ATV shareholders' bickering puts licence renewal at risk, executive tells court
A dispute between two main shareholders of the troubled ATV would be a factor affecting its licence renewal, but no solution was in sight, a senior executive of the station admitted in court.
A dispute between two main shareholders of the troubled ATV would be a factor affecting its licence renewal, but no solution was in sight, a senior executive of the station admitted in court yesterday.
And the Communications Authority raised concern about the row in June, according to ATV senior vice-president Stephen Luen Chun-kwok - before it told the broadcaster in September it was inclined to advise the chief executive and Executive Council against a licence renewal.
Luen said he understood that ATV's problems would be solved if Wong and Tsai could reach mutual consent over management issues and arrive at a new shareholder agreement.
"However, before arranging a meeting for the pair, I discovered there was simply no way they could sit down and talk," he said, testifying for ATV. Wong and Tsai just "could not stand on the same line", Luen added.
The station's broadcasting licence expires at the end of next year, and the final decision on whether to renew it lies with the Chief Executive in Council.
The current lawsuit was launched by shareholder Antenna Investment, which alleges ATV is poorly managed and wants the court to appoint an independent supervisor to oversee the station. Tsai and the two Cha brothers own almost 48 per cent of ATV through Antenna.
Payson Cha Mou-sing and Johnson Cha Mou-daid, both of whom used to sit on the board of directors, had loaned the broadcaster HK$290 million and earlier this year sued for the return of the money.
That lawsuit was, along with the licence renewal, among a number of "major issues" the station had experienced, Luen said.
"I spent a lot of efforts trying to get the shareholders to cooperate and help the company look for a way out. But every time I tried, I failed," he said.
Luen said he felt disappointed when he received the authority's notification on September 5 indicating it was not in favour of a licence renewal.
All the directors were highly concerned about this, he said, but two of them resigned around that time, causing problems in convening a board meeting.
The authority gave ATV a chance to further argue its case orally before October 4, Luen said. However, Luen, executive director Ip Ka-po and a financial controller did not manage to do it until October 15.
The hearing continues before Mr Justice Jonathan Harris today.
