(a)he has a right to call for delivery of the shares to himself or to his
order;or

(b)he has a right to acquire an interest in shares or is under an
obligation to take an interest in shares,

whether in any case the right or obligation is conditional or absolute.

(6) For the purpose of subsection (4)(b), a person shall be regarded as being
entitled to exercise or control the exercise of any right conferred by the holding of
shares if he

(a)has a right (whether subject to conditions or not) the exercise of
which would make him so entitled; or

(b)is under an obligation (whether so subject or not) the fulfilment of
which would make him so entitled.

(7) It is immaterial for the purposes of this Ordinance that shares in which a
person has an interest are unidentifiable.

17L. Interests to be disregarded

(1) In determining for the purposes of this Ordinance whether or not a person
has a relevant interest in a share the following interests shall be disregarded

(a)where property is held on trust and an interest in shares is comprised
in that property, an interest in reversion or remainder or of a bare
trustee or a custodian trustee, and any discretionary interest;

(b) an interest which subsists by virtue of-

(i)any unit trust or mutual fund corporation authorized under
section 15 of the Securities Ordinance (Cap. 333);

(ii)a charitable scheme made by order of any court of competent
jurisdiction; or

(iii) the vesting of a deceased's estate in any judicial officer between
the time of death and the grant of letters of administration;

(c)an interest for the life of himself or another of a person under a
settlement where the property comprised in the settlement consists of
or includes shares, and the conditions mentioned in subsection (3)
are satisfied;

(d) an exempt security interest;





(e)an interest in shares held by the Registrar of the Supreme Court; or
such interests, or interests of such a class or description, as may be
prescribed for the purposes of this paragraph by regulations made by
the Governor in Council.

(2) A person is not by virtue of section 17K(4)(b) to be taken as having a
relevant interest in shares by reason only of the fact that he has been appointed a
proxy to vote at a specified meeting of a licensee or other company or of any class of
its members and at any adjournment of that meeting, or has been appointed by a
corporation to act as its representative at any meeting of a licensee or other
company or of any class of its members.

(3) The conditions referred to in subsection (1)(c) are, in relation to a settlement--

(a) that it is irrevocable; and

(b)that the settlor has no interest in any income arising under, or
property comprised in, the settlement.

(4) An interest in shares is an exempt security interest for the purpose of
subsection (1) if it is held

(a) by a person who is-

(i) a bank or deposit-taking company licensed or registered under
the Banking Ordinance (Cap. 155);

(ii) an insurer who is authorized within the meaning of the Insurance
Companies Ordinance (Cap. 41); or

(iii)a stockbroker, an exempt dealer or a registered dealer within the
meaning of the Securities Ordinance(Cap. 333); and

(b)by way of security only for the purposes of a transaction entered into
in the ordinary course of his business as such a person.

(5) For the purposes of subsection (1) a person shall not be held not to be a
bare trustee in respect of any property by reason only

(a)that the person for whose benefit the property is held is not
absolutely entitled thereto as against the trustee by reason only that
he is an infant or is a person under a disability; or

(b)that the trustee has the right to resort to the property to satisfy any
outstanding charge or lien or for the payment of any duty, tax, cost or
other outgoing.

17M. Declarations---offence

A person who, in purported compliance with any obligation to make a
declaration to which he is subject by virtue of this Ordinance, gives any information
which he knows to be false in a material particular or recklessly gives information
which is so false commits an offence and is liable on summary conviction thereof to
a fine of $100,000.

(Part IIIA added 72 of 1988 s. 14)





PART IV

BROADCASTING TECHNICAL CONDITIONS

18. Transmission requirements

(1) A licensee shall, within such time as may be specified in its licence,
broadcast in such a manner as to enable its transmissions to be received to the
satisfaction of the Broadcasting Authority in all parts of Hong Kong.

(2) Notwithstanding subsection (1), the Broadcasting Authority may, on the
application of a licensee, exempt the licensee from complying with subsection (1) in
respect of broadcasts to any specified area of Hong Kong during any period
specified by the Broadcasting Authority.

(3) A licensee shall publish, in such manner as the Broadcasting Authority may
direct, notification of the commencement dates for broadcasting its programmes and
the areas of Hong Kong within which its transmissions may be received
satisfactorily.

(4) (a)A licensee shall, and shall only, transmit a broadcast in accordance
with a transmission plan which for the time being is prepared for the
purposes of this subsection by the Telecommunications Authority.

