Board Manual 2017 (eng)
Board Manual
BOARD MANUAL
of
PT ABM INVESTAMA TBK
Board Manual – PT ABM Investama Tbk
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Board Manual
TABLE OF CONTENT
Chapter I Introduction
I.a
Purposes and Objectives of Preparation of Board Manual
I.b
Scope of Board Manual
I.c.
References for Preparation of
I.d.
Definitions
Board Manual
Chapter II The Board of Commissioners
II.a.
Requirements
and
Composition
of
the
Board
of
Commissioners
II.b.
Office Term of the Board of Commissioners
II.c
Tasks and Authorities of the Board of Commissioners
II.d.
Division of tasks of the Board of Commissioners
II.e.
Proceeding of the Board of Commissioners Meeting
II.f
Supporting Organs of the Board of Commissioners
II.g.
Secretary of the Board of Commissioners
Chapter III The Board of Directors
III.a. Requirements and Composition of the Board of Directors
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III.b. Office Term of the Board of Directors
III.c
Tasks and Authorities of the Board of Directors
III.d. Division of Tasks of the Board of Directors
III.e. Proceeding of the Board of Directors Meeting
III.f. Supporting Organs of the Board of Directors
III.g. Actions of the Board of Directors that Require Written
Consent of the Board of Commissioners.
III.h. Actions of the Board of Directors that Require Approval
of GMS
Chapter IV Relationship Among the Company Organs
IV.a.
General Meeting of Shareholders
IV.b.
Joint Meeting of the Board of Directors and the Board
IV.c.
Formal Communication
IV.d.
Informal Communication
Chapter V Closing
V.a.
Enforcement of Board Manual
V.b.
Socialization of the Board Manual
V.c.
Evaluation and Review of the Board Manual
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Chapter 1
INTRODUCTION
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Part One
INTRODUCTION
I.a
Purposes and Objectives of Preparation of Board Manual
Board
Manual
is
a
document
that
outlines
things
pertaining to organizational structure of the Board of
Directors and the Board of Commissioners and functional
relationship process of the Board of Directors organ,
the Board of Commissioners organ and between the both
organs
of
the
Company.
This
Board
Manual
also
contribute to arranging the organ of General Meeting of
Shareholders in terms of its interaction with the other
two company’s organs.
This
Board
Manual
is
one
of
Codes
of
Corporate
Governance which refers to the Articles of Association
of the Company, the Law on Limited Liability Company
and other relevant regulations.
Board Manual is a document of agreement between the
Board of Directors and the Board of Commissioners that
is aimed at:
1)
Becoming
a
Board Manual – PT ABM Investama Tbk
reference/guideline
on
tasks,
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authorities and responsibilities of each organ;
2)
Improving
quality
and
effectiveness
of
working
relationship between among organs;
3)
Setting
the
principles,
Good
namely
Corporate
Governance
transparency,
–
GCG
accountability,
responsibility, independent and fairness.
4)
Building independence in making decisions and able
of
performing
their
respective
tasks
and
responsibilities as expected by the shareholders
and other stakeholders.
I.b
Scope of Board Manual
This Board Manual serves as principal guidelines for
implementation
organs
of
the
of
working
Board
of
relationship
Directors,
between
the
the
Board
of
Commissioners and the General Meeting of Shareholders
of PT ABM Investama, including tasks, responsibilities,
authorities, meeting mechanisms, decision making and
control and supervision principles that are performed
by
the
Board
of
Directors
and
the
Board
of
Commissioners and General Meeting of Shareholders.
I.c.
References for Preparation of
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1)
Law Number 40 of 2007 regarding Limited Liability
Company;
2)
Law Number 14 of 2008 regarding Public Disclosure;
3)
Articles of Association of the Company;
4)
General
Guideline
of
Good
Corporate
Governance
Indonesia - Komite Nasional Kebijakan Governance
I.d.
Definitions
The definitions below have been made to allow the same
perception of the terms found in the Board Manual.
1)
Board
Manual
Directors
is
and
a
the
guidance
Board
of
for
the
Board
of
Commissioners
in
performing the Company's good corporate governance
in accordance with the healthy corporate principle
and
in
reference
to
all
statutory
regulations
relating to the Company.
2)
Conflict of interest is a difference between the
Company’s
economic
interest
and
individual
economic interest of any member of the Board of
Directors, member of the Board of Commissioners,
or the controlling shareholder that is detrimental
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to the Company.
3)
Board of Commissioners is an organ of the Company
that is in charge of making supervision on and
providing advices to the Board of Directors.
4)
Board of Directors is an organ of the Company that
is responsible for management of the Company for
the best interests and purposes of the Company, as
well as to represent the Company both inside and
outside the courts in accordance with provisions
of the articles of association.
5)
ABM Group is a group of Companies which are under
the
auspices
indirectly,
of
by
and
PT
owned,
ABM
either
Investama,
directly
a
or
limited
liability company that was incorporated under the
laws of the Republic of Indonesia.
6)
Limit of Authority - LoA is a Company's internal
document which contains restrictions on authority
for actions set forth therein, which provision is
made and approved by and between the Board of
Directors and the Board of Commissioners.
7) Company is PT ABM Investama Tbk.
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8)
Stakeholders are those who have interests in the
Company and those who are affected directly by
strategic
and
Company,
operational
consisting
Shareholders,
communities
employees,
around
the
of,
decisions
among
business
place
of
the
others,
partners
where
the
and
Company
operates.
9)
General
Meeting
of
Shareholders
(GMS)
is
the
highest ruler in the Company and it holds all of
the authorities that are not designated to the
Board of Directors and the Board of Commissioners.
10)
RKJP (L
Long Term Business Plan) is a reference for
the Board of Directors in operating the Company
within the next 5 years.
11)
RKT (A
Annual Business Plan) is a reference for the
Board of Directors in operating the Company in the
current year.
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Chapter 2
THE BOARD OF COMMISSIONERS
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Part Two
THE BOARD OF COMMISSIONERS
II.a.
Requirements
and
Composition
of
the
Board
of
Commissioners
II.a.1. Requirements
Those who may be appointed to be members of the Board
of Commissioners are individuals who meet the following
requirements:
1)
Having good character, morality and integrity;
2)
Capable of taking legal actions;
3)
Within 5 (five) years prior to their appointment
and during in their office:
(a)
Have not been declared bankrupt;
(b)
Have not been a member of Board of Directors
and/or member of Board of Commissioners who
was
declared
guilty
in
causing
a
company
declared bankrupt;
(c)
Have
not
been
punished
for
committing
in
criminal offense that inflicted a financial
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loss
to
the
state
and/or
that
related
to
financial sector; and
(d)
Have not been a member of Board of Directors
and/or Board of Commissioners who, during in
their office:
(i)
have ever been held no Annual GMS;
(ii) Have had their accountability report as
member of the Board of Directors and/or
member of the Board of Commissioners not
accepted by a GMS or have ever given no
accountability report as member of the
Board of Directors and/or member of the
Board of Commissioners to a GMS; and
(iii) have
ever
obtained
caused
a
a
company
license,
that
has
approval,
or
registration from the Financial Services
Authority not fulfilling its obligation
to submit annual report and/or financial
report
to
the
Financial
Services
Authority.
4)
Having
commitment
Board Manual – PT ABM Investama Tbk
to
comply
with
the
statutory
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regulations; and
5)
Having knowledge and/or expertise in the fields as
required by Company.1
The Board of Commissioners through the assisting
committee applies additional requirements for a
prospective member of the Board of Commissioners.
II.a.2. Membership Composition of the Board of Commissioners
1)
Membership structure of the Board of Commissioners
consists of at least 2 (two) members of the Board
of
Commissioners,
and
one
of
them
shall
be
appointed to be President Commissioner;2
2)
Composition and number of members of the Board of
Commissioners shall be determined by a GMS or the
capital market regulation if the Company is of
1
Article 110 paragraph 1 of Limited Liability Company Law
No.40
Year.2007
and
the
Financial
Services
Authority
Regulation Number 33/POJK.04/2014 dated 8 December 2014.
2
Article 108 paragraph 5 Limited Liability Company Law No.40
Year.2007 and the Financial Services Authority Regulation
Number 33/POJK.04/2014 dated 8 December 2014..
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public listed status;
3)
Members of the Board of Commissioners shall be
appointed and dismissed by the Shareholders after
passing
through
accordance
the
with
nomination
the
process
prevailing
in
statutory
regulations. Members of the Board of Commissioners
shall be appointed for a defined term and may be
reappointed;
4)
If for any reason position of a member of the
Board of Commissioners is vacant, then:
a)
the Shareholders shall, within not later than
90 (ninety) days as of such a vacancy, have
filled such a vacancy;3
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
3
Resolution
Jakarta
of
the
Board
of
Directors
No.Kep-305/BEJ/07-2004
dated
of
PT
19
Bursa
July
Efek
2004,
Regulation Number IA on Registration of Shares and Equity
Securities Other Than Shares That Are Issued by a Listed
Company
and
the
Financial
Services
Authority
Regulation
Number 33/POJK.04/2014 dated December 8, 2014.
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Board of Commissioners, then, the relevant
member of the Board of Commissioners whose
office term has expires shall remain perform
his/her
tasks
authorities
and
with
obligations
as
Commissioners,
definitive
a
exercise
the
same
member
of
until
the
members
his/her
rights
the
and
Board
appointment
of
the
of
of
Board
of
Commissioners.
5)
If at any time for any reason the Company has no
members of the Board of Commissioners, then:
a)
the
Shareholders
person(s)
exercise
to
the
may
perform
the
authorities
Commissioners
with
obligations,
until
definitive
appoint
members
the
one
tasks
of
the
same
or
more
and
to
Board
of
rights
and
the
appointment
of
of
the
of
Board
Commissioners;
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
Board of Commissioners, then, the relevant
member of the Board of Commissioners whose
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office term has expires shall remain perform
his/her
tasks
authorities
and
with
obligations
as
Commissioners,
definitive
a
exercise
the
same
member
of
until
members
the
of
his/her
rights
the
Board
appointment
the
Board
and
of
of
of
Commissioners.
6)
The nomination process of members of the Board of
Commissioners shall be carried out by appointing
or
assigning
the
Committee
for
Nomination,
Remuneration and Human Resource Development, that
shall
be
chaired
by
a
member
of
the
Board
of
Commissioners to carry out the nomination process
for members of the Board of Commissioners before
decision
in
Commissioners
a
meeting
to
be
of
submitted
the
Board
later
to
of
the
Shareholders for stipulation at a GMS.
