When the ownership structure of a company holding a broadcasting licence changes, two different obligations arise: notification and permission.
Company Transfer and Merger: Prior Permission - Art. 20/2
If a Contravention Arises - Art. 20/3
Where the company structure to be formed as a result of share transfer, company transfer and merger transactions contains a contravention of the matters provided for in this Law, that contravention must be remedied within the period to be given by the Supreme Council, not exceeding ninety days. Otherwise the broadcasting licence of the media service provider organisations concerned is revoked.
| Stage | Result |
|---|---|
| A contravention is established | The Supreme Council gives a period not exceeding ninety days |
| If it is remedied within the period | The transaction is completed |
| If it is not remedied | The broadcasting licence is revoked |
The Legislation Reserved - Art. 20/4
In mergers, acquisitions and transfers of registered shares, the provisions of Art. 19, the provisions of Capital Markets Law No. 2499 and the related legislation, and the provisions of Law No. 4054 of 7/12/1994 on the Protection of Competition are reserved.
- Art. 19 - shareholding, concentration and foreign capital limits
- Capital Markets Law No. 2499 and the related legislation
- Law No. 4054 on the Protection of Competition
We cover the limits in Art. 19 in the shareholding guide.
The Licence Cannot Be Transferred
We cover the licence regime in the licence types guide.
If a Condition Is Lost - Art. 32/6
Where one of the conditions required in this Law for the grant of a broadcasting licence is lost and where the obligation in Art. 6/5 is not fulfilled, the organisation is given a thirty-day period. The broadcasts of an organisation that does not fulfil the condition despite the period given are suspended for three months. If it is not fulfilled within that period either, the broadcasting licence is revoked and the use of the channel and frequency is ended.
A Checklist
- Was the share transfer notified within thirty days?
- Was prior permission obtained for the company transfer or merger?
- Does the new structure comply with the limits in Art. 19? (four licences, 30% revenue, 50% foreign capital)
- Has the kinship rule (Art. 19/1-e) been taken into account?
- Are the registered and non-privileged character of the shares preserved?
- Was the amendment of the articles of association notified within one month? (Art. 19/1-a)
Summary
Under Art. 20 of Law No. 6112 share transfers in a joint stock company holding a broadcasting licence are notified to the Supreme Council within thirty days; for a company transfer and a merger prior permission must be obtained and notification made within thirty days after the transaction. If the resulting structure contravenes the Law it must be remedied within the period, not exceeding ninety days, to be given by the Supreme Council; otherwise the licence is revoked. The terrestrial broadcasting licence itself may not be transferred.