(b)A plan referred to in paragraph (a) may in particular include all or any
of the following, namely, frequencies on, or within the limits of which,
television broadcasts may be transmitted, the power or the maximum
or minimum power at which such broadcasts are to be transmitted,
provisions relating to the location of transmitters used to transmit
such broadcasts (including provisions prohibiting the location of
such transmitters in specified places or in places which are of a
specified class or description), provisions requiring or prohibiting the
use of specified antenna radiation patterns in the transmission either
of such broadcasts in general or of such broadcasts which are of a
specified class or description and provisions specifying the height or
the maximum or minimum height of antennae used in such
transmission. (Replaced 72 of 1988 s. 15)

(5) A licensee shall not activate, energise or otherwise operate any transmitter
or antenna system otherwise than in accordance with a condition attached to the
relevant licence. (Added 72 of 1988 s. 15)

(6) A condition which relates to the matters,referred to in subsection (5) shall
not be attached to a licence unless the terms of the condition have previously been
approved of by the Telecommunications Authority, and approvals under this
subsection may be given by the Telecommunications Authority either as regards
transmitters or antenna systems generally or as





regards transmitters or antenna systems which are of a particular class or
description specified in the approval. (Added 72 of 1988 s. 15)

(Replaced 7of 1973 s. 10. Amended49of 1987s.17)

19. Directions in respect of transmission requirements

(1) Without prejudice to section 18, the Broadcasting Authority may direct any
licensee to submit to it in writing, within such time as it may specify, the licensee's
proposals to enable its broadcasts to be received in any area of Hong Kong
specified by the Broadcasting Authority.

(2) The Broadcasting Authority may, after consideration of any proposals
submitted by a licensee under subsection (1), direct the licensee to ensure that its
broadcasts are capable of being received, to the satisfaction of the Broadcasting
Authority, within such area and within such time as the Broadcasting Authority may
specify.

(Replaced 49 of 1987 s. 17)

20. Technical requirements

(1) The Governor in Council may by regulation provide for the technical
requirements with which a licensee shall comply in broadcasting.

(2) The Broadcasting Authority may, on the advice of the Telecommunications
Authority, issue from time to time Codes of Practice relating to the technical
standards of broadcasts required to be maintained by licensees. (Replaced 7of 1973
s.]]. Amended49 of 1987s.17)

20A. Transmission facilities

(1) The Broadcasting Authority may direct any licensee

(a)to provide such broadcast transmission equipment, buildings and
other facilities as the Broadcasting Authority may specify at each
transmitter or translator site from which the licensee is transmitting,
or intends to transmit, its broadcasts;

(b)to co-ordinate and co-operate. in such manner as the Broadcasting
Authority may specify, with any other licensee or any other person
specified by the Broadcasting Authority in the use of any broadcast
transmission equipment, buildings or other facilities provided at any
transmitter or translator site, regardless of whether the broadcast
transmission equipment, buildings or other facilities have been
provided, or are intended to be provided, by the licensee or any other
licensee or any other person specified by the Broadcasting
Authority.

(2) A licensee may be required





(a)by a direction given by the Broadcasting Authority under subsection
(1); or

(b) by a term or condition inserted in its licence for that purpose, to
contribute to the expenses incurred by any other licensee in connection with the
development, installation and maintenance of any shared transmission facility.

(Added 7of 1973 s. 12. Amended49 of 1987s.17)

20B. 'Must carry' provision

(1) Notwithstanding anything otherwise contained in this Ordinance but
subject to the provisions of this section, the Governor in Council may by a direction
in writing require a licensee

(a)to connect to the telecommunications installation of the licensee or
permit the connection to such installation of, and when so connected
keep so connected, such other telecommunications installation or
apparatus (not being an installation or apparatus owned by another
licensee), or both, as is or are specified in the direction; and

(b) (i)to permit the transmission by means, either wholly or partly, of
the licensee's telecommunications installation for reception in 2
or more places in Hong Kong, of sound or visual images, or both,
which

(A)is or are supplied by any other person, other than a licensee,
for such transmission; and

(B)is or are specified in the licence or is or are of a description
so specified; or

(ii) to supply for transmission by means, either wholly or partly, of
the telecommunications installation of any other person, other
than a licensee, so specified and for such reception, sounds or
visual images, or both, which

(A) is or are so supplied by the licensee; and

(B) is or are either so specified or of such a description.

(2) Where the Governor in Council gives a direction under this section, the
licensee to whom it is given shall comply with the requirements of the direction until
it is withdrawn.

(3) (a)Where it is proposed to give a direction under this section, the
licensee to whom it is proposed to give the direction shall be given
notice in writing of the proposed direction and of its terms.

(b)The notice referred to in paragraph (a) shall, in addition to stating the
matters required by that paragraph, state that representations and
objections as regards the proposed direction may be made to the
Governor in Council during such period





(being a period of not less than 28 days beginning on the date
of the notice) as shall be specified in the notice (which
representations and objections are hereby authorized to be made
in writing).
(4) A copy of any notice under subsection (1) shall be sent to the
Broadcasting Authority and the Broadcasting Authority may, within the period
specified in that regard in the notice, make representations described in
subsection (3)(b).
(5) Where a notice under subsection (3) has been given-
(a)in case no representations or objections are made under this
section as regards the direction, the terms of the direction to
which the notice relates shall when given be the same as those
proposed, or may, with the agreement of the licensee concemed
and the Broadcasting Authority, differ from those proposed; or
(b)in case such representations or objections are made, the terms of
such direction may when given so differ to, and only to, an extent
which is appropriate having regard to the representations or
objections or any one or more of them.
(6) Where a direction is given under this section, the direction may
provide for the payment (specifying their amount or specifying a scale by
reference to which their amount is to be calculated) of fees to the licensee
concerned in relation to any thing done by him to comply with a requirement of
the direction, and such fee (if any) shall be payable either by a person specified
in the direction or, as the case may be, by a person who is of a class or
description so specified. (Added 72 of 1988 s. 16)

