General Meeting Of Shareholders Goes Online

OJK finally issues the highly anticipated regulations on electronic general meeting of shareholders. These regulations are information-heavy, and we highlight the key changes below. But does it answer the question of whether a physical GMS is still required?

In light of the approaching deadline for public companies to hold their annual GMS, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued two new regulations this week on general meeting of shareholders ("GMS") of public companies, namely OJK Regulation No. 15/POJK.04/2020 ("POJK 15") and OJK Regulation No. 16/POJK.04/2020 ("POJK 16").

POJK 15 and POJK 16 allow public companies to hold their GMS virtually ("e-GMS") through an e-GMS system provided by an e-GMS provider. In addition, both regulations enable the granting of an electronic proxy ("e-Proxy") through the e-GMS system. While we have discussed the e-proxy mechanism in our previous client update ( click here to read),