Circular Resolutions of Shareholders

What is a circular resolution of shareholders and do you need one?

A circular resolution of shareholders is a documented resolution of shareholders signed by the shareholders of a company. Provisions of Article 91 of Indonesian company law or UUPT allows shareholders of a company to adopt resolutions in circular resolutions, the resolution shall have the same validity and legal effect as any resolutions adopted at any general meetings of shareholders of a company, subject to Art. 91 of the UUPT.

You should have a circular resolution of shareholders if:

• You are proposing resolutions and outcome of those resolutions;
• Your shareholders (with voting rights) cannot attend a general meeting of shareholders and all of the shareholders (with voting rights) are willing to sign the circular resolution of shareholders.

What does the circular resolution of shareholders cover?

• Company name;
• Shareholders name and address;
• Details of shares owned by each of the shareholders;
• Resolutions proposed and outcomes of these resolutions.

If you want to learn more about circular resolution of shareholders, customizing legal documents, establishing your company, Plato’s electronic signature service - or if you’d like a fixed fee quote from Indonesia’s best pre-vetted lawyers, for your specific budget and legal needs - contact the Plato team today at +62 21 2988 7964!