Description
Background of Company Closure / Dissolve Company:
The general principle on dissolution of Limited Liability Company is stipulated under Article 143 paragraph (1) of Law No. 40 of 2007 regarding Limited Liability Company, which provides that the dissolution of company does not automatically erase the legal status of the company. The legal status would be lost at the end of the liquidation process and accountability of liquidator has been accepted by the General Meeting of Shareholder or District Court.
Article 142 of Company Law elaborates that a company can be dissolute based on the following occurrence:
- Based on the resolution of General Meeting of Shareholder;
- Due to the termination of the company’s duration as stipulated in the articles of association;
- Based on the court order;
- Due to the revoked bankruptcy statement based on binding order of the commercial court, and the bankrupt assets of the company is not sufficient to pay the bankruptcy cost;
- Due to the condition that the bankrupt assets of the company has been declared in the condition of insolvency as regulated in the Law regarding Bankruptcy and the Suspension of Debt Payment; or
- Due to the revocation of the company’s business permit, so that the company is obliged to conduct liquidation in accordance with prevailing regulation.