QuestionsQuestions (Republic Act No. 9212)
RA 9212 amends Republic Act No. 7582, which renewed the franchise of the Consolidated Broadcasting System, Inc. (formerly Audience, Inc.), by changing provisions on ownership dispersal, transfers/assignment of the franchise, and adding an anti-censorship/self-regulation undertaking.
At least thirty percent (30%) of the grantee’s outstanding capital stock (or a higher percentage if later required by law) must be publicly offered through the stock exchange in the Philippines within five (5) years after it achieves the status of a national broadcasting network.
A “national broadcasting network” is one that operates three (3) or more radio and/or television stations.
Compliance is deemed if the grantee offers to the public through a securities exchange in the Philippines at least thirty percent (30%) of the shares of a holding company that owns at least a majority of the grantee’s capital stock, such that the offering results in at least thirty percent (30%) interest in the grantee’s outstanding capital stock.
Non-compliance is “a cause for revocation of the franchise.”
No single person or entity shall be allowed to own more than five percent (5%) of the stock offerings.
The grantee shall not lease, transfer, grant usufruct of, sell, assign the franchise/rights and privileges under the franchise, or merge with any other corporation/entity without prior approval of Congress.
Neither shall the controlling interest in the grantee be transferred (as a whole or in parts) and whether simultaneously or contemporaneously to another person/entity without prior approval of Congress.
Yes. The limitation does not apply to transfers or issuance of shares to any investor pursuant to or in connection with an increase in the grantee’s authorized capital stock that dilutes the then-existing stockholders’ holdings.
It allows any transfer or sale of shares of stock to an investor or investors.
It is allowed when shares are sold/transferred/assigned by the grantee’s stockholders in favor of a holding company whose stockholders are identical to the stockholders of the grantee.
To enable the grantee to raise necessary capital or financing for provision of the authorized services and/or carry out the purposes for which it was incorporated/organized.
Any such transfer, sale, or issuance must be in accordance with applicable constitutional limitations.
The grantee shall not require any previous censorship of any speech, play, act, scene, or other matter to be broadcast from its stations.
During any broadcast, the grantee must cut off from the air the speech/play/act/scene/matter if the tendency thereof is to propose and/or incite treason, rebellion or sedition, or if the language used is indecent or immoral.
Willful failure constitutes a valid cause for the cancellation of the franchise.
It treats compliance with its cut-off duty as a franchise condition; violation (willful failure) gives a ground for cancellation.
It takes effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.