Broadcasting Act 1990

Type Public General Act
Publication 1990-11-01
Last updated 2026-01-01
State In force
Department Statute Law Database
articles Not indexed
Reform history JSON API
  • “EEA Agreement” and “EEA State” have the meaning given by Schedule 1 to the Interpretation Act 1978;
  • ...
  • “financial year” shall be construed in accordance with subsection (2);
  • “frequency” includes frequency band;
  • “modifications” includes additions, alterations and omissions;
  • “OFCOM” means the Office of Communications;
  • “pension scheme” means a scheme for the payment of pensions, allowances or gratuities;
  • “product placement” has the meaning given by paragraph 1 of Schedule 11A to the Communications Act 2003;
  • “programme” includes an advertisement and, in relation to any service, includes any item included in that service;
  • “S4C”, except in the phrases “S4C company”, “S4C Digital”, “S4C entity” and “S4C subsidiary undertaking”, means the body corporate given the name S4C (or Sianel Pedwar Cymru) by section 56(1);
  • “an S4C company” means—any body corporate which is controlled by S4C, orany body corporate in which S4C or any body corporate falling within paragraph (a) above is (to any extent) a participant (as defined in paragraph 1(1) of Part I of Schedule 2);
  • ...
  • “the Welsh Authority” means the authority renamed Sianel Pedwar Cymru by section 56(1);
  • “wireless telegraphy” and “wireless telegraphy station” each has the same meaning as in the Wireless Telegraphy Act 2006.
  • (2) In any provision of—
  • (a) . . .
  • (b) Schedule ..., 2, 3, 6, ..., . . . or 19,

“financial year” means a financial year of the body with which that provision is concerned; and in any other provision of this Act “financial year” means the twelve months ending with 31st March.

  • (3) In this Act—
  • (a) references to pensions, allowances or gratuities include references to like benefits to be given on death or retirement; and
  • (b) any reference to the payment of pensions, allowances or gratuities to or in respect of any persons includes a reference to the making of payments towards provision for the payment of pensions, allowances or gratuities to or in respect of those persons.
  • (4) Any reference in this Act (however expressed) to a licence under this Act being in force is a reference to its being in force so as to authorise the provision under the licence of the licensed service; and any such reference shall accordingly not be construed as prejudicing the operation of any provisions of such a licence which are intended to have effect otherwise than at a time when the licensed service is authorised to be so provided.
  • (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) It is hereby declared that, for the purpose of determining for the purposes of any provision of this Act whether a service is—
  • (a) ... capable of being received, within the United Kingdom or elsewhere, or
  • (b) for reception at any place or places, or in any area, in the United Kingdom,

the fact that the service has been encrypted to any extent shall be disregarded.

  • (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (6) Any reference in this Act, in relation to a service consisting of programmes transmitted by satellite—
  • (a) to a person by whom the programmes are transmitted, or
  • (b) to a place from which the programmes are transmitted,

is a reference to a person by whom, or a place from which, the programmes are transmitted to the satellite by means of which the service is provided.

  • (6A) Subsections (2) and (3) of section 362 of the Communications Act 2003 (persons by whom services provided) are to apply for the purposes of this Act as they apply for the purposes of Part 3 of that Act.
  • (7) For the purposes of this Act—
  • (a) a person shall not be regarded as carrying on business as an advertising agent, or as acting as such an agent, unless he carries on a business involving the selection and purchase of advertising time or space for persons wishing to advertise;
  • (b) a person who carries on such a business shall be regarded as carrying on business as an advertising agent irrespective of whether in law he is the agent of those for whom he acts;
  • (c) a person who is the proprietor of a newspaper shall not be regarded as carrying on business as an advertising agent by reason only that he makes arrangements on behalf of advertisers whereby advertisements appearing in the newspaper are also to appear in one or more other newspapers;
  • (d) a company or other body corporate shall not be regarded as carrying on business as an advertising agent by reason only that its objects or powers include or authorise that activity.

Consequential and transitional provisions

203
  • (1) The enactments mentioned in Schedule 20 to this Act shall have effect subject to the amendments there specified (being minor amendments or amendments consequential on the provisions of this Act).
  • (2) Unless the context otherwise requires, in any enactment amended by this Act—
  • “programme”, in relation to a programme service, includes any item included in that service; and
  • “television programme” includes a teletext transmission.
  • (3) The enactments mentioned in Schedule 21 to this Act (which include certain spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.
  • (4) The transitional provisions and savings contained in Schedule 22 to this Act shall have effect.

Short title, commencement and extent

204
  • (1) This Act may be cited as the Broadcasting Act 1990.
  • (2) This Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or for different purposes.
  • (3) Subject to subsections (4) and (5), this Act extends to the whole of the United Kingdom.
  • (4) In Part VII—
  • (a) section 162 and Schedule 15 extend to England and Wales only;
  • (b) section 163 extends to Scotland only;
  • (c) section 164 extends to England and Wales and Scotland; and
  • (d) section 165 extends to Northern Ireland only.
  • (5) The amendments and repeals in Schedules 20 and 21 have the same extent as the enactments to which they refer.
  • (6) Her Majesty may by Order in Council direct that any of the provisions of this Act shall extend to the Isle of Man or any of the Channel Islands with such modifications, if any, as appear to Her Majesty to be appropriate.

SCHEDULE 1

Status and capacity

1

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Appointment of members

2

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Tenure of office

3

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Remuneration and pensions of members

4

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Disqualification of members of Commission for House of Commons and Northern Ireland Assembly

5

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Proceedings

6

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7

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8

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Employees of the Commission

9

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Authentication of Commission’s seal

10

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Presumption of authenticity of documents issued by Commission

