Dec

19

Company Wind Up in Indonesia

Liquidation, or the winding up of a company, is a process during which a company’s assets are seized and realized – that is, converted into cash. This money is typically then used to pay off the company’s debts and liabilities.

The process ensures a fair distribution of a company’s assets between its creditors, members, and shareholders, and results in the termination of the company’s existence once all debts and liabilities have been paid.

Pursuant to Article 142 par. (1) of Law no. 40 Year 2007 regarding Limited Liability Law, liquidation may happen due to:

  1. A decision made in a General Meeting of Shareholders (“GMS”);
  2. The expiration of the incorporation period determined in the articles of association;
  3. A court ordered decision;
  4. On a revocation of bankruptcy pursuant to a decision of the commercial court which has absolute legal effect, the company’s bankruptcy asset is not insufficient to pay the bankruptcy cost;
  5. The asset which has been declared bankrupt is in insolvency as regulated by Insolvency Law; or
  6. The revocation of the company’s business permit, forcing the company to be liquidated in accordance with the regulation.

The appointment of the liquidator shall be determined by the GMS or, in the event of the GMS does not appoint any liquidator, the director of the company. The liquidator will sell the company’s asset priced by the independent appraisal, then allocate the income to any existing creditors of the company. If there is leftover balance, it will be shared with shareholders in accordance with the share ownership structure or by an agreement made by and between shareholders.

Furthermore, for any shareholder assets not registered as a company asset, in the event of a company wind up, this asset will be returned to the owner or shareholder as long as he or she is able to prove ownership.

We at Schinder Law Firm have experience assisting many clients in the process of winding up companies. Should you require further information on this subject, or need our services for winding up, please feel free to let us know.

About the author:

 

WISNU TIKORIAJI Wisnu Tikoriaji
Wisnu earned his bachelor degree in law (Sarjana Hukum) from Universitas Padjajaran in 2016 and joined Schinder Law Firm as a junior associate. While in law school, he was actively involved in a variety of student activities and organizations such as Asian Law Student Association (ALSA).

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.