DOI: https://doi.org/10.14710/dilrev.9.1.2024.1-18

ONE-PERSON LIMITED LIABILITY COMPANY: CONSIDERING COMPANY’S ORGAN GOVERNANCE OF THE INDONESIAN LEGAL ENTITIES FOR MICRO AND SMALL ENTERPRISES

*Ayu Kholifah  -  Faculty of Islamic Economics and Business, UIN Prof. K.H. Saifuddin Zuhri, Indonesia
Shelly Kurniawan  -  Faculty of Law, Universitas Kristen Maranatha, Indonesia
Open Access Copyright (c) 2024 Diponegoro Law Review under http://creativecommons.org/licenses/by-nc-sa/4.0.

Citation Format:
Abstract

The government continues to strive to improve the ease of doing business, one of which is legitimizing the existence of a new entity intended for micro and small enterprises (MSEs). The entity is a One-Person Limited Liability Company, which is familiar for particular countries with higher ease of doing business than Indonesia. However, this new business form for MSEs is unique and has different characteristics from other countries. The new regulation restricts the founder and shareholders, who can only be natural persons and cannot be more than one. The problem is that the law obscurity of the company's organ emerges not following previous regulations because there is no obligation to have supervisory bodies on it. Being the only different entity can be an advantage, but it can also be a rash act. This normative legal research uses the comparative law method to identify problems in statutory regulation. The result shows a legal vacuum in the new regulation of Indonesian one-person companies’ organs, whether they should implement the one-tier board or have the option to adopt the two-tier board system. The thing to consider is supervisory bodies should remain within an entity with limited liability regardless of its system.

Fulltext View|Download
Keywords: Legal Entity; One-Person Company; Governance; Board Structure