21. Inspection and testing of technical equipment

(1) The Telecommunications Authority or any person authorized by him
in this behalf may, at any reasonable time, inspect and test any equipment used,
or intended to be used, by a licensee for the production or transmission of any
television programme for the purpose of ascertaining whether or not the
licensee is complying at all times with the technical requirements of this
Ordinance, any regulations made thereunder, any Code of Practice and the
conditions of its licence in respect of the production and transmission of
television programmes.
(2) The directors, employees and servants of a licensee shall, for the
purpose of any inspection or test under subsection (1)-
(a)make available on request to the Telecommunications Authority
or any person authorized by him for the purpose of the
inspection or test and permit to be inspected and tested any part
of its equipment used, or intended to be used, for the production
or transmission of any television programme; and





(b)assist the Telecommunications Authority or such authorized
person in carrying out the inspection or test in any manner
specified by him; and
(c)answer directly and truthfully any questions put to them by the
Telecommunications Authority or such authorized person.
(3) The decision of the Telecommunications Authority that a licensee is
failing, or has failed at any time, to comply with any technical requirement of
this Ordinance, any regulation made thereunder, any Code of Practice or any
condition of his licence in respect of the production or transmission of
television programmes shall be final.
(4) Nothing in subsection (2) shall oblige any person to answer any
question put to him under that subsection which might incriminate him or
which he is unable to answer from his own knowledge or from information
reasonably available to him.
(Replaced 7 of 1973 s. 13)

PART V

PROGRAMMES

22. Broadcast services

(1) A licensee shall broadcast programme services in such language or
languages as may be specified in its licence.
(2) Each programme service shall be broadcast for not less than 5 hours
during each day.
(Replaced 7 of 1973 s. 13)

23. Advertising

(1) Subject to subsection (2), a licensee may broadcast advertising
material:
Provided that in relation to a particular programme service-
(a) no period during which such material (other than classified
advertising) is broadcast shall exceed-
(i) in case the material is broadcast during a break within a
programme, the maximum period specified as regards such
breaks in a Code of Practice issued under section 28 and
which applies for the time being to the service; or
(ii) in case the material is broadcast during an interval between 2
programmes, the maximum period specified as regards such
intervals in such a Code of Practice which so applies,





and in addition to the foregoing, in case there are 2 or more such
periods in any clock hour, they shall not in the aggregate exceed 10
minutes;

(b)where there are 2 or more such periods in any 24 hours beginning at 6
a.m. on any day, they shall not in the aggregate be greater than 10%
of the whole of the time during which there is in the 24 hours any
broadcast on that service;

(c)no classified advertisement is broadcast at any time which is not
between the hours of 2 a.m. and 12 noon and when such an
advertisement is broadcast, the limits (if any) specified under
subsection (2)(b) which are for the time being in force and are
applicable to the particular case are complied with. (Replaced 72 of
1988 s. 17)

(2) (a)Where the Broadcasting Authority is satisfied that to comply with the
requirements of subsection (1) would adversely affect standards of
presentation of a particular programme or of programmes of a
particular class or description on a particular programme service, it
may, as regards that service, permit a limit specified in subsection (1)
to be exceeded in a manner specified in the permission.

(b)The Broadcasting Authority may specify limits for the purposes of
subsection (1)(c) and such limits may relate to classified
advertisements generally or to classified advertisements which are of
a class or description specified by that authority.

(c)The Broadcasting Authority may, by a notice in writing given to the
licensee concerned, withdraw a permission given under this
subsection.

(d)Where the Broadcasting Authority gives a permission under this
subsection, then for so long as the permission remains in force
subsection (1) shall, in relation to the programme service to which the
permission relates, be construed and have effect subject to the terms
of the permission. (Replaced 72 of 1988s.17)

(3) In addition to the broadcasting of advertising material permitted by
subsection (1), a licensee may broadcast not more than 2 advertising magazine
programmes in any 7 day period and each such programme shall not exceed 15
minutes in duration.

(4) A licensee shall publish, in such manner as the Broadcasting Authority may
direct, the charges for broadcasting advertising material. (Amended 49 of 1987 s.
17)

(5) In broadcasting advertising material a licensee shall comply with any
regulations made by the Governor in Council and with any Code of Practice and the
Undesirable Medical Advertisements Ordinance (Cap. 23 1) and any





other Ordinance controlling or regulating advertising shall apply to such broadcasts.
(Amended 7 of 1973 s. 14)

(6) In this section 'clock hour' means a period of 60 minutes beginning on any
hour. (Added 72 of 1988s.17)

24. Programmes for schools

The programmes broadcast by licensees under section 22 shall include such
programmes for schools, supplied by the Government, as may be required by

the Broadcasting Authority.
(Replaced 7 of 1973 s. 15.Amended 49of 1987s.17)

25. (Repealed 72 of 1988 s. 25)

25A. General requirements in respect
of Government programmes

(1) Any material required under section 24 or pursuant to a condition attached
to a licence to be broadcast by a licensee shall be broadcast without charge to the
Government. (Replaced 72 of 1988 s. 18)

(2) A licensee shall, on the request of the Broadcasting Authority and on
receipt of reasonable notice, make available to the Government without charge any
part of its equipment specified by the Broadcasting Authority for the purpose of
broadcasting material required to be broadcast under section 24 or pursuant to a
condition attached to the relevant licence.

