Commonwealth Numbered Acts

BROADCASTING (FOREIGN OWNERSHIP) AMENDMENT ACT 1990 No. 103 of 1990 - SECT 11

11. After section 92D of the Principal Act the following sections are
inserted: Tracing foreign interests in voting shares through series of
companies

"92DA. (1) In this section: `Australian company' means a company that is not a
foreign person; `foreign person' has the same meaning as in section 92D;
`licensee' means a company holding a licence; `minor interests' means
shareholding interests in a licensee that are held by a foreign person in
accordance with subsection (2) because of the person's shareholding interests
in an Australian company whose shareholding interests in the licensee do not
exceed in amount 2% of the total of the amounts paid on all voting shares in
the licence; `shareholding interests', in relation to a company, means
shareholding interests in respect of voting shares in the company; `voting
share', in relation to a company, means a share in the company that carries
voting rights on all questions at general meetings of the company.

"(2) For the purposes of paragraph 92D (2) (b), where:

   (a)  a foreign person holds shareholding interests in an Australian company
        (in this subsection called the `first company'); and

   (b)  the first company holds shareholding interests in another Australian
        company (in this subsection called the `second company'); the foreign
        person holds shareholding interests in the second company (in addition
        to any other shareholding interests) of an amount calculated using the
        formula:
Actual interests
Inter-company interests      X-----------------------

First company interests where: `Inter-company interests' means the amount of
the first company's shareholding interests in the second company; `Actual
interests' means the amount of the foreign person's shareholding interests in
the first company; `First company interests' means the total of the amounts
paid on all voting shares in the first company.

"(3) For the purposes of subsection (2), a foreign person's shareholding
interests in an Australian company include interests that exist because of any
other application or applications of this section.

"(4) For the purposes of subsection (2), an Australian company's shareholding
interests in another Australian company include interests that exist because
of any application or applications of subsection (5).

"(5) For the purposes of subsection (2), where:

   (a)  an Australian company (in this subsection called the `first company')
        holds shareholding interests in another Australian company (in this
        subsection called the `second company'); and

   (b)  the second company holds shareholding interests in a third Australian
        company; the first company holds shareholding interests in the third
        company (in addition to any other shareholding interests) of an amount
        calculated using the formula:
Actual interests
Inter-company interests        X-----------------------

Second company interests where: `Inter-company interests' means the amount of
the second company's shareholding interests in the third company; `Actual
interests' means the amount of the first company's shareholding interests in
the second company; `Second company interests' means the total of the amounts
paid on all voting shares in the second company.

"(6) In finding out for the purposes of paragraph 92D (2) (b) the shareholding
interests in a licensee held by foreign persons in accordance with subsection
(2):

   (a)  subject to paragraph (b) - minor interests in the licensee may be
        disregarded; or

   (b)  if the Tribunal requires the minor interests or a class of them to be
        taken into account because the Tribunal suspects that, if the minor
        interests or that class were taken into account, the shareholding
        interests in the licensee known to be held by foreign persons would
        exceed in amount 20% of the total of the amounts paid on all voting
        shares in the licensee - the requirement must be complied with but any
        minor interests to which the requirement does not apply may be
        disregarded.

"(7) Without limiting subsection (6), a class of minor interests referred to
in that subsection may be all, or a class of, minor interests in a licensee
that foreign persons have because of shareholding interests in Australian
companies each of which is a company whose shareholding interests in the
licensee do not exceed in amount a particular percentage of the total of the
amounts paid on all voting shares in the licensee. Tracing foreign interests
in shares through series of companies

"92DB. (1) In this section: `Australian company' means a company that is not a
foreign person; `foreign person' has the same meaning as in section 92D;
`licensee' means a company holding a licence; `minor interests' means
shareholding interests in a licensee that are held by a foreign person in
accordance with subsection (2) because of the person's shareholding interests
in an Australian company whose shareholding interests in the licensee do not
exceed in amount 2% of the total of the amounts paid on all shares in the
licensee.

"(2) For the purposes of paragraph 92D (2) (c), where:

   (a)  a foreign person holds shareholding interests in an Australian company
        (in this subsection called the `first company'); and

   (b)  the first company holds shareholding interests in another Australian
        company (in this subsection called the `second company'); the foreign
        person holds shareholding interests in the second company (in addition
        to any other shareholding interests) of an amount calculated using the
        formula:
Actual interests
Inter-company interests     X-----------------------

First company interests where: `Inter-company interests' means the amount of
the first company's shareholding interests in the second company; `Actual
interests' means the amount of the foreign person's shareholding interests in
the first company; `First company interests' means the total of the amounts
paid on all shares in the first company.

"(3) For the purposes of subsection (2), a foreign person's shareholding
interests in an Australian company include interests that exist because of any
other application or applications of this section.

"(4) For the purposes of subsection (2), an Australian company's shareholding
interests in another Australian company include interests that exist because
of any application or applications of subsection (5).

"(5) For the purposes of subsection (2), where:

   (a)  an Australian company (in this subsection called the `first company')
        holds shareholding interests in another Australian company (in this
        subsection called the `second company'); and

   (b)  the second company holds shareholding interests in a third Australian
        company; the first company holds shareholding interests in the third
        company (in addition to any other shareholding interests) of an amount
        calculated using the formula:
Actual interests
Inter-company interests           X-------------------------

Second company interests where: `Inter-company interests' means the amount of
the second company's shareholding interests in the third company; `Actual
interests' means the amount of the first company's shareholding interests in
the second company; `Second company interests' means the total of the amounts
paid on all shares in the second company.

"(6) In finding out for the purposes of paragraph 92D (2) (c) the shareholding
interests in a licensee held by foreign persons in accordance with subsection
(2):

   (a)  subject to paragraph (b) - minor interests in the licensee may be
        disregarded; or

   (b)  if the Tribunal requires the minor interests or a class of them to be
        taken into account because the Tribunal suspects that, if the minor
        interests or that class were taken into account, the shareholding
        interests in the licensee known to be held by foreign persons would
        exceed in amount 20;pc of the total of the amounts paid on all shares
        in the licensee - the requirement must be complied with but any minor
        interests to which the requirement does not apply may be disregarded.

"(7) Without limiting subsection (6), a class of minor interests referred to
in that subsection may be all, or a class of, minor interests in a licensee
that foreign persons have because of shareholding interests in Australian
companies each of which is a company whose shareholding interests in the
licensee do not exceed in amount a particular percentage of the total of the
amounts paid on all shares in the licensee.".