Board Resolution For Declaration Of Dividend Template for Indonesia

A Board Resolution For Declaration of Dividend is a critical corporate document used in Indonesian business practice when a company's board decides to distribute profits to shareholders. This document is required under Indonesian Law No. 40 of 2007 on Limited Liability Companies and must be prepared whenever a company intends to declare dividends, whether interim or final. The resolution contains essential information including the dividend amount, payment mechanisms, record dates, and necessary corporate authorizations. It serves multiple purposes: providing a legal record of the board's decision, ensuring compliance with corporate governance requirements, facilitating shareholder communications, and supporting tax compliance. The document is particularly important as it demonstrates adherence to Indonesian legal requirements regarding profit distribution, including the prerequisite of positive retained earnings and proper corporate approval processes.

1. Title and Date: Formal title of the resolution and date of the board meeting

2. Attendance and Quorum: List of board members present and confirmation of meeting quorum

3. Preamble: Reference to the company's details, articles of association, and relevant law provisions

4. Financial Position Review: Statement regarding company's financial position and retained earnings

5. Dividend Declaration: Formal declaration of dividend, including amount per share and total dividend amount

6. Record Date: Specification of the record date for determining eligible shareholders

7. Payment Date: Specification of the dividend payment date

8. Payment Method: Details of how the dividend will be paid to shareholders

9. Authorization: Authorization to officers to take necessary actions to implement the resolution

10. Closure: Formal closing of the resolution

11. Signatures: Space for signatures of board members