Legal Standing of Shareholders who Fail to Fulfilled Basic Capital
Picture Source: canva.com Based on Article 1 number 1 of Law Number 40 of 2007 concerning Limited Liability Companies (“Company Law”), which states: “A Limited Liability Company, hereinafter referred to as the Company, is a legal entity that is a capital alliance, established based on an agreement, conducts business activities with total basic capital divided...
Read MoreA WRITTEN AGREEMENT THAT IS NOT STAMPED WITH A STAMP DUTY REMAINS LEGALLY VALID, IS IT TRUE?
An agreement is a mutual understanding between two or more parties to do or not do something, which can be made in writing or verbally. Both written and verbal agreements are legally binding; however, written agreements have the advantage of stronger evidence compared to verbal agreements. If a dispute arises regarding the agreement, the parties...
Read MoreCan Creditors Seize Defaulting Debtors’ Assets Unilaterally?
Debt is an agreement between one party and another, typically involving money. In debt agreements, one party acts as the lender and the other as the borrower. Referring to Article 1754 of the Civil Code, debt agreements include loan agreements, in which one party provides a certain amount of goods to another party which...
Read MoreTHE ROLE OF BANK INDONESIA IN MONITORING FOREIGN EXCHANGE TRANSACTION
The legislation in Indonesia has facilitated legal entities and individuals to apply for loans or credits in foreign currency from non-Indonesian residents. Therefore, Indonesian companies in need of capital to expand their businesses can apply for loans from foreign banks. Transactions in applying for loans or credits with foreign banks are referred to as Foreign...
Read MoreLegal Steps If the Board of Directors of a Private Company Doesn’t Conduct an Annual General Meeting of Shareholder
Based on Article 1 number 4 of Law Number 40 of 2007 (“Company Law”), the General Meeting of Shareholders (“GMS”) is the organ of the company that has authority not granted to the Board of Directors or the Board of Commissioners. Furthermore, in accordance with Article 78 of Company Law, GMS consist of: Annual GMS,...
Read MoreTHE AUCTION WINNER IS UNABLE TO TAKE POSSESSION OF THE AUCTIONED ITEM, HERE ARE THE AVAILABLE MEASURES THAT CAN BE TAKEN
The definition of auction is stated in Article 1 number 1 of the Minister of Finance Regulation Number 213/PMK.06/2020 regarding the Implementation Guidelines for Auctions (“Auction PMK”), which is the sale of goods open to the public with written and/or oral bids that increase or decrease to reach the highest price, preceded by an Auction...
Read MoreVEHICLE TOWED BY DEBT COLLECTOR SUDDENLY, HERE’S HOW TO DEAL WITH IT
Basically, the vehicle retrieval is a consequence of the Debtor’s failure to fulfill obligations in the Fiduciary Guarantee Agreement. Pursuant to Law Number 42 of 1999 concerning Fiduciary Guarantee (“UU 42/1999”), the imposition of a Fiduciary Guarantee on an Asset is made through a notarial deed in the Indonesian language, which will subsequently become the...
Read MoreHUSBAND’S COVERT SECOND MARRIAGE WITHOUT REGISTRATION: POTENTIAL CRIMINAL CHARGES
Etymologically, a Covert Second Marriage Without Registration (Nikah Siri) is a marriage that is not officially recorded by the state. The term “siri” is derived from the Arabic language, meaning “secret.” Nikah Siri are often interpreted in society as “Underhanded Marriages,” meaning marriages performed with all the requirements and conditions fulfilled, such as the marriage...
Read MoreManagement of Minors’ Inheritance Asset Based on Civil Law
In Indonesia, inheritance law is pluralistic, with at least three types of inheritance laws still in effect and practiced in society, namely: Inheritance law based on Islamic Sharia governed by the Compilation of Islamic Law (KHI). Customary inheritance law, which varies greatly in its circumstances. Inheritance law based on the Civil Code (KUHPerdata). The diversity...
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