Legal Literacy - This article discusses the legal implications of late notification of share acquisitions in the context of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. Through an analysis of the restructuring process, companies and acquisition, as well as the role of the Business Competition Supervisory Commission (KPPU) in enforcing the rules, the author presents an in-depth view of the consequences of failing to fulfill the stipulated notification obligations, including sanctions in the form of significant fines. This discussion is important for business actors to understand their legal responsibilities in corporate transactions to avoid violations that could result in costly fines and reputational damage.
Corporate Restructuring to Improve Efficiency
Legal strategies as an effort to increase market power through collaboration with other business actors, which is often implemented, is corporate restructuring. Corporate restructuring means reorganization through management and financial management to strengthen the company with several mechanisms such as Mergers, Consolidations, Company Acquisitions and Company Spin-offs.
The company's goal in carrying out restructuring is generally to improve the quality and efficiency of the company's operations, expand the business market to be able to compete in the world market, and encourage company performance to be able to increase additional capital. One of the corporate action strategies in the form of share acquisition is able to expand business activities and have a significant impact on the market and other business actors. However, in practice, many share acquisitions are implemented by companies with the intention of increasing market power in one company or a group of other independent companies, thereby leading to abuse of the existence of a dominant position in market control as regulated in Article 28 of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition (Law Number 5 of 1999).
Share Acquisition (Acquisition)
Takeover is defined as the trading of a company's shares, which can be done directly on existing shares by shareholders or by issuing new shares through the issuance of\/unissued shares. Takeovers are divided into two types, including: Direct Takeover (direct takeover), which is carried out through the stages of negotiation and agreement, announcement of the takeover plan, submission of objections, making a direct takeover deed before a notary, and announcement of the takeover results. Meanwhile, indirect takeovers include: decisions of the General Meeting of Shareholders, preparation of an acquisition plan, announcement of a summary of the takeover plan, making a takeover deed and announcement of the takeover results.
Acquisition is a strategy faced with increasingly fierce business competition. There are various factors that are the reasons for business actors to carry out acquisitions, both economic and non-economic. Specifically, acquisitions are chosen by business actors to obtain ease of company licensing, this is because they obtain official permits from the acquired company to carry out business activities. Based on these conditions, licensing is a valuable consideration because the acquiring company does not have difficulties in handling licensing issues.
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