11

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Finances of Commission

12

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Advances to Commission

13

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Accounts and audit

14

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Annual reports

15

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Advisory committees

16

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SCHEDULE 2

Part I — General

1
  • (1) In this Schedule—
  • “the 1996 Act” means the Broadcasting Act 1996;
  • “advertising agency” means an individual or a body corporate who carries on business as an advertising agent (whether alone or in partnership) or has control over any body corporate which carries on business as an advertising agent, and any reference to an advertising agency includes a reference to an individual who—is a director or officer of any body corporate which carries on such a business, oris employed by any person who carries on such a business;
  • “associate”—in relation to a body corporate, shall be construed in accordance with paragraph (1A), andin relation to an individual, shall be construed in accordance with sub-paragraph (2);
  • “Broadcasting Act licence” means a licence under Part 1 or 3 of this Act or Part 1 or 2 of the Broadcasting Act 1996;
  • “control”—in relation to a body corporate, shall be construed in accordance with sub-paragraph (3), andin relation to any body other than a body corporate, means the power of a person to secure, by whatever means and whether directly or indirectly, that the affairs of the first-mentioned body are conducted in accordance with the wishes of that person;
  • ...
  • ...
  • “equity share capital” has the same meaning as in the Companies Acts (see section 548 of the Companies Act 2006);
  • “local authority”—in relation to England . . ., means any of the following, that is to say, the council of a county, district or London borough, the Common Council of the City of London and the Council of the Isles of Scilly;in relation to Wales, means a county council or county borough council;in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; andin relation to Northern Ireland, means a district council;
  • ...
  • ...
  • ...
  • “participant”, in relation to a body corporate, means a person who holds or is beneficially entitled to shares in that body or who possesses voting power in that body.
  • ...
  • (1A) For the purpose of determining the persons who are the associates of a body corporate for the purposes of this Schedule—
  • (a) an individual shall be regarded as an associate of a body corporate if he is a director of that body corporate, and
  • (b) a body corporate and another body corporate shall be regarded as associates of each other if one controls the other or if the same person controls both.
  • (2) For the purpose of determining the persons who are an individual’s associates for the purposes of this Schedule, the following persons shall be regarded as associates of each other, namely—
  • (a) any individual and that individual’s husband or wife or civil partner and any relative, or husband or wife or civil partner of a relative, of that individual or of that individual’s husband or wife or civil partner;
  • (b) any individual and any body corporate of which that individual is a director;
  • (c) any person in his capacity as trustee of a settlement and the settlor or grantor and any person associated with the settlor or grantor;
  • (d) persons carrying on business in partnership and the husband or wife or civil partner and relatives of any of them;
  • (e) any two or more persons acting together to secure or exercise control of a body corporate or other association or to secure control of any enterprise or assets;

and in this sub-paragraph “relative” means a brother, sister, uncle, aunt, nephew, niece, lineal ancestor or descendant (the stepchild or illegitimate child of any person, or anyone adopted by a person, whether legally or otherwise, as his child, being regarded as a relative or taken into account to trace a relationship in the same way as that person’s child); and references to a wife or husband shall include a former wife or husband and a reputed wife or husband and references to a civil partner shall include a former civil partner and a reputed civil partner.

  • (3) For the purposes of this Schedule a person controls a body corporate if—
  • (a) he holds, or is beneficially entitled to, more than 50 per cent. of the equity share capital in the body, or possesses more than 50 per cent. of the voting power in it, or
  • (b) although he does not have such an interest in the body, it is reasonable, having regard to all the circumstances, to expect that he would (if he chose to) be able in most cases or in significant respects, by whatever means and whether directly or indirectly, to achieve the result that affairs of the body are conducted in accordance with his wishes; or
  • (c) he holds, or is beneficially entitled to, 50 per cent. of the equity share capital in that body, or possesses 50 per cent. of the voting power in it, and an arrangement exists between him and any other participant in the body as to the manner in which any voting power in the body possessed by either of them is to be exercised, or as to the omission by either of them to exercise such voting power.
  • (3A) For the purposes of sub-paragraph (3)(c)—
  • (a) “arrangement” includes any agreement or arrangement, whether or not it is, or is intended to be, legally enforceable, and
  • (b) a person shall be treated—
  • (i) as holding, or being beneficially entitled to, any equity share capital which is held by a body corporate which he controls or to which such a body corporate is beneficially entitled, and
  • (ii) as possessing any voting power possessed by such a body corporate.
  • (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) For the purposes of any provision of this Schedule which refers to a body controlled by two or more persons or bodies of any description taken together, the persons or bodies in question shall not be regarded as controlling the body by virtue of paragraph (b) of sub-paragraph (3) unless they are acting together in concert.
  • (6) In this Schedule any reference to a participant with more than a 5 per cent. interest in a body corporate is a reference to a person who—
  • (a) holds or is beneficially entitled to more than 5 per cent. of the shares in that body, or
  • (b) possesses more than 5 per cent. of the voting power in that body.
  • (7) Sub-paragraph (6) shall have effect subject to the necessary modifications in relation to other references in this Schedule—
  • (a) to an interest of more than a specified percentage in a body corporate, or
  • (b) to an interest of a specified percentage or more in a body corporate.
  • (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
  • (1) Subject to sub-paragraph (1A)Any reference in paragraph 1 above to a person—
  • (a) holding or being entitled to shares, or any amount of the shares or equity share capital, in a body corporate, or
  • (b) possessing voting power, or any amount of the voting power, in a body corporate,

is a reference to his doing so, or being so entitled, whether alone or jointly with one or more other persons and whether directly or through one or more nominees.

  • (1A) For the purposes of this Schedule, a person’s holding of shares, or possession of voting power, in a body corporate shall be disregarded if, or to the extent that—
  • (a) he holds the shares concerned—
  • (i) as a nominee,
  • (ii) as a custodian (whether under a trust or by a contract), or
  • (iii) under an arrangement pursuant to which he has issued, or is to issue, depositary receipts, ... in respect of the shares concerned, and
  • (b) he is not entitled to exercise or control the exercise of voting rights in respect of the shares concerned.
  • (1AA) In sub-paragraph (1A)(a)(iii), “depositary receipt” means a certificate or other record (whether or not in the form of a document)—
  • (a) which is issued by or on behalf of a person who holds shares or who holds evidence of the right to receive shares, or has an interest in shares, in a particular body corporate; and
  • (b) which evidences or acknowledges that another person is entitled to rights in relation to those shares or shares of the same kind, which shall include the right to receive such shares (or evidence of the right to receive such shares) from the person mentioned in paragraph (a).
  • (1B) For the purposes of sub-paragraph (1A)(b)—
  • (a) a person is not entitled to exercise or control the exercise of voting rights in respect of shares if he is bound (whether by contract or otherwise) not to exercise the voting rights, or not to exercise them otherwise than in accordance with the instructions of another, and
  • (b) voting rights which a person is entitled to exercise or of which he is entitled to control the exercise only in certain circumstances shall be taken into account only when those circumstances have arisen and for as long as they continue to obtain.
  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3

For the purposes of this Schedule the following persons shall be treated as connected with a particular person—

  • (a) a person who controls that person,
  • (b) an associate of that person or of a person falling within paragraph (a), and
  • (c) a body which is controlled by that person or by an associate of that person.
4

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Part II — Disqualification for Holding Licences

General disqualification of non-EEC nationals and bodies having political connections

1
  • (1) Subject to sub-paragraph (1A), the following persons are disqualified persons in relation to a Broadcasting Act licence—
  • (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (c) a local authority;
  • (d) a body whose objects are wholly or mainly of a political nature;
  • (e) a body affiliated to a body falling within paragraph (d);
  • (f) an individual who is an officer of a body falling within paragraph (d) or (e);
  • (g) a body corporate which is an associate of a body corporate falling within paragraph (d) or (e);
  • (h) a body corporate in which a body falling within any of paragraphs (c) to (e) and (g) is a participant with more than a 5 per cent. interest;
  • (hh) a body corporate which is controlled by a body corporate falling within paragraph (h);
  • (i) a body which is controlled by a person falling within any of paragraphs (c) to (g) or by two or more such persons taken together; and
  • (j) a body corporate in which a body falling within paragraph (i), other than one which is controlled—
  • (i) by a person falling within paragraph ... (f), or
  • (ii) by two or more such persons taken together,

is a participant with more than a 5 per cent. interest.

