THE FINANCIAL SERVICES AUTHORITY REGULATION
CONCERNING CAPITAL INCREASES WITH PRE-EMPTIVE RIGHTS FOR PUBLIC COMPANIES
(“OJK Regulation No 32/2015”)
By: AMO Lawyers
1. Translated by: Gilang Mursito Aji S.H LL.M (Adv);
2. Review by: Noverizky Tri Putra Pasaribu S.H LL.M (Adv);
Several Important notes from OJK Regulation No 32/2015, as follow:
Considering that in order to fulfill the needs of Public Companies in increasing their capital by issuing Pre-Emptive Rights and to increase the quality of public disclosure of information, it is deemed necessary to finalize the regulations concerning the implementation of capital increase in Public Companies that issue Pre-Emptive Rights to its shareholders by enacting the Regulation of Financial Services Authority concerning Capital Increases With Pre-Emptive Rights for Public Companies.
Under Article 2 OJK Regulation No 32/2015, If a Public Company required to increase its capital by issuing shares and/or other Equity Securities which either can be converted into shares or give right to buy shares, the concerned Public Company shall provide PER to all of its shareholders in accordance with a certain ratio as their shares ownership percentage. This is conjunction with Article 3 of the same regulation which provide that the obligation to provide PER in shares issuance and/or other Equity Securities as stipulated by Article 2 shall not applicable if the Public Company issues shares in the form of:
Bonus Shares which are considered as the Dividend Shares as a result of profit balance that are capitalized as a company capital; and/orBonus Shares which are not considered as the Dividend Shares as a result of shares distribution or other equity elements that are capitalized as a company capital.
Moreover, provided under Article 4 of the OJK Regulation No 32/2015, PER is a transferrable right and can be proven by:
Ownership records provided in Public Company or Securities Administration Agencies’ list of shareholders;PER certificate issued by the Public Company for shareholders registered at specific date;PER coupon which can be parted from share certificate;Confirmation or a Securities account report issued by Custodian.
For more detail information and further reference you may contact us at email@example.com and firstname.lastname@example.org and you may download the translated version of the OJK Regulation No 32/2015 below: