{
    "id": 2056,
    "date": "2023-10-19T05:30:43",
    "date_gmt": "2023-10-19T05:30:43",
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    "modified": "2024-09-06T08:29:39",
    "modified_gmt": "2024-09-06T08:29:39",
    "slug": "shares-buyback-carried-out-by-public-company-according-to-limited-liability-companies-law-and-regulation-of-financial-services-authority",
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    "link": "https:\/\/dash.co.id\/en\/shares-buyback-carried-out-by-public-company-according-to-limited-liability-companies-law-and-regulation-of-financial-services-authority\/",
    "title": {
        "rendered": "Shares Buyback Carried Out by Public Company according to Limited Liability Companies Law and Regulation of Financial Services Authority"
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        "rendered": "<div data-elementor-type=\"wp-post\" data-elementor-id=\"2056\" class=\"elementor elementor-2056\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3eb8881 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3eb8881\" data-element_type=\"section\" data-settings=\"{&quot;wdt_bg_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_laptop&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_position&quot;:&quot;center center&quot;,&quot;wdt_animation_effect&quot;:&quot;none&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f815c54\" data-id=\"f815c54\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-60193b4 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"60193b4\" data-element_type=\"section\" data-settings=\"{&quot;wdt_bg_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_laptop&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_position&quot;:&quot;center center&quot;,&quot;wdt_animation_effect&quot;:&quot;none&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-fe946cc\" data-id=\"fe946cc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d5d6209 elementor-widget elementor-widget-wdt-heading\" data-id=\"d5d6209\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"wdt-heading-holder\" id=\"wdt-heading-d5d6209\"><h4 class=\"wdt-heading-title-wrapper wdt-heading-align-center wdt-heading-deco-wrapper\"><span class=\"wdt-heading-title\">Shares Buyback Carried Out by Public Company according to Limited Liability Companies Law and Regulation of Financial Services Authority<\/span><\/h4><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29ebfd1 elementor-widget elementor-widget-text-editor\" data-id=\"29ebfd1\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Regulations concerning Shares Buyback by limited liability company are generally regulated in Law Number 40 of 2007 concerning Limited Liability Companies (&#8220;<\/span><b>UU PT<\/b><span style=\"font-weight: 400;\">&#8220;) and are specifically regulated in the Law Number 8 of 1995 concerning Capital Market (\u201c<\/span><b>UU Pasmod<\/b><span style=\"font-weight: 400;\">\u201d) and Regulation of Financial Services Authority Number\u00a0 30\/POJK.04\/2017 concerning Buyback of Shares Issued by Public Company\u00a0 (\u201c<\/span><b>POJK 30\/2017<\/b><span style=\"font-weight: 400;\">\u201d). if it is carried out in Public Companies. These laws and regulations regulate Share Buybacks with certain terms and conditions.<\/span><\/p><p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Shares Buyback is divided into 2 (two) conditions which are differentiated based on the party who requests the Buyback of Shares in the Company at the General Meeting of Shareholders (&#8220;<\/span><b>GMS<\/b><span style=\"font-weight: 400;\">&#8220;), namely:<\/span><\/p><ol style=\"list-style-type: lower-alpha; margin: 0;\"><li style=\"text-align: left; padding: 0;\"><span style=\"font-weight: 400;\">At the request of the Company; or<\/span><\/li><li style=\"text-align: left; padding: 0;\"><span style=\"font-weight: 400;\">At the request of Shareholders.<\/span><\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-64ac889 elementor-widget elementor-widget-wdt-heading\" data-id=\"64ac889\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"wdt-heading-holder\" id=\"wdt-heading-64ac889\"><h5 class=\"wdt-heading-title-wrapper wdt-heading-align-center wdt-heading-deco-wrapper\"><span class=\"wdt-heading-title\">Shares Buyback at The Request of the Company:<\/span><\/h5><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a4849b6 elementor-widget elementor-widget-text-editor\" data-id=\"a4849b6\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">For Shares Buyback which is requested by Shareholders, we can rely refer to the rules in Article 37 Paragraph (1) of the UU PT <\/span><i><span style=\"font-weight: 400;\">jo. <\/span><\/i><span style=\"font-weight: 400;\">Article 2 Paragraph (1) POJK 30\/2017. In connection to