Modernizing Latin American Company Law: Creating an All-Purpose Vehicle for Closely Held Business Entities

Tujuan penelitian ini adalah menganalisis asas lex spesialis terkait dengan keharmonis-an Undang-Undang Perseroan Terbatas dalam Pendirian Perseroan Daerah. Perusahaan perseroan daerah merupakan salah satu badan usaha dari sejumlah badan usaha yang dikenal dalam sistem hukum di Indonesia. Ciri khas hukum perusahaan di Indonesia, masing-masing jenis perusahaan diatur dengan undang-undang yang terpisah. BUMD diatur dengan Undang-Undang Pemerintah Daerah, sedangkan perseroan terbatas diatur dengan Undang-Undang Perseroan Terbatas. Penelitian ini menggunakan metode yuri-dis normatif, dengan mendalami upaya harmonisasi hukum. Hasil penelitian menunjuk-kan bahwa perseroan daerah pada dasarnya juga perseroan terbatas yang dapat dimiliki sepenuh sahamnya oleh satu pemerintah daerah, namun dalam UUPT, tidak diakomodir sebagai perseroan terbatas dengan saham tunggal dapat didirikan oleh satu pemerintah daerah. Namun dalam praktiknya sebagian notaris berupaya melakukan terobosan yang kemudian diakui oleh pemerintah dengan memberikan status badan hukum pada perseroan yang didirikan sepenuhnya oleh satu pemerintah daerah sebagai satunya pendirinya Perseroda. Hal ini, menimbulkan pertanyaan hukum, apakah landasan hukum yang dapat digunakan oleh notaris dan pemerintah untuk menerobos UUPT untuk memenuhi kaedah yang terdapat dalam Undang-Undang Pemda. Bringing the Harmony of the Limited Liability Law in the Establishment of Regional Company The purpose of this study is to analyze the lex specialist principle related to the harmony of the Law on Limited Liability Companies in the establishment of regional companies. Regional company is one of business entities in Indonesia legal system. The characteristic of company law in Indonesia is each type of company regulated by a separate law. BUMD (regional company) is regulated by the regional government law while limited liability company is regulated by UUPT. This study uses a normative juridical method, by exploring efforts to harmonize the law. The results showed that the regional company is basically also a limited liability company that can be fully owned by regional government, but based on the company law, it is not accommodated as a limited liability company because the company has only a single share which is one local government. However, in practice some of notaries tried to make a breakthrough which was later recognized by the government by giving legal status to regional company. This raises the question of what legal basis can be used by notaries and the government to break through the company law so that it meets the methods contained in the regional government law.

Download Full-text

Capital verification and auditor liability: evidence from China

Managerial Auditing Journal ◽

10.1108/maj-02-2014-1002 ◽

2015 ◽

Vol 30 (6/7) ◽

pp. 657-680 ◽

Cited By ~ 1

Author(s):

Yingfa Lu ◽

Falconer Mitchell ◽

Chris Pong

Keyword(s):

Social Construction ◽

Design Methodology ◽

Field Work ◽

Company Law ◽

Social Construction Of Reality ◽

Content Type ◽

Auditor Liability ◽

Outright Rejection ◽

Business Entities ◽

Chinese Company

Purpose – This paper aims to examine the different perspectives of auditors and non-auditors on this question, along with the rationale and impact of these differences. Chinese company law requires an audit report on paid-up capital when business entities are newly formed or their capital altered, which raises questions regarding the liability of auditors should the business entities fail. Design/methodology/approach – Interviews and a questionnaire survey were conducted to analyse how legislation can impact on interested parties in a relatively immature audit environment. The theories of social construction of reality and symbolic interactionism are used as a basis for explaining the different conceptions of capital verification held by interested parties. Findings – There is a mismatch between the purpose of capital verification and the functions of paid-up capital. Paid-up capital is not a reliable indicator of business liquidity and creditworthiness. Auditors and non-auditors have different understandings about the assurance provided by paid-up capital at the point of company formation or auditing field work, and at the point of actual trading after the company formation or auditing field work. They also differ on the causation between deficient capital verification reports and trading loss. The liability crisis adversely influenced auditors’ perception of the capital verification service, although it did not lead to outright rejection by them. Originality/value – This paper describes an important compliance auditing service in China. By conducting an analysis of the conflicting views of auditors and non-auditors on capital verification, it contributes to the existing literature on the sources of disputes between auditors and other stakeholders, and the efforts to establish a balanced auditor liability regime.

