Corporate Actions (Company Acquisition, Merger, Consolidation, and Split-Up)
To improve Company’s business activities, companies often take corporate actions which are acquisition, merger, consolidation, or Split-up.
Under Indonesian Company Law:
- Merger means is a legal action conducted by one or more companies to merge with other existing companies which causes the assets and liabilities of the merging company to be transferred to the company that receives the merger and subsequently the status of the merged company ends by the law.
- Acquisition is a legal action conducted by a legal entity or an individual to take over the Company’s shares that causes the transfer of control over the company.
- Consolidation is a legal action conducted by two or more companies to consolidate by establishing a new company which automatically by law obtained assets and liabilities from the consolidate company and the status of the consolidate legal entity ended due to law.
- Split up means a legal action conducted by the company to separate the business which results in all assets and liabilities of the company being transferred automatically by law to two or more companies or part of the assets and liabilities of the company is transferred by law to one or more Company
There are some necessary legal actions and administrations to fulfil for those corporate actions to be legally effective. Legal action to be taken such as General Meeting of Shareholder, announcement through newspaper, the corporate actions which are conducted in front of a Notary, etc.