IS09AH9ZNSince 1997, the Law Number 8 of 1997 on Company’s Document (“Law on Company’s Document”) has been promulgated. It revoked the Article 6 of Indonesian Commercial Code and all laws and regulations which contradict with the Law on Company’s Document. This regulation is concerning company’s document, including the diversion, transfer, assignment, and removal of company’s document. The provision on the period document storage becomes shorter and the provision concerning the removal of the document is determined by the management of the company. This provision makes the company more effective and efficient.

Under Article 1.2 of Law on Company’s Document, the Company’s Document is data, notes, and/ or information made and/ or received by the company in order to implement their activities, either in writing on paper or other media or recorded in any shape pattern that can be observed, read, or heard. The following document is:

1.  Financial Document

The Financial Document consists of:

a. notes comprise annual balance sheet, profit and loss statement, journal account of daily transaction, or any writing containing information about the rights and obligations, and the other things related to company’s activities. Note in the form of annual balance sheet, profit and loss statement or other writing describing the balance sheet and profit and loss must to signed by the management of the company or appointed official in the relevant company and if the related laws and regulations do not stipulate otherwise, the note has to be made not later than 6 (six) months since the financial book year of the relevant company ends.

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b. the bookkeeping evidence, comprises the letter used as the basis of the bookkeeping which affects the changing of the wealth, debt and capital.
c. the supporting data of financial administration, as administrative data related to the finance to be used for preparation and making of financial documents.

The data mentioned above is an evidence about the rights and obligation and also the business activities of a company and has to be saved for 10 (ten) years since the financial year of the company ends, except for the supporting data which is not a part of the bookkeeping evidence, the period of its storage is adjusted to the requirement of the company.

2. Other Document

Other document, comprises the data or any writing which contains information that has value to the company, although not directly related to the financial document. The period of the storage of this document is determined based on the value of that document.

With regard to the technological advances, the company’s document may be transferred to the microfilm or other media and the document that in such media is still considered as valid evidence.

The above mentioned transfer is carried out based on the decision of the management company by minutes of meeting. The provision on removal of the financial document is preformed based on management’s decision. The management company or the appointed official is responsible for the loss as a result of the removal of the company’s document, if:

  1. the removal of the company’s document is carried out before the end of period of the storage;
  2. the removal of the company’s document is carried out, although it is known or should have been known that the company’s document are to be stored, because it has value, either related to the wealth, rights, and obligation of the company or any other interest.
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Uly Simamora