ENGLISH EDITION
THE PROCESS OF COMPANY DISSOLUTION IN INDONESIA
Based on the Company Law, the Law Number 40 of 2007 Regarding Limited Liability Company, a company can be dissolved by way of a resolution from the General Meeting of Shareholders, a court decision or the expiration of the corporate term based on its articles of associations.
In case any of the following occurs, a company will also be dissolved:
- Subsequent to a commercial court’s decision revoking a bankruptcy declaration whereas the company’s bankruptcy estate is not sufficient to cover the bankruptcy-process expenses.
- The business license is revoked, causing liquidation of the company’s assets in accordance with prevailing laws and regulations (as applies to specific business licenses such as banking and insurance or other financial services business licenses).
A company’s legal entity status remains solid following the dissolution, however, it must also be liquidated after the dissolution. Unless required specifically for the liquidation, a company is not allowed from taking any legal actions following the dissolution. For any legal actions taken following the dissolution, the Board of Directors and the Board of Commissioners will be jointly and severally liable.
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Prepared by co-writer Azriel Viero, Universitas Padjajaran – Paralegal
Reference:
Law Number 40 of 2007 Regarding Limited Liability Company.
