NETHERLANDS - Dutch institutional investors have rejected the call to be more transparent about their shareholdings, the Dutch daily Het Financieele Dagblad writes today.

In a letter to the Monitoring Commission on Corporate Governance, local corporate governance forum, Eumedion discarded the proposal that shareholders have to reveal their identity when holding 3% rather than the current 5% of any company.

The reaction came in answer to the commission's consultation from December about communication between companies and their shareholders.

Eumedion, which represents around 50 institutional Dutch investors, also said that large shareholders should not be obliged to reveal future plans about their holdings.

"With the rise of activist shareholders, we need to remain reserved regarding legislation which limits investors," Rients Abma, director of Eumedion, told the publication, arguing that the Code Tabaksblat is a solid enough base for the spread of interest between the board and the shareholders.

The news comes among calls from corporations for more direct communication with their shareholders.

Last month, Dutch chemicals firm DSM's head of investor relations Dries Ausems told IPE that the company will implement its loyalty dividend programme this month.

The program is intended to reward long-term shareholders with a dividend bonus of 10% per year after three years of registration. These shareholders subsequently have to register and make themselves known to claim their reward.

Ausems was adamant that the scheme is not a defence mechanism: "All shareholders remain free to buy or sell their DSM shares," he said.