that, regulation in Article 37 Paragraph (1) UU PT regulates that Company can buy its issued shares with these following terms and conditions:<\/span><\/p><ol style=\"list-style-type: lower-alpha; margin: 0;\"><li><span style=\"font-weight: 400;\">does not cause the Company&#8217;s Net Worth to be less than the issued capital plus the Mandatory Reserves that have been set aside; And<\/span><\/li><li><span style=\"font-weight: 400;\">The total nominal value of all shares repurchased by the Company and share pledges or fiduciary guarantees for shares held by the Company itself and\/or other Companies whose shares are directly or indirectly owned by the Company, does not exceed 10% (ten percent) of the total capital placed in the Company, unless otherwise regulated in the laws and regulations in the capital markets sector.<\/span><\/li><\/ol><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Related to the regulation in Article 37 Paragraph (1) letter a UU PT as mentioned above, what is meant by Net Worth is <\/span><span style=\"font-weight: 400;\">all of the Company&#8217;s assets minus all of the Company&#8217;s liabilities in accordance with the latest financial report approved by the GMS within the last 6 (six) months (<\/span><i><span style=\"font-weight: 400;\">vide <\/span><\/i><span style=\"font-weight: 400;\">Explanation of Article 37 Paragraph (1) letter a UU PT). Still in relation to the provisions in Article 37 Paragraph (1) letter a of the PT Law, Mandatory Reserves are at least 20% (twenty percent) of the total Issued and Paid-up Capital. Therefore, it is known that the Shares Buyback mIGHT not cause the Company&#8217;s net assets become smaller than 120% (one hundred and twenty percent) of the Company&#8217;s Issued and Paid-up Capital.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6403fab elementor-widget elementor-widget-wdt-heading\" data-id=\"6403fab\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"wdt-heading-holder\" id=\"wdt-heading-6403fab\"><h5 class=\"wdt-heading-title-wrapper wdt-heading-align-center wdt-heading-deco-wrapper\"><span class=\"wdt-heading-title\">Shares Buyback at the request of Shareholders:<\/span><\/h5><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c83c1e elementor-widget elementor-widget-text-editor\" data-id=\"6c83c1e\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<span style=\"font-weight: 400;\">Article 62 Paragraph (1) UU PT <\/span><i><span style=\"font-weight: 400;\">jo.<\/span><\/i><span style=\"font-weight: 400;\"> Article 3 POJK 30\/2017 regulates that every Shareholder has the right to request the Company to re-purchase its shares at a reasonable price if the person concerned does not agree with the Company&#8217;s actions which are detrimental to the Shareholder or the Company, in the form of:<\/span>\n<br\/>\n<ol style=\"list-style-type: lower-alpha; margin: 0;\">\n \t<li style=\"padding: 0;\"><span style=\"font-weight: 400;\">Amendment on the Articles of Asssociation;<\/span><\/li>\n \t<li style=\"font-weight: 400; padding: 0;\" aria-level=\"4\"><span style=\"font-weight: 400;\">transfer or guarantee of the Company&#8217;s assets which have a value of more than 50% (fifty percent) of the Company&#8217;s Net Worth; And<\/span><\/li>\n \t<li style=\"font-weight: 400; padding: 0;\" aria-level=\"4\"><span style=\"font-weight: 400;\">merger, consolidation, takeover or separation.<\/span><\/li>\n<\/ol>\n<br\/>\n<span style=\"font-weight: 400;\">The Shareholders\u2019 right to request the Company to buy its shares back is given to each Shareholder regardless of the number of shares owned by the Shareholder, thus each Shareholder may exercise this right according to their circumstances and needs (<\/span><i><span style=\"font-weight: 400;\">Vide <\/span><\/i><span style=\"font-weight: 400;\">M. Yahya Harahap<\/span><i><span style=\"font-weight: 400;\">,<\/span><\/i> <i><span style=\"font-weight: 400;\">Hukum Perseroan Terbatas<\/span><\/i><span style=\"font-weight: 400;\">. Jakarta: Sinar Grafika, 2021, P. 277).<\/span>\n\n<span style=\"font-weight: 400;\">However, Shares Buyback at the request of Shareholders must still take into account the provisions in Article 37 Paragraph (1) letter b of the UU PT which regulates as follows:<\/span>\n\n<span style=\"font-weight: 400;\">\u201c<\/span><i><span style=\"font-weight: 400;\">The company can buy back shares that have been issued with the following conditions: <\/span><\/i><i><span style=\"font-weight: 400;\">The total nominal value of all shares repurchased by the Company and share pledges or fiduciary guarantees for shares held by the Company itself and\/or other Companies whose shares are directly or indirectly owned by the Company, does not exceed 10% (ten percent) of the total capital placed in the Company, unless otherwise regulated in the laws and regulations in the capital markets sector.