7)
Prospective members of the Board of Commissioners
who have passed the fit and proper assessment will
be proposed at a GMS for appointment.
8)
At least 30% (thirty percent) of members of the
Board
of
Commissioners
Board Manual – PT ABM Investama Tbk
shall
be
Independent
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Commissioners who belong to circles outside the
Company
who
are
free
from
influence
of
other
members of the Board of Commissioners and other
members
of
the
Board
of
Directors
and
the
controlling Shareholders, one of them must have
accounting and/or finance background.
9)
Independent Commissioner shall meet the following
requirements4:
(a)
Is not a person who is working with or having
the
authority
planning,
and
responsibility
for
controlling,
or
directing,
supervising the Company’s activities within 6
(six) months, except for reappointment to be
Independent Commissioner in the next period;
(b)
Holding
no
shares
either
directly
or
indirectly in the Company;
(c)
Having no affiliation relationship with the
Company,
members
Commissioners,
4
The
Financial
Services
of
members
Authority
the
of
the
Board
Board
Regulation
of
of
Number
33/POJK.04/2014 dated December 8, 2014.
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Directors or the controlling shareholders in
the Company; and
(d)
Having
no
directly
business
or
relationship,
indirectly,
either
related
to
the
Company's business activities.
10)
Any
Independent
Commissioner
who
has
been
in
office for 2 (two) office term periods may be
reappointed
Independent
in
the
next
Commissioner
period
as
declares
long
as
himself
an
to
remain independent to the GMS.5
II.b.
Office Term of the Board of Commissioners
1)
Each member of the Board of Commissioners shall
hold his/her office for a period as from the date
of GMS which appoints him/her and shall end at the
of
the
3rd
Annual
appointment
and
may
be
closing
GMS
as
re-elected
of
his/her
for
another
office term.6
5
Ibid.
6
Articles of Association of the Company Article 17, paragraph
2.
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2)
Any person who is appointed to replace a member of
the Board of Commissioners who resigns or who is
dismissed from his/her office or to fill a vacancy
or
any
person
who
is
appointed
to
fill
a
new
position in the Board of Commissioners shall be
appointed
for
a
remaining
office
period
term
which
of
other
constitutes
members
the
of
the
Board
of
Board of Commissioners who are in office.
3)
Office
term
of
members
of
the
Commissioners shall end in the event he/she:
a)
resigns;
b)
his/her office term expires;
c)
ceases
to
comply
with
the
prevailing
statutory regulations;
d)
is dismissed by resolution of a GMS, or
e)
passes away within his/her office term;
f)
is unable to perform his/her tasks properly;
g)
fails
to
implement
the
provisions
of
statutory regulations and/or the Articles of
Association;
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h)
is involved in any action that is detrimental
to the Company and/or the state;
i)
is declared guilty by final judgment of a
court;
4)
A member of the Board of Commissioners is entitled
to resign from his office by notifying in writing
to the Board of Commissioners concerning his/her
intention not later than 60 (sixty) days prior to
his/her resignation date comes to effect, and the
relevant member of the Board of Commissioners can
remain be held responsible as a member of the
Board of Commissioners as from his/her appointment
until the his/her resignation date;
5)
A member of the Board of Commissioners
can be
dismissed at any time by a GMS if he/she is deemed
unable to perform his/her tasks as specified in
the Articles of Association of the Company and/or
for any other reasons which are acceptable to the
GMS, after the relevant member of the Board of
Commissioners is given with opportunity to present
at the GMS in order to defend him-/herself.
6)
As long as the dismissal plan is still in process,
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the relevant member of the Board of Commissioners
shall perform his/her tasks accordingly.
II.c
Tasks and Authorities of the Board of Commissioners
II.c.1 Tasks of the Board of Commissioners
It is the task of Board of Commissioners to supervise
the management of the Company by the Board of Directors
and to give advices to the Board of Directors including
implementation of RKJP, RKT as well as provisions of
the Articles of Association and GMS, and the prevailing
statutory regulations.
The scope of work of the Board of Commissioners in
performing its tasks includes:
1)
To conduct supervision on the management of the
Company by the Board of Directors and to approve
the
Company
development
plan,
the
Long
Term
Business Plan (R
RKJP), Annual Business Plan (RKT)7,
and
performance
of
tasks,
authorities
and
responsibilities in accordance with provisions in
7
Articles of Association of the Company Article 20 paragraph
1.
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the Articles of Association and GMS resolutions as
well as the prevailing statutory regulations;
2)
To perform tasks which are specifically assigned
to
him/her
according
to
the
Articles
of
Association, the prevailing statutory regulations,
and/or based on resolution of the GMS;
3)
To take actions for the best interest the Company
and to be is responsible to the GMS;
4)
To examine and analyze the annual report prepared
by the Board of Directors and to sign that report;
5)
To
keep
abreast
with
the
Company's
activity
development, and to immediately report to the GMS
if the Company shows any conspicuous deteriorating
symptoms,
accompanied
by
recommendations
on
corrective action to take;
6)
To give opinion and advices in conformity with
supervisory task of the Board of Commissioners to
the GMS regarding any other issues as it deems
important for management of the Company;
7)
To
coordinate
with
and
evaluate
the
Public
Accountant who audits the Company's accounts, for
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submission later as proposition to the GMS;
8)
To respond to periodic reports of the Board of
Directors and, at any time as necessary, regarding
development
of
the
implementation
Company
results
of
and
to
report
its
tasks
to
the
the
Shareholders on timely basis;
9)
To monitor the effectiveness of GCG practices and
implementation
of
the
Responsibility
(CSR)
that
Corporate
is
applied
Social
by
the
Company and to make adjustments;
10)
To set the Key Performance Indicator (KPI) of the
Board of Directors at the beginning of every work
year;
11)
To determine transparent nomination, performance
evaluation, remuneration systems to the Board of
Commissioners
and
consideration
of
Nomination
and
the
Board
analysis
Remuneration
of
Directors
results
by
Committee
on
the
to
be
submitted later for approval of the GMS and for
internal
implementation
of
the
Board
of
Commissioners;
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12)
To determine transparent nomination, remuneration
of
performance
evaluation
systems
of
Senior
Executives (General Managers or equivalent) who
are
not
members
consideration
of
of
the
Board
analysis
of
Directors
results
by
on
the
Nomination and Remuneration Committee;
13)
To improve their competence and knowledge on an
ongoing basis to perform the function as the Board
of Commissioners professionally;
14)
To make and keep copies of minutes of meetings of
Board
of
Secretary
Commissioners
of
Board
of
and,
if
required,
Commissioners
may
the
be
appointed to make the minutes of meeting of the
Board of Commissioners.
15)
To
report
to
the
Company
on
its
and/or
its
family’s share ownership in the Company and in the
ABM Group.8 Shareholding of members of the Board
of Commissioners and their families in companies
other than the Company and the ABM Group becomes
8
Article 116 of the Limited Liability Company Law No. 40 of
2007.
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mandatory when the relevant company is involved in
business activities of the Company and/or the ABM
Group including but not limited in the form of
vendor, supplier or business cooperation.
16)
To provide a report of supervisory tasks which
they have performed during the past financial year
to the GMS.9
17)
To establish decision on value limits of legal
action of the Board of Directors that requires
written consent of the Board of Commissioners.
18)
To give approval on the proposed Legal actions of
the
Board
of
Directors
that
require
Written
Approval of the Board of Commissioners.
19)
The Board of Commissioners shall established an
Audit Committee and may establish other committees
if they deem necessary. In performing their tasks,
the Board of Commissioners may seek for assistance
of
experts
for
specific
things
and
specific
periods at the expense of the Company, Division of
9
Article 116 of the Limited Liability Company Law No. 40 of
2007.
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tasks among members of the Board of Commissioners
shall be governed among themselves.
II.c.2 Authorities of the Board of Commissioners
The
Board
of
Commissioners
is
entitled
to
take
supervisory actions on management of the Company and
shall report it to the Shareholders through a GMS, such
as:
1)
To see the books, letters, and other documents, to
examine
other
the
cash
securities
for
verification
and
to
examine
purposes
the
and
Company's
assets;
2)
To enter into premises, buildings and offices that
are being used by the Company;
3)
To ask for explanation from the Board of Directors
and/or
other
officers
concerning
any
matters
related to the Company management;
4)
To know all the policies and actions that have
been
and
will
be
performed
by
the
Board
of
Directors;
5)
To
ask
the
Board
Board Manual – PT ABM Investama Tbk
of
Directors
and/or
other
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Board Manual
officers
under
the
Board
of
Directors
on
acknowledgment of the Board of Directors to attend
at any meetings of the Board of Commissioners.
6)
To attend at meetings of the Board of Directors
and
to
give
opinions
on
the
matters
being
discussed.
7)
The Board of Commissioners through meetings is at
any time entitled to suspend one or more member(s)
of the Board of Directors, if they act contrary to
the Articles of Association or are indicated as
inflicting a loss to the Company or neglect from
performing
its
obligations
or
there
are
urgent
reasons for the Company. Such a suspension must be
notified in writing to the relevant person and the
Shareholders accompanied with reasons that caused
such actions.10
Within 90 (ninety) days as of the suspension, the
Company is obliged to hold an Extraordinary GMS
that that will decide whether the relevant member
10
Article 106 of the Limited Liability Company Law No. 40 of
2007.
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of
the
Board
permanently
or
of
Directors
resumed
will
to
be
dismissed
his/her
original
position and the suspended member of the Board of
Directors
shall
be
given
with
opportunity
to
defend him-/herself.11
8)
To carry out managerial action on the Company for
temporary by appointing one or more of them with
the same powers and authorities as members of the
Board of Directors.12
If for any reason position of one or more or all
members of the Board of Directors vacant, then
within
90
(ninety)
days
as
of
such
a
vacancy
occurs, a GMS shall be held to fill such a vacancy
with due observance to provisions in the statutory
regulations and the Articles of Association.13
11
Articles of Association of the Company Article 14 paragraph
12 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014.
12
Article 118 of the Limited Liability Company Law No. 40 of
2007
13
Articles of Association of the Company Article 14
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9)
May appoint a third party to represent the Company
in the event of any conflict of interest between
the Company and the all members of the Board of
Directors both inside and outside the court.
