Ofcom, the media regulator, have ruled BSkyB a "fit and proper" company, following an investigation over the phone hacking scandal.  In practical terms, this allows Sky to hold a broadcasting licence. But what does "fit and proper" actually mean?

The term comes from the Broadcasting Act of 1990, but the act doesn't offer any explanation, or many clues as to how you might make the classification.

There is a bit more guidance in the Ofcom "Change of Control Notification" application form - but not a lot. It asks whether directors and shareholders have criminal convictions or civil penalties, but it doesn't say whether this would be a real barrier.  With a criminal record, you "…will not necessarily be prevented from holding a licence."

It seems to leave a lot to Ofcom's discretion. Jason Chess, a partner at media law firm in Wiggin, has written about how they might come to a decision. He wrote last year in the Guardian:

In my experience as a media lawyer, Ofcom's take on whether a person is "fit and proper" depends mostly on whether Ofcom thinks that that person is willing and capable of complying with UK broadcasting regulation. People who have been directors of channels that have been taken off-air by Ofcom (for example for showing unacceptably hard porn) or banned by the secretary of state (for the same reason) have had difficulty in obtaining subsequent broadcast licences...

...Ofcom take the view that a current broadcaster who shows no regard for the rules and regulations thereby ceases to be "fit and proper" by virtue of that delinquency alone.

That said, given that Ofcom asks the question, it must be supposed that the acts of its individual directors and shareholders can have some bearing on Ofcom's assessment of a broadcaster as "fit and proper". However, a revocation of, or refusal to grant, a licence or change of control application on such ground to a reputable broadcaster with an otherwise unblemished compliance record would, to my knowledge, be an adventurous new exercise of Ofcom's discretion.

It seems that it's the long term record that has more weight than any one misdeed. To this end, Ofcom warned that they'd continue to keep an eye on BSkyB:

“Ofcom’s duty to be satisfied that a licensee is fit and proper is ongoing. Should further relevant evidence become available in the future, Ofcom would need to consider that evidence in order to fulfil its duty,” the regulator said.