(3) Where the Broadcasting Authority makes a requirement under section 24, or
subsection (2), or pursuant to a condition attached to a licence, of more than one
licensee, that authority shall ensure that, so far as is reasonably practicable, as
between the licensees the obligations are imposed equitably. (Replaced 72 of 1988 s.
18)

(4) Nothing shall prevent a licensee, when broadcasting any material which it is
required under section 24 or pursuant to a condition attached to a licence to
broadcast, from broadcasting advertising material in accordance with section 23.

(Added 7of 1973 s. 15. Amended49of]987s.17;72 of 1988s.18)

26. Standards of programmes

A licensee shall at all times be responsible for ensuring that the programmes
broadcast shall, except in respect of material supplied by the Government

(a) comply with regulations made under section 27;

(b) conform with the standards established by Codes of Practice;





(e)comply with directions issued by the Broadcasting Authority
under section 34; and (Amended 49 of 1987 s. 17)
(d)maintain a proper balance in their subject matter and a high
general standard of quality.
Approval of any material to be broadcast by the panel of film censors or the
public exhibition thereof shall not relieve the licensee of such responsibility.

27.Standards established by regulations
made by Governor in Council

(1) The Governor in Council may make regulations establishing
standards for the programmes to be broadcast by licensees.
(2) Without derogating from the generality of subsection (1), the
Governor in Council may make regulations establishing standards for-
(a) the broadcasting of advertising material; and
(b)the broadcasting of programmes containing political or religious
material.

28.Standards established by Codes of Practice
issued by Broadcasting Authority

The Broadcasting Authority may from time to time issue Codes of Practice
relating to programme and advertising standards. Such Codes of Practice shall
not be inconsistent with the standards established by regulations made under
section 27 and shall be supplemented or varied as may be required to comply
with any directions issued by the Governor in Council under section 29.
(Amended 49 of 1987 s. 17)

29.Governor in Council may issue directions
to Broadcasting Authority

The Governor in Council may from time to time, in addition to and not
inconsistent with regulations made under section 27, issue directions to
the Broadcasting Authority regarding the standards of programmes or
advertisements being broadcast by a licensee, including the content and balance
of such programmes, and in such directions may require the Broadcasting
Authority to ensure compliance with the standards established.
(Amended 49 of 198 7 s. 17)

30. Broadcasting contests

Notwithstanding the provisions of the Gambling Ordinance (Cap. 148),
contests may be organized in connection with programmes broadcast by a
licensee and may form part of such programmes where-





(a)no fee is payable either in money or money's worth for participation in
such contests;

(b)the results of such contests are determined by the skill or knowledge
of the participant and not by chance; and

(e)such contests comply with any regulations made by the Governor in
Council and with any Codes of Practice which may provide for
limitations on types of prizes which may be awarded in such contests
and the maximum values of such prizes. (Amended 7 of 1973s.16)

31. Defamatory material

For the purposes of the law of defamation the broadcasting of words or other
matter shall be treated as publication in permanent form.

PART VI

CONTROL AND
MISCELLANEOUS

32. (Repeated 25 of 1988 s. 33(3))

33. Material to he submitted to the Broadcasting

Authority on demand

(1) A licensee shall supply to the Broadcasting Authority on demand any
material, including the script thereof, which is intended for broadcasting.

(1A) A licensee who is required to supply material under subsection (1) shall
either--

(a)supply the material in a form specified by the Broadcasting Authority;
or

(b)make available on demand without charge such of its equipment as is
necessary to enable the Broadcasting Authority to view the material.
(Added 73 of 1980 s. 4)

(2) The Broadcasting Authority may, if it is of the opinion that any programme
intended to be broadcast by a licensee may affect the peace and good order of Hong
Kong, require the licensee to pre-record the programme and submit it to the
Broadcasting Authority for approval before it is broadcast. (Added 7 of 1973 s. 17)

(Amended 49 of 1987 s. 17)





34. Directions of the Broadcasting Authority

The Broadcasting Authority may issue directions in writing to a licensee
requiring it to take such action with regard to the contents of programmes or
advertisements or to technical standards as the Broadcasting Authority considers
necessary in order to comply with the provisions of this Ordinance including any
Code of Practice.

(Amended 49 of 1987 s. 17)

35. Broadcasting Authority may prohibit programmes

(1) The Broadcasting Authority may, by order in writing addressed to a
licensee, prohibit the broadcasting of any programme, any part thereof or of any
class of material.

(2) In making any order under subsection (1) the Broadcasting Authority shall
have regard to the programme planning requirements of the licensee and any
unreasonable disregard of such requirements shall be deemed to aggrieve a licensee
for the purpose of an appeal under section 38.

