Streamline Your Decisions with Legal Drafting of Circular Resolutions for Companies in Indonesia
Corporate Secretary Service Indonesia – Do you need to make a swift company decision without organizing a formal meeting? The legal drafting of circular resolutions for companies in Indonesia offers an efficient solution. This mechanism allows your limited liability company (PT) to make valid decisions with the written approval of all shareholders, bypassing the need for a General Meeting of Shareholders (GMS). Understanding this process helps your PT operate with greater speed and professionalism.
Understanding Circular Resolutions
A circular resolution is a formal decision made by shareholders outside of a GMS. It grants you the ability to approve important matters without gathering all shareholders in one room. The key is obtaining written consent from every shareholder who holds voting rights. This method is fully recognized under Indonesian law.
The Legal Foundation
Article 91 of Law Number 40 of 2007 concerning Limited Liability Companies provides the legal basis for this process. It states that decisions made outside a GMS are legally binding if they receive written approval from all shareholders with voting rights. This means a properly executed circular resolution carries the same legal weight as a decision made in a physical meeting.
Validity Requirements
For a circular resolution to be valid, you must meet specific conditions. The proposed decision must be circulated in writing to every shareholder. You must secure written approval from every single shareholder entitled to vote. If one shareholder rejects the proposal or withholds approval, the resolution becomes invalid. Unanimous consent is mandatory.
The Procedure for Implementation
Following a clear procedure ensures the validity of your resolution. The Board of Directors or another authorized party first drafts the decision. This draft is then distributed to all shareholders to collect their written approval. Each shareholder must sign the document to indicate their agreement.
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After you receive signatures from all shareholders, the resolution is formally adopted. If the decision involves changes to your company’s Articles of Association, you must document it in a notarial deed and report these changes to the Ministry of Law and Human Rights.
The Advantages for Your Company
The legal drafting of circular resolutions for companies in Indonesia provides significant operational benefits. It saves your company a good amount of time and resources. You take away the costs and logistics of organizing a physical meeting; travel, venue, etc.
It is more flexible since we can decide even on the move and at any given time. Represents a useful way to get around urgent items that cannot wait until the next GMS. Using this process also makes it easier for you to keep records, allowing you to file all approval documents digitally, making it easier for you to track them and refer them in future audits.
This requires much attention to detail, and strict compliance with legal requirements, to ensure a smooth process. We provide corporate secretarial services that can assist in the accurate drafting and maintenance of these documents. We assist local and international clients to fulfill all corporate obligations accurately and on time.
The entire process is handled by our expert consulting partners, from initial drafting through approvals and proper filing. This provides valuable peace of mind for your business. Let us handle the complexities of legal drafting of circular resolutions for companies in Indonesia for a more efficient and compliant operation.
Portcorp is here as a solution for your business, also when you need legal drafting of circular resolutions for companies in Indonesia. 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!