10)
In
the
event
all
Directors
vacant
available
nor
positions
and
not
no
in
of
the
successor
office,
the
Board
has
of
been
Board
of
Commissioners is entitled to appoints one member
of
the
Board
of
Commissioners
to
perform
the
Company management tasks.14
11)
Unless as specified further in Board Manual or in
a
joint
decision
between
the
Board
of
Commissioners and the Board of Directors, then,
any
action
Company
that
of
the
require
Board
of
approval
Directors
of
the
of
the
Board
of
Commissioners are as follows:
a)
To
approve
loans
from
Banks
or
other
Financial Institutions or to lend moneys on
behalf of the Company;
14
Article 118 of the Limited Liability Company Law No. 40 of
2007
Board Manual – PT ABM Investama Tbk
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Board Manual
b)
To approve a new business or to participate
in
other
firms
both
in
home
country
and
abroad;
c)
To pledge any of the Company's fixed assets;
d)
To dispose of and write-off any of the fixed,
movable
or
immovable
assets
with
certain
minimum value as specified by the Board of
Commissioners;
e)
To
write-off
from
the
account
any
of
bad
debts up to a certain value as specified by
the Board of Commissioners.
As to the determination of limit values of legal
actions of the Board of Directors which requires
the written consent of the Board of Commissioners
shall be determined in a Meeting of the Board of
Commissioners.
This decision shall be made after having heard the
opinion of the Board of Directors and shall be
valid for a period of at least 1 (one) fiscal
year.
A working guideline for each committee that is
Board Manual – PT ABM Investama Tbk
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Board Manual
under the auspices of the Board of Commissioners
may be made by the Board of Commissioners or on
proposition of the Board of Directors for approval
of the Board of Commissioners later.
II.c.3. Double Position15
Member of the Board of Commissioners may concurrently
serve as:
a.
Member of the Board of Directors in not more than
two (2) issuers or other public listed companies;
b.
Member of the Board of Commissioners in not more
than
two
(2)
issuers
or
other
public
listed
companies.
In the event a member Board of Commissioners does not
concurrently serve as member of the Board of Directors,
the relevant member of the Board of Commissioners may
concurrently
serve
as
member
of
the
Board
of
Commissioners in not more than 4 (four) other public
listed companies.
15
The
Financial
Services
Authority
Regulation
Number
33/POJK.04/2014 dated December 8, 2014.
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Member of the Board of Commissioners may concurrently
serve as member of committee in not more than 5 (five)
committees in Issuers or Public Listed Companies in
which he/she also serves as member of the Board of
Directors or member of the Board of Commissioners.
II.d.
Division of tasks of the Board of Commissioners
Division
of
tasks
among
members
of
the
Board
of
Commissioners shall be set independently and, in order
to facilitate implementation of their tasks, the Board
of Commissioners may be assisted by a Secretary of the
Board of Commissioners who is appointed by the Board of
Commissioners on the Company’s expense.
II.e.
Proceeding of the Board of Commissioners Meeting
Commissioners meeting is a meeting held by the Board of
Commissioners in relation to each of their tasks and
functions at least once every 3 (three) months.
The Board of Commissioners must schedule meetings for
the next year before the end of fiscal year.16
II.e.1. Frequency of the Board of Commissioners Meeting
16
Ibid.
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Meeting may be held at any time if17:
i.
deemed necessary by one or more member(s) of the
Board of Commissioners;
ii.
upon written request of one or more member(s) of
the Board of Commissioners;
iii. upon written request of one or more shareholder(s)
who collectively hold 1/10 or more of total shares
with voting rights.
Periodic meeting of the Board of Commissioners shall be
held at least once every 2 (two) months.18
II.e.2. Summons and Venue of Meeting
1)
Summons
for
a
Meeting
of
the
Board
of
Commissioners shall be conducted by the President
Commissioner or a Commissioner of the Company if
the President Commissioner is indisposed.
2)
Summons
for
a
Meeting
of
the
17
Articles of Association of the Company Article 19
18
The
Financial
Services
Authority
Board
Regulation
of
Number
33/POJK.04/2014 dated December 8, 2014.
Board Manual – PT ABM Investama Tbk
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Board Manual
Commissioners
shall
be
sent
not
later
than
7
calendar days prior to the meeting date excluding
the summons date by mail and confirmed by phone.
3)
Summons for a meeting must mention the agenda,
date, time and place of the Meeting.
4)
Meeting of the Board of Commissioners shall be
held at the Company's domicile or in the place
where the company conducts its business activity.
5)
Summons
for
meeting
is
not
required
and
the
meeting of the Board of Commissioners can be held
anywhere
if
all
members
of
the
Board
of
Commissioners are present or represented.
6)
Meetings of the Board of Commissioners can be held
by
means
of
video
conference
media
or
through
other electronic media that allow all attendants
of Meeting of the Board of Commissioners to see
and hear each others in person and to participate
in the meeting of the Board of Commissioners.
7)
Materials of meeting shall be delivered to the
meeting participants not later than 5 (five) days
prior to the meeting. In the event a meeting is
Board Manual – PT ABM Investama Tbk
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Board Manual
held
beyond
materials
the
may
participants
prepared
can
not
be
schedule
delivered
later
than
to
then
the
right
the
meeting
before
the
meeting.19
II.e.3 Chairperson of Board of Commissioners Meeting and those
who are entitled to be present
Meetings
of
the
Board
of
Commissioners
shall
be
presided over by the President Commissioner and in case
the President Commissioner is indisposed, it shall be
presided over by a member of the Board of Commissioners
elected
by
and
from
among
members
of
the
Board
of
Commissioners who are present.20
Meeting of the Board of Commissioners shall be attended
by members of the Board of Commissioners and minutes of
the meeting shall be drawn-up. If deemed necessary,
Meetings
of
the
inviting
members
commissioner
of
the
Board
can
of
be
expanded
Directors,
by
the
Corporate Secretary, committees or other invitees.
19
Ibid.
20
Articles of Association of the Company Article 19
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II.e.4. Proxy of the Board of Commissioners At the Meeting
A
member
of
the
Board
of
Commissioners
may
be
represented in a Meeting of the Board of Commissioners
only by another member of the Board of Commissioners
based on a power of attorney.
II.e.5. Quorum
1)
Meeting of the Board of Commissioners is valid and
entitled to adopt binding resolutions if more than
½
of
total
number
of
members
of
the
board
of
commissioner are present and those who are not
present give a power of attorney to be represented
at the Meeting.
2)
Resolutions
of
meeting
shall
be
adopted
on
amicable deliberation basis.
3)
In the event of tie votes (pro-vote and contravote is equal), the Chairperson of Meeting of the
Board of Commissioners will have a casting vote.
4)
Voting
on
persons
shall
be
carried
out
by
an
unsigned-folded ballot, whereas, voting on other
matters shall be carried out verbally, unless the
Chairperson
of
Board Manual – PT ABM Investama Tbk
Meeting
determines
otherwise
Page 36
Board Manual
without any objection from those present.
5)
Blank votes and illegal votes shall be considered
not to be cast legally and shall not be counted in
determining the total votes cast.
Action
1.
Borrowing or lending money on
Number of members
of Board of
Commissioners
approve
>1/2
behalf of the Company. *)
2.
Merger or acquisition
>1/2
(including acquisition
without causing takeover),
joint venture, and joint
operation.
3.
Establishing Subsidiaries
>1/2
4.
Opening the Company’s
>1/2
Branches
5.
Selling Subsidiaries
>1/2
6.
Selling ≤50% of the Company’s
>1/2
Board Manual – PT ABM Investama Tbk
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Board Manual
Action
Number of members
of Board of
Commissioners
approve
assets *)
7.
Pledging ≤50% of the
>1/2
Company’s assets. *)
8.
Investment/project/tender
>1/2
9.
Mass employment termination
>1/2
10.
Payrolls and bonuses of the
>1/2
Board of Directors
11.
RKT and RKJP
>1/2
12.
Company’s Annual Report
>1/2
13.
Company’s Annual Financial
>1/2
Report
14.
Write-off of assets,
>1/2
receivables and invoices (ad
hoc). *)
15.
Interim dividend
Board Manual – PT ABM Investama Tbk
>1/2
Page 38
Board Manual
16.
Action
Number of members
of Board of
Commissioners
approve
Buying back shares and/or
>1/2
selling securities issued by
the Company in the capital
markets/financial
institutions
17.
Renting out the assets for a
>1/2
period longer than 3 years
18.
Binding the Company to be a
>1/2
guarantor.
*) Action is taken by complying with provisions in the
Limit of Authority applicable with due observance to
provisions of the prevailing statutory regulations
including if the Company changes its status to be
publicly open.
II.e.6 Circular Resolutions
The Board of Commissioners may adopt legal resolutions
without holding a Meeting of the Board of Commissioners
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Board Manual
provided that all members of the Board of Commissioners
give their approval on the proposed proposal in writing
by signing such an approval.
II.e.7. Minutes of Meeting
1)
Shall be drawn-up by the Company Secretary or a
party assigned by the Board of Commissioners.
2)
Minutes
shall
opinion/comment
specify
of
members
any
of
the
dissenting
Board
of
Commissioners with the decisions made.
3)
Minutes of meeting shall be distributed to all
members of the Board of Commissioners not later
than 7 (seven) calendar days as of the meeting
date.
4)
Members of the Board of Commissioners shall, not
later
than
7
(seven)
calendar
days
as
of
the
distribution date of minutes of meeting, present
their
approval
or
objection
and/or
propose
any
improvement on those that are specified in the
minutes of meeting of the Board of Commissioners.
5)
Members of the Board of Commissioners shall be
deemed agreeing the contents of the minutes of
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Meeting of the Board of Commissioners if they fail
to
present
improvement
within
7
their
approval,
proposal
(seven)
on
the
objection
minutes
calendar
days
of
as
and/or
meeting
of
the
distribution date.
6)
Minutes of Meeting of the Board of Commissioners
shall be signed by all members of the Board of
Commissioners who attended the meeting and shall
be
submitted
to
all
members
of
the
Board
of
Commissioners.21
7)
In case a member of the Board of Commissioners who
attends the meeting refuses to sign the minutes of
meeting of the Board of Commissioners, he/she is
obliged to mention his/her reasons in writing in a
separate
letter
attached
Minutes
of
to
the
minutes
of
meeting.22
8)
Original
Commissioners
21
The
Financial
shall
Services
Meeting
be
kept
Authority
of
the
Board
of
by
the
Board
of
Regulation
Number
33/POJK.04/2014 dated December 8, 2014.
22
Ibid.
Board Manual – PT ABM Investama Tbk
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Directors and in doing so, the Board of Directors
may
appoint
the
Company
Secretary
to
keep
the
minutes of meeting.
II.f
Supporting Organs of the Board of Commissioners
In performing their tasks, the Board of Commissioners
may or shall establish a committee who is to assist in
the work and shall be responsible to the Board of
Commissioners.
