New Procedures On March 26, 2014, the Minister of Law and Human Rights ("MoHLR" ) enacted the Regulation of MoHLR No. 4 of 2014 on Validating a Legal Entity, Approving an Amendment of Article of Association and Company’s Data (“Regulation of MoHLR No. 4/2014”). In...
Background In implementing the Government Regulation No. 24 Year 2009 on Industrial Area ("GR No. 24/2009"), the government promulgates the Regulation of the Minister of Industrial of Republic of Indonesia Number 05/M-IND/PER/2/2014 ("Permenperin No. 5/2014") to...
Annual Business Plan on Limited Liability Company (“Business Plan”) is regulated under Chapter 4 of Law No.40 of 2007 on Limited Liability Company (“Company Law”). Under Article 63 of the Company Law, the board of directors shall prepare the Business Plan prior to the...
The annual report is regulated under chapter IV in Law No.40 of 2007 on Limited Liability Company (“Company Law”). The following will describe the delivery mechanism of an Annual Report to the GMS. The directors will prepare an annual report of the company and then...
In the Law Dictionary (Gifis, Steven H.; 1984: 129), derivative action is explained as an action or claim based on the primary right of the company, but performed by the shareholders for and on behalf of the company. This claim can be filed by the shareholders in the...
There are 3 (three) organs present in a limited liability company (“PT”), which are the general meeting of shareholders (“GMS”), the Board of Directors (“BoD”) and the Board of Commissioners (“BoA”). All three organs work together in accordance with their own...
Definition of The Board of Directors Under Article 1 number (5) of Law Number 40 of 2007 on Limited Liability Company ("Company Law") it is stated that the board of directors in the Limited Liability Company ("Company") is the Company’s organ which is an authorized...
Definition of Privatization What is privatization? According to Law Number 19 year 2003 concerning State Owned Companies (“UU BUMN”), privatization is the selling of shares belonging to a state owned company in a limited liability company with at least 51% (fifty one...
Based on the provision above, it can be stated that shares are an indivisible unit of capital, expressing the contractual relationship between the Company and the shareholder. According to Article 7 paragraph (2) Company Law, each founder of a Company must subscribe...