RULES CHANGED ON FOREIGN OWNERSHIP
By Adnews Staff
Foreign investors can now own a bigger piece of the Canadian broadcast and cable business. Under new rules set out by the federal government, foreigners can own up to one-third of the voting shares of a holding company. Previously the limit was 20%. The rule that limited the number of non-Canadian directors to a fifth of the board has been eliminated. Foreigners can also take on the roles of chairman, chief executive. A holding company still cannot control or influence the programming decision of a broadcast licence holder. Foreign ownership limits of 20% will remain for the operating companies actually holding broadcast and cable licences. Foreigners will be able to take a fifth of the seats on a licensee's board but the chief executives will still have to be Canadians. The changes put cable and broadcast companies in line with telecommunications companies, which are already allowed one-third foreign ownership.