Legal Entity Status of Foundation

Foundation establishment procedure as a Legal Entity are regulated in Article 9 of Laws of Indonesia Number 16 of Year 2001 concerning Foundation. However, for the purpose of understanding, we will explain with the simplified sentences as follows in several stages.

The first stage, is the establishment stage, a Foundation are established by one or several person by separate their wealth as the initial wealth and made in notarial deed in Indonesian language, a foundation may also be establish based on the testament. Such deed of establishment as referred in this stage containing Article of Association of the foundation and the others provision related to the position holder of the foundation’s organ.

The next stage as well as the other legal entity, the foundation’s deed of establishment shall have been approved by the minister that are authorized by the government, that stage can be done by application in written by the founder or authorized the notary that made the deed of establishment of such foundation at the latest 10 days since the deed of establishment been signed. Such foundation may acquire their legal entity status by that procedure. If there is any legal action taken by Management in the name of the Foundation before such Foundation acquired their legal entity status, such effect of the legal action shall be jointly responsible by the member of Management.