(3) Where the Broadcasting Authority is of the opinion that the peace or good
order of Hong Kong is threatened it may either orally or in writing prohibit the
broadcasting of any particular programme or part thereof, and shall signify such
prohibition in writing to the licensee.

(4) The broadcasting of any programme prohibited under subsection (3) shall
constitute an offence and on conviction the licensee and any other person shall be
liable to a fine of $50,000 and to imprisonment for 6 months. (Amended 72 of 1988 s. 19)

(Amended 49 of 1987 s. 17)

36. Broadcasting Authority may prohibit broadcasting

of material rendered by certain individuals

The Broadcasting Authority may, by order in writing addressed to a licensee,
prohibit the broadcasting of any material rendered, passed or selected by any
person named in such order.

(Amended 49 of 198 7 s. 17)

36A. Broadcasting Authority to consult affected licensees

(1) Subject to subsection (2), the Broadcasting Authority shall, before it
prohibits any broadcast under section 35(1) or 36, consult with, and consider any
representations made to it by, any licensee who in the opinion of the Broadcasting
Authority will be affected by any prohibition imposed thereunder.

(2) Where the Broadcasting Authority thinks fit, it may, pending consultation
and consideration in pursuance of subsection (1), prohibit temporarily

any broadcast under section 35(1) or 36.
(Added 73 of 1980s. 5.Amended49 of 1987s.17)





36B. (Repealed 49 of 1987 s. 17)

37. Broadcasting Authority may impose financial penalty
(1) The Broadcasting Authority may, by notice in writing addressed to the
licensee, require the payment of the financial penalty specified in such notice.
(2) Financial penalties may be imposed-
(a) for failure to comply with any of the conditions of the licence;
(b)for failure to comply with any provision of this Ordinance or any
regulation made by the Governor in Council;
(c) for failure to comply with any Code of Practice; or
(d)for failure to comply with any direction or order issued or made
by the Broadcasting Authority under this Ordinance. (Amend-
ed 7 of 1973 s. 18)
(3) The financial penalties imposed under this section shall not exceed
$50,000 for the first occasion on which a penalty is imposed, and shall not
exceed $100,000 for the second occasion on which a penalty is imposed for
whatever reason, and shall not exceed $250,000 for any subsequent occasion on
which a penalty is imposed for whatever reason. (Amended 72 of 1988 s. 19)
(4) No penalty shall be imposed under this section except where the
Broadcasting Authority is satisfied that the licensee has been afforded
reasonable opportunity of complying with the particular requirement.
(Amended 49 of 1987 s. 17)

38. Appeal to the Governor in Council

(1) Subject to this section, a licensee aggrieved by-
(a)any decision of the Broadcasting Authority in the exercise of any
discretion vested in it by or under this Ordinance (including any
prohibition under section 35); or
(b)anything contained in any Code of Practice or direction issued by
the Broadcasting Authority,
may appeal by way of petition to the Governor in Council.
(2) No appeal under subsection (1) shall lie against a prohibition-
(a)under section 3 5(1), except within 14 days after the date on which
the licensee is notified of the prohibition under that section; or
(b) under section 35(3).
(3) Any person named in an order under section 36 prohibiting the
licensee from broadcasting material rendered, passed or selected by such person
may appeal against the order by way of petition to the Governor in Council.
(4) Where an appeal is lodged under this section the decision, order,
prohibition, direction or other thing appealed against shall be complied with
until the determination of the appeal.
. (Replaced 49 of 1987 s. 17)





39. Determination of appeal

(1) In determining an appeal the Governor in Council may receive advice and
information from any source including the Broadcasting Authority without
disclosing the same to the appellant, who shall not be entitled to make any
representations other than his petition. (Amended 49 of 1987 s. 17)

(2) The Governor in Council may determine an appeal by confirming, varying or
reversing any decision, prohibition, order or direction of the Broadcasting Authority
or by amending any Code of Practice. (Replaced 49 of 1987 s. 17)

40. Licensee to submit returns

(1) A licensee shall submit to the Broadcasting Authority not later than the
month of April in each year a return in a form specified by it showing

(Amended 73 of 1980 s. 8)

(a)the names and places of residence of the directors and office holders
in the licensee company;

(b)the names and places of residence of the beneficial owners of the
voting shares in the licensee company. (Amended 7 of 1973 S.19)

(2) A licensee shall submit at the same time as the return made under subsection
(1) a statutory declaration made by at least 2 directors of the licensee company
showing whether or not any disqualified person has exercised any control in the
licensee company during the year immediately preceding. (Amended 7 of 1973 s. 19)

(M) Without prejudice to subsection (1), a licensee shall submit to the
Broadcasting Authority in a form specified by it a return showing

(a)particulars of every change of the directors and office holders of the
licensee company, within 7 days after the change occurs;

(b) (Repealed 49 of 1987 s. 17)

(c)the name and place of residence of every person who is registered as
the holder of 5% or more of the voting shares of the licensee company,
within 7 days after the date on which he is so registered;

(d)particulars of any transfer of shares of the licensee company by or to a
member who, immediately before the registration of such transfer by
the licensee company, held 5% or more of the voting shares of such
company, within 7 days after the date on which such transfer is
registered. (Added 73 of 1980 s. 8)

(3) A licensee shall submit to the Broadcasting Authority on demand such
other information as it may consider that it requires for the purposes of exercising its
functions under this Ordinance.

(Amended 49 of 1987 s. 17)





41. Royalty

(1) A licensee shall, as regards each of its accounting years, pay to the
Government a royalty determined by reference to the amounts which, having
regard to this section, are the appropriate amounts for fees or other charges in
respect of advertising, whether in the form of display or other advertisements,
advertising magazine programmes, sponsored or promoted programmes or in
any other form of broadcast by the licensee, and as regards a particular such
year the amount of such royalty shall be determined in accordance with the
following rates-
(a) where such amounts for that year do not exceed $100 million, 1%
of that $ 100 million;
(b) where such amounts for that year exceed $ 100 million-
(i) as regards the first $100 million of those amounts, 1% of
those amounts;
(ii)as regards the second $100 million of those amounts (or in
case those amounts are less than $200 million but are not
less than $100 million, as regards the excess over $100
million), 5% of that $100 million or excess;
(iii) as regards the third $100 million of those amounts (or in
case those amounts are less than $300 million but are not
less than $200 million, as regards the excess over $200
million), 10 % of that $ 100 million or excess;
(iv) as regards the fourth $100 million of those amounts (or in
case those amounts are less than 5400 million but are not
less than $300 million, as regards the excess over $300
million), 15% of that $100 million or excess;
(v) as regards the fifth $100 million of those amounts (or in case
those amounts are less than $500 million but are not less
than 5400 million, as regards the excess over $400 million),
20% of that $100 million or excess;
(vi)as regards those amounts in so far as they exceed $500
million, 25% of the excess:
Provided that the amount of the royalty payable under this
section as regards any such accounting year shall not exceed an
amount which is equal to 12% of such appropriate amounts for
that year.
(2) The appropriate amount referred to in subsection (1) shall be the
amount which in the circumstances of a particular case would reasonably be
expected to be agreed to between the parties concemed were they negotiating in
the open market and at arm's length.
(3) (a) The royalty created by this section shall be payable quarterly in
accordance with paragraph (b).





(b)A licensee shall make a payment to the Director of Accounting
Services of the amount (if any) due on account of the royalty payable
by him under this section in respect of a quarter beginning on the I st
day of January, the I st day of April, the I st day of July or the I st
day of October in any year.

(4) A royalty payable under this section shall be due at the time when the fee or
other charge in respect of which the royalty is payable is due, either in whole or in
part, to the licensee concerned.

(5) (a)Within the period of 30 days immediately following a quarter referred
to in subsection (3), a licensee shall

(i) furnish to the Director of Accounting Services an account,
certified by the licensee, or by someone acting on his behalf, to
be true and correct, of the amounts described in subsection (1)
and due (whether in whole or in part) to the licensee in the
quarter; and

(ii) remit to the Director of Accounting Services the amount of the
royalty (if any) payable by him under this Ordinance in respect
of the quarter.

(b)The Director of Accounting Services may require accounts referred
to in paragraph (a)(i) to be in a form and contain particulars specified
by him, and in case a requirement under this paragraph is made and is
not withdrawn, any licensee concerned shall comply with it.

(6) (a)Where a royalty is payable under this Ordinance as regards a
particular quarter (in this subsection referred to as 'the current
quarter') but the licensee concemed is unable, before the expiration
of the current quarter or the period of 28 days commencing on the
expiration of that quarter, to ascertain the aggregate of the fees or
other charges by reference to which the amount due on account of
the royalty as respects the current quarter is to be determined, the
licensee shall, within the period of 30 days immediately following the
expiration of the current quarter, pay to the Director of Accounting
Services a sum the amount of which shall have been calculated by the
licensee having had regard to

(i)the sum (if any) paid by the licensee on account of the royalty in
respect of the quarter immediately preceding the current quarter;
and

(ii) an estimate by the licensee of the amount which, were such
aggregate ascertainable, would be payable by him on account of
the royalty as respects the current quarter.

(b)Where a payment is made under paragraph (a) and when ascertained
the amount due on account of the royalty payable





