Share disclosure move deferred

Press, 14 December 1983, Page 8

Share disclosure move deferred

Parliamentary reporter The Government has deferred a decision on the proposals by the Securities Commission for legislation on the disclosure of nominee shareholdings in listed public companies. The proposals, which were recommended in May, 1982, were to require people holding through a nominee 5 per cent or more of the shares in a listed public company to disclose their interest in that company. The proposal was left for consideration until the Securities Act, 1982, has been passed and the Securities Regulations, 1983, made. A number of people, companies, and commercial organisations had been consulted about the proposals

before the deferral, said the Minister of Justice, Mr McLay.

Most of the interested parties had supported the principles of the recommended legislation.

While appreciating that the proposals promoted a more informed market, encouraged open dealings, and sought to alert the market to the possibility of early takeovers, the Government considered they had greater ramifications and application in the context of takeovers, he said.

So the proposals should be considered after the Securities Committee had completed its review of takeovers, and in the context of the recommendations it then made.