Jakarta Indonesia Incorporation Authority – Limited liability company or often also referred to as incorporate is a business incorporated with the ownership of capital consisting of shares owned by the owner. Since the capital of this type of company consists of tradable shares, the change of ownership of the company can be done without having to close the company.
The capital of the company used is included in the articles of association. This type of corporate wealth is separate from the personal wealth of the company owner. In ownership arrangements, one person can own more than one share. The existence of these shares is evidence of company ownership. Every stockholder has limited responsibilities and authority, depending on the number of shares owned. This also applies to the Jakarta Indonesia incorporation authority.
Type of Limited Liability Company
This limited liability company is divided into three types, namely:
- An open liability company, is a limited liability company that sells its shares to the public through the capital market. Shares owned are offered to the public, traded through the stock exchange. Thus, everyone is entitled to purchase the company’s shares.
- Limited liability company is a limited liability company whose capital comes from certain circles. For example, shareholders are only from relatives and families. Shares owned only consist of limited circles, so that the shares owned are not for sale to the public.
- An empty limited liability company is a company that already has a business license and other permits, but has no business activities.
Distribution of Limited Liability Company
Companies that have a profit, then the profits will be distributed to shareholders in accordance with the provisions that have been determined. Profits earned by shareholders are called Dividends. Large or small Dividends depends on the size and size of the profits obtained by a limited liability company. Besides coming from stocks, capital from this limited liability company can also come from bonds.
For the benefit gained by the owners of these bonds are fixed interest regardless of the profit or loss of the limited liability company. this company is a company that has great potential to develop than other types of companies. This is because the limited liability company has a systematic organizational structure, namely General Meeting of Shareholders, Board of Directors, and Board of Directors. For the Jakarta area Indonesia incorporation authority is also the same.
The shareholders of the Limited Liability Company delegate their authority to the directors to run and develop the company in accordance with the objectives and business fields of the company. In relation to the duties, the board of directors is authorized to represent the company in the procurement of agreements and contracts, and various other powers.
The Board of Directors also has the authority to convey to shareholders when the company suffers enormous losses. Usually the loss is in the range of over fifty percent. When this condition occurs, then the shareholders will hold a meeting to determine the settlement step.
In the General Meeting of Shareholders for all shareholders both big and small have the right to vote. In this Shareholder General Meeting is also discussed issues related to performance and company policies that must be implemented. If the shareholder is unable to do so, it may grant his / her voting rights to other holders. This is called the proxy term.
The results of the General Meeting of Shareholders are usually transferred to the board of commissioners to be forwarded to the directors to run. The Commissioner has the function of supervising the performance of the company’s board of directors.
This commissioner has the authority to check the books, give guidance, give a warning to the directors, and even dismiss the board by holding a General Meeting of Shareholders to make a decision. The conditions in each company are almost identical, as in Jakarta Indonesia incorporation authority.
Content of the General Meeting of Shareholders
Decisions concerning organizational structure of the company, such as merger, consolidation, amendment of articles of association, separation, dissolution, liquidation of the company, obligations and rights of shareholders.
This decision also concerns the expenditure of new shares and profit sharing made by the company completely. These important matters include the authority of the General Meeting of Shareholders. However, there are still many things that can be discussed in the General Meeting of Shareholders. The following are the matters discussed in the General Meeting of Shareholders:
- Dismiss the board of directors or commissioners.
- Evaluate company performance.
- Decide the plan to increase or decrease the company’s shares.
- Determining company policy.
- Announce dividends or dividends.
- Determine the appointment of commissioners and directors.
- Determine the salaries of directors and commissioners.
The General Meeting of Shareholders has the highest authority in the company. exclusively authorized by the articles of association and certain restrictions for directors that require the approval of the General Meeting of Shareholders. Authority in the other Shareholders’ General Meeting is to regulate oligarchy which is the distribution of priority shares and common stock. Such arrangements grant veto rights to certain types of shares, which contradicts the right of the GMS to discontinue them at any time.
In addition, voting arrangements through an agreement between shareholders are basically justified. This is because the voting rights are given to shareholders in order to safeguard the interest. Thus, the shareholder is essentially free to bind himself with respect to the manner in which he exercises his voting rights in a Voting Agreement.
Although the agreement limits shareholder freedom. the authority in the General Meeting of Shareholders is different from the authority of the Board of Directors and the Board of Commissioners. It is also similar to the Jakarta Indonesia incorporation authority.