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Amy Nip

While the prospect of ATV finding a white knight dims, experts say it is unlikely the beleaguered company would cease operations immediately.
Even if the troubled broadcaster was forced to shut down or had its licence renewal denied, there is no timetable for the government to transfer the licence to anyone else to fill the airwaves.
In an interview with mainland media Caixin, ATV major investor Wong Ching said discussions with potential buyers had fallen through, leaving the station vulnerable to closure.
Accountants, however, said it is not a simple task to wind up a company.
Mat Ng, who chairs the restructuring and insolvency faculty executive committee of the Hong Kong Institute of Certified Public Accountants, said a company's shareholders have two options to wind up a company.
One would be voluntary liquidation, where the board calls a shareholders' meeting and to secure the support of 75 per cent of shareholders for the move.
Another would be an application to court. "The person can submit to the court a petition to wind up. It usually takes about six weeks before the court would hear the case," he said.
Different stakeholders can voice their opinion in court, affecting its decision whether or not to issue a winding up order. In rare occasions, it is possible for the board to wind up a company under section 228A of Companies Ordinance, and to appoint a provisional liquidator to wind up the company in mere days.
But that requires agreement among board members and is not a usual route to be taken, he added.
Apart from the complexities involved, the station and its executive director Ip Ka-po still face prosecution for delaying the payment of wages.
The Labour Department has launched three rounds of prosecution against Ip and ATV. A total of 184 summons were issued relating to the station's failure to pay in time its former employees wages from last August to this January, and current employees salaries from last October to December.
The first two rounds of prosecution slapped a HK$380,000 fine on ATV. Ip is awaiting trial after pleading not guilty. The third round of prosecution has yet to be handled in court.
The station has paid the February wages, but it remains unclear if it has enough money to settle the March salaries at the end of this month.
ATV's free-to-air TV licence will expire this November, and the Executive Council has yet to decide whether it will be renewed.
Peter Lam Yuk-wah, vice-president of the Hong Kong Televisioners Association, said the government should end the chaos by terminating the station's licence. The station would have breached licensing terms if its investors refused to inject adequate funding to ensure the company's continued operation, he said.
Even if the government terminated the licence, or if ATV shut down before its licence expired, it is not certain that the government will offer its licence to others.
In the 1970s, there were three free TV stations including TVB, Rediffusion (predecessor of ATV) and Commercial Television. When Commercial Television closed in 1975, the government did not invite interested parties to bid for its free TV licence in the decades that followed.
Three companies - City Telecom (now HKTV), i-Cable and PCCW - did not apply to the government for free TV licences until 2009 and 2010.
The applications of i-Cable and PCCW were granted in principle, but both are still in discussion with the government over technicalities.
If ATV closes it is likely the duo will bargain to use its airwaves, Lam said.


Show will still go on at Hong Kong's ATV after impending close

The Labour Department has launched three rounds of prosecution against Ip and ATV. The first two rounds of prosecution slapped a HK$380,000 fine on ATV. Ip is awaiting trial after pleading not guilty. The third round of prosecution has yet to be handled in court. Photo: Sam Tsang

News

Hong Kong

Troubled company might be forced to shut down, but regulations will keep the station operating while licence will be left in doubt


Show will still go on at Hong Kong's ATV after impending close

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Troubled company might be forced to shut down, but regulations will keep the station operating while licence will be left in doubt

Troubled company might be forced to shut down, but regulations will keep the station operating while licence will be left in doubt