Commonwealth Numbered Acts

BROADCASTING AMENDMENT ACT (No. 2) 1990 No. 7 of 1991 - SECT 19

19. (1) After section 89K of the Principal Act the following sections are
inserted: Control by persons acting together

"89KA. For the purposes of this Part, where:

   (a)  2 or more persons act together, in accordance with an agreement,
        arrangement, understanding or practice (whether formal or informal),
        for the purpose of being, between them, in a position, otherwise than
        because of section 89K, to exercise control of a commercial licence,
        newspaper or company; and

   (b)  because of so acting, they are, between them, in that position; each
        of them is taken to be in that position.". Certain loans not to result
        in control

"89KB. (1) In this section: `authorised lender' means:

   (a)  a bank within the meaning of the Banking Act 1959;

   (b)  a corporation formed under the law of a State or Territory to carry on
        the business of banking within Australia; or

   (c)  a corporation whose sole or principal business is the making of loans
        to other persons, being a corporation:

   (i)  that is registered as a financial institution under the Financial 
        Corporations Act 1974 ; or

   (ii) in respect of which a declaration under subsection (5) is in force; or

   (iii) in respect of which an application for such a declaration has been
        made but not finally disposed of; `controller', in relation to an
        authorised lender, means a person in a position to exercise control of
        the lender; `media company' means:

   (a)  a company that holds a commercial licence; or

   (b)  a company that publishes a newspaper; or

   (c)  a company that is in a position to exercise control of a company
        referred to in paragraph (a) or (b).

"(2) Subject to subsections (3) and (4), where an authorised lender has a loan
agreement with a media company, then, for the purposes of this Part:

   (a)  the agreement; and

   (b)  any arrangement, mortgage or other transaction associated with the
        agreement; and

   (c)  any rights or powers of the lender under the agreement or such a
        transaction; and

   (d)  the exercise of any of those rights or powers; are to be disregarded
        in determining whether, or to what extent, the lender or any
        controller of the lender is in a position to exercise control of:

   (e)  the company; or

   (f)  the acts and operations of the company; or

   (g)  the votes, of which the company is in a position to exercise control,
        an another company.

"(3) Where:

   (a)  the media company holds, or is in a position to exercise control of a
        company that holds, a commercial licence; and

   (b)  the authorised lender or a controller of the lender:

   (i)  exercises control over persons or matters in such a way as to prevent
        the licensee complying with a condition of the licence; or

   (ii) controls the selection or provision of the programs to be broadcast
        pursuant to the licence;
then subsection (2) does not apply in determining whether, or to what extent,
the lender or that person is in a position to exercise control of the media
company or of a matter referred to in paragraph (2) (f) or (g).

"(4) Where:

   (a)  the media company publishes, or is in a position to exercise control
        of a company that publishes, a newspaper; and

   (b)  the authorised lender or a controller of the lender controls the
        selection or provision of the material to be published in the
        newspaper;
then subsection (2) does not apply in determining whether, or to what extent,
the lender or the person is in a position to exercise control of the media
company or of a matter referred to in paragraph (2) (f) or (g).

"(5) The Tribunal may, in writing, declare a corporation (whether formed
inside or outside Australia) whose sole or principal business is the making of
loans to other persons to be an authorised lender for the purposes of this
section.".

(2) During the 3 months beginning on the commencement of this section, a
corporation whose sole or principal business is the making of loans to other
persons is an authorised lender for the purposes of section 89kb and 92M of
the Principal Act as amended by this Act.