A Director Authorization Letter is essential in Indonesian corporate operations when a director needs to delegate specific powers to enable efficient business operations. This document, governed by Indonesian Company Law No. 40/2007 and related regulations, formally authorizes an individual to act on behalf of a director in specified matters. It typically includes details about the scope of authority, duration, limitations, and reporting requirements. The letter is commonly used when directors are unavailable for day-to-day operations, during international business expansions, or for specific project implementations. It must be drafted carefully to ensure compliance with both company articles of association and Indonesian corporate law requirements, often requiring review by legal counsel and potentially notarization for certain types of authorizations.
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1. Letter Header: Company letterhead, date, reference number, and formal letter formatting
2. Recipient Details: Full name, position, and address of the person receiving the authorization
3. Subject Line: Clear indication that this is a Director Authorization Letter
4. Grantor Identification: Details of the authorizing director including full name, position, and company details
5. Authority Statement: Clear statement of the authorization being granted
6. Scope of Authority: Detailed description of specific powers and responsibilities being delegated
7. Duration of Authority: Time period for which the authorization is valid
8. Signature Block: Space for authorizing director's signature, name, and company stamp
1. Limitations and Restrictions: Any specific limitations on the authorized powers, used when the authority needs to be restricted in certain ways
2. Reporting Requirements: Requirements for the authorized person to report on actions taken, included when oversight is needed
3. Revocation Clause: Terms under which the authorization can be revoked, included for more formal or long-term authorizations
4. Compliance Requirements: Specific compliance obligations the authorized person must follow, included when dealing with regulated activities
5. Witness Section: Space for witness signatures, included when additional verification is required
1. Board Resolution: Copy of the board resolution approving the delegation of authority
2. Company Registration: Copy of company registration documents proving the grantor's position as director
3. Specimen Signature: Specimen signature of the authorized person
4. Specific Powers: Detailed list of specific transactions or actions covered by the authorization, if extensive
5. Identity Documents: Copies of identity documents of both the grantor and authorized person
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