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MOF to set public shareholding rules

The Ministry of Finance (MOF) is scheduled to release a set of standards within two months on the management of public shareholdings in financial institutions, Minister of Finance Ho Chih-chin (何志欽) said yesterday.

The ministry plans to use a "15 to 20 percent principle," he said.

This means that the government would sell its holdings in institutions when major private shareholders control 15 percent to 20 percent of the company, depending on the initial capitalization size.

However, the ministry is studying how to define the shareholding level and will make the announcement within the next one or two months, he said.

The standards will apply to China Development Financial Holding Co (開發金控), Fuhwa Financial Holding Co (復華金控) and Waterland Financial Holdings (國票金控), according to the ministry's Government Shareholding Management Unit.

Meanwhile, Ho said that Chinatrust Group (中信集團) should increase its stake in China Development to 15 percent as promised by the end of this year, or risk losing its management position.

Chinatrust Group has boosted its shareholding to more than 10 percent from 6.2 percent in April 2004 when it teamed up with the ministry, which has a 6 percent stake, to secure the majority of seats on China Development's board. China Development will elect a new board next April.
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