On 1 December 2021, the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) issued OJK Rule No. 22/POJK.04/2021 (“POJK 22/2021”), which allows prospective public companies that are tech start-ups to have a share classification with multiple voting rights (“MVS”). This rule would allow start-up founders to retain certain control over the company and protect their vision post initial public offering (“IPO”) regardless of the dilutive effect of an IPO, which was a key concern previously.
POJK 22/2021 sets out (i) the requirements on issuers that intend to implement an MVS, including the required voting ratio, (ii) the eligibility of MVS holders, (iii) the term of an MVS and lock up of shares, (iv) conversion of an MVS into ordinary shares, and (v) the specific quorum requirements for an MVS issuer.
Get to know more about POJK 22/2021 by reading the full alert here: