Stage of Liquidation Administration Process:

The process of dissolution and liquidation of a company may be divided into the following stages:

1. The Board of Directors Meeting : The Board of Directors (“BOD”) of the Company shall hold a meeting to adopt a resolution of proposing the shareholders of the Company to dissolve and liquidate the Company due to a reasonable reason.
2. Extraordinary General Meeting of Shareholders (1st) : Extraordinary General Meeting of Shareholders (“EGM”) must be held to approve the liquidation which must be at least attended by ¾ (three fourths) of the total issued shares and approved by at least ¾ (three fourths) of all votes cast.
3. Notification to Authorities : The following are notifications to authorities to be submitted no later than 30 (thirty) days after the adoption of the EGM liquidation resolution:
   a. Announce the liquidation in 2 (two) daily newspapers and the State Gazette of the Republic of Indonesia;
   b. Notify the Ministry of Justice;
   c. Register the liquidation resolution with the Company Registry of the Ministry of Trade;
   d. Request to the Capital Investment Coordination Board (“BKPM”) to revoke the investment approval.
4. Notification to Creditors : Notify all the Company’s creditors (if any) of the Company’s liquidation.
5. Notification to Tax Office : Notify the Tax Office of the liquidation and request for revocation of the Company’s Tax Registration Code (NPWP).
6. Extraordinary General Meeting of Shareholders (2nd) : The second EGM shall be held to approve the liquidation report prepared by the liquidator, which then fully release the liquidator from his responsibilities.
7. Completion : Register the closing of the liquidation of the Company with the Company Registry of the Ministry of Trade, Ministry of Justice, and announce the same in the State Gazette and 2 (two) daily newspapers.

The Estimated Time Frame on Liquidation Administration Process:

Based on the steps to above, we estimate that the dissolution process will take at least 12 (twelve) months from the date of approval of General Meeting of Shareholders. This is with the assumption that during such period of time, all rights and obligations (i.e. claims and account receivables) of the Company to third parties are settled.

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