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√ Complete understanding of consolidation, characteristics, reasons and how to do it

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Complete understanding of consolidation, characteristics, reasons and how to do it – In this discussion About Knowledge. Co. Id will explain about Consolidation. Consolidation relates to an organization or company combining two or more businesses by establishing a new business or dissolving an old business.

Complete understanding of consolidation, characteristics, reasons and how to do it

Apart from explaining the meaning of consolidation, we will also review the characteristics, reasons why a company carries out consolidation and how to carry out consolidation.

Understanding Consolidation

Consolidation is combining or uniting two or more businesses by establishing a new business or dissolving an old business without liquidating it first.

Another definition of consolidation is combining the businesses of two or more companies continuing the combined business then a new company was created which all the old companies stopped his activities.

Understanding Consolidation According to Experts

The following is the definition of consolidation according to experts.

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  1. Roman Nurbawa

    Consolidation according to Roman Nurbawa is two companies dissolving by law and replacing them a new company was founded that financially took over the assets of the two disbanded companies the.

  2. PP No. 28 of 1999

    Government Regulation no. 28 of 1999 defines it as a merger of two or more banks by establishing a new bank and dissolving the old bank without liquidating it first.

  3. KBBI (Big Indonesian Dictionary)

    KBBI defines consolidation as the merging of two or more companies into a company with the same vision.

  4. Rudi Prasetya

    Rudi Prasetya defines consolidation as two or more PTs merging themselves into one PT. All PTs that had been established disbanded and merged into one PT.

Characteristics of Consolidation

The characteristics of consolidation include the following:

  • There are two or more companies that merge to form a new company.
  • The merging company disbands and does not liquidate.
  • The new company resulting from the merger must obtain a new legal entity status.
  • The consolidation plan and concept of the consolidation deed must receive approval from the GMS of each company.
  • The concept of the consolidation deed that has been approved by the GMS will be stated in the consolidation deed made before a notary in Indonesian.
  • The consolidated company will obtain legal entity status on the date of the issuance of the Minister of Law and Human Rights' decision regarding companies that merge without a liquidation process. The assets and liabilities of the merging companies will be transferred to the new consolidated company in accordance with the general title.

Reasons for Companies to Consolidate

There are several reasons why companies or banks decide to carry out a consolidation merger, including:

Health problems
If the bank has been declared unhealthy by the Central Bank, then the bank will merge with another bank, a very good option is to merge with a healthy bank.

Capital Issues
If a bank's existing capital is too small making it difficult to expand its business, then the bank can merge with one or several other banks so that the capital they have becomes large so that it will be easy to develop his business.

Management Issues
Management that is less professional will cause the bank to experience continuous losses and find it difficult to develop. This will make banks decide to consolidate with other banks whose management quality is professional.

Technology and Administration
Banks that still apply simple technology often experience problems. This is because currently technology has become increasingly sophisticated. To obtain advanced technology, the capital required is of course not small.

Therefore, it is better for a bank to choose to merge with another bank whose technology is already sophisticated. This is also the case with banks whose administrative systems are still simple and less organized. The bank should also consolidate with other banks so that the administration system becomes better.

Want to Dominate the Market
Often these kinds of changes are not actually announced to external parties and are only known to the party carrying out the consolidation. By consolidating several banks, it is certain that the number of branches and customers will increase. Apart from that, consolidation can also eliminate or oppose existing bank competitors.

The most complete understanding of consolidation, characteristics, reasons, how to do it

How to Consolidate

Below is an explanation of the company carrying out a consolidation, including the following:

  • Directors of companies wishing to merge must make a proposed consolidation plan. This proposed plan must be approved by the commissioners of each company.
  • The proposed consolidation plan will be used as material in preparing the consolidation plan. This plan is made together with the directors of the company wishing to merge.
  • A summary of the consolidation plan is then announced by the board of directors in two daily newspapers and announced to employees in writing no later than two weeks before the summons for the GMS.
  • The consolidation plan and concept of consolidation deed must obtain approval from the GMS of each company.
  • The consolidated deed concept that has been approved will be written in a consolidation deed made before a notary using Indonesian. If it has been ratified by a notary, the consolidation deed can be used as the basis for making a deed of establishment of a new PT.
  • The company's directors must submit a request for ratification of the deed of establishment of the new PT to the Minister of Law and Human Rights no later than two weeks from the date of the GMS decision.
  • The Minister of Law and Human Rights signs the endorsement no later than 60 days after the application is received, the company that amalgamation will be deemed dissolved starting from the date the deed of establishment of the new PT resulting from the amalgamation is ratified by Minister of Law and Human Rights.
  • If the approval has been carried out by the Minister of Law and Human Rights, the deed of establishment of the new PT as a result of the merger must be registered in the company register and announced in the supplement to the Republic of Indonesia State Gazette.

Thus has been explained about Complete understanding of consolidation, characteristics, reasons and how to do it, hopefully it can increase your insight and knowledge. Thank you for visiting and don't forget to read other articles.

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