Kamis, Juni 17, 2021

OJK is Preparing a Draft Regulation on the Implementation of Share Classifications with Multiple Voting Rights by Certain Issuers

In a bid to facilitate the conducting of initial public offerings by issuers with certain characteristics that strive to be innovative and that are characterized by fast growth rates, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently preparing a Draft Regulation on the Implementation of Share Classifications with Multiple Voting Rights by Innovative and High Growth Rate Issuers That Conduct Public Offerings of Equity Securities (“Draft Regulation”).
Issuers who conduct public offerings of equity securities may create shares with multiple voting rights, provided that they fulfill the following criteria: 1) Use technology in order to create innovative products that increase productivity and economic growth and that have broad social benefits; 2) Have shareholders who make a significant contribution in terms of the use of said technology; 3) Fulfil the following requirements: a) The total assets of the relevant company must amount to at least Rp. 2 trillion; b) Must have been engaging in operational activities for a minimum of three years; c) The annual compound growth rate of the relevant total assets for the last three years must amount to at least 35%; and d) The annual compound growth rate of revenue for the last three years must amount to at least 30%; and 4) Must have never conducted any public offerings of equity securities.
Shareholders with multiple voting rights can, either individually or jointly, only own up to 47.3% of the total amount of issued and fully paid-up shares. However, any excess shares with multiple voting rights will be categorized as ordinary shares by law.
The OJK’s official website states that responses and inputs from the general public can be submitted before 21 June 2021 through letters sent to the Head of Capital Market Supervision Department 1A at the OJK or by email to: Mr. Erdi Novanto ([email protected]).
The Draft Regulation is currently being deliberated by the OJK and may thus be subject to future alterations.

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In a bid to facilitate the conducting of initial public offerings by issuers with certain characteristics that strive to be innovative and that are characterized by fast growth rates, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently preparing a Draft Regulation on the Implementation of Share Classifications with Multiple Voting Rights by Innovative and High Growth Rate Issuers That Conduct Public Offerings of Equity Securities (“Draft Regulation”).
Issuers who conduct public offerings of equity securities may create shares with multiple voting rights, provided that they fulfill the following criteria: 1) Use technology in order to create innovative products that increase productivity and economic growth and that have broad social benefits; 2) Have shareholders who make a significant contribution in terms of the use of said technology; 3) Fulfil the following requirements: a) The total assets of the relevant company must amount to at least Rp. 2 trillion; b) Must have been engaging in operational activities for a minimum of three years; c) The annual compound growth rate of the relevant total assets for the last three years must amount to at least 35%; and d) The annual compound growth rate of revenue for the last three years must amount to at least 30%; and 4) Must have never conducted any public offerings of equity securities.
Shareholders with multiple voting rights can, either individually or jointly, only own up to 47.3% of the total amount of issued and fully paid-up shares. However, any excess shares with multiple voting rights will be categorized as ordinary shares by law.
The OJK’s official website states that responses and inputs from the general public can be submitted before 21 June 2021 through letters sent to the Head of Capital Market Supervision Department 1A at the OJK or by email to: Mr. Erdi Novanto ([email protected]).
The Draft Regulation is currently being deliberated by the OJK and may thus be subject to future alterations.

......