Shareholders Resolution Services for Annual and Extraordinary Meetings: Your Essential Guide
Corporate Secretary Service Indonesia – When you want to set up a local PT (Limited Liability Company) in Indonesia, then you need to get insights about the requirements of shareholders meeting. There is an important obligation to conduct General Meeting of Shareholder (GMS). Minimum of once a year a GMS must be held, for PTs in Indonesia typically (at the latest) within six months after the end of the financial year. In this informative guide, we will discuss what the shareholders resolution services for annual and extraordinary meetings are and why do you need them for your business?
GMS Stands for General Meeting of Shareholders
The General Meeting of Shareholders (GMS) is a formal meeting of shareholders who exercise their voting rights to take certain decisions which are key to the company. This meeting is held annually to agree on some essential things for the business, including annual financial reporting, business activities, and corporate social responsibility (CSR) activities.
The purpose of the GMS is to:
- Discuss business and financial reports
- Approve the implementation of CSR activities
- Review the performance of the Board of Directors (BOD)
- Decide on the remuneration of the BOD and Board of Commissioners (BOC)
- Elect or re-elect members of the BOD and BOC
Additionally, if needed, an extraordinary GMS can be convened for urgent matters related to the company.
Types of General Meetings: Annual vs. Extraordinary
- Annual General Meeting (AGM): This meeting is mandatory and should be held once every year. It focuses on the annual performance of the company, including financial reports, business activities, and other significant matters.
- Extraordinary General Meeting (EGM): An EGM may be called for specific matters that require immediate attention, such as changes to company policies or amendments to the company’s articles of association.
Requirements for Holding a GMS
For a GMS to be valid, certain procedures must be followed. These include:
- Requesting a GMS: A GMS is called by the Board of Directors (BOD), but shareholders holding more than one-tenth of all the company shares can also demand a GMS to be called.
- Quorum is Compulsory: There should be a quorum for a meeting to be deemed valid. Quorum is usually more than 50% of the shares and decisions are usually on a majority voting basis.
- Notice of Meeting: A notice of meeting must be sent to shareholders 14 days before a meeting. Contents such as agenda, who can attend, and date of the meeting.
- Second Meeting: If a quorum is not established at the first GMS, a second GMS could be hold. If at least a third meeting, if no quorum is reached.
Why You Need Shareholders Resolution Services for Your Annual or Extraordinary Meeting
Arranging GMS is tedious and needs to cover different aspects including rules, expectations, and submissions that are time-bound. This is where shareholders resolution services for annual and extraordinary meetings become crucial.
To be able to meet the following needs of the company with the use of shareholders resolution services for annual and extraordinary meetings:
- Adherence to Local Laws: Indonesian regulation obligates strict compliance to GMS procedure. A failure to comply could land you a hefty fine or legal trouble. A pro service provider will help your business remain compliant with all applicable laws.
- Timely and Authenticated Documents: Citizens resolution services ascertain that all types of matters are sent and witnessed as needed and the meeting notices or agenda proposals are drafted and submitted on due time into OJK (Financial Services Authority) or any other required bodies.
- Logistical Meeting Scheduling: Setting the dates, sending out invocations and organizing video conferencing (if it’s a real GMS) can be tricky. Services are a common way to have a simple and easy usage.
- Shareholder Participation: Professional services facilitate correct notification system for shareholders and participation in the decision-making process, in person or electronically.
For companies in Indonesia, it is imperative to pay attention to how significant the shareholders resolution services for annual and extraordinary meetings are related to the annual and extraordinary meetings. They allow you to hold GMS events as effectively as possible and safely, without worrying about regulatory compliance, because these services do provide that. Professional services will allow early-stage or already established businesses peace of mind by taking care of all details of your GMS process on time and with accuracy.
For mitigating legal risks related with Indonesian laws, you need professional assistance which you could find in proven service providers of shareholders resolution for the annual and extraordinary meeting. Together you will ensure that your company stays the course and is laser focused on growth.
Portcorp is here as a solution for your business, also when you need shareholders resolution services for annual and extraordinary meetings. Portcorp is your comprehensive corporate secretary service in Indonesia. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
