Liabilities of the Director of the Regional Limited Liability Company (Perseroda) in the Corporate Bankruptcy According to Positive Law
Abstract
This research aims to analyse the liabilities of the director of the regional limited liability company (perseroda) in the corporate bankruptcy according to positive law. This research belongs to the type of normative legal research or also called doctrinal research; i.e. research that examines law as a separate system which is separated from various other systems that exist in community. Thus, it gives a boundary between the legal system and other systems. BUMD, according to Minister of Home Affairs Regulation No. 3 of 1998 concerning Legal Forms of BUMD, may be Regional Company or Limited Liability Company (LLC). For BUMD, in the form of Regional Companies, the provisions concerning Regional Companies as stipulated in Law No. 5 of 1962 concerning Regional Company. Meanwhile, BUMD, in the form of legal entities is Limited Liability Company that subjects to Law No. 1 of 1995 concerning Limited Liability Company which has been amended by Law No. 40 of 2007 concerning Limited Liability Company. Article 331 of Law No. 23 of 2014 concerning Regional Government states that regions can establish BUMD and may be in the form of Regional Public Liability Company whose establishment is determined by regional regulations. The establishment of this BUMD generally aims to provide benefits for regional economic development, organize public benefits in the form of providing quality goods and/or services for the fulfilment of people’s livelihoods according to the conditions, characteristics and potential of the region based on good corporate governance, and obtain profit and/or profit. The board of directors, due to their negligence and mistakes, must be liable for the Regional Limited Liability Company that has been declared bankrupt; in this case it is jointly and severally over all obligations that are not repaid from bankrupt assets unless the directors can prove that they do not have to be liable (Article 104 paragraph (2) and (4) of UUPT)
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DOI: http://dx.doi.org/10.18415/ijmmu.v6i3.823
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