under this section as respects the current quarter is found to
exceed the amount of the payment-
(i)the excess or any part thereof shall be payable to the
Director of Accounting Services on demand; and
(ii)the making of the payment shall not prejudice any mode of
recovery should the licensee fail to pay any part of the excess
remaining to be paid pursuant to the requirements of
subparagraph (i).
(c)Where a payment is made under paragraph (a) and when
ascertained the amount referred to in paragraph (b) is found to
be less than the amount of the payment, the licensee concemed
shall be entitled to a refund equal to the amount of the
overpayment.
(7) Where the Director of Accounting Services believes that an amount
payable under this section by a licensee, in relation to any period consisting of
one quarter or of two or more consecutive quarters, was greater than the total
amount (if any) paid by him in relation to that period, then, without prejudice
to any other action which may be taken, he may make an estimate in one sum
of the total amount which in his opinion should have been paid in respect of the
quarter or quarters comprised in such period and may give to the licensee a
notice in writing specifying-
(a) the total amount so estimated;
(b)the total amount (if any) paid by the licensee in relation to the
said period; and
(c) the balance remaining unpaid.
(8) Where a notice is given under subsection (7) to a licensee, the
following provisions shall apply-
(a)the licensee may, if he claims that the total amount or, as the case
may be, the balance remaining unpaid is excessive, give a
notification to that effect in writing to the Director of Accounting
Services, within the period of 21 days beginning on the date of
the notice under subsection (7);
(b)on the expiration of the said period, if no notification under this
subsection is received by the Director of Accounting Services or,
if such a notification is so received, on determination of the
difference by agreement or arbitration, the balance remaining
unpaid as specified in the notification or the amended balance (if
any) as so determined shall become due and payable as if the
amount were one which the licensee was liable to pay for the
quarter during which the period of 14 days from the date of the
giving of the notice under subsection (7) expired or during which
the difference was determined by agreement or arbitration, or
where those quarters are different, whichever of them is the later.





(9) (a)Where a notification under subsection (8) is given, the difference to
which the notification relates shall be determined by arbitration under
the Arbitration Ordinance (Cap. 341), and for the purposes of giving
effect to the foregoing, the person by whom, or on whose behalf, the
notification is given and the Director of Accounting Services shall be
regarded as having concluded an arbitration agreement (within the
meaning of that Ordinance) whose provisions shall be deemed to
include a provision that the aforesaid difference shall, in the absence
of agreement, be determined by a single arbitrator.

(b)In the absence of agreement, the Arbitration Ordinance (Cap. 341)
shall, with any necessary modifications, apply to the determination of
a difference to which a notification under subsection (8) relates.

(10) Each of the following periods shall, for the purposes of this section, be
regarded as being an accounting year of a licensee

(a)in case the accounting year of a licensee begins on a day other than
the specified day, the period beginning on the specified day and
ending on the expiration of the licensee's accounting year in which the
specified day occurs;

(b)in case a licence commences to have effect on a day other than the
first day of an accounting year of the relevant licensee, the period
beginning on such commencement and ending on the expiration of the
licensee's accounting year in which the commencement occurs; and

(c)in case a licence is surrendered or revoked and the surrender or
revocation has effect on a day other than the first day of an
accounting year of the licensee, the period beginning on the
commencement of the licensee's accounting year in which the
surrender or revocation, as may be appropriate, has effect and ending
immediately before that surrender or revocation, as may be
appropriate, has effect.

(11) In subsection (10)(a) 'the specified day' means the day specified for the
purposes of that subsection by the Governor by notice in the Gazette.

(Replaced 72 of 1988 s. 20)

41A. (Repealed 72 of 1988 s. 20)

42. Powers of Financial Secretary in relation to royalty

(1) For the purpose of determining amounts payable on account of a royalty
payable under this Ordinance and ensuring its payment, any person authorized by
the Financial Secretary in that behalf may at all reasonable times





(a)enter any building or other premises in which a company to
which this section applies carries on business;
(b)require any person whom he reasonably believes to be employed
in connection with such business to produce for examination any
book, account, voucher, record, receipt or other document which
relates to such business and which is in his possession or under
his control;
(c)examine and, if he thinks fit, take copies of, or copies of any entry
in, any book, record or other document produced in pursuance of
a requirement under this section;
(d) remove any such document for further examination; and
(e)question any director or servant of such company in relation to
such business. (Replaced 72 of 1988 s. 21)
(2) All documents and copies thereof and all other information obtained
under subsection (1) shall be treated as confidential and used only for the
purposes set out in subsection (1).
(3) A person who is a director or a servant of a company to which this
section applies shall assist and shall not obstruct a person exercising a power
under this section. (Added 72 of 1988 s. 21)
(4) Any document removed in exercise of a power under this section shall
be returned as soon as is reasonably practicable. (Added 72 of 1988 s. 21)
(5) Every person authorized by the Financial Secretary under subsection
(1) shall be furnished with a copy of the authorization and when exercising a
power under this Ordinance shall, if requested by any person thereby affected,
produce such copy for inspection by the person. (Added 72 of 1988 s. 21)
(6) This section applies to a company which is either a licensee or a
company which, by virtue of section 2 of the Companies Ordinance (Cap. 32),
for the purposes of that Ordinance, is deemed to be a subsidiary of a licensee.
(Added 72 of 1988 s. 21)

43. Licensee to submit audited accounts

(1) A licensee shall submit to the Financial Secretary not later than 6
months after the end of the accounting year of the licensee company audited
accounts prepared in such manner and containing such details as may be
approved and required by the Financial Secretary.
(2) Where a company is deemed under section 2 of the Companies
Ordinance (Cap. 32) to be, for the purposes of that Ordinance, a subsidiary of a
licensee, the licensee shall, not later than 6 months after the end of an
accounting year of the company, submit, or cause to be submitted, to the
Financial Secretary a copy of the company's audited accounts for that year.
(Added 72 of 1988 s. 22)





