Starting on 28 August 2024, shareholders of a public company will be subject to a potentially game-changing set of requirements on the reporting of ownership or changes in ownership of a public company’s shares and encumbrances of a public company’s shares. These requirements, which are introduced by the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) in February 2024 under OJK Regulation No. 4 of 2024 (“POJK 4/2024”), will be based on the calculation of valid voting rights over a public company’s shares as opposed to the calculation of the number of shares.
POJK 4/2024 revokes OJK Regulation No. 11/POJK.04/2017 (“POJK 11/2017”). Additionally, POJK 4/2024 serves as the implementing regulation for the provision on the report of changes of ownership in a public company under Law No. 4 of 2023 on the Development and Strengthening of Financial Sector.
Besides introducing a new calculation rule based on valid voting rights, POJK 4/2024 also regulates new matters, such as ownership from inheritance, reporting exemption, reporting of encumbrance, and shortened reporting period.
For more information, click here to read the full Legal Update.
