Every company has an organizational structure in running its business activities. Referring to Law Number 40 of 2007 concerning Limited Liability Companies (UU PT), there are 3 important organs in a company, namely the board of directors, the board of commissioners, and the General Meeting of Shareholders (GMS). GMS is a corporate organ that has authority that is not granted to the board of directors or board of commissioners within the limits specified in the PT Law and/or articles of association. There are 2 types of GMS, namely Annual GMS and Extraordinary GMS. This GMS is important to be held because it has concrete objectives for the company. The main purpose of the Annual GMS is to present the annual report that must be submitted by the board of directors no later than 6 months after the company’s financial year ends. The annual report must contain at least:
- Financial statements. Comprising at least the balance sheet at the end of the financial year in comparison with the previous financial year, the income statement for the financial year, the cash flow statement and the statement of changes in equity, and notes to the financial statements.
- Report on the company’s activities. This record is very useful for internal parties and investors because the parties can know and check whether the capital invested in the company is in a safe and stable condition and is used properly. This report is also proof that the company is operating in accordance with the company’s original objectives.
- Implementation report, Information provided in the form of environmental and social responsibility reports.
- Details of issues arising during the financial year that affected the company’s business activities. During business activities, it is not always smooth sailing. The GMS can discuss problems that occur in the company. Shareholders can provide input and even have the right to take action if the problem has a broad impact on the company. In addition, the GMS can also discuss the sustainability of the company in the future.
- Supervisory report. Supervision of the company is carried out by the board of commissioners during the past financial year.
- Names of members of the board of directors and members of the board of commissioners. All names are written down so that the responsibilities and roles of each in carrying out the company’s activities are clearly known.
- Mentioned in the annual report regarding salaries and benefits for members of the company’s board of directors and board of commissioners for the previous year.
Therefore, the company becomes more open with the holding of GMS activities. Unlike the Annual GMS, the Extraordinary GMS aims to discuss issues that the company wants to resolve and can be held at any time based on the needs of the company. Therefore, organize the GMS according to its type and purpose. Also read: What Do You Need to Prepare for the GMS?
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These are the reasons why GMS is very consequential for a company. If you’re interested in learning more about GMS, use the UU PT as your starting point and guide. Have you understood about GMS? If you are still confused or want to consult, don’t hesitate to contact Kontrak Hukum! Visit and contact:
