15/11/2010
PUBLIC COMPANIES MAY ISSUE SHARES WITH DIFFERENT NOMINAL VALUE
After allowing issuers and public companies to issue shares with nominal value during the last financial crisis in the late nineties, the Indonesian Capital Market and Financial Institutions Supervisory Agency (“Bapepam-LK”) finally issued its Regulation No. IX.D.6 regarding Issuance of Shares with Different Nominal Value (the “Regulation”). The regulation provides the formal regulatory framework for the share issuance meant here.
As Bapepam-LK only regulates issuers and public companies, only issuers and public companies are afforded this regulation, albeit with certain restrictions and requirements. Among the restrictions is the condition that the current market price of the shares to be issued (with different nominal value) is below the nominal value. Once issued, the shares issued with different nominal will bear the same rights as the rights borne by other shares of the same class that were previously issued. The nominal value of shares of the same class that were previously issued will not be changed or adjusted to make it the same as the nominal value of the more recently issued shares.
The Regulation was issued and became effective on 1 October 2010. (By: Hamud M. Balfas).