Members of the Board of Commissioners may concurrently
serve as committee members in not more than 5 (five)
committees in issuers or public listed companies in
which he/she also serves as member of the Board of
Directors or member of the Board of Commissioners.23
II.f.1 Audit Committee
24
The Audit Committee assists the Board of Commissioners
in
overseeing
implementation
of
the
Company's
good
management in accordance with the GCG principles. In
23
Ibid.
24
Regulations
IX.I.5,
Annex
to
Decision
of
Chairman
of
Bapepam` No. Kep-29/PM/2004 Dated 24 September 2004.
Board Manual – PT ABM Investama Tbk
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Board Manual
performing
its
tasks,
the
Audit
Committee
is
independent, and is directly responsible to the Board
of
Commissioners.
The
Audit
Committee
shall
ensure
that:
1)
The
financial
statements
and
other
information
that are provided by the Company to the relevant
parties and the public, have been presented on
transparent,
reliable,
trustworthy
and
timely
basis;
2)
The Company has had proper internal control that
is able to protect its assets;
3)
The Company works effectively and efficiently and
complies
with
the
prevailing
statutory
regulations.
The Audit Committee serves a function to assist the
Board of Commissioners in performing supervisory tasks
and in giving advices to the Board of Directors, in
order to, among other things:
1)
Ensure
effectiveness
system
and
of
effectiveness
the
of
internal
control
implementation
of
internal and external auditor tasks;
Board Manual – PT ABM Investama Tbk
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Board Manual
2)
Make
assessment
of
the
activity
plan
and
implementation and the results of audit that is
conducted by the Internal Supervisor and External
Auditor
in
order
to
prevent
any
substandard
implementation and reporting;
3)
Give
recommendations
Company's
on
management
improvement
control
of
system
the
and
implementation thereof;
4)
Ensure that there has been a satisfactory review
procedures
for
information
disclosed
by
the
Company, including periodic financial statements,
projections/forecasts
information
that
are
and
other
submitted
to
financial
the
Capital
Owners;
5)
Identify matters that need attention of the Board
of Commissioners;
6)
Perform
other
tasks
assigned
by
the
Board
of
Commissioners as long as still within their scope
of tasks and obligations.
In
addition
to
the
foregoing,
based
on
the
agreed
division of tasks of the Board of Commissioners, the
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Audit
Committee
may
also
assist
the
Board
of
Commissioners in relation to the following matters:
1)
Financial Statements of the Company;
2)
Business Plan and Budget of the Company/Business
Plan
and
Budget
of
Partnership
and
Community
Development Program;
3)
Financial Audit of the Company;
4)
Public Complaints;
5)
Core business of the Company;
6)
The Company's Account Payables and Receivables;
7)
Write-Off and Disposal of Assets;
8)
Purchase/Disposal of Securities, to participate in
the Participating Interest, and others;
II.f.2. The Nomination and Remuneration Committee
The Nomination Committee is in charge of setting the
selection
criteria
Commissioners/Board
and
nomination
procedures
of
Commissioners,
Board
for
of
Directors and other executives in the Company, to make
the assessment system and to give recommendations on
Board Manual – PT ABM Investama Tbk
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Board Manual
number
of
Commissioners/Board
of
Commissioners
and
Board of Directors of the Company.
The Remuneration Committee is in charge of setting the
payroll system and the provision of allowances as well
as recommendations on:
1)
assessment of those systems;
2)
options granted, including option on shares;
3)
retirement system; and
4)
compensation system and other benefits in term of
reduction of employees.
II.f.3. Investment Committee
Investment Committee is in charge of studying the
investment periodically.
Detail of functions and tasks of each of assisting
committees of the Board of Commissioners can be seen in
the charters of relevant committees.
II.g.
Secretary of the Board of Commissioners
The Board of Commissioners may appoint a Secretary of
the Board of Commissioners to assist it in the field of
Board Manual – PT ABM Investama Tbk
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secretarial activities, among other things:
1)
Conducting
secretariat
administrative
activities
within the auspice of the Board of Commissioners;
2)
Holding Meetings of the Board of Commissioners and
meetings between the Board of Commissioners and
the Shareholders, the board of directors and other
stakeholders;
3)
Providing
data/information
as
required
by
the
Board of Commissioners and other Committees within
the
auspices
of
the
Board
of
Commissioners
in
relation to:
a)
Monitoring follow-up to results of decisions,
recommendations and directions of the Board
of Commissioners;
b)
Materials that are administrative in nature
on
reports/activities
of
the
Board
of
Directors in managing the Company;
c)
Administrative supports and monitoring with
regard
to
things
that
require
approval
or
recommendation of the Board of Commissioners
in relation to the activities of managing the
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Company by the Board of Directors.
4)
Collecting technical data from Committee within
the auspices of the Board of Commissioners and the
Experts
for
the
purposes
of
the
Board
of
Commissioners.
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Chapter 3
THE BOARD OF DIRECTORS
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Part Three
THE BOARD OF DIRECTORS
III.a. Requirements and Composition of the Board of Directors
The
Board
of
Directors
responsible
for
Company’s
best
is
an
organ
management
of
the
interests
and
that
Company
is
fully
for
objectives
the
and
representing the Company both inside and outside the
court.
III.a.1. General Requirements
Those who may be appointed to be members of the Board
of Directors are individuals who meet the following
requirements:
1)
Having good character, morality and integrity;
2)
Capable of taking legal actions;
3)
Within 5 (five) years prior to their appointment
and during in their office:
(a)
Have not been declared bankrupt;
(b)
Have not been a member of Board of Directors
and/or member of Board of Commissioners who
Board Manual – PT ABM Investama Tbk
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Board Manual
was
declared
guilty
in
causing
a
company
declared bankrupt;
(c)
Have
not
been
punished
for
committing
in
criminal offense that inflicted a financial
loss
to
the
state
and/or
that
related
to
financial sector; and
(d)
Have not been a member of Board of Directors
and/or Board of Commissioners who, during in
their office:
i.
have ever been held no Annual GMS;
ii.
Have had their accountability report as
member of the Board of Directors and/or
member of the Board of Commissioners not
accepted by a GMS or have ever given no
accountability report as member of the
Board of Directors and/or member of the
Board of Commissioners to a GMS; and
iii. have
ever
obtained
caused
a
a
company
license,
that
has
approval,
or
registration from the Financial Services
Authority not fulfilling its obligation
Board Manual – PT ABM Investama Tbk
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to submit annual report and/or financial
report
to
the
Financial
Services
Authority.
4)
Having
commitment
to
comply
with
the
statutory
regulations; and
5)
Having knowledge and/or expertise in the fields as
required by Company.
25
III.a.2. Special Requirements
A candidate member of the Board of Directors shall have
the special requirements as follows:
1)
Having
knowledge
and
skill
on
the
business
processes of the Company and ABM Group.
2)
Have
knowledge
and
skill
on
risk
management,
corporate governance and internal control system.
3)
Having the ability of leadership conduct, positive
thinking and mutual respect, be honest, creative
25
Article 93 of the Limited Liability Company Law No. 40 of
2007 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014.
Board Manual – PT ABM Investama Tbk
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and innovative, synergy and cooperation as well as
high
dedication
to
advance
and
develop
the
Company.
4)
Having the ability and commitment to implement the
reward
and
punishment
system
consequently
and
consistently.
5)
Having
integrity,
namely
never
involved
either
directly or indirectly in any engineering act and
deviating practices, default and other acts that
harm the Company for which he/she is working or
has ever worked.
6)
Having the ability and experience in administering
and
managing
the
Company,
having
leadership,
vision and mission of the Company, the Company’s
development
strategies
either
long-term
and
on
solving of strategic problems of the Company
The prescribed requirements as referred to above do not
prejudice
agencies
possibility
to
set
of
additional
the
competent
requirements
technical
based
the
statutory regulations.
Documents that prove the fulfillment of requirements
Board Manual – PT ABM Investama Tbk
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Board Manual
for
holding
position
of
member
of
the
Board
of
Directors shall be kept by the Company.
III.a.3. Membership Composition of the Board of Directors
1)
Members of the Board of Directors shall consists
of
at
least
appointed
members
to
of
2
be
the
(two),
one
of
them
shall
be
President
Director.
Number
of
Board
Directors
shall
be
of
determined by the Shareholders26;
2)
Division of tasks and authorities among members of
the Board of Directors shall be determined by the
Shareholders
and
the
Shareholders
may
delegate
such an authority to the Board of Commissioners;
3)
If for any reason position of a member of Board of
Directors is vacant, then:
a)
the Shareholders shall, within not later than
90 (ninety) days as of such a vacancy, have
26
Article 92 paragraph 4 of the Limited Liability Company Law
No. 40 of.2007.
Board Manual – PT ABM Investama Tbk
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Board Manual
filled such a vacancy;27
b)
As long as such a position is vacant and no
successor has been available, then another
member
of
the
Board
of
Directors
who
is
appointed by the Board of Commissioners shall
perform the works of such a member of the
Board of Directors who is vacant with the
same tasks and authorities; or
c)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
Board of Directors, then, the relevant member
of the Board of Directors whose office term
has
expires
shall
remain
perform
his/her
tasks and exercise his/her authorities with
the same rights and obligations as a member
of
the
Board
appointment
of
of
Directors,
definitive
until
members
of
the
the
Board of Directors.
27
Articles of Association of the Company Article 14 paragraph
6 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014 ..
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4)
If at any time for any reason the Company has no
members of the Board of Directors, then:
a)
For temporary, the Board of Commissioners is
obliged to perform the tasks of the Board of
Directors,
who
may
collectively
do
by
themselves or appoint one or more of them or
appoint a specific individual to do so;
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of all members of
the Board of Directors, then, the relevant
members
of
the
Board
of
Directors
whose
office term has expires shall remain perform
his/her
tasks
authorities
obligations
and
with
as
exercise
the
same
members
of
his/her
rights
the
Board
and
of
Directors, until the definitive appointment
of members of the Board of Directors.
5)
To
the
individuals
candidates
for
Commissioners,
proper
test
by
who
members
shall
the
be
are
of
nominated
the
subjected
Nomination
and
to
to
be
Board
of
fit
and
Remuneration
Committee;
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6)
Prospective members of the Board of Directors who
have passed the fit and proper test and members of
the Board of Directors who are reappointed, shall
sign a management contract before confirmed to be
members of the Board of Directors;
7)
Members
of
the
Board
of
Directors
shall
be
appointed and dismissed by Shareholders or a GMS
of
the
candidates
who
are
nominated
by
the
Nomination and Remuneration Committee.
