Procedure for Transfer of Shares

Friday, 09 June 2017 , 14:00:00 WIB - Legal Tips

The Indonesian Stock Exchange (ANTARA)

JAKARTA, GRES.NEWS – The positive effect off the Tax Amnesty Program is the inflow of investments and money stashed by Indonesians to institutions abroad back into the country, which would provide support for the national economy.

In regards to the inflow of investments into shares that would lead to transfer of shares, there are two regulations that regulate the procedures for such action.

The procedures are present in Law No.40/2007 on Limited Liability Companies. Article 56 of said law stipulates that transfer of shares must come with a transfer of rights deed signed before a notary. The deed or its copy must be submitted to the company.

The company’s board of directors must then note the transfer of shares, the date and the day when the rights shares were transferred in its list of shareholders or a certain list that would be legally acknowledged. The board must then inform the transfer to the Ministry of Law and Human Rights no later than 30 days since the day the transfer of rights took place, so that the ministry can note the transfer in the company’s Corporate List.

Meanwhile, the transfer of the shares must be approved by the company’s organization structure and must be conducted within 90 days since the date the approval was obtained.