Use of Income at PT

Use of Income at PT

In Article 6, paragraph (2) of KUHD requires the board of the company for each year that has past year a balance sheet that must be completed within six months of the following year. Balance sheet and profit and loss list was made ​​by the board and supervised by the commissioner, subsequently signed by all board members and commissioners. Because that establishes the legitimacy of the balance sheet and profit and loss statement lists the General Meeting of Shareholders, before the general meeting was held, the balance sheet and profit and loss list it must be able to be read and known by the shareholders.

This advantage can be taken from a reserve fund, production services, tantiemes, and others. If the deed of incorporation do not specify anything else, the rest of the profits for the shareholders, is as a dividend. The remaining money is usually included in the company's reserve fund. If the company is in a state of loss, except for bond interest payments and other debts, profit sharing does not take place, in other words, shareholders do not receive dividends.

Limited Liability Companies are required to set aside a certain amount of net profit in each fiscal year. The aim of this preliminary net income as a reserve fund. Obligations set aside reserves that apply if the company has positive retained earnings. Net income, including the determination of the allowance for reserves, decided by the General Meeting of Shareholders. The entire net income net of allowance for reserves is distributed to shareholders as dividends, unless otherwise provided in the General Meeting of Shareholders. Provision for net profit made ​​up reserves reach a minimum of 20 % of the total issued and paid-up capital. If a backup has not reached that number, then only be used to cover losses that cannot be met by other reserves.

References:
Widjaya, Gunawan. Business Law Series: Limited Liability Company. London: King Grafindo Persada. 2000.

Purwosutjipto, H.M.N. Definition of Principal Commercial Law Forms Company 2. Jakarta: Djambatan. 2005.