Tag Archives: Company

Consolidation of Limited Liability Company

Article 1 paragraph (10) of Law Number 40 of 2007 on Limited Liability Company (“Company Law”), regulates a definition of consolidation, as follows: “Consolidation means a legal action taken by two or more Companies to consolidate themselves by means of establishing a new Company which by operation law obtains the assets and liabilities of the…
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Control of Limited Liability Company

Background In Law Number 40 of 2007 on Limited Liability Company ("Company Law"), it does not mention the exact meaning of control of Limited Liability Company. However, the term control of a limited liability company can be found in Article 1 number 11 of Company Law, as follows: “Acquisition” means a legal act which is…
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Recordation of the Deed of Transfer of Shares from Foreign Taxpayers

Background A tax on the ‘gains’ (profits) of sale of shares of Domestic Limited Liability Companies (“Domestic Company”) which is conducted by a Foreign Taxpayer, where the company is not the issuer or Public Company, is specifically regulated in the Decree of Minister of Finance of Republic of Indonesia Number: 434/KMK.04/1999 on Income Tax Deduction…
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Corporate Social Responsibility by Limited Liability Companies

Corporate Social Responsibility (“CSR”) in Bahasa is known as tanggung jawab sosial perusahaan. Chapter V of Article 74 of the Law Number 40 of 2007 on Limited Liability Companies (“Company Law”) regulates on Social and Environmental Responsibilities, where Companies which perform its business activities in sectors of and/or related to natural resources are required to…
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Classification of Shares in Limited Liability Companies

Share is a proof that shareholders have conducted a full deposit of capital in Limited Liability Companies (“Company”). Shares in Company are classified based on similar characteristics, it is called classification of shares. Article 53 paragraph (1) of Law Number 40 of 2007 on Limited Liability Companies (“Company Law”) states that the Articles of Association…
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Increase of Capital

Background A Limited Liability Companies (“Company”) may gain their capital by increasing its capital, the process is performed based on General Meeting Shareholder’s (“GMS”) Resolution. According to Article 41 paragraph (2) of Law Number 40 of 2007 on Limited Liability Companies (“Company Law”), GMS may transfer authority to Board of Commissioners (“BOC”) for purposes of…
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