III.b. Office Term of the Board of Directors
1)
Each member of the Board of Directors shall hold
his/her office for a period as from
BOARD MANUAL
of
PT ABM INVESTAMA TBK
Board Manual – PT ABM Investama Tbk
Page 1
Board Manual
TABLE OF CONTENT
Chapter I Introduction
I.a
Purposes and Objectives of Preparation of Board Manual
I.b
Scope of Board Manual
I.c.
References for Preparation of
I.d.
Definitions
Board Manual
Chapter II The Board of Commissioners
II.a.
Requirements
and
Composition
of
the
Board
of
Commissioners
II.b.
Office Term of the Board of Commissioners
II.c
Tasks and Authorities of the Board of Commissioners
II.d.
Division of tasks of the Board of Commissioners
II.e.
Proceeding of the Board of Commissioners Meeting
II.f
Supporting Organs of the Board of Commissioners
II.g.
Secretary of the Board of Commissioners
Chapter III The Board of Directors
III.a. Requirements and Composition of the Board of Directors
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III.b. Office Term of the Board of Directors
III.c
Tasks and Authorities of the Board of Directors
III.d. Division of Tasks of the Board of Directors
III.e. Proceeding of the Board of Directors Meeting
III.f. Supporting Organs of the Board of Directors
III.g. Actions of the Board of Directors that Require Written
Consent of the Board of Commissioners.
III.h. Actions of the Board of Directors that Require Approval
of GMS
Chapter IV Relationship Among the Company Organs
IV.a.
General Meeting of Shareholders
IV.b.
Joint Meeting of the Board of Directors and the Board
IV.c.
Formal Communication
IV.d.
Informal Communication
Chapter V Closing
V.a.
Enforcement of Board Manual
V.b.
Socialization of the Board Manual
V.c.
Evaluation and Review of the Board Manual
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Board Manual
Chapter 1
INTRODUCTION
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Board Manual
Part One
INTRODUCTION
I.a
Purposes and Objectives of Preparation of Board Manual
Board
Manual
is
a
document
that
outlines
things
pertaining to organizational structure of the Board of
Directors and the Board of Commissioners and functional
relationship process of the Board of Directors organ,
the Board of Commissioners organ and between the both
organs
of
the
Company.
This
Board
Manual
also
contribute to arranging the organ of General Meeting of
Shareholders in terms of its interaction with the other
two company’s organs.
This
Board
Manual
is
one
of
Codes
of
Corporate
Governance which refers to the Articles of Association
of the Company, the Law on Limited Liability Company
and other relevant regulations.
Board Manual is a document of agreement between the
Board of Directors and the Board of Commissioners that
is aimed at:
1)
Becoming
a
Board Manual – PT ABM Investama Tbk
reference/guideline
on
tasks,
Page 5
Board Manual
authorities and responsibilities of each organ;
2)
Improving
quality
and
effectiveness
of
working
relationship between among organs;
3)
Setting
the
principles,
Good
namely
Corporate
Governance
transparency,
–
GCG
accountability,
responsibility, independent and fairness.
4)
Building independence in making decisions and able
of
performing
their
respective
tasks
and
responsibilities as expected by the shareholders
and other stakeholders.
I.b
Scope of Board Manual
This Board Manual serves as principal guidelines for
implementation
organs
of
the
of
working
Board
of
relationship
Directors,
between
the
the
Board
of
Commissioners and the General Meeting of Shareholders
of PT ABM Investama, including tasks, responsibilities,
authorities, meeting mechanisms, decision making and
control and supervision principles that are performed
by
the
Board
of
Directors
and
the
Board
of
Commissioners and General Meeting of Shareholders.
I.c.
References for Preparation of
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Board Manual
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Board Manual
1)
Law Number 40 of 2007 regarding Limited Liability
Company;
2)
Law Number 14 of 2008 regarding Public Disclosure;
3)
Articles of Association of the Company;
4)
General
Guideline
of
Good
Corporate
Governance
Indonesia - Komite Nasional Kebijakan Governance
I.d.
Definitions
The definitions below have been made to allow the same
perception of the terms found in the Board Manual.
1)
Board
Manual
Directors
is
and
a
the
guidance
Board
of
for
the
Board
of
Commissioners
in
performing the Company's good corporate governance
in accordance with the healthy corporate principle
and
in
reference
to
all
statutory
regulations
relating to the Company.
2)
Conflict of interest is a difference between the
Company’s
economic
interest
and
individual
economic interest of any member of the Board of
Directors, member of the Board of Commissioners,
or the controlling shareholder that is detrimental
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to the Company.
3)
Board of Commissioners is an organ of the Company
that is in charge of making supervision on and
providing advices to the Board of Directors.
4)
Board of Directors is an organ of the Company that
is responsible for management of the Company for
the best interests and purposes of the Company, as
well as to represent the Company both inside and
outside the courts in accordance with provisions
of the articles of association.
5)
ABM Group is a group of Companies which are under
the
auspices
indirectly,
of
by
and
PT
owned,
ABM
either
Investama,
directly
a
or
limited
liability company that was incorporated under the
laws of the Republic of Indonesia.
6)
Limit of Authority - LoA is a Company's internal
document which contains restrictions on authority
for actions set forth therein, which provision is
made and approved by and between the Board of
Directors and the Board of Commissioners.
7) Company is PT ABM Investama Tbk.
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Board Manual
8)
Stakeholders are those who have interests in the
Company and those who are affected directly by
strategic
and
Company,
operational
consisting
Shareholders,
communities
employees,
around
the
of,
decisions
among
business
place
of
the
others,
partners
where
the
and
Company
operates.
9)
General
Meeting
of
Shareholders
(GMS)
is
the
highest ruler in the Company and it holds all of
the authorities that are not designated to the
Board of Directors and the Board of Commissioners.
10)
RKJP (L
Long Term Business Plan) is a reference for
the Board of Directors in operating the Company
within the next 5 years.
11)
RKT (A
Annual Business Plan) is a reference for the
Board of Directors in operating the Company in the
current year.
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Chapter 2
THE BOARD OF COMMISSIONERS
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Board Manual
Part Two
THE BOARD OF COMMISSIONERS
II.a.
Requirements
and
Composition
of
the
Board
of
Commissioners
II.a.1. Requirements
Those who may be appointed to be members of the Board
of Commissioners are individuals who meet the following
requirements:
1)
Having good character, morality and integrity;
2)
Capable of taking legal actions;
3)
Within 5 (five) years prior to their appointment
and during in their office:
(a)
Have not been declared bankrupt;
(b)
Have not been a member of Board of Directors
and/or member of Board of Commissioners who
was
declared
guilty
in
causing
a
company
declared bankrupt;
(c)
Have
not
been
punished
for
committing
in
criminal offense that inflicted a financial
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Board Manual
loss
to
the
state
and/or
that
related
to
financial sector; and
(d)
Have not been a member of Board of Directors
and/or Board of Commissioners who, during in
their office:
(i)
have ever been held no Annual GMS;
(ii) Have had their accountability report as
member of the Board of Directors and/or
member of the Board of Commissioners not
accepted by a GMS or have ever given no
accountability report as member of the
Board of Directors and/or member of the
Board of Commissioners to a GMS; and
(iii) have
ever
obtained
caused
a
a
company
license,
that
has
approval,
or
registration from the Financial Services
Authority not fulfilling its obligation
to submit annual report and/or financial
report
to
the
Financial
Services
Authority.
4)
Having
commitment
Board Manual – PT ABM Investama Tbk
to
comply
with
the
statutory
Page 12
Board Manual
regulations; and
5)
Having knowledge and/or expertise in the fields as
required by Company.1
The Board of Commissioners through the assisting
committee applies additional requirements for a
prospective member of the Board of Commissioners.
II.a.2. Membership Composition of the Board of Commissioners
1)
Membership structure of the Board of Commissioners
consists of at least 2 (two) members of the Board
of
Commissioners,
and
one
of
them
shall
be
appointed to be President Commissioner;2
2)
Composition and number of members of the Board of
Commissioners shall be determined by a GMS or the
capital market regulation if the Company is of
1
Article 110 paragraph 1 of Limited Liability Company Law
No.40
Year.2007
and
the
Financial
Services
Authority
Regulation Number 33/POJK.04/2014 dated 8 December 2014.
2
Article 108 paragraph 5 Limited Liability Company Law No.40
Year.2007 and the Financial Services Authority Regulation
Number 33/POJK.04/2014 dated 8 December 2014..
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public listed status;
3)
Members of the Board of Commissioners shall be
appointed and dismissed by the Shareholders after
passing
through
accordance
the
with
nomination
the
process
prevailing
in
statutory
regulations. Members of the Board of Commissioners
shall be appointed for a defined term and may be
reappointed;
4)
If for any reason position of a member of the
Board of Commissioners is vacant, then:
a)
the Shareholders shall, within not later than
90 (ninety) days as of such a vacancy, have
filled such a vacancy;3
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
3
Resolution
Jakarta
of
the
Board
of
Directors
No.Kep-305/BEJ/07-2004
dated
of
PT
19
Bursa
July
Efek
2004,
Regulation Number IA on Registration of Shares and Equity
Securities Other Than Shares That Are Issued by a Listed
Company
and
the
Financial
Services
Authority
Regulation
Number 33/POJK.04/2014 dated December 8, 2014.
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Board of Commissioners, then, the relevant
member of the Board of Commissioners whose
office term has expires shall remain perform
his/her
tasks
authorities
and
with
obligations
as
Commissioners,
definitive
a
exercise
the
same
member
of
until
the
members
his/her
rights
the
and
Board
appointment
of
the
of
of
Board
of
Commissioners.
5)
If at any time for any reason the Company has no
members of the Board of Commissioners, then:
a)
the
Shareholders
person(s)
exercise
to
the
may
perform
the
authorities
Commissioners
with
obligations,
until
definitive
appoint
members
the
one
tasks
of
the
same
or
more
and
to
Board
of
rights
and
the
appointment
of
of
the
of
Board
Commissioners;
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
Board of Commissioners, then, the relevant
member of the Board of Commissioners whose
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office term has expires shall remain perform
his/her
tasks
authorities
and
with
obligations
as
Commissioners,
definitive
a
exercise
the
same
member
of
until
members
the
of
his/her
rights
the
Board
appointment
the
Board
and
of
of
of
Commissioners.
6)
The nomination process of members of the Board of
Commissioners shall be carried out by appointing
or
assigning
the
Committee
for
Nomination,
Remuneration and Human Resource Development, that
shall
be
chaired
by
a
member
of
the
Board
of
Commissioners to carry out the nomination process
for members of the Board of Commissioners before
decision
in
Commissioners
a
meeting
to
be
of
submitted
the
Board
later
to
of
the
Shareholders for stipulation at a GMS.