  • (1A) Where a service is provided exclusively for the purposes of the carrying out of the functions of a local authority under section 142 of the Local Government Act 1972 (provision by local authorities of information relating to their activities), a person is disqualified by virtue of sub-paragraph (1) in relation to a licence to provide that service only if he would be so disqualified disregarding paragraph (c) of that sub-paragraph.
  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disqualification of religious bodies

2
  • (1) The following persons are disqualified persons in relation only to licences falling within sub-paragraph (1A)—
  • (a) a body whose objects are wholly or mainly of a religious nature;
  • (b) a body which is controlled by a body falling within paragraph (a) or by two or more such bodies taken together;
  • (c) a body which controls a body falling within paragraph (a);
  • (d) a body corporate which is an associate of a body corporate falling within paragraph (a), (b) or (c);
  • (e) a body corporate in which a body falling within any of paragraphs (a) to (d) is a participant with more than a 5 per cent. interest;
  • (f) an individual who is an officer of a body falling within paragraph (a); and
  • (g) a body which is controlled by an individual falling within paragraph (f) or by two or more such individuals taken together.
  • (1A) A licence falls within this sub-paragraph if it is—
  • (a) a Channel 3 licence;
  • (b) a Channel 5 licence;
  • (c) a national sound broadcasting licence;
  • (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (e) an additional television service licence;
  • (f) a television multiplex licence; or
  • (g) a radio multiplex licence.
  • (1B) In this paragraph—
  • “additional television service licence” means a licence under Part 1 of this Act to provide an additional television service within the meaning of Part 3 of the Communications Act 2003;
  • “Channel 3 licence” and “Channel 5 licence” each has the same meaning as in Part 1 of this Act;
  • “national sound broadcasting licence” means a licence to provide a sound broadcasting service (within the meaning of Part 3 of this Act) which is a national service (within the meaning of that Part);
  • ...
  • “radio multiplex licence” means a licence under Part 2 of the Broadcasting Act 1996 to provide a radio multiplex service within the meaning of that Part; and
  • “television multiplex licence” means a licence under Part 1 of the Broadcasting Act 1996 to provide a multiplex service within the meaning of that Part.

Disqualification of publicly-funded bodies for radio service licences

3
  • (1) The following persons are disqualified persons in relation to any licence granted under Part 3 of this Act or Part 2 of the Broadcasting Act 1996 other than a licence to provide a restricted service—
  • (a) a body (other than a local authority, S4C or the BBC) which has, in its last financial year, received more than half its income from public funds;
  • (b) a body which is controlled by a body falling within paragraph (a) or by two or more such bodies taken together; and
  • (c) a body corporate in which a body falling within paragraph (a) or (b) is a participant with more than a 5 per cent. interest.
  • (2) For the purposes of sub-paragraph (1)(a) money is received from public funds if it is paid—
  • (a) by a Minister of the Crown out of money provided by Parliament or out of the National Loans Fund;
  • (b) by a Northern Ireland department out of the Consolidated Fund of Northern Ireland or out of money appropriated by Measure of the Northern Ireland Assembly; or
  • (c) by a body which itself falls within sub-paragraph (1)(a), including a body which falls within that provision by virtue of this paragraph;

but, in each case, there shall be disregarded any money paid as consideration for the acquisition of property or the supply of goods or services or as remuneration, expenses, pensions, allowances or similar benefits for or in respect of a person as the holder of an office.

General disqualification on grounds of undue influence

4
  • (1) A person is a disqualified person in relation to a Broadcasting Act licence if in the opinion of OFCOM—
  • (a) any relevant body is, by the giving of financial assistance or otherwise, exerting influence over the activities of that person, and
  • (b) that influence has led, is leading or is likely to lead to results which are adverse to the public interest.
  • (2) In sub-paragraph (1) “relevant body”—
  • (a) in relation to a licence granted under Part 1 of this Act or Part 1 of the Broadcasting Act 1996, means a person falling within paragraph 1(1)(c) to (h) or (j) above or a body which is controlled—
  • (i) by a person falling within paragraph 1(1)(c) to (g) above, or
  • (ii) by two or more such persons taken together; and
  • (b) in relation to a licence granted under Part 3 of this Act or Part 2 of the Broadcasting Act 1996, means a person falling within paragraph 1(1)(c) to (h) or (j) or 3 above or a body which is controlled .
  • (i) by a person falling within paragraph 1(1)(c) to (g) above;
  • (ii) by a person falling within paragraph 3 above; or
  • (iii) by two or more persons taken together each of whom falls within sub-paragraph (i) or (ii) (whether or not they all fall within the same sub-paragraph).

General disqualification of broadcasting bodies

5

The following persons are disqualified persons in relation to a Broadcasting Act licence —

  • (a) the BBC;
  • (b) S4C;
  • (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General disqualification of advertising agencies

6

The following persons are disqualified persons in relation to a Broadcasting Act licence—

  • (a) an advertising agency;
  • (b) an associate of an advertising agency;
  • (c) any body which is controlled by a person falling within sub-paragraph (a) or (b) or by two or more such persons taken together;
  • (d) any body corporate in which a person falling within any of sub-paragraphs (a) to (c) is a participant with more than a 5 per cent. interest.

Part III. — Restrictions to Prevent Accumulations of Interests in Licensed Services

Preliminary

1
  • (1) In this Part of this Schedule “relevant services” means any such services as are mentioned in sub-paragraphs (2) and (3) and, for the purposes of this Part, relevant services shall (subject to paragraphs 2(1) and 5(1) below) be divided into the twelve categories specified in those sub-paragraphs.
  • (2) In the case of services licensed by the Commission, the categories are—
  • (a) regional and national Channel 3 services and Channel 5;
  • (b) domestic satellite services;
  • (c) non-domestic satellite services;
  • (d) licensable programme services;
  • (e) additional services (within the meaning of Part I of this Act); and
  • (f) local delivery services.
  • (3) In the case of services licensed by the Authority, the categories are—
  • (a) national radio services;
  • (b) local radio services;
  • (c) restricted radio services;
  • (d) satellite radio services;
  • (e) licensable sound programme services; and
  • (f) additional services (within the meaning of Part III of this Act).
  • (4) References in this Part to national, local, restricted or satellite radio services are references to national, local, restricted or satellite services within the meaning of Part III of this Act.