&#8221;<\/span><\/i>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16dbfba elementor-widget elementor-widget-wdt-heading\" data-id=\"16dbfba\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"wdt-heading-holder\" id=\"wdt-heading-16dbfba\"><h5 class=\"wdt-heading-title-wrapper wdt-heading-align-center wdt-heading-deco-wrapper\"><span class=\"wdt-heading-title\">Shares Buyback must be carried out through the GMS:<\/span><\/h5><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8133f56 elementor-widget elementor-widget-text-editor\" data-id=\"8133f56\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Worth to note that, although Shares Buyback is based on request of the Company itself or Shareholders, Share Buyback is only permitted or in other words required to be carried out based on the approval of the GMS, unless otherwise regulated in the laws and regulations in the capital markets sector (<\/span><i><span style=\"font-weight: 400;\">vide <\/span><\/i><span style=\"font-weight: 400;\">Article 38 Paragraph (1) UU PT <\/span><i><span style=\"font-weight: 400;\">jo. <\/span><\/i><span style=\"font-weight: 400;\">Article 2 Paragraph (3) POJK 30\/2017). In carrying out the GMS for shares Buyback at the request of the Company or of the Shareholders,<\/span> <span style=\"font-weight: 400;\">must comply with the provisions regarding meeting summons, quorum, and approval of the number of votes for amendment to the articles of association regulated in Article 79 Paragraph (5) to Paragraph (10), Article 82, Article 83, Article 86, and Article 87 UU PT .<\/span><\/p><p><span style=\"font-weight: 400;\">There is a difference between a GMS with an agenda for Buying Back Shares at the Company&#8217;s Request and a GMS with an agenda for Buying Back Shares at the Shareholders\u2019 request. A GMS for Share Buyback at the request of the Company can be held at the request of 1 (one) or more Shareholders who together represent 1\/10 (one tenth) of all shares with voting rights or the Company&#8217;s Board of Commissioners, whilst a GMS for Shares Buyback at the request of Shareholders can only be proposed at the request of 1 (one) or more shareholders who together represent 1\/10 (one tenth) of all shares with voting rights (vide Article 79 Paragraph (2) UU PT <\/span><i><span style=\"font-weight: 400;\">jo. <\/span><\/i><span style=\"font-weight: 400;\">Article 3 Paragraph (1) Regulation of Financial Services Authority Number 17\/POJK.04\/2020 concerning Material Transactions and Changes in Business Activities).<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-c879c7c elementor-section-full_width elementor-section-content-middle elementor-section-height-default elementor-section-height-default\" data-id=\"c879c7c\" data-element_type=\"section\" data-settings=\"{&quot;wdt_bg_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_laptop&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile_extra&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;wdt_bg_position&quot;:&quot;center center&quot;,&quot;wdt_animation_effect&quot;:&quot;none&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f0cb72a\" data-id=\"f0cb72a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-630158b elementor-widget__width-auto center elementor-widget elementor-widget-wdt-heading\" data-id=\"630158b\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"wdt-heading-holder\" id=\"wdt-heading-630158b\"><h5 class=\"wdt-heading-title-wrapper wdt-heading-align-center wdt-heading-deco-wrapper\"><span class=\"wdt-heading-title\">Tags:<\/span><\/h5><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d775068 elementor-widget__width-auto elementor-widget elementor-widget-wdt-post-tags\" data-id=\"d775068\" data-element_type=\"widget\" data-settings=\"{&quot;wdt_animation_effect&quot;:&quot;none&quot;}\" data-widget_type=\"wdt-post-tags.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"entry-tags-wrapper  wdt-custom-tags-style\">\n<!-- Entry Tags -->\n<div class=\"single-entry-tags\"><\/div><!-- Entry Tags --><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-90db3c4\" data-id=\"90db3c4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>",
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        "rendered": "<p>Shares Buyback Carried Out by Public Company according to Limited Liability Companies Law and Regulation of Financial Services Authority Regulations concerning Shares Buyback by limited liability company are generally regulated in Law Number 40 of 2007 concerning Limited Liability Companies (&#8220;UU PT&#8220;) and are specifically regulated in the Law Number 8 of 1995 concerning Capital [&hellip;]<\/p>",
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