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
TRANSFER OF INTELLECTUAL PROPERTY RIGHT AS A COMPANY ASSET IN BANKRUPTCY IN INDONESIA THE RELEVANCE OF ‘CHARACTER WITNESS’ TESTIMONY IN CRIMINAL CASES IN INDONESIA ILLEGAL LOGGING ENFORCEMENT: DYNAMICS OF PENAL SANCTIONS IN KEBUMEN COURT More recent articles
Most cited articles
REGULATIONS FOR E-COMMERCE AGREEMENT ACCORDING TO ICT ACT AND TITLE III OF INDONESIAN CIVIL CODE PROTECTION AND REHABILITATION FOR WOMEN VICTIMS OF VIOLENCE ACCORDING TO INDONESIAN LAW (STUDY ON CENTRAL JAVA GOVERNMENT'S HANDLING THROUGH KPK2BGA) IMPLEMENTATION OF LEGAL PROTECTION BY THE GOVERNMENT IN ORDER TO EMPOWERMENT OF MICRO SMALL MEDIUM ENTERPRISE TO REALIZE THE JUSTICE ECONOMY (Research Study: The Office of Cooperative and Micro Small and Medium Enterprise Province of Central Java) DEMOCRATIC CHALLENGES OF INDONESIA IN THE SOCIAL MEDIA ERA THE FUNCTION OF IDEAL LAW IN PREPARATION REGULATION LEGISLATION IN ORDER TO CREATING EQUITABLE REGIONAL DEVELOPMENT More cited articles
  1. Arief, Anggreany, and Rizki Ramadani. “Omnibus Law Cipta Kerja Dan Implikasinya Terhadap Konsep Dasar Perseroan Terbatas.” Al-Adalah: Jurnal Hukum dan Politik Islam 6, no. 2 (2021): 106–120. https://doi.org/10.35673/ajmpi.v6i2.1550
  2. Asmara, Teguh Tresna Puja, Isis Ikhwansyah, and Anita Afriana. “Ease of Doing Business: Gagasan Pembaruan Hukum Penyelesaian Sengketa Investasi Di Indonesia.” University Of Bengkulu Law Journal 4, no. 2 (2019): 118–136. https://doi.org/10.33369/ubelaj.4.2.125-143
  3. Asri, Ardison. “Doktrin Piercing The Corporate Veil Dalam Pertanggung Jawaban Direksi Perseroan Terbatas.” Jurnal Ilmiah Hukum Dirgantara 8, no. 1 (2017): 79–92. https://doi.org/10.35968/jh.v8i1.138
  4. Van den Berghe, Lugart. Corporate Governance in A Globalising World: Convergence or Divergence? New York: Kluwer Academic Publisher, 2002
  5. Biro Humas, Hukum dan Kerjasama. “Mengenal Konsep Perseroan Perseorangan Di Indonesia.” Kementerian Hukum Dan Hak Asasi Manusia Republik Indonesia. Last modified 2021. Accessed October 2, 2021. https://www.kemenkumham.go.id/berita-utama/mengenal-konsep-perseroan-perseorangan-di-indonesia
  6. Block, David, and Anne-Marie Gerstner. “One-Tier vs. Two-Tier Board Structure: A Comparison Between the United States and Germany.” In Comparative Corporate Governance and Financial Regulation, 19, 2016. https://scholarship.law.upenn.edu/fisch_2016/1/
  7. Efendi, A’an. “Prospek Perseroan Pemegang Saham Tunggal Tanpa Perkecualian Untuk Kemudahan Bisnis.” Veritas et Justitia 6, no. 2 (2020): 343–369. https://doi.org/10.25123/vej.v6i2.3694
  8. Fuady, Munir. Doktrin-Doktrin Modern Dalam Corporate Law Dan Eksistensinya Dalam Hukum Indonesia. Bandung: Citra Aditya Bakti, 2014
  9. ———. Perseroan Terbatas Paradigma Baru. Bandung: Citra Aditya Bakti, 2017
  10. Harahap, Yahya. Hukum Perseroan Terbatas. 6th ed. Jakarta: Sinar Grafika, 2016
  11. Ibrahim, Johnny. Teori Dan Metodologi Penelitian Hukum Normatif. Revised. Malang: Bayumedia Publishing, 2007
  12. Jaya, Febri. “Potensi Konflik Kepentingan Dalam Pendirian Badan Hukum Perorangan Pasca Revisi Undang-Undang Perseroan Terbatas Dalam Omnibus Law.” Kosmik Hukum 21, no. 2 (2021): 115–123. https://doi.org/10.30595/kosmikhukum.v21i2.10310
  13. Kao, Mao-Feng, Lynn Hodgkinson, and Aziz Jaafar. “Ownership Structure, Board of Directors and Firm Performance: Evidence from Taiwan.” Corporate Governance: The International Journal of Business in Society 19, no. 1 (2019): 189–216. https://doi.org/10.1108/CG-04-2018-0144
  14. Khairandy, Ridwan. “Pembaharuan Hukum Ekonomi Indonesia.” Jurnal Hukum IUS QUIA IUSTUM 1, no. 1 (1994): 13–19. https://doi.org/10.20885/iustum.vol1.iss1.art2
  15. Khan, Tahseen Mohsan, Safia Nosheen, and Naveed ul Haq. “Corporate Governance Mechanism and Comparative Analysis of One-Tier and Two-Tier Board Structures: Evidence from ASEAN Countries.” International Journal of Disclosure and Governance 17 (2020): 61–72. https://doi.org/10.1057/s41310-020-00075-0
  16. Kraakman, Reinier H., and John Armour. The Anatomy of Corporate Law: A Comparative and Functional Approach. Oxford University Press, 2017. https://doi.org/10.1093/acprof:oso/9780198739630.001.0001
  17. Maassen, Gregory F., and Frans A. J. Van Den Bosch. “On the Supposed Independence of Two-Tier Boards: Formal Structure and Reality in the Netherlands.” Corporate Governance 7, no. 1 (1999). https://doi.org/10.1111/1467-8683.00126