Limits on the holding of licences to provide particular categories of services

2
  • (1) Subject to sub-paragraph (3), the maximum number of licences which may at any time be held by any one person to provide relevant services falling within each of the following categories shall be—
  • (a) two in the case of regional Channel 3 services;
  • (b) one in the case of national Channel 3 services;
  • (c) one in the case of Channel 5;
  • (d) one in the case of national radio services;
  • (e) Thirty-five in the case of local radio services; and
  • (f) six in the case of restricted radio services.
  • (2) The Secretary of State may, in the case of any category of relevant services not falling within sub-paragraph (1), by order prescribe the maximum number of licences which may at any time be held by any one person to provide relevant services falling within that category.
  • (3) The Secretary of State may by order—
  • (a) amend sub-paragraph (1) by substituting a different limit for any limit for the time being specified there;
  • (b) impose, in relation to any category of relevant services specified in or under sub-paragraph (1) or (2), limits on the holding of licences to provide relevant services falling within that category which are additional to any limits specified in or under that sub-paragraph and are framed—
  • (i) by reference to any specified circumstances relating to the holders of the licences in question or to the services to be provided under them, or
  • (ii) (in the case of licences granted by the Commission) by reference to matters determined by them under the order.
  • (4) Without prejudice to the generality of sub-paragraph (3)(b), an order made in pursuance of that provision may impose on the holder of a licence to provide any specified category of relevant services limits framed (directly or indirectly) by reference to either or both of the following matters, namely—
  • (a) the number of licences of any one or more specified descriptions which are held by him or by any body controlled by him; and
  • (b) his participation, to any specified extent, in any body corporate which is the holder of any licence or licences of any one or more such descriptions.
  • (5) Where a person holds a licence to provide a local radio service which, in accordance with section 86(2), authorises the provision of a multichannel service, he shall be treated for the purposes of sub-paragraph (1) as holding such number of licences to provide local radio services as corresponds to the number of channels on which the service may be provided.
  • (6) Where a person holds—
  • (a) a licence to provide a domestic satellite service,
  • (b) a licence to provide a non-domestic satellite service, or
  • (c) a licence to provide a satellite radio service,

which, in accordance with section 44(2), 45(3) or 86(2), authorises the provision of a multichannel service, he shall be treated for the purposes of any order under sub-paragraph (2) as holding such number of licences to provide domestic satellite services, non-domestic satellite services or (as the case may be) satellite radio services as corresponds to the number of channels on which the service may be provided.

  • (7) In this paragraph—
  • (a) “multichannel service” means a service which to any extent consists in the simultaneous transmission of different programmes on different frequencies; and
  • (b) any reference to the number of channels on which such a service may be provided is a reference to the number of different frequencies involved.
  • (8) For the purposes of—
  • (a) sub-paragraphs (1), (5) and (6), and
  • (b) any order under sub-paragraph (2),

a person shall be treated as holding a licence if the licence is held by a person connected with him.

Limits on the holding of licences to provide different categories of services

3

Where any restriction is imposed by or under paragraph 5 or 6 below on the holder of a particular kind of licence in relation to participation in a body corporate which is the holder of another kind of licence, any person who holds one of those kinds of licence shall not also hold the other kind of licence.

Limits on participation by holders of licences in bodies licensed to provide services of same category

4

The Secretary of State may by order prescribe restrictions on the extent to which the holder of a licence to provide a relevant service falling within a particular category may be a participant—

  • (a) in a body corporate which is the holder of another licence to provide a relevant service falling within that category, or
  • (b) in two or more such bodies corporate.

Special rules relating to participation by holders of television broadcasting licences

5
  • (1) For the purposes of paragraph 4 above and this paragraph the services specified in paragraph 1(2)(a) above shall be divided into the following three categories—
  • (a) regional Channel 3 services;
  • (b) national Channel 3 services; and
  • (c) Channel 5.
  • (2) Where a person is the holder of a licence to provide a service falling within one of those categories, he shall not be a participant with more than a 20 per cent. interest in any body corporate which is the holder of a licence to provide a service falling within either of the other two categories.
  • (3) The Secretary of State may by order—
  • (a) amend sub-paragraph (2) by substituting a different percentage for the percentage for the time being specified there;
  • (b) prescribe restrictions on the extent to which the holder of a licence to provide a service falling within one of the categories specified in sub-paragraph (1) may be a participant in two or more bodies corporate which are the holders of licences to provide services falling within either of the other two categories so specified.

Limits on participation by holders of licences in bodies licensed to provide services of different category

6
  • (1) Where a person is the holder of a licence to provide a relevant service falling within one of the categories specified in sub-paragraph (2)(a) or (b) or (3)(a) of paragraph 1 above, he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a relevant service falling within either of the other categories so specified.
  • (2) Subject to sub-paragraphs (3) and (4), where a person—
  • (a) is the holder of a licence to provide a non-domestic satellite service, or
  • (b) provides a satellite television service (other than a non-domestic satellite service) which is provided on a non-allocated frequency and appears to the Commission to be intended for general reception in the United Kingdom (whether or not it appears to them to be also intended for such reception elsewhere),

he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a relevant service falling within one of the categories referred to in sub-paragraph (1); and, where a person is the holder of a licence to provide such a relevant service, he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of such a licence as is mentioned in paragraph (a) above or which provides such a service as is mentioned in paragraph (b) above.

  • (3) In sub-paragraph (2)—
  • “non-allocated frequency” means a frequency other than one allocated to the United Kingdom for broadcasting by satellite, and
  • “satellite television service” means a service consisting in the transmission of television programmes by satellite;

and a service shall be disregarded for the purposes of paragraph (a) or (b) of that sub-paragraph if the programmes included in the service are at all times the same as those which are for the time being broadcast in a Channel 3 service or on Channel 5.

