Articles of association are one of the things that must be present in the establishment of a foundation.
You must pay attention to this because the articles of association regulate fundamental things about the foundation.
The articles of association must contain several important things, including the identity of the foundation, the wealth of the foundation, and the period of establishment of the foundation.
Yes, drafting the articles of association cannot be done carelessly.
You must comply with legal regulations so that the foundation can operate legally and be recognized by the government. Check out the full explanation and requirements here.
Overview of the Foundation
Before discussing further about the articles of association, you must first understand what a foundation is.
A foundation is a legal entity engaged in social, humanitarian, and religious affairs.
Generally, foundations do not have members because their purpose is not to seek profit.
Law No. 28 Year 2004 on the amendment of Law No. 16 Year 2001 has regulated everything related to foundations.
The founders need to set a vision and mission that is in accordance with the objectives and articles of association so that the foundation can run well…
Provisions of the Articles of Association
Law 28/2004 requires foundations to include articles of association as a legal document. The articles of association contain information about the establishment of the foundation, the purpose of the foundation, and how to run the foundation.
As a guide, it should contain at least the following:
- Name and domicile;
- Goals and objectives and activities to achieve those goals and objectives;
- Period of establishment;
- Founders separate the amount of initial wealth from their personal wealth in the form of money or objects;
- How wealth is acquired and used;
- Procedures for the appointment, dismissal, and replacement of members of the board of trustees, management, and supervisors;
- Rights and obligations of members of the board of trustees, management, and supervisors;
- Procedures for organizing Foundation organ meetings;
- Merger and dissolution of the Foundation; and
- Use of the remaining wealth of liquidation or distribution of the Foundation’s wealth after dissolution
What if there is a change in the Articles of Association of the Foundation?
The Foundation Law allows changes to the articles of association. The trustees must hold a meeting and have ⅔ of the foundation’s trustees present to decide on these changes. The notary will then record the change. To change the name in the articles of association, the Minister must give approval. Meanwhile, the curator must approve the change if the foundation is in a state of bankruptcy. The board can apply to the Minister of Law and Human Rights for a change or extension of the establishment time if the foundation is only established for a short period of time. The founders must complete this process at least one year before the term expires. The court will appoint a liquidator if the foundation is dissolved within the stipulated time period. However, if the dissolution occurs due to the insolvency of the foundation, it will follow the Law on Insolvency.
KH Contact
Without valid articles of association, a foundation cannot carry out its activities officially and will not be recognized by the government. Therefore, foundation founders should pay attention to drafting in accordance with the law as a first step.
Well, for KH friends who intend to establish a foundation but do not really understand about legality or do not have time to take care of it, you can contact Kontrak Hukum.
Kontrak Hukum helps to take care of the establishment and licensing of foundations legally with fees starting from Rp5 million. We can assist in preparing and issuing legal documents such as deed of establishment, NPWP, and other business licenses through OSS.
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Free and open to anyone by registering to This link .
Or for those of you who want to get additional income of up to millions of rupiah, can also be part of the Contract Law Affiliate Program.
Register directly at the following link yes!