  18. Maassen, Gregory Francesco. An International Comparison of Corporate Governance Models: A Study on The Formal Independence and Convergence on One-Tier and Two-Tier Corporate Boards of Director in The United States of America, the United Kingdom and the Netherlands. Amsterdam: SpencerStuart, 2020
  19. Martín, C. José García, and Begoña Herrero. “Boards of Directors: Composition and Effects on the Performance of the Firm.” Economic Research-Ekonomska Istraživanja 31, no. 1 (2018): 1015–1041. https://doi.org/10.1080/1331677X.2018.1436454
  20. Marzuki, Peter Mahmud. Penelitian Hukum. Revised. Jakarta: Kencana, 2013
  21. De Moor, Charlotte. “Board Effectiveness: One-Tier versus Two-Tier Boards.” University of Ghent, 2014
  22. Negara, Tunggul Ansari Setia. “Normative Legal Research in Indonesia: Its Originis and Approaches.” Audito Comparative Law Journal (ACLJ) 4, no. 1 (2023): 1–9. https://doi.org/10.22219/aclj.v4i1.24855
  23. Nur, Ahmad Mawardi. “Pertanggungjawaban Direksi Bumn (Persero) Yang Melakukan Perjanjian Kerjasama Tanpa Persetujuan RUPS Yang Mengakibatkan Kerugian Keuangan Negara.” Jurnal Syntax Admiration 1, no. 8 (2020): 1048–1060. https://doi.org/10.46799/jsa.v1i8.153
  24. Pangesti, Shinta. “Penguatan Regulasi Perseroan Terbatas Perorangan Usaha Mikro Dan Kecil Dalam Mendukung Pemulihan Ekonomi Masa Pandemi Covid-19.” Jurnal Rechts Vinding: Media Pembinaan Hukum Nasional 10, no. 1 (2021): 117–131. http://dx.doi.org/10.33331/rechtsvinding.v10i1.650
  25. Patel, Bhavna P. “One Person Company: Recent Trends in Business.” International Journal of Research and Analytical Reviews 3, no. 1 (2016): 124–129. http://ijrar.com/upload_issue/ijrar_issue_2035.pdf
  26. Pillai, Rekha, and Husam-Aldin Nizar Al-Malkawi. “On the Relationship between Corporate Governance and Firm Performance: Evidence from GCC Countries.” Research in International Business and Finance 44 (2018): 394–410. https://doi.org/10.1016/j.ribaf.2017.07.110
  27. Pramono, Nindyo. Hukum PT Go Public Dan Pasar Modal. Yogyakarta: Andi, 2013
  28. Pramono, Nindyo, and Sularto Sularto. Hukum Kepailitan Dan Keadilan Pancasila – Kajian Filsafat Hukum Atas Kepailitan Badan Hukum Perseroan Terbatas Di Indonesia. Yogyakarta: Andi, 2019
  29. Pratiwi, Wiwin Budi. “Individual Companies as New Legal Entities in Law Number 11 of 2020 on Job Creation.” Nurani Hukum : Jurnal Ilmu Hukum 4, no. 1 (2021): 9–19. https://doi.org/10.51825/nhk.v4i1.11266
  30. Putri, Aliza Madina, and Paramita Prananingtyas. “Existence And Characteristics Of Sole Proprietorship In Indonesia.” Diponegoro Law Review 7, no. 2 (2022): 245–261. https://doi.org/10.14710/dilrev.7.2.2022.245-261
  31. Reimann, Mathias, and Reinhard Zimmermann, eds. The Oxford Handbook Of Comparative Law. Oxford University Press, 2019. https://doi.org/10.1093/oxfordhb/9780199296064.001.0001
  32. Santoso, Budi. “Existence Of Sole Proprietorship In Business Activities In Indonesia.” International Journal of Scientific & Technology Research 9, no. 01 (2020): 1646–1649. https://www.ijstr.org/final-print/jan2020/Existence-Of-Sole-Proprietorship-In-Business-Activities-In-Indonesia.pdf
  33. Simamora, Y. Sogar. “Karakteristik, Pengelolaan Dan Pemeriksaan Badan Hukum Yayasan Di Indonesia.” Jurnal Rechts Vinding: Media Pembinaan Hukum Nasional 1, no. 2 (2012): 175–186. http://dx.doi.org/10.33331/rechtsvinding.v1i2.95
  34. Sjawie, Hasbullah F. Direksi Perseroan Terbatas Serta Pertanggungjawaban Pidana Korporasi. Jakarta: Kencana, 2017
  35. Syakhroza, Akhmad. “Best Practices Corporate Governance Dalam Konteks Kondisi Lokal Perbankan Indonesia.” Manajemen Usahawan 32, no. 06 (2003): 13–20. https://lontar.ui.ac.id/detail?id=114433#
  36. Wesna, Putu Ayu Sriasih. “Indonesia’s National Economic Recovery Through the Convenience of Companies Establishing of Micro and Small Enterprises in the Job Creation Act.” Journal Research of Social Science, Economics, and Management 1, no. 8 (2022): 1086–1094. https://doi.org/10.59141/jrssem.v1i8.128
  37. Directive 2009/102/Ec Of The European Parliament And Of The Council of 16 September 2009 in the Area of Company Law on Single-Member Private Limited Liability Companies, 2009
  38. Law No. 11 of 2020 on Job Creation, 2020
  39. Law No. 20 of 2008 on Micro, Small, and Medium Enterprises, 2008
  40. Law No. 40 of 2007 on Limited Liability Company, 2007
  41. Malaysian Companies Act, 2016
  42. “Naskah Akademis Rancangan Undang-Undang Tentang Cipta Kerja.” Badan Pembinaan Hukum Nasional. Last modified 2020. Accessed September 29, 2021. https://bphn.go.id/data/documents/na_cipta_kerja.pdf
  43. Singapore Companies Act, n.d

Last update:

No citation recorded.

Last update: 2024-11-20 18:19:07

No citation recorded.