44. Recovery of royalty and financial penalty

(1) Any royalty declared by the Financial Secretary in writing to be owing
to the Government and any financial penalty imposed by the Broadcasting
Authority and declared by it in writing to be owing to the Government, and not
remitted or reduced on appeal by the Governor in Council, shall be recoverable
as a civil debt.
(2) Any declaration in writing made under the hand of the Financial
Secretary or the Broadcasting Authority shall be prima facie evidence of the
debt.
(3) Any such royalty or financial penalty shall constitute a first charge on
the installations, equipment and other assets of the licensee.
(Amended 49 of 1987 s. 17)

45. Investigation of licensees' business

(1) Where the Broadcasting Authority is of opinion that it is necessary for
the proper performance of any of its functions under this Ordinance, it may
authorize any person at all reasonable times to--
(a)enter any building or other premises in which a company to
which this section applies carries on business;
(b)require any person whom he reasonably believes to be employed
in connection with such business to produce for examination any
book, account, voucher, record, or receipt or other document
which relates to such business and which is in his possession or
under his control;
(c)examine and, if he thinks fit, take copies of, or copies of any entry
in, any book, record or other document produced in pursuance of
a requirement under this section;
(d) remove any such document for further examination; and
(e)question any director or servant of such company in relation to
such business. (Replaced 72 of 1988 s. 23)
(2) A person who is a director or a servant of a company to which this
section applies shall assist and shall not obstruct a person exercising a power
under this section. (Replaced 72 of 1988 s. 23)
(3) All documents and copies thereof and all other information obtained
under this section shall be treated as confidential and used only for the purpose
of this Ordinance which shall include any inquiry conducted by the
Broadcasting Authority or any committee appointed thereby. (Amended 49 of
1987s.17)
(4) Any document removed in exercise of a power under this section shall
be returned as soon as is reasonably practicable. (Added 72 of 1988 s. 23)
(5) Every person authorized by the Broadcasting Authority under
subsection (1) shall be furnished with a copy of the authorization and when





exercising a power under this Ordinance shall, if requested by any person thereby
affected, produce such copy for inspection by the person. (Added 72 of 1988 s. 23)

(6) This section applies to any company to which section 42 applies. (Added
72 of 1988 s. 23)

45A. Sections 42 and 45; supplementary provisions

(1) In sections 42 and 45 'record' includes any information which-

(a)relates to a business in relation to which the powers under those
sections may be exercised; and

(b)is recorded in a form in which it can be extracted or retrieved by
equipment operating automatically in response to instructions given
for that purpose.

(2) The powers conferred by section 42(1)(b) and (e) or section 45(1)(b) and
(e) include a power

(a)to require a person described in section 42(1)(b) or section 45(1) (b),
as may be appropriate, to extract or retrieve, or cause to be extracted or
retrieved. in a visual or a printed or other written form, or in both, any
information referred to in subsection (1) and specified by the person
exercising the power, and if when extracted or retrieved the
information is in a printed or other written form, to require the person
so described to deliver it to the person exercising the power;

(b)to extract or retrieve himself. in either of or both such forms, by means
of the equipment normally used for that purpose, any information so
referred to; and

(c)to examine any information so extracted or retrieved and if thought fit
to remove it.

(Added 72 of 1988 s. 24)

46. Confidential material to he safeguarded

(1) Subject to subsection (2)--

(a)any information which is furnished by a licensee to, and any
document which is produced by a licensee to, the Broadcasting
Authority or any committee appointed thereby, the
Telecommunications Authority, or any person authorized thereby,
under this Ordinance shall be treated as confidential; and

(b)no such information or document or any copy thereof shall be
divulged or shown to any person other than in confidence to
members of the Broadcasting Authority or any committee appointed
thereby, or to a public officer acting in the





performance of his duties under or for the purposes of this Ordinance
or the Broadcasting Authority Ordinance (Cap. 39 1).

(2) A licensee may permit, subject to such conditions as it may specify, the
Broadcasting Authority, the Telecommunications Authority or any person
authorized thereby

(a) to divulge specified information which it has furnished thereto; or

(b)to show any specified document or any copy thereof which it has
produced thereto,

to any person or to any specified person.
(Added 7of 1973 s. 22. Amended 49 of 1987s.17)

47. Savings and transitional

(1) Any Code of Practice issued by the Television Authority and in use
immediately prior to the commencement of this section

(a)shall be deemed for all purposes to have been issued by the
Broadcasting Authority under section 20 or 28 as the case may be;

(b) subject to paragraph (e), shall remain in use; and

(c) may be amended or withdrawn by the Broadcasting Authority.

(2) Any order or direction issued or approval or permission granted by the
Television Authority under this Ordinance, which was in force immediately prior to
the commencement of this section, shall continue in force as if issued or granted by
the Broadcasting Authority.

(3) Any reference to the Television Authority in any Code of Practice, licence,
certificate or other document issued by the Television Authority or otherwise issued
under this Ordinance or in any agreement entered into by the Television Authority
shall be construed as a reference to the Broadcasting Authority.

(4) In this section 'Television Authority' means the Television Authority
appointed under the repealed section 3 of this Ordinance.

(Added 49 of 1987 s. 17)

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