Pace of take-over reform disappoints

Press, 20 February 1986, Page 25

Pace of take-over reform disappoints

PA Wellington The New Zealand Stock Exchange remains disappointed at the lack of progress on take-over law reform, exchange president, Mr Rex Pearson, said in his annual report.

He said there was a lack of progress both toward regulations governing the disclosure of beneficial ownership of substantial equity holdings, and in amending the Companies Act as relating to take-overs. “New law in both of these areas is necessary to ensure a better informed market,” said Mr Pearson.

The Stock Exchange. would be continuing to review listing requirements.

Deregulation and the increasing sophistication of the market place had required an on-going review of the listing re-

quirements and draft changes were being promulgated more frequently. “The exchange considers important that listing requirements are kept up to date with the needs of the market place and receptive to the needs of investors and listed companies,” he said. Mr Pearson said the exchange had been;concerned during the past year at the manner in

which some companies ■ had been issuing "don’t • sell” notices. The chairmen of listed - companies had been asked to consider carefully the effect on the 1 market of any “don’t sell” ■ notice, and to. ensure shareholders were left in no doubt as to the reason for any notice. Mr Pearson said the Stock Exchange would be expanding rapidly with a new computer system, a

new head office, more deregulation, improved settlements, formation of a “second market” and creation of the exchange’s own share Indices.