Timesofummah.com – Have you ever heard the term Tbk company? A PT company ending in the word Tbk is a public company or a publicly listed company.
In simple terms, in the context of a company, Tbk is an abbreviation of a public company. Well, this article will take you to fully understand the meaning of a Tbk company, its characteristics, advantages, and disadvantages, and how to become a Tbk company.
Definition of the Company Tbk
Tbk is a popular term for companies with open or public share ownership status. In general, the definition of Tbk is a limited liability company (PT) with shares owned by at least 300 shareholders.
A Tbk company in the business world is a company with a form of ownership that is distributed to shareholders. Tbk as an abbreviation of the word open is a sign that the company in question is a public company and receives as much capital as possible from anyone.
The public can invest in a Tbk company by trading shares available on the Indonesian stock exchange or commonly known as BEI. If viewed from the capital side, the capital owner of a Tbk company must pocket a minimum capital of IDR 3 billion according to central government regulations.
It can be concluded that the company Tbk is a company that is able to sell its shares and bonds to the public to raise capital in the form of cash. Then the capital will be allocated to work on business expansion activities or other projects that are considered profitable for the company.
The company’s source of capital comes from several shareholders. That is, the greater the value of the shares given, the greater the profit that will be obtained. However, some parties often consider that a Tbk company is the same as an issuer company.
Yet the two are clearly different. Issuer companies are companies, individuals, joint ventures or groups of organizations that offer securities in the form of debt securities, shares, and so on. While the company Tbk is a limited liability company that has officially become an initial public offering or an abbreviated IPO where the shares are already owned by investors.
Company Characteristics Tbk
There are several characteristics of a Tbk company that you can recognize. The most visible characteristic of this company is the addition of Tbk behind the company name.
A public company is headed by a director or directors who have the task of determining decisions, work-related regulations, and regulations related to the work environment. In addition to several characteristics that are quite prominent, there are several special characteristics that are only owned by the Tbk company. Check out the following explanation.
1. Have a clear goal
The Company Tbk has corporate goals that are targets and goals that need to be achieved by all components of the company, including investors. The Company Tbk has a clear and purposeful goal.
That is, the objectives of the company Tbk have been clearly defined and made to be easily understood by all components of the company. Setting company goals clearly is very important. So that every point contained in the company’s goals can be achieved with significant profits.
2. Get profits in the form of dividends
The next characteristic of the company Tbk is to offer dividends to investors. Dividends are a form of profit sharing or company profits that are distributed to shareholders or investors.
Then there is a period where the form of profit is used to increase business capital or develop a business. If the shareholders have agreed to use the profits as additional capital or expansion, the dividends cannot be disbursed. Dividends will be allocated for business development.
3. Not getting facilities from the state
The Company Tbk as a non-government company is solely responsible for all business operations interests, both the completeness of the infrastructure and the supporting tools for the running of the business. The company procures inventory items and several other necessary elements independently. The procurement of these goods is carried out by utilizing existing business capital.
4. Investors are not responsible for operations
Another characteristic of a Tbk company is that shareholders or investors are not responsible for the company’s operations. The extent of negligence that occurs in the company is not the responsibility of investors or shareholders.
Then the investors also do not intervene in managing the company’s finances. Why? Because the company’s financial management is the responsibility of the board of directors and related staff. The investors are also not responsible for the rotation of the debts, even though the funds are sourced from shareholders’ funds.
5. The highest decision is at the GMS
The last characteristic of the Tbk company is that the highest decision-making system is determined by the GMS. What is AGM? In the world of capital markets, the term GMS stands for General Meeting of Shareholders.
The meeting is an activity where the shareholders gather in a forum to discuss the company provisions that will be mutually agreed upon. The provisions that have been decided through the GMS serve as an outline in determining the cycle of capital invested and various other main factors for running a company.
Differences between a Limited Liability Company and a Private Company
After knowing the characteristics of a Tbk company, let’s recognize the difference between a Tbk company and a closed company. The main difference that stands out from a Tbk company with a closed company is in the source of capital.
In a Tbk company, part of the company’s capital comes from the community. While closed companies usually get capital from certain circles only. Another difference lies in the company’s ownership system.
