Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Joint Responsibilities of Internal Shareholders Against Credit Agreements on Limited Company Bankruptcy: Considering Provisions of Law of LLC

Author(s): Habib Adjie

The existence of different definitions regarding the theory of legal entities certainly has certain implications in practice, especially those relating to accountability between legal entities and those behind legal entities. In this context, this paper attempts to describe the legal position of creditors if it turns out that the Limited Liability Company whose license is revoked is applying for credit at the bank. This is because in Indonesia, in Article 16 of Regulation of the Minister of Law and Human Rights No. 4 of 2014 concerning Procedures for Submitting Requests for Legal Entity and Approval of Amendments to Articles of Association as well as submission of notification of amendments to articles of association and amendments to Limited Liability Company data, it is stated that in the form of establishment of Limited Liability Companies with documents supporters as referred to in Article 13 are not in accordance with the provisions of laws and regulations, the Ministerial Decree regarding the establishment of limited companies is revoked. The results show that the legal act done by a Limited Liability Company before obtaining a Limited Liability Company Decree will remain valid, but it is the personal responsibility of the legal act to become a joint liability. Likewise, when the Decree of Establishment of the Limited Liability Company is revoked, the position of the Limited Liability Company is the same as the time before obtaining approval as a legal entity, which is jointly responsible. Secondly, the position of the creditor law of the Limited Liability Company whose Decree has been revoked is still entitled to all repayment from the existing debtor's achievement. When the decree has been revoked so that it is not a legal entity, the LLC is responsible for fulfilling these achievements jointly until the entire personal wealth of the founders of LLC.

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