What Is Spin Off In The Company? This Is Understanding To Its Benefits

Company illustration (Remy Gieling on Unsplash)

YOGYAKARTA In managing a company, the term spin off is known. This is done for various purposes, one of which is to advance the company. To get to know what spin off is in the company, see the following article.

Quoted from the DPR RI website, the spin off is an activity in the form of separating companies in the form of Limited Liability Companies (PT) so that the company becomes a new entity. The parent company that spins off does not mean it is lost. Meanwhile, the fraction of companies resulting from spin off can stand alone and not be a subsidiary.

Simply put, the spin off is a separation of PT into two or more so that it becomes a new company. With the spin off, the company must also divide the assets (of the company's assets) and pasiva (the company's capital and obligations), from the parent company to the new company.

In general, the goal of spin off is for companies to develop better. There are many reasons the company takes to spin off, here are some examples of origins taken from various sources.

In spin off activities, usually the share price of the parent company becomes unstable in the market. In fact, stock prices tend to weaken.

Please note, the holding company's shareholders will also get shares of the company's spin off proceeds. Investors are not necessarily able to accept the shares because they may be able to keep the companies and their investment criteria different.

Spin off efforts cannot be done unilaterally. The company must carry out various stages by involving various parties, including investors. In general, the company's spin off stage is as follows.

1. Preparation

The first step that must be taken is to make arrangements and spin off designs. After that, the results of the preparation and the draft will be socialized to parties involved in companies and partners who cooperate with a maximum of 30 days before the General Meeting of Shareholders (GMS) is held.

2. GMS

The GMS was held to obtain approval from investors holding company shares. The GMS must also be attended by at least three-quarters of all shareholders. If the shareholder attendance limit is not fulfilled, the spin off decision will be held by voting. If in the GMS, one of the shareholders expressed his objection to a spin off, then the spin off activity cannot be carried out and must be completed a maximum of 14 days from the announcement of the GMS.

On the other hand, if the spin off plan is approved by the GMS participants, then the spin off step can proceed to the next stage.

3. Distribution of Pasiva activation

The company can spin off in the form of a new Limited Company (PT). At this stage, it is necessary to separate the assets and pasiva taken from the parent company.

4. Ratification

Ratification must also be carried out with a notary deed. The company can appoint a notary, then the notary will make a Company Separation Deed. Management of the distribution of assets and pasiva can also be done with the help of a notary.

That's information related to spin off within the company. Visit VOI.ID to get other interesting information.