Recent Posts by indonesiacompanylaw

Limited Liability Companies as a Legal Entity which is Established Under the Agreement

Definition of Limited Liability Companies according Article 1 paragraph 1 of Law Number 40 of Year 2007 (“Company Law”), stated:   “Limited Liability Company” hereinafter called a (“Company”) means a legal entity which constitutes an alliance of capital established pursuant to a contract in order to carry on business activities with an authorized capital all…
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Pledge of Shares

Law Number 40 of 2007 on Limited Liability Company ("Company Law") only recognizes the classification of registered shares. However, Article 53 paragraph (1), (2) and (3) of Company Law states that, the Articles of Association may determine more than one classification of shares. If there is more than one classification of shares, then the Articles…
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Steps Of Company Liquidation

Background Definition of Liquidation according to Kamus Besar Bahasa Indonesia is “the winding up of Company as a legal entities that includes the payment of obligation to all creditors and distribution of remaining assets to the shareholders (Company)”. The main purpose of liquidation is to perform any legal action and settlement of Company’s assets which…
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Shareholder Register and Special Register

In Indonesia, regulations concerning Limited Liability Companies are stipulated under the Law Number 40 of 2007 on Limited Liability Companies (“Company Law”), which replacing Law Number 1 of 1995 Concerning Limited Liability Companies. Inside Company law, there are regulations of register of shareholder. According to Article 50 paragraph (1), Companies’ Board of Directors shall make…
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Deed of Establishment of a Company

  Background In establishing a Limited Liability Company (the “Company”), the Company shall have deed of establishment to obtain the status of legal entity from the Minister of Law and Human Rights (“Minister”). Overview of Deed of Establishment According to article 7 of Law Number 40 of 2007 on Limited Liability Company (“Company Law”), the…
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