'Rules on share ownership rest with finance minister'

JAKARTA (JP): Despite President Soeharto's call to limit share holdings in listed companies, noted economist Sjahrir said yesterday this decision rested in the hands of the Capital Market Supervisory Agency and the finance minister.

"Capital Market Law stipulates clear-cut rules on share trading on the stock exchanges and one of the rules requires a tender offer for an acquisition of more than a 20 percent stake in a listed company," Sjahrir said.

He was commenting on Cooperative Minister Subiakto Tjakrawerdaya's remarks on the need to limit an individual's ownership of a listed company to a maximum 15 percent.

Subiakto said, after meeting the President on Tuesday, that Soeharto would not allow an individual investor or a group to acquire more than 15 percent of any company listed on the stock exchanges.

Citing the President's reason for such a restriction, Subiakto said private companies had been encouraged to go public to make ownership of assets more equitable.

But Sjahrir asserted that as long as the domestic stock exchanges were governed by Capital Market Law they would be supervised by the Capital Market Supervisory Agency which is responsible to the finance minister.

He agreed with the objective of making ownership of assets more equitable through the stock exchanges.

But Sjahrir, also a securities analyst, contended the interests of minority shareholders in listed companies were protected by special regulations.

"The majority shareholders are required by regulations to obtain prior consent from minority shareholders regarding major corporate programs," he added. (vin)