A&A law office is a law office which gives legal consultation services on shares by putting forward the principle of prudence and accuracy of the process so as to avoid process errors that have fatal consequences and legal consequences that should not be received by both the party giving the grant or the party receiving the grant.
Grants are gifts from one person to another. Therefore, the recipient of a grant can be referrer to it as income and is included in the tax object category.
The Grant process for tangible movable objects or receivables to be paid upon submission, does not require a notary deed and is valid if the gift is simply handed over to the recipient of the grant ot to another person who receives the grant to be forwarded to the recipient of the grant.
Thus, a grant is an agreement to give or to hand over and object belonging to the grantor, which is carried out in their lifetime, to the recipient of the grant without any benefit to the grantor from what he has given.
Grants in the form of shares are allowed in the applicable law in Indonesia as explained below:
Shares according to Article 31 Paragraph (1) of the Company law is the nominal value of the authorised capitol of the company, which reads in full:
The authorised Capitol of the Company consist of all the par value of shares
Whereas shares according to Article 1 number 5 of Law Number 8 of 1995 concerning Capital Market (Law 8/1995) are one type of securities.
Article 60 paragraph (1) of the Company Law States that Shares are movable property gives a number of rights to their owner. The Ownership of shares as movable property gives material rights to their owners. These rights can be defended against anybody.
Because shares are moveable property, ownership can also be moved or transferred, because according to Article 509 of the Civil Code the movable property is movable or movable in nature.
Then regarding the transfer of shares, Article 55 of the Company Law regulates that:
In the Company’s articles of association, the method of transferring rights to shares is determined in accordance with statutory provisions.
The transfer of rights to the shares is carried out with a deed of transfer of rights. What is meant by ‘deed’, both in the form of a deed being made before a notary or a deed under the hand. The deed of transfer of rights to shares or a copy thereof is submitted in writing to the company.
In the articles of association, the requirements regarding transfer of rights to shares can be regulates, mainly;
- Must offer advice to certain classification shareholders or other shareholders;
- Must obtain prior approval from the company’s organs; and/or,
- Must obtain prior approval from the authorised agency in accordance with statutory provisions.
The above requirements do not apply in the case of transfer of rights to shares due to the transfer of rights due to the law, except the requirnent for prior approval from the competent authority regarding inheritance, What is meant by the ‘transfer of rights due to law’ includes transfer of rights due to inheritance or transfer of rights as a result of merging, consolidation or separation.
So, to transfer shares must be done with a deed of transfer of rights and must met the requirements as mentioned above. Regarding the transfer procedure, including whether it needs to be offered in advance to other shareholders before being granted, it is further stipulated in the company’s articles of association.
You can also contact A&A Law Office to communicate with our lawyers.
Email : email@example.com
Phone : +6281 246 373 200 (WA Available)