Ministry to expendite firms' articles amendments

JAKARTA (JP): The government yesterday promised to process quickly and approve any amendments companies make to their articles of association, as mandated by the new company law.

The director of civic law at the Ministry of Justice, Ratnawati Prasodjo, said yesterday at a seminar that by the end of this month her office aims to have approved all amendments to companies' articles of association submitted prior to March 7.

The law gives two years -- since its promulgation on March 7 -- to companies established before that date to change their articles.

"Although the law gives two years, please submit your proposals to amend your articles of association as soon as possible, considering our limited human resources," Ratnawati told the seminar, organized by the Bisnis Indonesia daily and the Lontoh & Kailimang law firm.

According to article 15 of the 1995 company law, specific amendments of the articles of association require approval from the justice minister, registration in the government's company register and announcement to the public.

Such amendments include changes in the name of a company, its purposes, objectives, business activities, duration (if stated), amount of authorized capital, decrease in issued capital and paid-up capital or changes in the status of the company from a private limited liability company to a public limited liability company or vice versa.

Amendments related to changes other than those listed above do not need the justice minister's approval but the companies are required to report them to the minister.

Although the new law does not require companies to completely amend their articles of association, Ratnawati suggested that they do so to become more efficient.

She said a shareholders meeting is an alternative way for a company to amend its articles of association to be in accordance with the new law. (rid)