HERE ARE TWO ALTERNATIVES EXECUTION OF PLEDGING OF SHARES
Before stepping on the practice of execution of pledge of shares, we should understand in advance the definition of lien and the stock itself. According to Article 1150 of the Civil Code, Pledge is “a right that is acquired by a creditor against to moving goods, bodied and bodiless given to him by the debtor or any other person on his behalf to guarantee a debt, and which authorizes the creditor to obtain repayment of goods the precedence over other creditors with the exception of the costs to auction the item and the cost incurred to maintain it, the costs of which should come first.” On the other hand, according to Article 60 paragraph (1) of Law No. 40/2007 on Limited Liability Company (Company Law), shares are moving objects and give rights as referred to Article 52 to the owner. “Because the shares are moving objects, the shares can be pawned. This is confirmed in Article 60 paragraph (2) that mentions “shares may be collateralized by liens or fiduciary as long as it’s not stated…
Read More4 TYPES OF INDUSTRIAL RELATIONS DISPUTES YOU SHOULD KNOW
As a matter of fact, there are restrictions against industrial relations disputes. Not all things can be put under disputes. For example, mutation is the rights of the company. Employees who have an objection and are absent from their duty for more than 5 days may be considered to have resigned. Do not let the company get trapped by the employee’s objection related to a mutation If the problem is attempted to be solved through deliberation involving even a third party (tripartite), it will be judged as an industrial relations dispute. Furthermore, that matter has potentially become a dispute that must be resolved through industrial relations court, althoughthis is not included in the 4 types of industrial disputes that should be resolved in court. Industrial Dispute Law No. 2 of 2004 concerning Industrial Relations Disputes Settlement (“UU PHI”), in Article 1 paragraph 1 provides a definition of industrial disputes as follows: An Industrial Relations Dispute is a difference of opinion resulting in a dispute between employers or an association of employers with workers/labourers or…
Read More10 REASONS CAN LEAD TO THE TERMINATION OF YOUR AGREEMENT
Any agreement made legitimately by the parties is basically valid as law for those who are bound by it. It is a basic principle of contract law, unless at a later time, after the agreement has been signed, some facts that affect the validity of the agreement occur. An agreement cannot be withdrawn or canceled, unless there is an approval from the parties who are bound to it. Or, it may be due to reasons permitted by law. Indonesian Civil Code (KUH Perdata) at least manages 10 reasons of termination agreement, namely: Concerning Payment In this case the debtor has to perform its obligations in accordance with what has been promised to the creditors, either by paying a sum of money or delivering goods that have been promised. The payment can also be interpreted as repayment since the settlement of debts owed to the debtor then the agreement comes to an end. Concerning an Offer of Immediate Payment Followed by Consignment or Custody If the creditor refuses to accept payment, the debtor may offer…
Read MoreHOW TO APPLY FOR ANNULMENT OF ARBITRATION AWARD
Annulment of the arbitration award as stipulated in Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law“) is possible to be proposed by one of the parties of the case. Any party who would like to cancel the arbitration award, must submit the application before the district court. Although there is a time limit that is not longer than 30 days since the annulment request is received. However, the case proceedings remain using civil law procedure as stipulated in Het Indische Reglement (HIR). In the process of hearing the request, the parties of the case are called legally, and they deserve to be investigated and requested to comment on the annulment request, as filed by the applicant. Such application must be filed along with the reasons as stipulated in Article 70 of Arbitration Law. Those reasons are: Letters or documents are filed in the investigation, after adjudication, being recognized as false or stated as false; Once the decision is taken, then those decisive documents are found, which is hidden by…
Read MoreDefinition of cartel, the Business Competition Supervisory Commission (KPPU) and Unfair Competition
Judging from cartel cases in Indonesia, it is important to understand the definition of cartel itself. Cartel practices are also mentioned in Article 11 of Law No. 5 of 1999 on Monopolistic Practices and Unfair Business Competition (Law No. 5/1999). It states: “Business Entity are prohibited from making agreements with rival businesses, which intends to influence prices by adjusting production and or marketing of goods and or services, which may result in monopolistic practices and or unfair business competition”. According to Leo Kusuma in his presentation, to understand the cartel, we would have to understand the principle of monopoly behavior. Understanding monopolies focuses no longer on the number of businesses, but rather the behavior to control the price and product distribution or production capacity. It’s very much possible that monopolistic behavior is displayed in a competitive structure consisting of several companies, usually about 2 to 4 large companies. When a market competition in which a large number of customers, are only served by a few companies, there is a strong early indication for the…
Read MoreLET’S GETTING TO KNOW MORE ABOUT DORMANT COMPANY
Naturally, business aims for profit which is easily described by accounting transactions. What if a company has no accounting transactions? In the business world, this situation is called ‘dormant’. Referring to www.businessdictionary.com, dormant is a status of company/firm which for a prolonged period has no significant financial transaction. So, the term dormant can be simplify as inactive. Dormant is a quite common term for business practice in Indonesia. But, unfortunately, there is no Indonesian law specifically regulates this matter. Even, the Limited Liability Company Act, Law Number 40 of 2007 only slightly mentions about dormant in the explanation section of Article 146 verse 1f. The Article 146 verse (1) stipulates about company dissolution by the court. The complete substance states “The Court can dissolve the company based on: (a) a request of prosecutor’s office, based on the reason that the company has violated the public interest or the company has violated the law; (b) a request of relevant party, based on the reason that the deed of establishment if found to be defect; (c)…
Read MoreHOW TO DETERMINE THE BEST DISPUTE RESOLUTION FORUM IN THE AGREEMENT
It is known that the principle of freedom of contract (pacta sunt servada) in an agreement is stated in Article 1338 Book of Indonesian Civil Code. So, the parties that have agreed upon an agreement are free to decide matters related to the deal, as long as they are not contrary to law, norms that areprevalent in society such as decency and public order. One of those matters is the freedom to determine the choice of dispute resolution forum in the Agreement. If an Agreement has determined Singapore International Arbitration Centre (“SIAC“)as the chosen resolution forum, when a dispute arises , then, the parties are bound by their provisions. The parties concernedcan not request arbitration to any other arbitration institution or ad hoc, because it will be rejected , due to the absolute competence. At the beginning process of applying for arbitration, for example via the Indonesian National Board of Arbitration (“BANI”), a preliminary investigation will be carried out in advance by BANI concerning its competence in examining the application. The Preliminary investigation is…
Read MoreARE TORT CASES ABLE TO BE SOLVED THROUGH ARBITRATION ?
Basically, Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law”) does not provide the limitation of the only tort cases that can be resolved through arbitration. So, in the event of a tort committed by one of the parties which were bound by a treaty binding, the dispute can certainly be resolved through arbitration. It is stipulated in Article 2 of Arbitration Law, that is: “These laws regulate the settlement of disputes or differences of opinion between the parties to a particular legal relationship that has entered into an arbitration agreementwhich expressly states that all disputes or differences of opinion arising or which may arise from the legal relationship will be settled by way of arbitration or through alternative dispute resolution. “ The existence of the phrase: ‘that may arise from the legal relationship’ in Article 2 of the Arbitration Law is the basis for those who feel aggrieved over a tort in order to solve existing dispute through arbitration. So, any dispute categorized as a tort (Article 1365 of…
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