The government today formally ruled out floating minority shareholdings in government owned companies.The idea was one of several coming out of the Capital Markets Development Report, released last year.If local councils want to list or partially list som
The government today formally ruled out floating minority shareholdings in government owned companies.
The idea was one of several coming out of the Capital Markets Development Report, released last year.
If local councils want to list or partially list some of their companies, they are free to do so, Commerce MInsiter Simon Power said.
However, “government policy is not to sell any state-owned company over this term of Parliament.”
The government though does not appear interested in one other “hub” idea in the report: developing a specialist agricultural capital markets centre to commercialise innovation for New Zealand's farming industry.
That proposal is not mentioned at all in Mr Power’s formal response.
Other ideas endorsed are:
• Introducing plain English into investment statements and prospectuses, with warnings on risky or complex products.
• A more co-ordinated approach to the Government’s role in improving the financial literacy of New Zealanders.
• Ensuring the duties of fund managers and supervisors are clear and enforced.
• Considering consolidating parts of the Companies Office, Securities Commission, and the NZX Disciplinary Tribunal into a new market conduct regulator.
• Making it easier and cheaper for companies to raise capital privately by clarifying and broadening the exemptions to the Securities Act and Takeovers Act.
• Improving risk management in the economy by supporting the development of derivatives markets in commodities and energy.
