'Rules on share ownership rest with finance minister'

'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)