Provisions for Corporate Secretary (CorSec) of Public Companies

POJK number 35 of 2014 regarding the Corporate Secretary or Corporate Secretary of Issuers or Public Companies issued by the Financial Services Authority (OJK) in order to encourage the performance of Issuers or Public Companies, protect the interests of stakeholders and increase compliance with laws and regulations, improve transparency, service and communication to stakeholders as the application of the principles of good corporate governance

What is meant by Corporate Secretary is an individual or person in charge of a work unit who performs the function of corporate secretary. Every Issuer or public company is required to have a corporate secretary function whose function can be carried out by an individual or a work unit led by a person in charge.

The Corporate Secretary is appointed and dismissed based on the decision of the Board of Directors and can be held concurrently by a member of the Board of Directors. A Corporate Secretary may not have concurrent positions in Issuers or Public Companies. The Corporate Secretary is responsible to the Board of Directors. The Corporate Secretary is required to make periodic reports at least 1 (one) time in 1 (one) year regarding the implementation of the corporate secretary function to the Board of Directors and a copy to the Board of Commissioners.

Each appointment and dismissal of the Corporate Secretary must be reported by the Issuer to the OJK and announced on the company’s website no later than 2 (two) working days after the appointment or dismissal.

Duties and Responsibilities of the Corporate Secretary

The function of the company secretary carries out the following tasks:

1. keep abreast of developments in the Capital Market, particularly the laws and regulations in force in the Capital Market sector;
2. provide input to the Board of Directors and Board of Commissioners of Issuers or Public Companies to comply with statutory provisions in the Capital Market sector;
3. assisting the Board of Directors and Board of Commissioners in implementing corporate governance which includes:
4. information disclosure to the public, including the availability of information on the Issuer’s or Public Company’s Website;
5. disclosure of information to the public, including the availability of information on the Issuer’s or Public Company’s Website;
6. organizing and documenting the General Meeting of Shareholders;
7. organization and documentation of meetings of the Board of Directors and/or the Board of Commissioners; And
8. implementation of an orientation program for the Board of Directors and/or the Board of Commissioners.
9. as a liaison between the Issuer or Public Company and the shareholders of the Issuer or Public Company, the Financial Services Authority, and other stakeholders.

Corporate Secretary Requirements

The Corporate Secretary must meet at least the following requirements:

1. capable of carrying out legal actions;
2. have knowledge and understanding in the fields of law, finance, and corporate governance;
3. understand the business activities of the Issuer or Public Company;
4. able to communicate well; And
5. domiciled in Indonesia.

A Corporate Secretary is required to attend education and/or training in order to increase knowledge and understanding to assist in carrying out his duties. The training and education attended must be disclosed by the company in the annual report of the Issuer or Public Company.

Thus the review of the Corporate Secretary explaining the background, duties and responsibilities as well as the requirements of a CorSec. Hopefully this information can help you understand the Corporate Secretary

Abstracted by: Dody Arifianto

Compiled by: Lavy El Harisy