7)
Prospective members of the Board of Commissioners
who have passed the fit and proper assessment will
be proposed at a GMS for appointment.
8)
At least 30% (thirty percent) of members of the
Board
of
Commissioners
Board Manual – PT ABM Investama Tbk
shall
be
Independent
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Board Manual
Commissioners who belong to circles outside the
Company
who
are
free
from
influence
of
other
members of the Board of Commissioners and other
members
of
the
Board
of
Directors
and
the
controlling Shareholders, one of them must have
accounting and/or finance background.
9)
Independent Commissioner shall meet the following
requirements4:
(a)
Is not a person who is working with or having
the
authority
planning,
and
responsibility
for
controlling,
or
directing,
supervising the Company’s activities within 6
(six) months, except for reappointment to be
Independent Commissioner in the next period;
(b)
Holding
no
shares
either
directly
or
indirectly in the Company;
(c)
Having no affiliation relationship with the
Company,
members
Commissioners,
4
The
Financial
Services
of
members
Authority
the
of
the
Board
Board
Regulation
of
of
Number
33/POJK.04/2014 dated December 8, 2014.
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Directors or the controlling shareholders in
the Company; and
(d)
Having
no
directly
business
or
relationship,
indirectly,
either
related
to
the
Company's business activities.
10)
Any
Independent
Commissioner
who
has
been
in
office for 2 (two) office term periods may be
reappointed
Independent
in
the
next
Commissioner
period
as
declares
long
as
himself
an
to
remain independent to the GMS.5
II.b.
Office Term of the Board of Commissioners
1)
Each member of the Board of Commissioners shall
hold his/her office for a period as from the date
of GMS which appoints him/her and shall end at the
of
the
3rd
Annual
appointment
and
may
be
closing
GMS
as
re-elected
of
his/her
for
another
office term.6
5
Ibid.
6
Articles of Association of the Company Article 17, paragraph
2.
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Board Manual
2)
Any person who is appointed to replace a member of
the Board of Commissioners who resigns or who is
dismissed from his/her office or to fill a vacancy
or
any
person
who
is
appointed
to
fill
a
new
position in the Board of Commissioners shall be
appointed
for
a
remaining
office
period
term
which
of
other
constitutes
members
the
of
the
Board
of
Board of Commissioners who are in office.
3)
Office
term
of
members
of
the
Commissioners shall end in the event he/she:
a)
resigns;
b)
his/her office term expires;
c)
ceases
to
comply
with
the
prevailing
statutory regulations;
d)
is dismissed by resolution of a GMS, or
e)
passes away within his/her office term;
f)
is unable to perform his/her tasks properly;
g)
fails
to
implement
the
provisions
of
statutory regulations and/or the Articles of
Association;
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h)
is involved in any action that is detrimental
to the Company and/or the state;
i)
is declared guilty by final judgment of a
court;
4)
A member of the Board of Commissioners is entitled
to resign from his office by notifying in writing
to the Board of Commissioners concerning his/her
intention not later than 60 (sixty) days prior to
his/her resignation date comes to effect, and the
relevant member of the Board of Commissioners can
remain be held responsible as a member of the
Board of Commissioners as from his/her appointment
until the his/her resignation date;
5)
A member of the Board of Commissioners
can be
dismissed at any time by a GMS if he/she is deemed
unable to perform his/her tasks as specified in
the Articles of Association of the Company and/or
for any other reasons which are acceptable to the
GMS, after the relevant member of the Board of
Commissioners is given with opportunity to present
at the GMS in order to defend him-/herself.
6)
As long as the dismissal plan is still in process,
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the relevant member of the Board of Commissioners
shall perform his/her tasks accordingly.
II.c
Tasks and Authorities of the Board of Commissioners
II.c.1 Tasks of the Board of Commissioners
It is the task of Board of Commissioners to supervise
the management of the Company by the Board of Directors
and to give advices to the Board of Directors including
implementation of RKJP, RKT as well as provisions of
the Articles of Association and GMS, and the prevailing
statutory regulations.
The scope of work of the Board of Commissioners in
performing its tasks includes:
1)
To conduct supervision on the management of the
Company by the Board of Directors and to approve
the
Company
development
plan,
the
Long
Term
Business Plan (R
RKJP), Annual Business Plan (RKT)7,
and
performance
of
tasks,
authorities
and
responsibilities in accordance with provisions in
7
Articles of Association of the Company Article 20 paragraph
1.
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the Articles of Association and GMS resolutions as
well as the prevailing statutory regulations;
2)
To perform tasks which are specifically assigned
to
him/her
according
to
the
Articles
of
Association, the prevailing statutory regulations,
and/or based on resolution of the GMS;
3)
To take actions for the best interest the Company
and to be is responsible to the GMS;
4)
To examine and analyze the annual report prepared
by the Board of Directors and to sign that report;
5)
To
keep
abreast
with
the
Company's
activity
development, and to immediately report to the GMS
if the Company shows any conspicuous deteriorating
symptoms,
accompanied
by
recommendations
on
corrective action to take;
6)
To give opinion and advices in conformity with
supervisory task of the Board of Commissioners to
the GMS regarding any other issues as it deems
important for management of the Company;
7)
To
coordinate
with
and
evaluate
the
Public
Accountant who audits the Company's accounts, for
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Board Manual
submission later as proposition to the GMS;
8)
To respond to periodic reports of the Board of
Directors and, at any time as necessary, regarding
development
of
the
implementation
Company
results
of
and
to
report
its
tasks
to
the
the
Shareholders on timely basis;
9)
To monitor the effectiveness of GCG practices and
implementation
of
the
Responsibility
(CSR)
that
Corporate
is
applied
Social
by
the
Company and to make adjustments;
10)
To set the Key Performance Indicator (KPI) of the
Board of Directors at the beginning of every work
year;
11)
To determine transparent nomination, performance
evaluation, remuneration systems to the Board of
Commissioners
and
consideration
of
Nomination
and
the
Board
analysis
Remuneration
of
Directors
results
by
Committee
on
the
to
be
submitted later for approval of the GMS and for
internal
implementation
of
the
Board
of
Commissioners;
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12)
To determine transparent nomination, remuneration
of
performance
evaluation
systems
of
Senior
Executives (General Managers or equivalent) who
are
not
members
consideration
of
of
the
Board
analysis
of
Directors
results
by
on
the
Nomination and Remuneration Committee;
13)
To improve their competence and knowledge on an
ongoing basis to perform the function as the Board
of Commissioners professionally;
14)
To make and keep copies of minutes of meetings of
Board
of
Secretary
Commissioners
of
Board
of
and,
if
required,
Commissioners
may
the
be
appointed to make the minutes of meeting of the
Board of Commissioners.
15)
To
report
to
the
Company
on
its
and/or
its
family’s share ownership in the Company and in the
ABM Group.8 Shareholding of members of the Board
of Commissioners and their families in companies
other than the Company and the ABM Group becomes
8
Article 116 of the Limited Liability Company Law No. 40 of
2007.
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Board Manual
mandatory when the relevant company is involved in
business activities of the Company and/or the ABM
Group including but not limited in the form of
vendor, supplier or business cooperation.
16)
To provide a report of supervisory tasks which
they have performed during the past financial year
to the GMS.9
17)
To establish decision on value limits of legal
action of the Board of Directors that requires
written consent of the Board of Commissioners.
18)
To give approval on the proposed Legal actions of
the
Board
of
Directors
that
require
Written
Approval of the Board of Commissioners.
19)
The Board of Commissioners shall established an
Audit Committee and may establish other committees
if they deem necessary. In performing their tasks,
the Board of Commissioners may seek for assistance
of
experts
for
specific
things
and
specific
periods at the expense of the Company, Division of
9
Article 116 of the Limited Liability Company Law No. 40 of
2007.
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Board Manual
tasks among members of the Board of Commissioners
shall be governed among themselves.
II.c.2 Authorities of the Board of Commissioners
The
Board
of
Commissioners
is
entitled
to
take
supervisory actions on management of the Company and
shall report it to the Shareholders through a GMS, such
as:
1)
To see the books, letters, and other documents, to
examine
other
the
cash
securities
for
verification
and
to
examine
purposes
the
and
Company's
assets;
2)
To enter into premises, buildings and offices that
are being used by the Company;
3)
To ask for explanation from the Board of Directors
and/or
other
officers
concerning
any
matters
related to the Company management;
4)
To know all the policies and actions that have
been
and
will
be
performed
by
the
Board
of
Directors;
5)
To
ask
the
Board
Board Manual – PT ABM Investama Tbk
of
Directors
and/or
other
Page 26
Board Manual
officers
under
the
Board
of
Directors
on
acknowledgment of the Board of Directors to attend
at any meetings of the Board of Commissioners.
6)
To attend at meetings of the Board of Directors
and
to
give
opinions
on
the
matters
being
discussed.
7)
The Board of Commissioners through meetings is at
any time entitled to suspend one or more member(s)
of the Board of Directors, if they act contrary to
the Articles of Association or are indicated as
inflicting a loss to the Company or neglect from
performing
its
obligations
or
there
are
urgent
reasons for the Company. Such a suspension must be
notified in writing to the relevant person and the
Shareholders accompanied with reasons that caused
such actions.10
Within 90 (ninety) days as of the suspension, the
Company is obliged to hold an Extraordinary GMS
that that will decide whether the relevant member
10
Article 106 of the Limited Liability Company Law No. 40 of
2007.
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Board Manual
of
the
Board
permanently
or
of
Directors
resumed
will
to
be
dismissed
his/her
original
position and the suspended member of the Board of
Directors
shall
be
given
with
opportunity
to
defend him-/herself.11
8)
To carry out managerial action on the Company for
temporary by appointing one or more of them with
the same powers and authorities as members of the
Board of Directors.12
If for any reason position of one or more or all
members of the Board of Directors vacant, then
within
90
(ninety)
days
as
of
such
a
vacancy
occurs, a GMS shall be held to fill such a vacancy
with due observance to provisions in the statutory
regulations and the Articles of Association.13
11
Articles of Association of the Company Article 14 paragraph
12 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014.
12
Article 118 of the Limited Liability Company Law No. 40 of
2007
13
Articles of Association of the Company Article 14
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9)
May appoint a third party to represent the Company
in the event of any conflict of interest between
the Company and the all members of the Board of
Directors both inside and outside the court.
