The New Cooperatives Law
The new Cooperatives Law (Law 17/2012) issued on 29 October 2012 and in force since 30 October 2012, introduces a new concept not found in the previous 1992 Law. Members of a cooperative must now hold a Cooperative Capital Certificate (Sertifikat Modal Koperasi), being one of the cooperative's capital sources, and serving as evidence of capital participation in the cooperative. Unlike a certificate of shares in a limited liability company, a Cooperative Capital Certificate does not give the holder any voting right, can only be transferred after one year of ownership and even then, only to another member of the cooperative. The new law also requires management to allocate 20% of the cooperative's profit...
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