Download Full-text

TRANSFORMASI DAN PENGAWASAN KEUANGAN NEGARA PADA BUMN DENGAN PRINSIP BUSINESS JUDGMENT RULE

Jurnal Hukum Samudra Keadilan ◽

10.33059/jhsk.v16i2.3793 ◽

2021 ◽

Vol 16 (2) ◽

pp. 192-203

Author(s):

Nur Rohim Yunus ◽

Latipah Nasution

Keyword(s):

Board Of Directors ◽

Limited Liability ◽

Company Law ◽

Limited Liability Company ◽

Government Officials ◽

Business Decision ◽

Business Judgment Rule ◽

The Board Of Directors ◽

State Finance ◽

Business Entities

Abstract, State assets in the form of shares of business entities are not state assets, but have been transformed into business entity assets. Likewise, government officials who become Directors/Commissioners and other shareholders have an equal position with private shareholders. The Board of Directors in carrying out their duties and authorities has the authority and protection in every business decision making, but this does not escape supervision through the BJR (Business Judgment Rule) principle, as contained in the Limited Liability Company Law. This study uses a qualitative research method with a statutory approach. The purpose of this study is to understand the criteria for state finances in SOEs and the legal consequences of financial losses and supervision of SOEs. The results of the study stated that the implementation of BJR on the Board of Directors of SOEs could be carried out after fulfilling the terms and conditions of the enactment of BJR. BJR can be implemented because a legal entity is actually subject to the Limited Liability Company law. Keywords: Supervision of SOEs ion; Business Judgment Rules; State Finance Intisari: Kekayaan negara yang berbentuk saham dari badan usaha bukan merupakan kekayaan negara, tetapi telah bertransformasi menjadi kekayaan badan usaha. Demikian terhadap pejabat pemerintah yang menjadi Direksi/Komisaris dan pemegang saham lainnya memiliki kedudukan yang setara dengan pemegang saham swasta. Direksi dalam menjalankan tugas dan wewenang memiliki kewenangan dan perlindungan dalam setiap pengambilan keputusan bisnis, namun ini tak luput dari pengawasan melalui prinsip BJR (Business Judgment Rule), sebagaimana termuat dalam Undang-Undang Perseroan Terbatas. Penelitian ini menggunakan metode penelitian kualitatif dengan pendekatan perundang-undangan. Tujuan penelitian untuk dapat memahami kriteria keuangan negara pada BUMN dan akibat hukum kerugian keuangan dan pengawasan pada BUMN. Hasil penelitian menyatakan bahwa implementasi BJR terhadap Direksi BUMN dapat dilakukan setelah memenuhi syarat dan ketentuan berlakunya BJR. BJR dapat diimplementasikan karena badan usaha berbadan hukum sejatinya tunduk pada undang-undang Perseroan Terbatas. Kata Kunci: Pengawasan BUMN; Business Judgment Rule; Kuangan Negara

Download Full-text

“SANITIZING” CORPORATE POLITICAL EXPENDITURE IN SOUTH AFRICAN CORPORATE GOVERNANCE

Obiter ◽

10.17159/obiter.v37i3.11522 ◽

2016 ◽

Vol 37 (3) ◽

Author(s):

Aubrey Sibanda

Keyword(s):