10)
In
the
event
all
Directors
vacant
available
nor
positions
and
not
no
in
of
the
successor
office,
the
Board
has
of
been
Board
of
Commissioners is entitled to appoints one member
of
the
Board
of
Commissioners
to
perform
the
Company management tasks.14
11)
Unless as specified further in Board Manual or in
a
joint
decision
between
the
Board
of
Commissioners and the Board of Directors, then,
any
action
Company
that
of
the
require
Board
of
approval
Directors
of
the
of
the
Board
of
Commissioners are as follows:
a)
To
approve
loans
from
Banks
or
other
Financial Institutions or to lend moneys on
behalf of the Company;
14
Article 118 of the Limited Liability Company Law No. 40 of
2007
Board Manual – PT ABM Investama Tbk
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b)
To approve a new business or to participate
in
other
firms
both
in
home
country
and
abroad;
c)
To pledge any of the Company's fixed assets;
d)
To dispose of and write-off any of the fixed,
movable
or
immovable
assets
with
certain
minimum value as specified by the Board of
Commissioners;
e)
To
write-off
from
the
account
any
of
bad
debts up to a certain value as specified by
the Board of Commissioners.
As to the determination of limit values of legal
actions of the Board of Directors which requires
the written consent of the Board of Commissioners
shall be determined in a Meeting of the Board of
Commissioners.
This decision shall be made after having heard the
opinion of the Board of Directors and shall be
valid for a period of at least 1 (one) fiscal
year.
A working guideline for each committee that is
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under the auspices of the Board of Commissioners
may be made by the Board of Commissioners or on
proposition of the Board of Directors for approval
of the Board of Commissioners later.
II.c.3. Double Position15
Member of the Board of Commissioners may concurrently
serve as:
a.
Member of the Board of Directors in not more than
two (2) issuers or other public listed companies;
b.
Member of the Board of Commissioners in not more
than
two
(2)
issuers
or
other
public
listed
companies.
In the event a member Board of Commissioners does not
concurrently serve as member of the Board of Directors,
the relevant member of the Board of Commissioners may
concurrently
serve
as
member
of
the
Board
of
Commissioners in not more than 4 (four) other public
listed companies.
15
The
Financial
Services
Authority
Regulation
Number
33/POJK.04/2014 dated December 8, 2014.
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Member of the Board of Commissioners may concurrently
serve as member of committee in not more than 5 (five)
committees in Issuers or Public Listed Companies in
which he/she also serves as member of the Board of
Directors or member of the Board of Commissioners.
II.d.
Division of tasks of the Board of Commissioners
Division
of
tasks
among
members
of
the
Board
of
Commissioners shall be set independently and, in order
to facilitate implementation of their tasks, the Board
of Commissioners may be assisted by a Secretary of the
Board of Commissioners who is appointed by the Board of
Commissioners on the Company’s expense.
II.e.
Proceeding of the Board of Commissioners Meeting
Commissioners meeting is a meeting held by the Board of
Commissioners in relation to each of their tasks and
functions at least once every 3 (three) months.
The Board of Commissioners must schedule meetings for
the next year before the end of fiscal year.16
II.e.1. Frequency of the Board of Commissioners Meeting
16
Ibid.
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Meeting may be held at any time if17:
i.
deemed necessary by one or more member(s) of the
Board of Commissioners;
ii.
upon written request of one or more member(s) of
the Board of Commissioners;
iii. upon written request of one or more shareholder(s)
who collectively hold 1/10 or more of total shares
with voting rights.
Periodic meeting of the Board of Commissioners shall be
held at least once every 2 (two) months.18
II.e.2. Summons and Venue of Meeting
1)
Summons
for
a
Meeting
of
the
Board
of
Commissioners shall be conducted by the President
Commissioner or a Commissioner of the Company if
the President Commissioner is indisposed.
2)
Summons
for
a
Meeting
of
the
17
Articles of Association of the Company Article 19
18
The
Financial
Services
Authority
Board
Regulation
of
Number
33/POJK.04/2014 dated December 8, 2014.
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Commissioners
shall
be
sent
not
later
than
7
calendar days prior to the meeting date excluding
the summons date by mail and confirmed by phone.
3)
Summons for a meeting must mention the agenda,
date, time and place of the Meeting.
4)
Meeting of the Board of Commissioners shall be
held at the Company's domicile or in the place
where the company conducts its business activity.
5)
Summons
for
meeting
is
not
required
and
the
meeting of the Board of Commissioners can be held
anywhere
if
all
members
of
the
Board
of
Commissioners are present or represented.
6)
Meetings of the Board of Commissioners can be held
by
means
of
video
conference
media
or
through
other electronic media that allow all attendants
of Meeting of the Board of Commissioners to see
and hear each others in person and to participate
in the meeting of the Board of Commissioners.
7)
Materials of meeting shall be delivered to the
meeting participants not later than 5 (five) days
prior to the meeting. In the event a meeting is
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held
beyond
materials
the
may
participants
prepared
can
not
be
schedule
delivered
later
than
to
then
the
right
the
meeting
before
the
meeting.19
II.e.3 Chairperson of Board of Commissioners Meeting and those
who are entitled to be present
Meetings
of
the
Board
of
Commissioners
shall
be
presided over by the President Commissioner and in case
the President Commissioner is indisposed, it shall be
presided over by a member of the Board of Commissioners
elected
by
and
from
among
members
of
the
Board
of
Commissioners who are present.20
Meeting of the Board of Commissioners shall be attended
by members of the Board of Commissioners and minutes of
the meeting shall be drawn-up. If deemed necessary,
Meetings
of
the
inviting
members
commissioner
of
the
Board
can
of
be
expanded
Directors,
by
the
Corporate Secretary, committees or other invitees.
19
Ibid.
20
Articles of Association of the Company Article 19
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II.e.4. Proxy of the Board of Commissioners At the Meeting
A
member
of
the
Board
of
Commissioners
may
be
represented in a Meeting of the Board of Commissioners
only by another member of the Board of Commissioners
based on a power of attorney.
II.e.5. Quorum
1)
Meeting of the Board of Commissioners is valid and
entitled to adopt binding resolutions if more than
½
of
total
number
of
members
of
the
board
of
commissioner are present and those who are not
present give a power of attorney to be represented
at the Meeting.
2)
Resolutions
of
meeting
shall
be
adopted
on
amicable deliberation basis.
3)
In the event of tie votes (pro-vote and contravote is equal), the Chairperson of Meeting of the
Board of Commissioners will have a casting vote.
4)
Voting
on
persons
shall
be
carried
out
by
an
unsigned-folded ballot, whereas, voting on other
matters shall be carried out verbally, unless the
Chairperson
of
Board Manual – PT ABM Investama Tbk
Meeting
determines
otherwise
Page 36
Board Manual
without any objection from those present.
5)
Blank votes and illegal votes shall be considered
not to be cast legally and shall not be counted in
determining the total votes cast.
Action
1.
Borrowing or lending money on
Number of members
of Board of
Commissioners
approve
>1/2
behalf of the Company. *)
2.
Merger or acquisition
>1/2
(including acquisition
without causing takeover),
joint venture, and joint
operation.
3.
Establishing Subsidiaries
>1/2
4.
Opening the Company’s
>1/2
Branches
5.
Selling Subsidiaries
>1/2
6.
Selling ≤50% of the Company’s
>1/2
Board Manual – PT ABM Investama Tbk
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Action
Number of members
of Board of
Commissioners
approve
assets *)
7.
Pledging ≤50% of the
>1/2
Company’s assets. *)
8.
Investment/project/tender
>1/2
9.
Mass employment termination
>1/2
10.
Payrolls and bonuses of the
>1/2
Board of Directors
11.
RKT and RKJP
>1/2
12.
Company’s Annual Report
>1/2
13.
Company’s Annual Financial
>1/2
Report
14.
Write-off of assets,
>1/2
receivables and invoices (ad
hoc). *)
15.
Interim dividend
Board Manual – PT ABM Investama Tbk
>1/2
Page 38
Board Manual
16.
Action
Number of members
of Board of
Commissioners
approve
Buying back shares and/or
>1/2
selling securities issued by
the Company in the capital
markets/financial
institutions
17.
Renting out the assets for a
>1/2
period longer than 3 years
18.
Binding the Company to be a
>1/2
guarantor.
*) Action is taken by complying with provisions in the
Limit of Authority applicable with due observance to
provisions of the prevailing statutory regulations
including if the Company changes its status to be
publicly open.
II.e.6 Circular Resolutions
The Board of Commissioners may adopt legal resolutions
without holding a Meeting of the Board of Commissioners
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provided that all members of the Board of Commissioners
give their approval on the proposed proposal in writing
by signing such an approval.
II.e.7. Minutes of Meeting
1)
Shall be drawn-up by the Company Secretary or a
party assigned by the Board of Commissioners.
2)
Minutes
shall
opinion/comment
specify
of
members
any
of
the
dissenting
Board
of
Commissioners with the decisions made.
3)
Minutes of meeting shall be distributed to all
members of the Board of Commissioners not later
than 7 (seven) calendar days as of the meeting
date.
4)
Members of the Board of Commissioners shall, not
later
than
7
(seven)
calendar
days
as
of
the
distribution date of minutes of meeting, present
their
approval
or
objection
and/or
propose
any
improvement on those that are specified in the
minutes of meeting of the Board of Commissioners.
5)
Members of the Board of Commissioners shall be
deemed agreeing the contents of the minutes of
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Meeting of the Board of Commissioners if they fail
to
present
improvement
within
7
their
approval,
proposal
(seven)
on
the
objection
minutes
calendar
days
of
as
and/or
meeting
of
the
distribution date.
6)
Minutes of Meeting of the Board of Commissioners
shall be signed by all members of the Board of
Commissioners who attended the meeting and shall
be
submitted
to
all
members
of
the
Board
of
Commissioners.21
7)
In case a member of the Board of Commissioners who
attends the meeting refuses to sign the minutes of
meeting of the Board of Commissioners, he/she is
obliged to mention his/her reasons in writing in a
separate
letter
attached
Minutes
of
to
the
minutes
of
meeting.22
8)
Original
Commissioners
21
The
Financial
shall
Services
Meeting
be
kept
Authority
of
the
Board
of
by
the
Board
of
Regulation
Number
33/POJK.04/2014 dated December 8, 2014.
22
Ibid.
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Directors and in doing so, the Board of Directors
may
appoint
the
Company
Secretary
to
keep
the
minutes of meeting.
II.f
Supporting Organs of the Board of Commissioners
In performing their tasks, the Board of Commissioners
may or shall establish a committee who is to assist in
the work and shall be responsible to the Board of
Commissioners.
