The "disqualified person" provision applies to a domestic free and a domestic pay television programme service licensee. In essence, no "disqualified person" shall exercise control of a domestic free and a domestic pay television programme service licensee except with the prior approval of the CE in C. (Exercise control is defined in Part 1 of Schedule 1 to the BO). This restriction is necessary to minimize conflict of interest, build-up of monopoly of the media and editorial uniformity.

A "disqualified person" is defined in Part 2 of Schedule 1 to the BO as:

1. a domestic free television programme service licensee under the BO;
2. a domestic pay television programme service licensee under the BO;
3. a sound broadcasting licensee under Part 3A of the TO;
4. a person who exercises control of the licensee specified in (a) to (c); and
5. an associate of any categories of disqualified persons specified in (a) to (d).

A sound broadcasting licensee is also subject to disqualified person restrictions under the TO. Section 13A of the TO defines a "disqualified person" as:

1. a licensee under the TO (section 13C);
2. (i) a domestic free or a domestic pay television programme service licensee under the BO, or (ii) an associate of such licensees; and
3. a person who exercises control of a corporation that is a person referred to in (A) and (B)(i) above.