Limited
Liability Company
A.
Regulations
A Limited Liability Company
shall be governed by this Law, the Company’s articles of association, and other prevailing laws and regulations[1].
Thus, there are three kinds of regulations that govern the company.
The first is Company Law. Second is Articles of Association. And third is other
Prevailing Laws and Regulations. And this last kind is the most type. We can
found Laws and regulations in all sectors relating to the Company actifity.
Let's just say, when the Company will conduct its business, like making the
contract with other subject of law, there are rules about engagement as Civil
Law Books (KUHPerdata/BW), etc.. In cooperation, such as BOT, JVA, etc. there are
any own rules. To pay taxes there are also related with the Company Tax
Regulations, as well as in the Company's relationship with Labour, Workers,
Investors, Environment, Government, and others.
B.
Definition
A Limited Liability Company,
hereinafter referred to as a Company, is a legal
entity constituting a capital
association, established by virtue of an agreement, conducting business activities with authorized capital entirely divided into shares and complying with the requirements provided in this Law and its implementing
regulations.[2]
Therefore the requirements to establishment of Limited Liability
Company based on the definition above is:
- A legal entity.
- Capital Association, meaning established by more than one person.
- Agreement. This is contained in the Deed of Established of the Limited Liability Company.
- Authorized Capital. we will see about this in the next article.
- All of the Capital Base of Company's is divided into shares.
- Comply with the requirements of the Company Act (40/2007) and other related regulations.
With this definition, the question that may arise is, whether only
after the specified requirements are met by definition above, can be said to be
a Limited Liability Corporation?. And of course yes. But of the six elements is
requirements to establishment of Limited Liability Company in the definition
above, the sixth element was that so many of its provisions must be met and we
can found in every sector of company activity. So if it is just a legal entity,
established with more than one person, have Deed of Established, and the Authorized
Capital in Stock, then it can not be said as a Limited Liability Company, many
other terms contained in the Company Law No. 40 of 2007, and other related
regulations.
Regards
