Ministry to expendite firms' articles amendments

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)