Document background
A Board Resolution For Issue of Shares is a crucial corporate document required under Indonesian law whenever a company decides to increase its share capital through the issuance of new shares. This document is essential for compliance with Law No. 40 of 2007 on Limited Liability Companies and must be prepared before any share issuance can proceed. It serves multiple purposes: documenting the board's decision-making process, providing evidence of proper corporate governance, meeting regulatory requirements, and authorizing company officers to execute the share issuance. The resolution typically includes details about the share issue terms, consideration of shareholders' rights, and compliance with foreign investment restrictions if applicable. It forms part of the company's permanent records and is often required for submissions to various regulatory bodies including the Ministry of Law and Human Rights and, where relevant, the Financial Services Authority (OJK).
