Simplified Guide Professional Services for Drafting Circular Resolutions in Indonesia
Corporate Secretary Service Indonesia – A GMS or a General Meeting of Shareholders or RUPS (Rapat Umum Pemegang Saham) is generally needed when a company has to make binding or legal commitments. But in Indonesia, the company especially the company that has foreign shareholder usually runs into a problem when trying to organise a physical meeting. Luckily, there is a different option: the Circular Resolution of Shareholders. Circular resolution for businesses that require a more flexible and efficient approach are the backbone of professional services in drafting such resolutions in Indonesia.
This article will give an overview of how they are implemented in Indonesia, and the advantages of having professional services for drafting circular resolutions in Indonesia on behalf of your company.
The Importance of Using Professional Services for Circular Resolution Draft in Indonesia
Using professional services for drafting circular resolutions in Indonesia can facilitate decision making for company in Indonesia, especially companies with foreign investors or shareholders with overseas domicile. So here are the few advantages to outsource the drafting of the circular resolutions.
1. Flexibility and Convenience
This can be a hassle if you want to hold physical GMS in Indonesia, especially if your shareholders are in different countries. Physical meetings can be impractical due to travel and scheduling conflicts. That is a Circular Resolution enables shareholders to decide without showing up, rather they stay home. Engaging professionals to draft circular resolutions empowers you to respond to the wants of your shareholders, no matter where in the world your company operates.
2. Time-Saving and Efficient
Drafting a Circular Resolution is less time-consuming than arranging for a physical GMS. The resolution can be sent electronically so shareholders can read and sign it on their own time. Ditch the scheduling, meeting rooms, and logistics. By engaging professional services in Indonesia to get these circular resolutions drafted, your business is able to proceed swiftly and effectively with key decisions.
3. Ensuring Legal Compliance
The Circular Resolution process is not bound to the form but still must adhere to the legal requirements of the Indonesian Company Law. The resolution needs to be signed by every shareholder to be legal. Professional Services, having a resolution drafted professionally ensures that the policies are in accordance with all relevant regulations, protecting you from pitfalls of the law.
Read Also: 5 Key Reasons to Consider Outsourced Employer of Record Services for Companies in Indonesia
4. Confidential and Secure
Using professional services to draft Indonesian circular resolutions will keep all resolutions secure and confidential. Generally, decisions made through Circular Resolution pertain to business matters that may be confidential, and having a trained legal or audit professional facilitate the Circular Resolution process may help ensure that confidentiality and security of the mechanism is maintained throughout the process.
5. Reduced Risk of Disputes
Difficulties in resolving disputes between shareholders are compounded with global shareholders. Hiring professionals for preparing circular resolutions will help to lower complications fake controversies regarding the wording of the resolution in the future. You would be able to get professional help from lawyers that will help ensure that everyone is on the same page with the terms of the resolution before it gets signed and finalised.
How to Draft Circular Resolution in Indonesia
1. Ensure Unanimous Agreement
All shareholders must unanimously agree to the Circular Resolution. As the resolution will only be effective if signed by all shareholders this is key.
2. Prepare the Resolution Document
The resolution should define clearly the decisions being made, whether it is for the amendments of Articles of Association, or the approval of mergers, acquisitions or any other corporate actions. To add clarity in the document to avoid ambiguity.
3. Sign the Resolution
A resolution can only be passed when every shareholder has physically signed it. For international shareholders, this can be done digitally, but must still be signed by all parties.
4. Notarization and Submission
After having been signed, Circular Resolution could be notarized and subsequently filed to Minister of Law and Human Rights for approval, depending on the type of decisions taken.
If you are drafting a Circular Resolution or other corporate governance matters, seek professional assistance so that the decisions taken by your company can be properly executed and comply fully with Indonesian law. Portcorp is here as a solution for your business, also when you need professional services for drafting circular resolutions in Indonesia. Contact us now on +6221-5020-8090 for your business succeed in the future!
