ARCHIVED -  Decision CRTC 95-768

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Decision

Ottawa, 20 October 1995
Decision CRTC 95-768
3100-0185 Québec Inc.
Alma, Quebec - 951238500 - 951432400
Acquisition of assets and transfer of control
Following a Public Hearing in the National Capital Region beginning on 18 September 1995, the Commission approves the application for authority to acquire the assets of the radio programming undertaking CFGT Alma from Les Immeubles Gilbert Pedneault Ltée, and for a broadcasting licence to continue the operation of this undertaking.
The Commission will issue a licence to 3100-0185 Québec Inc., expiring 31 August 1997, upon surrender of the current licence. The licence will be subject to the same conditions as those in effect under the current licence, as well as to any other condition specified in the licence to be issued.
The Commission also approves the application by 3100-0185 Québec Inc. for authority to transfer all common voting shares from Groupe Radio Antenne 6 Inc. to Radio CKYK FM Inc.
In approving these applications, the Commission has taken into account the fact that 3100-0185 Québec Inc. is a wholly-owned subsidiary of Radio CKYK FM Inc. which is a wholly-owned subsidiary of Groupe Radio Antenne 6 Inc. and that the transaction thus represents a corporate reorganization without any change occurring in the ultimate control, programming or management of the licensee.
The current applications are due to the following transactions, which were completed without the Commission's prior authorization:
* the sale of the assets of CFGT Alma, from Les Immeubles Gilbert Pedneault Ltée to 9004-3142 Québec Inc., a wholly-owned subsidiary of 3100-0185 Québec Inc., on 30 August 1994;
* the amalgamation of 9004-3142 Québec Inc. with 3100-0185 Québec Inc., on 1 September 1994, the resulting company continuing under the name 3100-0185 Québec Inc.;
* the sale by Groupe Radio Antenne 6 Inc. of all of the issued and outstanding shares of 3100-0185 Québec Inc. to Radio CKYK FM Inc.
While approving the applications, the Commission is nonetheless greatly concerned by the fact that the transactions were completed without prior authorization. The Commission reminds the licensee that paragraph 11(4)(a) of the Radio Regulations, 1986 (the Regulations) stipulates that "a licensee shall obtain the prior approval of the Commission in respect of any act, agreement or transaction that directly or indirectly would result in... a change by whatever means of the effective control of its undertaking". In the Commission's view, this provision of the Regulations is of the utmost importance in ensuring that broadcasting undertakings are regulated in the public interest, and it expects this provision to be complied with in full.
In Public Notice CRTC 1992-59 the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
Allan J. Darling
Secretary General

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