UU 40/2007 — Perseroan Terbatas / Limited Liability Companies
Undang-Undang Republik Indonesia Nomor 40 Tahun 2007 tentang Perseroan Terbatas
Full official text: JDIH Kementerian Keuangan · JDIH BPK RI
The company law our whole corporate pack sits on. Only the articles the pack actually relies on are reproduced here, Indonesian verbatim from the official text, English alongside as a working translation.
Pasal 70 — mandatory reserve
Relied on by: articles of association Article 19.
| Bahasa Indonesia | English |
|---|---|
| Perseroan wajib menyisihkan jumlah tertentu dari laba bersih setiap tahun buku untuk cadangan. Kewajiban penyisihan untuk cadangan berlaku apabila Perseroan mempunyai saldo laba yang positif. Penyisihan laba bersih dilakukan sampai cadangan mencapai paling sedikit 20% (dua puluh persen) dari jumlah modal yang ditempatkan dan disetor. | The Company shall set aside a certain amount of the net profit of each financial year as a reserve. The obligation to set aside applies where the Company has a positive profit balance. The setting aside continues until the reserve reaches at least 20% (twenty percent) of the issued and paid-up capital. |
Two things the wording settles: the annual amount is "a certain amount" set by the GMS, with no statutory minimum — which is why 5% a year is lawful. And 20% is the point at which the obligation stops, not a precondition for paying dividends.
Pasal 71 — application of profit and dividends
Relied on by: articles of association Article 18(1) and 18(4).
| Bahasa Indonesia | English |
|---|---|
| Penggunaan laba bersih termasuk penentuan jumlah penyisihan untuk cadangan diputuskan oleh RUPS. Seluruh laba bersih setelah dikurangi penyisihan untuk cadangan dibagikan kepada pemegang saham sebagai dividen, kecuali ditentukan lain dalam RUPS. Dividen hanya boleh dibagikan apabila Perseroan mempunyai saldo laba yang positif. | The application of net profit, including the amount of the reserve allocation, is decided by the GMS. The whole of the net profit after the reserve allocation is distributed to the shareholders as dividend, unless the GMS resolves otherwise. Dividends may only be distributed where the Company has a positive profit balance. |
The second sentence is the statutory default our Article 18 relies on: distribution is the rule, retention the exception. The third sentence is the hard limit no drafting can remove — a positive profit balance is required.
Pasal 72 — interim dividends
Relied on by: articles of association Article 18(2), 18(3)(a) and 18(5).
| Bahasa Indonesia | English |
|---|---|
| Perseroan dapat membagikan dividen interim sebelum tahun buku Perseroan berakhir sepanjang diatur dalam anggaran dasar Perseroan. Pembagian dividen interim dapat dilakukan apabila jumlah kekayaan bersih Perseroan tidak menjadi lebih kecil daripada jumlah modal ditempatkan dan disetor ditambah cadangan wajib. Pembagian dividen interim tidak boleh mengganggu atau menyebabkan Perseroan tidak dapat memenuhi kewajibannya pada kreditor atau mengganggu kegiatan Perseroan. | The Company may distribute interim dividends before the end of the financial year provided this is regulated in the Company's articles of association. An interim dividend may be distributed where the Company's net assets do not fall below the issued and paid-up capital plus the mandatory reserve. The distribution must not impair, or cause the Company to be unable to meet, its obligations to creditors, or disrupt the Company's activities. |
"Sepanjang diatur dalam anggaran dasar" is why the moonly dividend must live in the Articles: without it in the charter, interim dividends are unlawful whatever the shareholders agree between themselves.
Pasal 92 ayat (1) and Pasal 97 — duty of the Board of Directors
Relied on by: articles of association Article 18(2)(ii) — the good-faith withholding ground.
| Bahasa Indonesia | English |
|---|---|
| Pasal 92 (1) Direksi menjalankan pengurusan Perseroan untuk kepentingan Perseroan dan sesuai dengan maksud dan tujuan Perseroan. | Article 92(1) The Board of Directors manages the Company in the interest of the Company and in accordance with its purpose and objectives. |
| Pasal 97 (1) Direksi bertanggung jawab atas pengurusan Perseroan sebagaimana dimaksud dalam Pasal 92 ayat (1). (2) Pengurusan wajib dilaksanakan setiap anggota Direksi dengan itikad baik dan penuh tanggung jawab. | Article 97 (1) The Board of Directors is responsible for the management of the Company as referred to in Article 92(1). (2) Each member of the Board of Directors shall carry out the management in good faith and with full responsibility. |
These two are the basis on which a director can be held personally liable — and therefore the honest reason a director needs some ground to withhold a distribution he believes would harm the Company.
Pasal 91 — circular resolutions
Relied on by: gms director appointment.
Shareholders may adopt binding resolutions outside a meeting, provided all shareholders are notified in writing and all approve and sign. This is the basis of the Sirkular used for the President Director entry package.