Members of the Board of Commissioners may concurrently
serve as committee members in not more than 5 (five)
committees in issuers or public listed companies in
which he/she also serves as member of the Board of
Directors or member of the Board of Commissioners.23
II.f.1 Audit Committee
24
The Audit Committee assists the Board of Commissioners
in
overseeing
implementation
of
the
Company's
good
management in accordance with the GCG principles. In
23
Ibid.
24
Regulations
IX.I.5,
Annex
to
Decision
of
Chairman
of
Bapepam` No. Kep-29/PM/2004 Dated 24 September 2004.
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performing
its
tasks,
the
Audit
Committee
is
independent, and is directly responsible to the Board
of
Commissioners.
The
Audit
Committee
shall
ensure
that:
1)
The
financial
statements
and
other
information
that are provided by the Company to the relevant
parties and the public, have been presented on
transparent,
reliable,
trustworthy
and
timely
basis;
2)
The Company has had proper internal control that
is able to protect its assets;
3)
The Company works effectively and efficiently and
complies
with
the
prevailing
statutory
regulations.
The Audit Committee serves a function to assist the
Board of Commissioners in performing supervisory tasks
and in giving advices to the Board of Directors, in
order to, among other things:
1)
Ensure
effectiveness
system
and
of
effectiveness
the
of
internal
control
implementation
of
internal and external auditor tasks;
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2)
Make
assessment
of
the
activity
plan
and
implementation and the results of audit that is
conducted by the Internal Supervisor and External
Auditor
in
order
to
prevent
any
substandard
implementation and reporting;
3)
Give
recommendations
Company's
on
management
improvement
control
of
system
the
and
implementation thereof;
4)
Ensure that there has been a satisfactory review
procedures
for
information
disclosed
by
the
Company, including periodic financial statements,
projections/forecasts
information
that
are
and
other
submitted
to
financial
the
Capital
Owners;
5)
Identify matters that need attention of the Board
of Commissioners;
6)
Perform
other
tasks
assigned
by
the
Board
of
Commissioners as long as still within their scope
of tasks and obligations.
In
addition
to
the
foregoing,
based
on
the
agreed
division of tasks of the Board of Commissioners, the
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Audit
Committee
may
also
assist
the
Board
of
Commissioners in relation to the following matters:
1)
Financial Statements of the Company;
2)
Business Plan and Budget of the Company/Business
Plan
and
Budget
of
Partnership
and
Community
Development Program;
3)
Financial Audit of the Company;
4)
Public Complaints;
5)
Core business of the Company;
6)
The Company's Account Payables and Receivables;
7)
Write-Off and Disposal of Assets;
8)
Purchase/Disposal of Securities, to participate in
the Participating Interest, and others;
II.f.2. The Nomination and Remuneration Committee
The Nomination Committee is in charge of setting the
selection
criteria
Commissioners/Board
and
nomination
procedures
of
Commissioners,
Board
for
of
Directors and other executives in the Company, to make
the assessment system and to give recommendations on
Board Manual – PT ABM Investama Tbk
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number
of
Commissioners/Board
of
Commissioners
and
Board of Directors of the Company.
The Remuneration Committee is in charge of setting the
payroll system and the provision of allowances as well
as recommendations on:
1)
assessment of those systems;
2)
options granted, including option on shares;
3)
retirement system; and
4)
compensation system and other benefits in term of
reduction of employees.
II.f.3. Investment Committee
Investment Committee is in charge of studying the
investment periodically.
Detail of functions and tasks of each of assisting
committees of the Board of Commissioners can be seen in
the charters of relevant committees.
II.g.
Secretary of the Board of Commissioners
The Board of Commissioners may appoint a Secretary of
the Board of Commissioners to assist it in the field of
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secretarial activities, among other things:
1)
Conducting
secretariat
administrative
activities
within the auspice of the Board of Commissioners;
2)
Holding Meetings of the Board of Commissioners and
meetings between the Board of Commissioners and
the Shareholders, the board of directors and other
stakeholders;
3)
Providing
data/information
as
required
by
the
Board of Commissioners and other Committees within
the
auspices
of
the
Board
of
Commissioners
in
relation to:
a)
Monitoring follow-up to results of decisions,
recommendations and directions of the Board
of Commissioners;
b)
Materials that are administrative in nature
on
reports/activities
of
the
Board
of
Directors in managing the Company;
c)
Administrative supports and monitoring with
regard
to
things
that
require
approval
or
recommendation of the Board of Commissioners
in relation to the activities of managing the
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Company by the Board of Directors.
4)
Collecting technical data from Committee within
the auspices of the Board of Commissioners and the
Experts
for
the
purposes
of
the
Board
of
Commissioners.
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Chapter 3
THE BOARD OF DIRECTORS
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Part Three
THE BOARD OF DIRECTORS
III.a. Requirements and Composition of the Board of Directors
The
Board
of
Directors
responsible
for
Company’s
best
is
an
organ
management
of
the
interests
and
that
Company
is
fully
for
objectives
the
and
representing the Company both inside and outside the
court.
III.a.1. General Requirements
Those who may be appointed to be members of the Board
of Directors are individuals who meet the following
requirements:
1)
Having good character, morality and integrity;
2)
Capable of taking legal actions;
3)
Within 5 (five) years prior to their appointment
and during in their office:
(a)
Have not been declared bankrupt;
(b)
Have not been a member of Board of Directors
and/or member of Board of Commissioners who
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was
declared
guilty
in
causing
a
company
declared bankrupt;
(c)
Have
not
been
punished
for
committing
in
criminal offense that inflicted a financial
loss
to
the
state
and/or
that
related
to
financial sector; and
(d)
Have not been a member of Board of Directors
and/or Board of Commissioners who, during in
their office:
i.
have ever been held no Annual GMS;
ii.
Have had their accountability report as
member of the Board of Directors and/or
member of the Board of Commissioners not
accepted by a GMS or have ever given no
accountability report as member of the
Board of Directors and/or member of the
Board of Commissioners to a GMS; and
iii. have
ever
obtained
caused
a
a
company
license,
that
has
approval,
or
registration from the Financial Services
Authority not fulfilling its obligation
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to submit annual report and/or financial
report
to
the
Financial
Services
Authority.
4)
Having
commitment
to
comply
with
the
statutory
regulations; and
5)
Having knowledge and/or expertise in the fields as
required by Company.
25
III.a.2. Special Requirements
A candidate member of the Board of Directors shall have
the special requirements as follows:
1)
Having
knowledge
and
skill
on
the
business
processes of the Company and ABM Group.
2)
Have
knowledge
and
skill
on
risk
management,
corporate governance and internal control system.
3)
Having the ability of leadership conduct, positive
thinking and mutual respect, be honest, creative
25
Article 93 of the Limited Liability Company Law No. 40 of
2007 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014.
Board Manual – PT ABM Investama Tbk
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and innovative, synergy and cooperation as well as
high
dedication
to
advance
and
develop
the
Company.
4)
Having the ability and commitment to implement the
reward
and
punishment
system
consequently
and
consistently.
5)
Having
integrity,
namely
never
involved
either
directly or indirectly in any engineering act and
deviating practices, default and other acts that
harm the Company for which he/she is working or
has ever worked.
6)
Having the ability and experience in administering
and
managing
the
Company,
having
leadership,
vision and mission of the Company, the Company’s
development
strategies
either
long-term
and
on
solving of strategic problems of the Company
The prescribed requirements as referred to above do not
prejudice
agencies
possibility
to
set
of
additional
the
competent
requirements
technical
based
the
statutory regulations.
Documents that prove the fulfillment of requirements
Board Manual – PT ABM Investama Tbk
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for
holding
position
of
member
of
the
Board
of
Directors shall be kept by the Company.
III.a.3. Membership Composition of the Board of Directors
1)
Members of the Board of Directors shall consists
of
at
least
appointed
members
to
of
2
be
the
(two),
one
of
them
shall
be
President
Director.
Number
of
Board
Directors
shall
be
of
determined by the Shareholders26;
2)
Division of tasks and authorities among members of
the Board of Directors shall be determined by the
Shareholders
and
the
Shareholders
may
delegate
such an authority to the Board of Commissioners;
3)
If for any reason position of a member of Board of
Directors is vacant, then:
a)
the Shareholders shall, within not later than
90 (ninety) days as of such a vacancy, have
26
Article 92 paragraph 4 of the Limited Liability Company Law
No. 40 of.2007.
Board Manual – PT ABM Investama Tbk
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filled such a vacancy;27
b)
As long as such a position is vacant and no
successor has been available, then another
member
of
the
Board
of
Directors
who
is
appointed by the Board of Commissioners shall
perform the works of such a member of the
Board of Directors who is vacant with the
same tasks and authorities; or
c)
In
case
the
vacancy
is
resulted
from
expiration of office term of member of the
Board of Directors, then, the relevant member
of the Board of Directors whose office term
has
expires
shall
remain
perform
his/her
tasks and exercise his/her authorities with
the same rights and obligations as a member
of
the
Board
appointment
of
of
Directors,
definitive
until
members
of
the
the
Board of Directors.
27
Articles of Association of the Company Article 14 paragraph
6 and the Financial Services Authority Regulation Number
33/POJK.04/2014 dated December 8, 2014 ..
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4)
If at any time for any reason the Company has no
members of the Board of Directors, then:
a)
For temporary, the Board of Commissioners is
obliged to perform the tasks of the Board of
Directors,
who
may
collectively
do
by
themselves or appoint one or more of them or
appoint a specific individual to do so;
b)
In
case
the
vacancy
is
resulted
from
expiration of office term of all members of
the Board of Directors, then, the relevant
members
of
the
Board
of
Directors
whose
office term has expires shall remain perform
his/her
tasks
authorities
obligations
and
with
as
exercise
the
same
members
of
his/her
rights
the
Board
and
of
Directors, until the definitive appointment
of members of the Board of Directors.
5)
To
the
individuals
candidates
for
Commissioners,
proper
test
by
who
members
shall
the
be
are
of
nominated
the
subjected
Nomination
and
to
to
be
Board
of
fit
and
Remuneration
Committee;
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6)
Prospective members of the Board of Directors who
have passed the fit and proper test and members of
the Board of Directors who are reappointed, shall
sign a management contract before confirmed to be
members of the Board of Directors;
7)
Members
of
the
Board
of
Directors
shall
be
appointed and dismissed by Shareholders or a GMS
of
the
candidates
who
are
nominated
by
the
Nomination and Remuneration Committee.
III.b. Office Term of the Board of Directors
1)
Each member of the Board of Directors shall hold
his/her office for a period as from