The ownership system of a Tbk company can be owned by the general public. Meanwhile, the closed company ownership system is only owned by certain parties or groups. The difference is clear because the shares of the company Tbk can be purchased by the general public on the stock exchange.
Furthermore, the Tbk company can raise capital in the form of cash obtained through the sale of shares or bonds. While closed companies cannot do this.
Then the company Tbk must report to the Capital Market Supervisory Agency or BAPEPAM. Meanwhile, private companies have no obligation to do so.
Advantages and Disadvantages of the Company Tbk
Before deciding to take your company to the stock exchange, first know the advantages and disadvantages of being a Tbk company. Check out the following review.
Advantages of Being a Tbk Company
The main advantage that is expected is pride in being a Tbk company. You must feel proud to have a Tbk company. With the Tbk label, the company will look more convincing because its shares are already owned by investors.
Another advantage that can be enjoyed when your company is labeled Tbk is that it has a large enough opportunity to expand the company’s wings. In terms of finance, the company Tbk benefits from the government in the form of income tax incentives (PPh) as stipulated in Government Regulation No. 56 of 2015.
Tbk companies can diversify their business to reduce risk. You can easily do a merger or negotiation with other companies through shares when your company holds the status of Tbk.
Then companies with the Tbk label can help you increase liquidity and allow founders, both founders and co-founders to enjoy the results of their achievements. Because the more investors who buy shares, the more capital will be obtained. Another advantage of being a Tbk company can increase market potential in order to increase sales.
Disadvantages of Being a Tbk Company
Although gets many benefits when it becomes a Tbk company, there are some risks that you have to bear with this status. The first loss or risk is the disclosure of information and decisions in developing the business must be informed to the shareholders.
Then there will be the risk of delisting the company name or being delisted from the sales board. You will not experience this risk as long as you do not do fraudulent things that can affect stock movements. This is often known as stock fry.
Some of the losses or other risks of becoming a Tbk company are that you must submit regular reports to the Indonesia Stock Exchange (IDX). These routine reports include the company’s financial and corporate actions per quarter, per semester, to per year.
Why is it called loss or risk? Because in making complete financial statements as a public company requires a lot of costs. Then the management of the company Tbk must be transparent so as not to harm investors, both business plans, data, and company management can be smelled by competitors.
In managing a Tbk company, you have limited power because the existing shares are not your own, but belong to investors. In addition, you must maintain good relations with investors because this will affect the movement of the company’s shares.
If your company is not transparent or never distributes dividends, investors will sell their shares. Selling shares together will make your company’s shares plummet, even worthless.
How to Become a Tbk Company
Then how to become a Tbk company? If owns a company and wants to find additional capital to develop the company’s business, there are various ways you can do it. One of them is taking a business capital loan from a bank.
Unfortunately, borrowing business capital from a bank needs to include assets as collateral. Then credit interest will continue to increase and begin to burden the company. There are other ways you can do to get business capital. can raise funds from the public as investors on the stock exchange floor.
The most effective way is to issue debt securities, bonds or bonds. Then the second way is to become a Tbk company. Managing a company to become a Tbk company in the capital market is not difficult.
only need to choose the best securities company with a function as an underwriter. Then the securities company will help you and direct your company to conduct an IPO so that it can become a Tbk company.
If the process to the stock exchange goes well and you pass the selection, must meet three main criteria. Check out the following explanation.
- The first criterion, must ensure that the company structure is clear and has been held by competent people. Then you also have to complete some of the necessary documents, both financial reports and other documents.
- The second criterion, must ensure the company has a profit. So, make sure all company profits are recorded in the financial statements. If the company you have built has not made a profit, the company can still have the status of Tbk. It’s just that your company will become less famous because it is not written on the main board and only written on the development board.
- The third criterion, your company must have real assets and not fictitious assets. The point is that the company must have the potential to be able to develop and advance. In the sense that your company is not just big on paper. At least, must have assets of around Rp. 100 billion to be listed on the main board. Then you have to pocket another IDR 5 billion in assets so that it can be listed on the development board.