Capital and Shares in the New Company Law

Overview

The enactment of the Limited Liability Company Bill into Law (Company Law) will bring to an end a long and tortuous history of getting an updated and more relevant Company Law into the legislation field of play. The Law is expected to be passed and signed into law in the immediate future. The soon to be previous Company Law (Law No. 1 of 1995) is clearly no longer suitable to regulate the ever-changing field that is company law. The Bill itself has been on the National Legislation Program (Program Legislasi Nasional / Prolegnas) since 2005 and was originally submitted to the House of Representatives (DPR) in October 2005. The 2 years it has taken to pass the DPR may surprise some. However, considering the Inventory List of Problems (Daftar Inventarisasi Masalah / DIM) on this Bill extended to some 813 problems then it is not at all surprising that it has taken this long to plough through the list in order to secure passage of the Bill.