The company also filed a lawsuit against the OJK at the Central Jakarta District Court on Monday, accusing the agency of violating the law by instructing Bank Bukopin to conduct a private placement.

Bosowa president director Rudyanto said on Tuesday that the company’s representatives walked out of a shareholders' meeting held to approve the placement plan after it was announced that Bosowa did not have the right to vote.

“The OJK has shamed us by stripping our right to vote despite acknowledging full well that we still hold a stake in Bank Bukopin,” he told The Jakarta Post over the phone, claiming that the company had been notified it was unable to vote when the meeting had started.

“Given the circumstances, we plan on going to court to annul the decision made in the meeting, as the votes did not reached the 75 percent minimum threshold.”

He also refused the private placement plan as Bank Bukopin already has enough capital to support its liquidity.

The bank held an extraordinary general shareholders meeting on Tuesday seeking its shareholders’ consent to conduct a private placement. A majority of the shareholders agreed to the plan as it was aimed at further strengthening the bank’s capital structure and solve liquidity issues.

The publicly listed bank was injected with a total of Rp 838.93 billion (US$57.25 million) in fresh funds following a rights issue in July, which brought the bank’s capital adequacy ratio (CAR) to 14 percent from 12.59 percent in June.

It also gave the bank a new controlling shareholder, South Korea’s KB Kookmin Bank, whose stake rose to 33.9 percent from 22 percent. Existing controlling shareholder Bosowa also remained as Bank Bukopin’s controlling shareholder as it maintained its ownership at 23.4 percent.

Despite the fact that Bosowa holds the second-largest stake in the bank, the OJK instructed state-owned Bank Rakyat Indonesia (BRI), which provides technical assistance for Bukopin to solve its liquidity problems, to vote in favor of the private placement on behalf of Bosowa.

The decision came after the OJK sent a letter to Bosowa in June, warning it to not obstruct new investors from injecting funds into Bank Bukopin in an effort to solve the bank’s liquidity problems.

Bank Bukopin’s liquidity issues and its shareholder commotion surfaced after customers in June were seen lining up for hours just to withdraw or transfer money at the bank’s branches. The bank was limiting daily withdrawals and requiring customers seeking to make withdrawals of more than Rp 10 million to contact the bank two days prior.

Bank Bukopin later issued a statement, explaining that the withdrawal limits at several branches were “situational” and it would still allow customers to make transactions.

The measure was taken as the bank’s consolidated short-term liquidity coverage, known as liquidity coverage ratio (LCR), stood at 112.03 percent in the first quarter, while its consolidated long-term liquidity coverage, known as the net stable funding rate (NSFR), stood at 100.31 percent. Both figures were nearing the OJK’s minimum threshold of 100 percent.

Bank Bukopin president director Rivan A. Purwantono, however, declined to comment on the commotion on Tuesday, saying that the OJK deemed Bosowa had failed to fulfil its commitments as controlling shareholder.

“In such a case, the OJK would punish the controlling shareholder by revoking its right to vote during a general shareholders’ meeting,” he said, adding that Bosowa would remain the bank’s shareholder regardless of the sanction.

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