South Africa ◽

Corporate Governance ◽

Economic Development ◽

South African ◽

Nation Building ◽

Company Law ◽

Financial Resources ◽

Starting Point ◽

Socio Economic Development ◽

Business Entities

Companies have become catalysts of socio-economic development due to various activities or initiatives they undertake in their countries of incorporation. Among the broad range of corporate activities, political expenditure has emerged as a new trend through which companies advance socio-economic development. Whilst there have been mixed reactions to companies availing financial resources to support political objectives, this article submits that, for South Africa, corporate political expenditure is an effective way for the country’s business entities to participate in nation-building, provided the practice is adequately regulated. With reference to developments in other jurisdictions, the article proposes a model to provide a starting point for the regulation of corporate political expenditure under South African company law.

Download Full-text

Voluntary abstention of business entities from enjoying free transfer of funds during pandemic

Pravo i privreda ◽

10.5937/pip2104489j ◽

2021 ◽

Vol 59 (4) ◽

pp. 489-522

Author(s):

Marko Jovanović ◽

Jelena Lepetić

Keyword(s):

Direct Investment ◽

Company Law ◽

Negative Consequences ◽

Business Law ◽

Short Term ◽

Profit Distribution ◽

The Republic ◽

Business Entities ◽

Specific Manifestation

Corona virus pandemic posed great challenges in all spheres of life. Quite naturally, law had to face those challenges, adapt to the "new normal" and bring viable solutions to many problems created by the pandemic. In this paper the authors focus on one specific manifestation of the influence of pandemic on business law - voluntary abstention of business entities from enjoying free transfer of funds. In the Republic of Serbia, this abstention came to effect with entry into force of several laws and bylaws enacted with the aim of neutralizing the negative consequences of the pandemic on economy and business. The voluntary abstention is analysed from the standpoint of company law and the rules on protection of foreign direct investment. After evaluating the prohibition on profit distribution to shareholders, the authors conclude that the enactment of atypical, non-standard measures is necessary during the pandemic and that these measures need to be adopted promptly enough to timely address the problems that they are supposed to solve, but during their enactment one must bear in mind that the short-term benefits should not be off set by long-term damage.

Download Full-text

MENGENAL DOKTRIN DAN PRINSIP PIERCING THE CORPORATE VEIL DALAM HUKUM PERUSAHAAN

Soumatera Law Review ◽

10.22216/soumlaw.v1i2.3744 ◽

2018 ◽

Vol 1 (2) ◽

pp. 380-399

Author(s):

Sandra Dewi

Keyword(s):

Legal Status ◽

Limited Liability ◽

Corporate Law ◽

Company Law ◽

Fiduciary Duty ◽

Legal Form ◽

Business World ◽

Company Directors ◽

Piercing The Corporate Veil ◽

Business Entities

Business entities in the business world are well-known that are already in the form of companies or those that are not yet companies. Based on its legal form, the company is divided into two, namely companies with legal status and those that are not legal entities. As an independent legal entity pursuant to Article 3 paragraph (1) the Limited Liability Company Law stipulates that the responsibility of PT shareholders is limited to the value of shares held in the company. Economically, the element of limited liability of the company's shareholders is an important factor as a motivating bait for the willingness of prospective investors to invest in the company. The formulation of the problem in this paper is: 1) how the piercing doctrine of the corporate veil in corporate law and 2) how to apply the principle of piercing the corporate veil in Indonesia. The type of writing used in this writing is a type of normative legal research. The doctrine of piercing the corporate veil in corporate law can be seen from: a) piercing the corporrate veil; b) the doctrine of fiduciary duty; c) self dealing transaction doctrine; d) doctrine corporate opportunity; e) doctrine businnes judgment rule; f) ultra vires and intra vires. Application of the Piercing Principles of the Corporate Veil in Indonesia: a) company shareholders; b) company founder; c) company directors; and d) commissioners of limited liability companies.

Download Full-text