Transfer of Shares in Indonesia Company, Know More Today and Relocate Your Assets Where You Need Them!
Thought of transferring your shares? To secure your best interest, a strategic allocation is key. Transferring your shares is no easy feat, but with the right information, it can be made easier to understand. Generally, the transfer of shares in Indonesia requires a notarized deed to initiate the process. People voluntarily transfer their shares for a variety of reasons, and like any other movable properties, the concept remains the same. Transfer of Shares in Indonesia Company, know more today and relocate your assets where you need them!
What is a Share Transfer?
Assume that you own a percentage of shares of a company, a form of movable goods that upon ownership, entitles you a vote in the general meeting of shareholders (GMS) and receives dividends. A share transfer is a legal process where you transfer your rights to someone else. Usually, it is done in the event of a loss of life, assign to descendants or family members, or for other reasons.
What Are the Procedures?
These procedures are following the set of laws concerning shareholding known as Company Law. Needless to say, this process requires the approval of transferor and transferee. This is a process that will involve multiple parties.
1. Considerations Before Transfer
Per Company Law, you must first determine whether you have fulfilled all the requirements before you can initiate the transfer. This is especially so pertaining to any limited liabilities.
2. Prepare a Deed
A deed of share transfer has to be drafted in written form and executed, with copies sent to all the relevant parties. The appropriate parties will also sign this deed in agreement to the transfer. The date of the right transfer must be clearly stated. Copies are to be sent to the buyers, the relevant company personnel and certain governmental bodies. Seek out your local official’s office for more information regarding this.
3. Wait for Approval
Upon sending out the deed, approvals must be obtained from the company as well as from the relevant governmental bodies. This is needed before you can proceed any further. The process can take time though not specified.
Within 30 days of the deed being signed, the board of directors’ members must be notified of the change in identities. This must be arranged punctually to reduce the chances of disapproval at the very last minute due to the members not being informed until it was too late. In some instances, the change of identities will also be published in the newspaper if the company is prominent enough. In short, all relevant parties will need to be notified.
5. Make it Official
According to Article 612 of the Indonesian Civil Code, the approved deed or certificate must be given to the buyer to make it official. This means that the certificate of shares must be given to the buyer personally.
The transfer of shares upon completion, concludes the entire process. However, you may also consider hiring a professional or a third-party corporate service provider like 3E Accounting to help you sort out all the legalities on top of making sure that you have done the procedures correctly to avoid possible disputes.