  • (4) Nothing in sub-paragraph (2) shall impose any restriction—
  • (a) on the extent to which an excluded licensee may be a participant in a body corporate which is the holder of a licence to provide a domestic satellite service, or
  • (b) on the extent to which the holder of such a licence may be a participant in a body corporate which is an excluded licensee;

and for this purpose “excluded licensee” means a person who is the holder of a licence to provide a non-domestic satellite service and—

  • (i) is licensed under section 7 of the Telecommunications Act 1984 to provide a specialised satellite service, and
  • (ii) is so licensed (or, as the case may be, was first so licensed) by virtue of a licence granted under that section before the commencement of sub-paragraph (2), and
  • (iii) is not connected with any other person who is the holder of a licence to provide a non-domestic satellite service.
  • (5) Where a person is the holder of a licence to provide a satellite radio service, he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a relevant service falling within sub-paragraph (2)(a) or (3)(a) of paragraph 1 above; and, where a person is the holder of a licence to provide such a relevant service, he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a satellite radio service.
  • (6) Where a person is the holder of a licence to provide a satellite radio service which is provided on any frequency allocated to the United Kingdom for broadcasting by satellite (“a domestic licence”), he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a satellite radio service which is not provided on any such frequency (“a non-domestic licence”); and, where a person is the holder of a non-domestic licence, he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a domestic licence.
  • (7) Where a person is the holder of a licence to provide a relevant service falling within one of the categories specified—
  • (a) in sub-paragraph (2)(f) or (3)(b) of paragraph 1 above, or
  • (b) in paragraph 5(1)(a) above,

he shall not be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a relevant service falling within either of the other categories so specified if each of the services in question is provided for an area which is to a significant extent the same as that for which the other is provided.

  • (8) The Secretary of State may by order prescribe restrictions—
  • (a) on the extent to which—
  • (i) the holder of a relevant national or satellite licence, or
  • (ii) a person providing such a service as is mentioned in sub-paragraph (2)(b),

may be a participant in a body corporate which is the holder of a relevant local licence, or in two or more such bodies corporate, and

  • (b) on the extent to which the holder of a relevant local licence may be a participant in a body corporate which—
  • (i) is the holder of a relevant national or satellite licence, or
  • (ii) provides such a service as is mentioned in sub-paragraph (2)(b),

or in two or more such bodies corporate.

  • (9) In sub-paragraph (8)—
  • “relevant local licence” means a licence to provide a relevant service falling within either of the categories specified in paragraph 1(2)(f) or (3)(b) above; and
  • “relevant national or satellite licence” means a licence to provide a relevant service falling within one of the categories specified—
  • (a) in paragraph 1(2)(b) or (c) or (3)(a) or (d) above, or
  • (b) in paragraph 5(1)(b) or (c) above.
  • (10) The Secretary of State may by order amend any of sub-paragraphs (1), (2) and (5) to (7) by substituting a different percentage for the percentage for the time being specified there.

Limits on participation in bodies holding licences to extend to participation in bodies controlling such bodies

7
  • (1) Any restriction imposed by or under paragraph 4, 5 or 6 above on participation—
  • (a) in a body corporate which is the holder of a particular kind of licence, or
  • (b) in two or more such bodies,

shall apply equally to participation—

  • (i) in a body corporate which controls the holder of such a licence, or
  • (ii) in two or more bodies corporate each of which controls the holder of such a licence,

as the case may be.

  • (2) Any restriction imposed under paragraph 6(8)(b) above on participation in a body corporate providing such a service as is mentioned in paragraph 6(2)(b) shall apply equally to participation in a body corporate which controls a body providing such a service.

Attribution of interests of connected persons

8
  • (1) Any restriction on participation imposed by or under paragraph 4, 5 or 6 above—
  • (a) on the holder of a licence, or
  • (b) on a person providing such a service as is mentioned in paragraph 6(2)(b),

shall apply to him as if he and every person connected with him were one person.

  • (2) For the purposes of this paragraph and paragraph 9 below the following persons shall be treated as connected with a person providing such a service as is mentioned in paragraph 6(2)(b), namely—
  • (a) a person who controls that person;
  • (b) an associate of that person or of a person falling within paragraph (a); and
  • (c) a body which is controlled by that person or by an associate of that person.

Restrictions imposed by orders

9
  • (1) Without prejudice to the generality of paragraph 4 or 6(8) above, an order made in pursuance of that provision may impose restrictions framed by reference to the number of bodies corporate in which the holder of a licence, or any person connected with him, is a participant, and an order made in pursuance of paragraph 6(8)(a)(ii) may impose restrictions framed by reference to the number of bodies corporate in which a person providing such a service as is mentioned in paragraph 6(2)(b), or any person connected with him, is a participant.
  • (2) Paragraph 8(2) above applies for the purposes of this paragraph.

Power to impose restrictions on participation by persons other than licence holders

10
  • (1) Where, by virtue of any provision of this Part of this Schedule, any restriction applies in relation to participation in any body or bodies corporate of a particular description, the Secretary of State may by order provide for further restrictions to apply in relation to participation in any such body or bodies corporate, being restrictions which—
  • (a) are imposed on persons to whom the first-mentioned restriction does not apply, and
  • (b) are framed by reference to the number of bodies corporate in which such persons, or persons connected with them, are participants.
  • (2) For the purposes of this paragraph the following persons shall be treated as connected with a particular person, namely—
  • (a) a person who controls that person;
  • (b) an associate of that person or of a person falling within paragraph (a); and
  • (c) a body which is controlled by that person or by an associate of that person.

Part IV — Restrictions on Controlling Interests in Both Newspapers and Licensed Services

Preliminary

1
  • (1) In this Part of this Schedule references to a national or local newspaper are (subject to sub-paragraph (2)) references to a national or local newspaper circulating wholly or mainly in the United Kingdom or in a part of the United Kingdom.
  • (2) The relevant authority may determine that a newspaper which would not otherwise be a national or local newspaper for the purposes of this Part of this Schedule shall be treated as a national or (as the case may be) a local newspaper for the purposes of any particular restriction imposed by or under this Part of this Schedule if it appears to them to be appropriate for the newspaper to be so treated having regard to its circulation or influence in the United Kingdom or (as the case may be) in a part of the United Kingdom; and in this sub-paragraph “the relevant authority”—
  • (a) in relation to a restriction having effect in relation to any licence which may be granted by the Commission, means the Commission; and
  • (b) in relation to a restriction having effect in relation to any licence which may be granted by the Radio Authority, means that Authority.
  • (3) For the purposes of this Part of this Schedule the following persons are connected with each other in relation to a particular national or local newspaper, namely—
  • (a) the proprietor of the newspaper;
  • (b) a person who controls the proprietor;
  • (c) an associate of the proprietor or of a person falling within paragraph (b); and
  • (d) a body which is controlled by the proprietor or by an associate of the proprietor.
  • (4) Any reference in this Part of this Schedule, in relation to a local newspaper, to a relevant local radio service or a relevant local delivery service is a reference to a local radio service or a local delivery service which serves an area which is to a significant extent the same as that served by the newspaper.
  • (5) Paragraph 1(4) in Part III of this Schedule shall have effect for the purposes of this Part of this Schedule as it has effect for the purposes of Part III.

