A digital community radio broadcasting representative company is subject to the following requirements:
- it must be a qualified company, (a company that is formed in Australia and has a share capital), with the promoters of the company required to invite each incumbent digital community radio broadcasting licensee in the licence area to subscribe for equal shares in the company;
- invitations to subscribe for shares in the company must be published on the ACMA’s website and the invitations must remain open for at least 90 days;
- there is no discrimination between subscribers for shares in the company in relation to the consideration payable;
- the total amount of money payable as consideration for the issue of the shares in the company is not substantially in excess of the total amount that, as at the time the invitations are published, would be required for the viable operation of the company;
- no invitees are to be subject to duress;
- the company must have a constitution which must provide that only digital community radio broadcasting licensees for the relevant licence area can hold shares in the company.
- the company constitution must also provide that within 30 days of the allocation of a new digital community radio broadcasting licence after 28 May 2007, the company will offer to issue equivalent shares to the new licensee (and keep that offer open for 90 days) with the amount payable not substantially in excess of the amount payable by incumbent licensees;
- the company’s constitution must provide that the purposes of the company are to:
- hold shares in one or more joint venture companies that hold, have applied for, or propose to apply for, category 1 or category 2 DRMT licences for the licence area;
- exercise powers conferred by the Radiocommunications Act 1992 on a digital community radio broadcasting representative company; and
- any activities incidental to those purposes above.
- the company constitution must also provide that the company must comply with any conditions laid down in regulations;
- the digital community broadcasting licensees for the area must give the ACMA a joint written notice that they elect that this company be the nominated representative company.
Note: it is important that each representative company is aware of the requirements of the legislation governing such companies and seeks independent legal advice about their obligations.