CFL reviews new Media Decree

Communications Fiji Limited, the parent company of Legend FM, FM96, VitiFM, Navtarang and Radio Sargam is currently reviewing the Media Industry development Decree and its potential impact on the company's performance and trading in shares.

In a market announcement to the South Pacific Stock Exchange, CFL Managing Director William Parkinson said after an initial review, the company does not believe it will have an immediate effect on the financial performance of the company.

However, Parkinson said it does appear that the new regulations concerning cross media ownership may impact on shareholders rights to own shares in more than one listed media entity.

He said they are currently seeking legal advice on the matter and will brief the market fully once the advice is received.

Under the Media Decree, Cross Media Ownership is where a person of a certain medium is limited in the amount of shares they can hold in other mediums or of the same medium.

The Media decree states that if the business of that other media is in the same medium where the person has a beneficial interest, than that interest in the other entity shall not exceed 25%.

But if the person's beneficial interest is also in another media company of a different medium, then that person should not have more than 5% non-voting shares in that other medium.

Under the New Media decree Section 43 states that any media organisation or person that breaches the provisions will be fined not exceeding $10,000 or imprisonment for a term not exceeding 2 years.

 
Story by: Roneel Lal
Source: CFL market announcement