Directors, Commissioners & Shareholders Meeting Indonesian corporate structure is different from the common law system, since it adopts a two-tier management structure instead of a single-tier management. The management structure comprises of Board of Directors (“BOD- Direksi”) and Board of Commisioners (“BOC-Dewan Komisaris”). Senior officers are responsible for the company’s actual management in the operational sense is the Direksi. Even though there is one director, there is usually more...
Sunday, June 17, 2012
Separate Legal Entity,Incorporation,Share Capital and Voting Rights
Separate Legal Entity PT, as an Indonesian company, is a legal person who has a legal identity separate from its shareholders. Thus, shareholders are not personally liable for the obligations of the company. The shareholders have limited liability to the extent that their liability for the acts of the company can be limited to their capital contribution. Nevertheless, there are some limited possibilities to pierce this corporate veil, for...
The (New) Company Law Framework
Ever since Indonesia’s independence, business sectors and mainly business enterprises have played an important role in fostering Indonesia’s economic growth. There are various regulations that govern Indonesian business organizations. Presently, the laws of Indonesian business organizations are primarily governed by the Law on Limited Liability Company, Law No.1 of 1995 (Undang-Undang tentang Perseroan Terbatas or “UUPT”) which is considered modern Indonesian company...
Types of Business Organizations: business law:Types of Business Organizations:Indonesia’s commercial sector recognizes three principal categories of business organizations: sole proprietorship, partnership (general or limited) and company. Sole proprietorship is generally used in the informal sector, since its nature and activities are of the informal sector. For example, it does not require formal registration to Indonesian authorities. There are three types of partnership: persekutuan perdata (maatschap...
Chapter VI:BUSINESS LAW:A. COMPANY LAW
Introduction Since the implementation of the 25-year economic development-planning program, Indonesian economic growth can be attributed to an increase in participation of small and large business enterprises. Not only has there been an increase in assets and capital accumulation, enlistment of human resources, but also business resources (which from time to time create a business cycle). One of the business entities that dominate, in the Indonesian business sector,...
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