Restrictions on proprietors of newspapers

2
  • (1) Subject to sub-paragraph (2), no proprietor of a national or local newspaper shall be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide—
  • (a) a Channel 3 service or Channel 5, or
  • (b) a national radio service.
  • (2) Sub-paragraph (1) shall not impose any restriction on the proprietor of a local newspaper as respects participation in a body corporate which is the holder of a licence to provide a regional Channel 3 service except where the newspaper and the service each serve an area which is to a significant extent the same as that served by the other.
  • (3) No person who—
  • (a) is the proprietor of a national newspaper, and
  • (b) is a participant with more than a 5 per cent. interest in a body corporate falling within sub-paragraph (1) (but, in accordance with that sub-paragraph, is not a participant with more than a 20 per cent. interest in it),

shall be a participant with more than a 5 per cent. interest in any other such body corporate.

  • (4) No person who is the proprietor of a local newspaper shall be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a relevant local radio service or a relevant local delivery service.
  • (5) The Secretary of State may by order—
  • (a) amend sub-paragraph (1), (3) or (4) by substituting a different percentage for the percentage for the time being specified there;
  • (b) prescribe restrictions (in addition to that imposed by sub-paragraph (3)) on the extent to which the proprietor of a national or local newspaper may be a participant in two or more bodies corporate which are the holders of licences to provide services falling within sub-paragraph (1)(a) or (b);
  • (c) prescribe restrictions on the extent to which the proprietor of a national newspaper may be a participant in a body corporate which is the holder of a licence to provide a relevant service falling within paragraph 1(2)(f) or (3)(b) in Part III of this Schedule, or in two or more such bodies corporate;
  • (d) prescribe restrictions on the extent to which the proprietor of a local newspaper may be a participant in two or more bodies corporate which are the holders of licences to provide relevant local radio services or relevant local delivery services;
  • (e) prescribe restrictions on the extent to which a person who is the proprietor of a newspaper of any specified description may be a participant in a body corporate which is the holder of a licence to provide any specified description of service falling within paragraph 1(2)(b) or (c) or (3)(d) in Part III of this Schedule or in two or more such bodies corporate.
  • (6) Paragraph 7(1) in Part III of this Schedule shall have effect in relation to any restriction imposed by or under this paragraph as it has effect in relation to any restriction imposed by or under paragraph 4, 5 or 6 in Part III.

Restrictions on holders of licences

3
  • (1) Subject to sub-paragraph (2), no person who is the holder of a licence to provide—
  • (a) a Channel 3 service or Channel 5, or
  • (b) a national radio service,

shall be a participant with more than a 20 per cent. interest in a body corporate which runs a national or local newspaper.

  • (2) Sub-paragraph (1) shall not impose any restriction on the holder of a licence to provide a regional Channel 3 service as respects participation in a body corporate which runs a local newspaper except where the service and the newspaper each serve an area which is to a significant extent the same as that served by the other.
  • (3) No person who—
  • (a) is the holder of any such licence as is mentioned in sub-paragraph (1), and
  • (b) is a participant with more than a 5 per cent. interest in a body corporate which runs a national newspaper (but, in accordance with that sub-paragraph, is not a participant with more than a 20 per cent. interest in it),

shall be a participant with more than a 5 per cent. interest in any other such body corporate.

  • (4) No person who is the holder of a licence to provide a relevant local radio service or a relevant local delivery service shall be a participant with more than a 20 per cent. interest in a body corporate which runs a local newspaper.
  • (5) The Secretary of State may by order—
  • (a) vary sub-paragraph (1), (3) or (4) by substituting a different percentage for the percentage for the time being specified there;
  • (b) prescribe restrictions (in addition to that imposed by sub-paragraph (3)) on the extent to which the holder of such a licence as is mentioned in sub-paragraph (1) may be a participant in two or more bodies corporate which run national or local newspapers;
  • (c) prescribe restrictions on the extent to which the holder of a licence to provide a relevant service falling within paragraph 1(2)(f) or (3)(b) in Part III of this Schedule may be a participant in a body corporate which runs a national newspaper, or in two or more such bodies corporate;
  • (d) prescribe restrictions on the extent to which the holder of such a licence as is mentioned in sub-paragraph (4) may be a participant in two or more bodies corporate which run local newspapers;
  • (e) prescribe restrictions on the extent to which the holder of a licence to provide any specified description of service falling within paragraph 1(2)(b) or (c) or (3)(d) in Part III of this Schedule may be a participant in a body corporate which runs a national or local newspaper, or in two or more such bodies corporate.
  • (6) For the purposes of this paragraph a person runs a national or local newspaper if—
  • (a) he is the proprietor of such a newspaper; or
  • (b) he controls a body which is the proprietor of such a newspaper.

Attribution of interests of connected persons

4

Any restriction on participation imposed by or under paragraph 2 or 3 above—

  • (a) on the proprietor of any newspaper, or
  • (b) on the holder of any licence,

shall apply to him as if he and every person connected with him were one person.

Restrictions imposed by orders

5

Without prejudice to the generality of paragraph 2(5) or 3(5) above, an order made in pursuance of that provision may impose restrictions framed by reference to the number of bodies corporate in which—

  • (a) the proprietor of a newspaper, or
  • (b) the holder of a licence,

as the case may be, or any person connected with any such person, is a participant.

Part V — Restriction on Holding of Licences by Operators of Public Telecommunication Systems

The Secretary of State may by order specify categories of licences granted by the Commission or the Authority which may not be held by all or any of the following, namely—

In this paragraph “national public telecommunications operator” means a public telecommunications operator (within the meaning of the Telecommunications Act 1984) who is authorised to run a telecommunication system for the whole, or substantially the whole, of the United Kingdom.

SCHEDULE 3

Status and capacity

1
  • (1) The Corporation shall be a body corporate.
  • (2) The Corporation shall not be treated for the purposes of the enactments and rules of law relating to the privileges of the Crown as a body exercising functions on behalf of the Crown.
  • (3) The Corporation may do anything which appears to them to be incidental or conducive to the carrying out of their functions.
  • (4) The powers of the Corporation under sub-paragraph (3) include power, to the extent that it appears to them incidental or conducive to the carrying out of their functions to do so—
  • (a) to borrow money;
  • (b) to carry on activities (other than those comprised in their duty to carry out their Channel 4 functions) through Channel 4 companies; and
  • (c) to participate with others in the carrying on of any such activities.
  • (5) In sub-paragraph (4) “Channel 4 functions” means—
  • (a) securing the continued provision of Channel 4, and
  • (b) the fulfilment of the public service remit for that Channel under section 265 of the Communications Act 2003.

