FAMILY NEWSPAPERS GIVEN EXEMPTION

Press, Volume CIV, Issue 30886, 20 October 1965, Page 1

FAMILY NEWSPAPERS GIVEN EXEMPTION

(From Our Parliamentary Reporter)

WELLINGTON, Oct. 19.

Existing family-owned newspapers in New Zealand will be exempted from provisions in the News Media Ownership Bill limiting over-all overseas interest to 20 per cent and individual overseas interest to 15 per cent.

The Parliamentary Statutes Revision Committee, which reported the controversial legislation back to Parliament today, has made no other major change to the bill.

Where 80 per cent of the control of such companies is now held by or in trust for of any group of persons with a common ancestor at any time domiciled in the Dominion, the share-shedding and voting restriction provisions of the bill will not apply. The exemption will remain onlv as long as a family continues to have a collective minimum interest of 80 per cent in a news company. Special statements of the family status of the shareholders involved will be required and will be registered

on the separate “overseas” register required in the original bill. Life insurance firms in business in New Zealand will not be deemed as domiciled abroad in relation to shares they hold, either at present or in future, in news companies. But the shares must have been acquired out of funds held in New Zealand. The definition of persons domiciled abroad has been tightened, to include companies controlled directly or indirectly “by any means whatsoever” by a person or persons themselves domiciled abroad.

A previous formula for the reduction and redistribution of overseas-held voting rights which exceed the statutory limit has been simplified. The “offending” surplus voting rights of any overseas investor will now be appor-

tioned only among New Zealand shareholders in any particular company. As originally introduced, the bill proposed a redistribution among all other shareholders, who might have included other overseas investors.

To prevent fussy fractions among redistributed voting rights, they will be apportioned to the nearest whole number.

A month, nbt a fortnight, will be allowed for the sending of the various forms of notice of domicile which may be required from shareholders under the bill. Notices which news companies may have to post to shareholders overseas will be deemed to have been given after a month, or when they are received, whichever is the earlier.