Document background
The Circular Resolution of Shareholders is a crucial corporate governance tool in Indonesian business practice, particularly when rapid decision-making is required or when organizing physical meetings proves impractical. This document type is explicitly recognized under Law No. 40 of 2007 on Limited Liability Companies (Company Law) and enables companies to obtain shareholder approval for various corporate actions without the formality of a general meeting. Common uses include approving annual reports, appointing directors or commissioners, authorizing significant transactions, or amending company articles. The resolution must be signed by all shareholders to be valid, as unanimous consent is typically required under Indonesian law. It's particularly valuable for companies with foreign shareholders or those needing to make decisions quickly, though certain matters may still require a physical meeting by law.
