Quo Vadis Technology-Based Companies to Issue MVS When Conducting an IPO on the IDX

Authors

  • Dinda Keumala Faculty of Law, Universitas Trisakti, Indonesia
  • Ahmad Sabirin Faculty of Law, Trisakti University, Indonesia
  • Izzah Balqies Faculty of Law, Universitas Trisakti, Indonesia
  • Ahmad Gozzy Pahlevi Royal Holloway, University of London, UK

DOI:

https://doi.org/10.22219/aclj.v5i1.31710

Keywords:

Technology-Based Companies; Issue Multiple Voting Shares; and IPO

Abstract

This paper aims to examine whether technology-based companies issue multiple voting shares when conducting an initial public offering on the stock exchange is needed in Indonesia to be an urgency in Indonesia. The application of multi-voting shares must follow the stipulated provisions, starting from the share lock-up period to the validity period of the multi-voting shares. This article used normative legal research methods. The research findings show that shares with multiple voting rights give a lot of votes to old shareholders with a determination before the initial public offering and determined in the articles of association of the company. New shareholders, despite owning the majority of shares, only have 1 (one) vote per share or as in Law Number 40 of 2007 concerning Limited Liability Companies known as “one share one vote”. This optional policy implies that the shareholders, although the majority, do not control the company. This means that ordinary shareholders, although the majority, can only enjoy profits through capital gains and dividend distribution. However, if the issuer suffers a loss, the ordinary shareholders, who are the majority shareholders, will suffer the biggest loss.

Downloads

Download data is not yet available.

References

Abram Pambudi Bowoarota. 2022. “Legal Protection of Entrepreneurship in Investing in Startup Companies.” Journal of Social Science and Education (JISIP) 6 (4): 34.

Al-Fatih, Sholahuddin. 2023. Perkembangan Metode Penelitian Hukum Di Indonesia. 1st ed. Malang: UMM Press.

ASEAN-INDONESIA. 2022. “Indonesia Allows Stock Market Multiple Voting Right to Lure Tech Listings.” ASEAN BRIEFING. 2022.

Freeman, John, and Jerome S. Engel. 2007. “Models of Innovation: Startups and Mature Corporations.” California Management Review 50 (1): 94–119. https://doi.org/10.2307/41166418.

Jadhav, Aditya. 2012. “Dual Class Shares – Is India Ready for It?” Macroeconomics and Finance in Emerging Market Economies 5 (1): 124–35. https://doi.org/10.1080/17520843.2011.643539.

Mochamad Januar Rizki. 2021. “POJK Principles for Implementing the Classification of Shares with Multiple Voting Rights for Issuers.” Hukumonline.Com. 2021.

Monica Wareza. 2022. “Multiple Voting Rights Shares for Unicorns Are Boiled, These Are the Rules!" CNBC Indonesia.” CNBC Indonesia. 2022.

Ninik Kurniasih, Rika Irawati, Haryati. 2022. “‘The Effect of “N” Notation on Share Price (Study on Issuers of Multiple Voting Rights).’” In National Symposium on Vocational Accounting (SNAV) 2022, 23. Malang.

Nur Risqi Alfaini and Kholilah. 2023. “Economic Value Added And Market Value Added At PT. Goto Gojek Tokopedia Tbk.” Journal of Pendidikan AKutansi 11 (3). https://doi.org/https://doi.org/10.26740/jpak.v11n3.p253-266.

OJK Press Release. 2021. “‘Press Release: OJK Issues Regulation on the Application of Classification of Shares with Multiple Voting Rights by Issuers.’” 2021.

Pahlevi, Reza. 2022. “There Are Shareholders with Multiple Voting Rights, Who Are the GoTo Shareholders?” Katadata.Com. 2022.

Rasji, Indriyanie, Dwi. 2023. “Penerapan Klasifikasi Saham Dengan Hak Suara Multipel Bagi Pemegang Saham Emiten Dalam Perspektif Keadilan.” Journal of Kewarganegaraan 7 (2). https://doi.org/https://doi.org/10.31316/jk.v7i2.5407.

Soerjono, Soekanto, and Sri Mamudji. 1995. “Penelitian Hukum Normatif Suatu Tinjauan Singkat.” PT Raja Grafindo Persada, Jakarta.

Syahrizal Sidik. 2021. “OJK Boss Leaks, MVS Rules for Startup IPOs Will Be Completed.” CNBC Indonesia. 2021.

Wareza, Monica Ramadhana. 2022. “‘Startup Founders Get Ready Can’t Give Up Shares During IPO.’” (CNBC Indonesia), 2022.

Wijaya, Andy Rahmad. 2022. “Analisis Hukum Atas Penerapan Klasifikasi Saham Dengan Hak Suara Multipel Di Pasar Modal Indonesia.” Al-Adl : Jurnal Hukum 14 (2): 367. https://doi.org/10.31602/al-adl.v14i2.6935.

Wongsowinoto, Fridayani. 2022. “The Effect of Financial Knowledge, Technology, and Behavioral Control on Student Financial Behavior.” International Journal of Accounting Finance in Asia Pasific 5 (3): 50–60. https://doi.org/10.32535/ijafap.v5i3.1879.

Yan, Min. 2022. “Permitting Dual Class Shares in the UK Premium Listing Regime – a Path to Enhance Rather than Compromise Investor Protection.” Legal Studies 42 (2): 335–57. https://doi.org/10.1017/lst.2021.50.

Downloads

Published

2024-02-02

How to Cite

Keumala, D., Sabirin, A., Balqies, I., & Pahlevi, A. G. (2024). Quo Vadis Technology-Based Companies to Issue MVS When Conducting an IPO on the IDX. Audito Comparative Law Journal (ACLJ), 5(1), 33–41. https://doi.org/10.22219/aclj.v5i1.31710