Ditjen AHU Tightens Reporting Rules for RUPS

The Directorate General of General Legal Administration (“ Ditjen AHU ”) of the Ministry of Law (“ Kemenkum ”) will soon issue a revision Regulation of the Minister of Law No. 21 of 2021 (“ Permenkumham 21/2021 ”) on the Requirements and Procedures for Registration of the Establishment, Amendment, and Dissolution of Limited Liability Legal Entities (“ Companies ”). This provision serves as an implementing regulation under Law No. 40 of 2007 on Limited Liability Companies, particularly with respect to mechanisms for corporate actions.

“The Draft Regulation of the Minister is already on the Minister of Law’s (“ Minister ”) desk, and we are pushing for it to be signed as soon as possible before the reporting period for the annual General Meeting of Shareholders (“ RUPS ”),” said Andi Taletting Langi, Director of Business Entities (BU) at the Directorate General of AHU, to Hukumonline.

If a Public Company fails to hold or fails to report the results of the RUPS in accordance with the provisions, Andi explained, the Company will be subject to administrative sanctions. In addition, failure to fulfill this obligation may give rise to personal liability for the board of directors for any losses incurred by the Company.

“If the RUPS is not reported, we will block the Company’s access, as it must also be notarized,” he concluded.