Theoretical Foundation and Philosophy of Group of Companies as Legal Entity

Try Widiyono

2018

Abstract

The Group of Companies or also referred to as the Holding Company is the strategy of the owner of the company to expand the company's business which originally in a single company into several companies and even into hundreds of companies that stand alone which are all directly and indirectly owned by the ultimate share holder which is usually one family. Companies incorporated in the Company Group are limited liability companies that are subject to Law Number 40 of 2007 concerning Limited Liability Companies. The Group of Companies in Indonesia has not been recognized as a legal entity and has not been regulated by law, but Bank Indonesia and the Financial Services Authority have regulated the Corporate Group for corporate finance that regulates the Legal Lending Limit for companies compiled in the Corporate Group, and related to the fit and proper test for the ultimate share holder. Based on the research using normative law method by seeing the Company Group in terms of legal theory, namely the Legal Entity Theory such as the theory of fiction (Fictie Theorie), Orgaan Theorie (organ theory), juridical reality theory (Juridische Realiteitsleer), Wealth Together Theory (Propiete Collectief Theori ) and the Theory of In-house Assets (ambtelijk Vermorgen), it can be concluded that the Company Group can be given status as a Legal Entity. In connection with the reality of the existence of the Company Group, and as a basis for the rights and obligations of the Group Company as well as legal protection for various parties, it is time for Indonesia to have a law governing this Company Group.

Paper Citation

in Harvard Style

Widiyono T. (2018). Theoretical Foundation and Philosophy of Group of Companies as Legal Entity.In Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI, ISBN 978-989-758-458-9, pages 2378-2382. DOI: 10.5220/0009943023782382

in Bibtex Style

@conference{icri18,
author={Try Widiyono},
title={Theoretical Foundation and Philosophy of Group of Companies as Legal Entity},
booktitle={Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI,},
year={2018},
pages={2378-2382},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009943023782382},
isbn={978-989-758-458-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI,
TI - Theoretical Foundation and Philosophy of Group of Companies as Legal Entity
SN - 978-989-758-458-9
AU - Widiyono T.
PY - 2018
SP - 2378
EP - 2382
DO - 10.5220/0009943023782382