ENGLISH EDITION
POST-ESTABLISHMENT OF COMPANY – CONVENING FIRST EGMS
Based on the Company Law, the Law Number 40 of 2007 Regarding Limited Liability Company, once the deed of establishment of a company is approved by the Ministry of Law and Human Rights (“MOLHR”), the approved deed of establishment will be registered in the registry of MOLHR and published in the State Gazette (through the appointed Indonesian civil notary). The process is crucial in the incorporation process of a company.
Investors should familiarize themselves with many other matters and aspects of Indonesian law (such as the Indonesian Investment Law, the Company Law and compliance issues) that commence immediately after a company is incorporated. One of the matters which is of importance is pertinent to convening the First Extraordinary General Meeting of Shareholders (“EGMS”).
The First EGMS should be convened within 60 (sixty) days after the approval of the deed of establishment by the MOLHR, of which resolutions adopted should be at least the following:
- Ratification of the appointed members of the Board of Directors and the Board of Commissioners stated in the deed of establishment.
- Approval of the administration and opening of the company’s bank account.
- Approval of the issuance of share certificates, register of shareholders and special register.
- Acceptance by the company of obligations under contracts or agreements (if any) executed by the founders on behalf of and/or for the benefit of the company prior to the date of MOLHR approval.
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Reference:
Law Number 40 of 2007 Regarding Limited Liability Company.
