Fresh ruling on JSX management surprises many<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nhas revised its regulation on the nomination of the Jakarta Stock
\nExchange (JSX)'s management by reducing the number of directors
\nand commissioners from six each to four and five, respectively.<\/p>\n
\"Based on the new capital market law and the JSX's operational
\nneeds, JSX needs only four directors and five commissioners,\" the
\nagency said in a statement sent to the JSX's shareholders on
\nWednesday.<\/p>\n
The agency's statement, according to several executives of
\nsecurities companies registered on the JSX, did not clearly
\nexplain the reasons for revising its Feb. 16 directive that
\nrequired the appointment of six executives each to the boards of
\ndirectors and commissioners.<\/p>\n
\"It surprises us. We don't understand why the decision was
\nmade only two days before the deadline of the nomination,\"
\nSjahrir, a noted economist and director of a securities company,
\ntold The Jakarta Post.<\/p>\n
Sjahrir said that Bapepam must have been aware of the
\napproaching deadline, but made the changes anyway.<\/p>\n
\"I'm not sure whether the agency was pressured by the finance
\nminister,\" he said.<\/p>\n
\"It's not easy to force a candidate who has been nominated in
\na package to step out. That is the adverse impact of the
\nrevision,\" he noted.<\/p>\n
\"I think there are certain parties with vested interests
\nbehind Bapepam's move,\" a director of PT Sigma Batara, Ignasius
\nYonan, told the Post.<\/p>\n
One of the 83 regulations issued by Bapepam on Jan. 17
\nintroduced the new procedures for nominating directors and
\ncommissioners for the domestic stock exchanges in Jakarta and
\nSurabaya.<\/p>\n
One of the rulings stipulates that director and commissioner
\ncandidates must be nominated by a minimum of three active
\nexchange members with a combined trading value and trading
\nfrequency of at least 4 percent of total transactions on the
\nexchange within the last 12 months.<\/p>\n
On Feb. 16, Bapepam instructed the JSX to hold a general
\nshareholders meeting on April 15 to elect a new board of
\ndirectors and commissioners.<\/p>\n
Bapepam also required JSX members to submit their candidates
\nin two packages of six directors and six commissioners, which
\nmeans that the shareholders will not elect individual candidates,
\nbut rather teams of candidates.<\/p>\n
According to the instruction, JSX shareholders should have
\nsubmitted their candidates to JSX's board of commissioners on
\nMarch 22, and to Bapepam on March 25, for approval.<\/p>\n
An source at the agency said that the new instruction was
\ndesigned to improve the efficiency of the JSX because the smaller
\nnumber of directors and commissioners will reduce costs.<\/p>\n
But he declined to explain why Bapepam had required six
\ndirectors and commissioners in the previous instruction if such a
\nsetup was considered inefficient. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fresh-ruling-on-jsx-management-surprises-many-1447893297",
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