145 companies placed on development board: JSX<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) placed on
\nMonday 145 listed companies, including major player Astra
\nInternational, on the second-class development board after they
\nfailed to meet tougher new conditions required to be on the main
\nboard.<\/p>\n
\"These companies failed to meet one or more of the conditions
\nto be qualified for the main board,\" JSX president Achmad Daniri
\ntold a news briefing.<\/p>\n
JSX began applying the two-board trading system on Monday,
\ndividing listed companies onto the main board and the development
\nboard, depending on their asset size and overall business
\nperformance.<\/p>\n
Among the 145 companies put on the development board are Bank
\nCentral Asia, Multipolar Corporation, Indah Kiat Pulp Paper,
\nIndofood Sukses Makmur, Bakrie Finance Corp., Procter & Gamble
\nIndonesia, Tri Polyta Indonesia, United Tractors, Bukaka Teknik
\nUtama, BAT Indonesia, Bank International Indonesia and Bank
\nNegara Indonesia.<\/p>\n
JSX currently has a total of 285 listed companies and
\nannounced that with the two-board system, all stocks would be
\ntraded on the main board unless they failed to meet a number of
\nconditions, including:<\/p>\n
* If the companies suffered losses for the past three
\nconsecutive years, or posted a cumulative loss of up to 50
\npercent of paid-up capital in 1999.<\/p>\n
* If they failed to paid dividends for the past three
\nconsecutive years.<\/p>\n
* Having paid-up capital of less than Rp 3 billion.<\/p>\n
* Having shareholders of less than 100 individuals and\/or
\ninstitutions over the past three consecutive months.<\/p>\n
* If the company's shares had been traded for the past six
\nconsecutive months.<\/p>\n
* Being declared bankrupt by the Commercial Court.<\/p>\n
* Having a disclaimer opinion from an independent auditor.<\/p>\n
Daniri added that other factors to be considered in
\ndowngrading the stocks from the main board to the development
\nboard was the ability to implement good corporate governance.<\/p>\n
Citing an example of good corporate governance practices,
\nDaniri said that companies should not give concessional loans to
\ntheir own affiliates.<\/p>\n
Companies operating under good corporate governance did not
\ngive bank guarantees to their affiliates without commercial
\nconsideration and proper monetary compensation for the risk
\ninvolved, according to Daniri.<\/p>\n
He added that in a case where a company changed its core
\nbusiness, it should first clearly show that the new core business
\nto be adopted had made a meaningful contribution to the company's
\nincome streams.<\/p>\n
In addition, Daniri added, all listed companies were expected
\nto have at least one independent director and commissioner as the
\nrepresentative of the minority shareholders by end of 2001.<\/p>\n
Meanwhile, head of company surveillance division at JSX Yose
\nRizal said 19 listed companies had not published their audited
\nfinancial reports for 1999 and faced the risk of being suspended
\nfrom trading.<\/p>\n
These companies are Inti Indorayon Utama, Bakrieland
\nDevelopment, Panca Overseas Finance, Concord Benefit Enterprises,
\nSuper Mitory Utama, Polysindo Eka Perkasa, Semen Cibinong,
\nDharmala Sakti Sejahtera, Bhuwanatala Indah Permai, Alter Abadi,
\nBumi Modern, Mas Murni Indonesia, Waniaindah Busana, Bintuni
\nMinaraya, Texmaco Perkasa Engineering, Kawasan Industri Jababeka,
\nDaya Guna Samudera, Texmaco Jaya and Wahana Jaya Perkasa.<\/p>\n
Yose said JSX would suspend the trading of their shares if
\nthey failed to publish their 1999 audited finanial statements by
\nJuly 10.<\/p>\n
He added that since some of these companies were currently on
\nthe main board, they faced the risk of being downgraded to the
\ndevelopment board if the audited financial reports which they
\nmight finally submit showed a disclaimer auditor's opinion.<\/p>\n
\"Getting a disclaimer opinion just once will cause a company
\nto be downgraded to the development board, while getting a no-
\nopinion verdict from auditors two consecutive times will lead to
\nthe suspension of a company's shares from trading,\" Yose said
\nquoting the new listing regulations of JSX. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/145-companies-placed-on-development-board-jsx-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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