Tohokushinsha President Denies Concealing Law Violation
Tokyo, March 16 (Jiji Press)--Shinya Nakajima, president of scandal-tainted Tohokushinsha Film Corp. <2329>, denied on Tuesday an allegation that the company has tried to conceal its past breach of foreign ownership rules.
Speaking in parliament as an unsworn witness, Nakajima admitted that Tohokushinsha transferred its satellite broadcasting business to a subsidiary to correct foreigners' equity stake in the parent company, which was in breach of the foreign ownership rules under the broadcasting law.
But the move was "not aimed at concealing the breach," Nakajima said at a meeting of the Budget Committee of the House of Representatives, the lower chamber, in response to a question from a lawmaker of the ruling Liberal Democratic Party.
The broadcasting law limits foreign equity ownership of a satellite broadcaster to less than 20 pct.
Nakajima said that Tohokushinsha recognized its violation of the broadcasting law on Aug. 4, 2017. The company reported the matter to the communications ministry around Aug. 9 and suggested moving the satellite broadcasting business to a subsidiary as an option.
[Copyright The Jiji Press, Ltd.]