Document background
A Board Resolution Approving Financial Statements is a crucial corporate governance document required under Indonesian law, particularly for compliance with Law No. 40 of 2007 on Limited Liability Companies. This resolution is typically prepared annually following the completion of the company's financial statements and, where applicable, their audit. It serves as formal documentation of the board's review and approval of the financial statements, demonstrating proper oversight and governance. The document is essential for regulatory compliance, shareholder communication, and creating an official record of the board's discharge of its financial oversight responsibilities. For public companies, additional requirements under OJK regulations must be incorporated, including specific statements about regulatory compliance and risk management.