Appointment of members

2
  • (1) A person shall be disqualified for being a member of the Corporation so long as he is—
  • (a) a governor or employee of the BBC; or
  • (b) a member or employee of OFCOM.
  • (2) Before appointing a person to be a member of the Corporation, OFCOM shall satisfy themselves that that person will have no such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member of the Corporation; and OFCOM shall also satisfy themselves from time to time with respect to every member of the Corporation that he has no such interest.
  • (3) Any person who is, or whom OFCOM propose to appoint to be, a member of the Corporation shall, whenever requested by OFCOM to do so, furnish them with such information as they consider necessary for the performance by them of their duties under sub-paragraph (2).

Tenure of office

3
  • (1) Subject to the following provisions of this paragraph, each member of the Corporation shall hold and vacate office in accordance with the terms of his appointment.
  • (2) A person shall not be appointed to be a member of the Corporation for more than five years at a time.
  • (2A) OFCOM may at any time, by notice to a member of the Corporation, terminate the appointment of that member.
  • (2B) Before terminating a person’s appointment under sub-paragraph (2A), OFCOM must consult the Secretary of State.
  • (3) Any member of the Corporation may at any time resign his office by notice to OFCOM.
  • (4) This paragraph does not apply in relation to ex-officio members of the Corporation.

Remuneration and pensions of members

4
  • (1) The Corporation may pay —
  • (a) to each member other than an ex-officio member such remuneration and allowances, and
  • (b) to each ex-officio member such allowances,

as OFCOM may determine.

  • (2) The Corporation may pay or make provision for paying to or in respect of any member such sums by way of pensions, allowances or gratuities as OFCOM may determine.
  • (3) Where a person ceases to be a member otherwise than on the expiry of his term of office and it appears to OFCOM that there are special circumstances which make it right for him to receive compensation, the Corporation may make a payment to him of such amount as OFCOM may determine.
  • (4) Sub-paragraphs (2) and (3) do not apply in relation to ex-officio members of the Corporation.
  • (5) The approval of the Treasury shall be required for any determination under this paragraph other than a determination under sub-paragraph (1) having effect in relation to an ex-officio member of the Corporation.

Disqualification of members of Corporation for House of Commons and Northern Ireland Assembly

5

In Part II of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified) there shall be inserted at the appropriate place—

The Channel Four Television Corporation

and a corresponding amendment shall be made in Part II of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975.

Proceedings

6
  • (1) Subject to paragraph 7, the quorum of the Corporation and the arrangements relating to their meetings shall be such as the Corporation may determine.
  • (2) The arrangements may, with the approval of OFCOM , provide for the discharge, under the general direction of the Corporation, of any of the Corporation’s functions by a committee or by one or more of the members or employees of the Corporation.
7
  • (1) A member who is in any way directly or indirectly interested in any matter that is brought up for consideration at a meeting of the Corporation shall disclose the nature of his interest to the meeting; and, where such a disclosure is made—
  • (a) the disclosure shall be recorded in the minutes of the meeting, and
  • (b) (subject to sub-paragraph (2)) the member shall not take any part in any deliberation or decision of the Corporation, or of any of their committees, with respect to that matter.
  • (2) Sub-paragraph (1)(b) shall not apply in relation to any meeting of the Corporation at which all of the other members present resolve that the member’s interest should be disregarded for the purposes of that provision.
  • (3) For the purposes of sub-paragraph (1), a general notification given at a meeting of the Corporation by a member to the effect that he is a member of a specified company or firm and is to be regarded as interested in any matter involving that company or firm shall be regarded as a sufficient disclosure of his interest in relation to any such matter.
  • (4) A member need not attend in person at a meeting of the Corporation in order to make a disclosure which he is required to make under this paragraph if he takes reasonable steps to secure that the disclosure is made by a notice which is taken into consideration and read at the meeting.
  • (5) In this paragraph references to a meeting of the Corporation include references to a meeting of any of their committees.
8

The validity of any proceedings of the Corporation shall not be affected by any vacancy among the members or by any defect in the appointment of a member or by any failure to comply with the requirements of paragraph 7.

Employees of the Corporation

9
  • (1) The Corporation shall appoint a chief executive of the Corporation, and may appoint such other employees as they may determine.
  • (2) If the Corporation determine to do so in the case of any of their employees, the Corporation shall pay to or in respect of those employees such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as the Corporation may determine.
  • (3) If any employee of the Corporation—
  • (a) is a participant in any pension scheme applicable to his employment, and
  • (b) becomes a member of the Corporation other than an ex-officio member,

he may, if OFCOM so determine, be treated for the purposes of the pension scheme as if his service as a member of the Corporation were service as an employee of the Corporation.

Authentication of Corporation’s seal

10

The application of the seal of the Corporation shall be authenticated by the signature of the chairman or of some other person authorised for the purpose.

Presumption of authenticity of documents issued by Corporation

11

Any document purporting to be an instrument issued by the Corporation and to be duly executed under the seal of the Corporation or to be signed on behalf of the Corporation shall be received in evidence and shall be deemed to be such an instrument unless the contrary is shown.

Accounts and audit

12
  • (1) The Corporation shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State may direct with the approval of the Treasury.
  • (2) The accounts of the Corporation shall be audited by auditors to be appointed by the Corporation with the approval of the Secretary of State.
  • (3) A person shall not be qualified to be appointed as a auditor in pursuance of sub-paragraph (2) unless he is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.
  • (4) The Corporation shall at all reasonable times upon demand made by the Secretary of State or by any persons authorised by him in that behalf—
  • (a) afford to him or them full liberty to examine the accounts of the Corporation; and
  • (b) furnish him or them with all forecasts, estimates, information and documents which he or they may require with respect to the financial transactions and commitments of the Corporation.

Annual reports

13
  • (1) As soon as possible after the end of every financial year, the Corporation shall prepare a general report of their proceedings during that year, and transmit it to the Secretary of State who shall lay copies of it before each House of Parliament.
  • (1A) The report must include a report on the discharge by the Corporation of their duty under section 23A (sustainability duty of Corporation).
  • (2) The report shall have attached to it the statement of accounts for the year and a copy of any report made by the auditors on that statement, and shall include such information (including information relating to the financial position of the Corporation) as the Secretary of State may from time to time direct.

SCHEDULE 4

Report by OFT on reference under s. 39

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The competition test

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to modify arrangements in consequence of OFT’s report

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

References to Monopolies and Mergers CommissionMMC

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Report by Monopolies and Mergers CommissionMMC on reference under paragraph 4

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to modify arrangements in consequence of Monopolies and Mergers CommissionMMC’s report

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power of OFT to review previous decision with respect to arrangements

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to obtain information

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of OFT to assist Monopolies and Mergers CommissionMMC

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 5

The relevant service

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applications for licence to provide the relevant service

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consideration of applications and award of licence

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conditions requiring licence holder to deliver promised service

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to begin providing licensed service and financial penalties on revocation of licence

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Renewal of licence to provide relevant service

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional methods of enforcement of licence to provide relevant service

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 6

Status and capacity

1
  • (1) S4C shall not be treated for the purposes of the enactments and rules of law relating to the privileges of the Crown as a body exercising functions on behalf of the Crown.
  • (2) S4C may do anything which appears to them to be incidental or conducive to the carrying out of their functions.
  • (3) In carrying out its functions S4C may carry on activities in any way whatever, including—
  • (a) through or with other persons;
  • (b) anywhere in the United Kingdom or elsewhere;
  • (c) with a view to making a profit;
  • (d) for a charge.

Appointment of members

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tenure of office

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration and pensions of members

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disqualification of members of Authority for House of Commons

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceedings

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

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8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employees of S4C

9
  • (1) S4C shall appoint a secretary and may appoint such other employees as they may determine.
  • (2) If S4C determine to do so in the case of any of their employees, S4C shall pay to or in respect of those employees such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as S4C may determine.
  • (3) If a person—
  • (a) participates in a pension scheme as an employee of S4C, and
  • (b) on or after ceasing to be an employee of S4C, becomes a non-executive member of the S4C Board,

the person’s service as a non-executive member of the S4C Board may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if it were service as an employee of S4C.

Authentication of S4C’s seal

10

The application of the seal of S4C shall be authenticated by the signature of the chairman or of some other person authorised for the purpose.

Presumption of authenticity of documents issued by S4C

11

Any document purporting to be an instrument issued by S4C and to be duly executed under the seal of S4C or to be signed on behalf of S4C shall be received in evidence and shall be deemed to be such an instrument unless the contrary is shown.

Accounts and audit

12
  • (1) S4C shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State may direct with the approval of the Treasury.
  • (1A) The statement of accounts must deal separately with the public service fund referred to in section 61A of this Act and with the assets of S4C that are not comprised in that fund; and accordingly, the statement must deal with liabilities separately according to whether they fall to be met from that fund or from those assets.
  • (2A) S4C must send a copy of its statement of accounts to the Comptroller and Auditor General as soon as possible after the end of the financial year to which the statement relates.
  • (2B) The Comptroller and Auditor General must—
  • (a) examine, certify and report on each statement of accounts of S4C, and
  • (b) send a copy of the report and certified statement of accounts to the Secretary of State.
  • (2C) The Secretary of State must lay before Parliament a copy of each such report and certified statement.
  • (2D) As soon as possible after the Secretary of State lays copies of the report and statement of accounts before Parliament, S4C must arrange for the report and certified statement to be laid before Senedd Cymru.
  • (2E) S4C must ensure that each S4C subsidiary undertaking appoints the Comptroller and Auditor General as auditor, unless the S4C subsidiary undertaking requests the Comptroller and Auditor General’s permission to appoint another person and the Comptroller and Auditor General permits the appointment of that person as auditor.
  • (2F) The Comptroller and Auditor General may inspect the accounts of any S4C subsidiary undertaking (regardless of who is appointed as auditor).
  • (4) S4C shall at all reasonable times upon demand made by the Secretary of State or by any persons authorised by him in that behalf—
  • (a) afford to him or them full liberty to examine the accounts of S4C; and
  • (b) furnish him or them with all forecasts, estimates, information and documents which he or they may require with respect to the financial transactions and commitments of S4C.
  • (5) S4C must ensure that an S4C subsidiary undertaking, if told to do so by the Secretary of State or any person authorised by the Secretary of State, grants the Secretary of State or authorised person access to—
  • (a) that undertaking’s accounts;
  • (b) information and documents relating to that undertaking’s financial transactions and commitments.
  • (6) In this paragraph “S4C subsidiary undertaking” means an undertaking which, for the purposes of the Companies Act 2006, is a subsidiary undertaking of S4C (see section 1162 of that Act).

Annual reports

13
  • (1) As soon as possible after the end of every financial year, S4C shall prepare a general report of their proceedings during that year, and transmit it to the Secretary of State who shall lay copies of it before each House of Parliament.
  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) The report shall also—
  • (a) set out every contravention notification given by OFCOM to S4C during the year; and
  • (b) include such other information (including information relating to S4C’s financial position) as the Secretary of State may from time to time direct.
  • (4) In sub-paragraph (3), “contravention notification” means a notification of a determination by OFCOM of a contravention by S4C of any obligation imposed by or under this Act, the 1996 Act or Part 3 of the Communications Act 2003.

Advisory committees

14

S4C may appoint, or arrange for the assistance of, advisory committees to give advice to them on such matters relating to S4C’s functions as S4C may determine.

SCHEDULE 7

Part I — Qualifying Revenue for purposes of Part I or II of this Act

Computation of qualifying revenue

1
  • (1) It shall be the duty of OFCOM to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining the qualifying revenue in relation to a person—
  • (a) for any accounting period of his, or
  • (b) for any year,

for the purposes of any provision of Part I or Part II of this Act.

  • (2) A statement under this paragraph may set out different principles for persons holding different kinds of licences.
  • (3) Before drawing up or revising a statement under this paragraph OFCOM shall consult the Secretary of State and the Treasury.
  • (4) OFCOM shall—
  • (a) publish the statement drawn up under this paragraph and every revision of that statement; and
  • (b) transmit a copy of that statement, and every revision of it, to the Secretary of State;

and the Secretary of State shall lay copies of the statement and of every such revision before each House of Parliament.

  • (5) This paragraph does not apply in relation to such part of a person’s qualifying revenue as falls to be ascertained in accordance with section 368J of the Communications Act 2003 (see section 18A(1)(b) and (3) of this Act).

Disputes

2
  • (1) For the purposes of any provision of Part I or Part II of this Act—
  • (a) the amount of the qualifying revenue in relation to any person for any accounting period of his, or (as the case may be) for any year, or
  • (b) the amount of any payment to be made to OFCOM by any person in respect of any such revenue, or of an instalment of any such payment,

shall, in the event of a disagreement between OFCOM and that person, be the amount determined by OFCOM .

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