The Special Resolution – An Essential Mechanism for Crucial Company Decisions

A special resolution is a high-priority resolution that requires the support of at least 75% of the voting members within a company. Indonesian companies often leverage special resolutions as formal tools to make business decisions with far-reaching implications.

Delving deeper, these resolutions must follow strict regulations set in the Companies Act 2006. The Central requirement from this legislative framework is for members of an Indonesian limited company, either shareholders or guarantors, to utilise special resolutions for pivotal decisions.

For the resolution to be legitimate, it must meet specific voting criteria. Consensus is achieved and upheld when no fewer than 75% of the eligible votes back the proposed matter. Consequently, achieving this level of support ensures that the legal decision holds authoritative gravitas, thereby reaffirming the fundamental nature of such a resolution in driving strategic changes.