Executive order issued to regulate foreign investment in media
quinta-feira, 03 de outubro de 2002 , 18h46 | POR REDAÇÃO

President Fernando Henrique Cardoso has decided not to wait for Congress and instead issued an executive order to regulate the ownership of media organizations by legal and foreign entities. Provisional Measure MP 70/2002 was published Wednesday, October 2, in the Federal Register (Diário Oficial da União). The text differs considerably from the draft bill written by the Communications Ministry and submitted to the presidential chief of staff before being forwarded to Congress. The main change is a provision allowing media companies to make public offerings of stock. The measure amends article 12 of Decree 236/67, which limits the number of radio and TV licenses any single entity can own, by restricting its application to shareholders with more than 20% of other broadcasting companies. The limits set in art. 12 also no longer apply to investment in equity portfolios provided the holder doesn?t appoint managers or hold enough equity to configure control of more than one broadcaster or affiliate. Affiliation is defined as ?direct or indirect ownership of at least 20% of the equity? of one or more legal entities. These amendments to Decree 236 significantly ease restrictions on ownership of broadcasters in practice. Additionally, the measure no longer requires the Communication Ministry?s prior approval for ownership changes. A clause imposing this requirement was removed at the request of broadcasters.


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