Application of the Principle of Piercing the Corporate Veil in Resolving Corporate Responsibility Cases in Indonesia

International Journal of Law and Public Policy (IJLAPP)

View Publication Info
 
 
Field Value
 
Title Application of the Principle of Piercing the Corporate Veil in Resolving Corporate Responsibility Cases in Indonesia
 
Creator Dewi, Sandra
 
Subject Law
Limited Liability Companies
Principle of Piercing the Corporate Veil
 
Description This research aims to explain the application of the Principle of Piercing The Corporate Veil in resolving corporate responsibility cases in Indonesia. The method used in this research is normative legal research, using a statutory approach. The results of the research explain that based on Article 3 paragraph (1) of Law Number 40 of 2007 concerning Limited Liability Companies, it is stated that the shareholders of the company aren’t personally responsible for the agreements made on behalf of the company and aren’t responsible for the company's losses exceeding the shares they own. However, the doctrine in corporate law recognizes the existence of the Principle of Piercing the Corporate Veil which can break through the limited liability of the company's shareholders into unlimited liability up to their personal assets. Although the Principle of Piercing the Corporate Veil has been regulated in Law Number 40 of 2007 concerning Limited Liability Companies, there have been major cases in which the shareholders of the company were responsible up to their personal assets but only limited responsibility for the shares they owned. These major cases include the PT Lapindo Brantas case in 2006 and the PT Bank Century case in 2008.
 
Publisher International Association of Educators, Scientist, Technologist, and Engineers (IA-ESTE)
 
Date 2020-09-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://lamintang.org/journal/index.php/ijlapp/article/view/147
10.36079/lamintang.ijlapp-0202.147
 
Source International Journal of Law and Public Policy; Vol 2 No 2 (2020); 65-71
2721-6942
2721-6934
10.36079/lamintang.ijlapp-0202
 
Language eng
 
Relation https://lamintang.org/journal/index.php/ijlapp/article/view/147/105
 
Rights Copyright (c) 2020 International Journal of Law and Public Policy
 

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