On 1 December 2021, the Financial Services Authority (Otoritas Jasa Keuangan/”OJK”) enacted OJK Regulation No. 22/POJK.04/2021 allowing for the issuance of shares with Multiple Voting Rights (“POJK MVS”). Recognizing the massive potential for “financial market deepening”, especially in the capital markets sector, POJK MVS is envisaged to accommodate “companies that create new economy and innovations”, entice founders and key insiders of the company to list their company’s shares in the Indonesia Stock Exchange (“IDX”), and ultimately level the playing field of the IDX with other markets in the region. In sum, the MVS is an option for any “eligible” company who is contemplating Initial Public Offering and listing in Indonesia, to create a special class of shares with multiple voting rights for eligible persons, possibly founders, directors, or other eligible holders with significant contributions in the company. Through the MVS, these eligible persons would be able to maintain control over the GMS process, and continue to steer the direction of the company’s vision, mission, decisions, and business growth even if their shareholding percentage in the company gets diluted by future fundraising.
Our Capital Market Practice Group at Makes and Partners is pleased to provide you with the attached updates and insights on POJK MVS, covering among others eligibility requirements, key technical mechanics, and certain measures to protect the interests of public shareholders. To access these updates, please click on the following link: here.
Thank you for your kind attention.
Best regards
Makes Team.