Proceedings from the 1st International Conference on Law and Human Rights, ICLHR 2021, 14-15 April 2021, Jakarta, Indonesia

Research Article

Problems With the Existence of Organs of Small and Micro Business Limited Company After the Law Is Implemented Number 11 Year 2020 Concerning Creation of Work

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  • @INPROCEEDINGS{10.4108/eai.14-4-2021.2312879,
        author={OK  Isnainul and Sandri  Tarigan and Kartina  Pakpahan and Elvira Fitriyani Pakpahan},
        title={Problems With the Existence of Organs of Small and Micro Business Limited Company After the Law Is Implemented Number 11 Year 2020 Concerning Creation of Work},
        proceedings={Proceedings from the 1st International Conference on Law and Human Rights, ICLHR 2021, 14-15 April 2021, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICLHR},
        year={2021},
        month={10},
        keywords={limited company organ of limited company small and micro enterprises},
        doi={10.4108/eai.14-4-2021.2312879}
    }
    
  • OK Isnainul
    Sandri Tarigan
    Kartina Pakpahan
    Elvira Fitriyani Pakpahan
    Year: 2021
    Problems With the Existence of Organs of Small and Micro Business Limited Company After the Law Is Implemented Number 11 Year 2020 Concerning Creation of Work
    ICLHR
    EAI
    DOI: 10.4108/eai.14-4-2021.2312879
OK Isnainul1,*, Sandri Tarigan1, Kartina Pakpahan1, Elvira Fitriyani Pakpahan1
  • 1: Universitas Prima Indonesia
*Contact email: okisnainul@unprimdn.ac.id

Abstract

Limited Company (LC) in everyday life is closely related to the business world. With the enactment of Law No. 11 of 2020 concerning Job Creation, there are new arrangements for the convenience of Micro and Small Enterprises (MSE), with the ease of doing business with the presence of a LC form that is by the type of MSE. The normative juridical method used in the research, with descriptive nature. The purpose of this study is to analyze the existence of LC Organs for MSEs after the Employment Copyright Act is enacted, the legal consequences of LC established by an individual, the influence of Law No. 40 of 2007 concerning LC. There is a change in the words of the GMS, becoming a decision on the establishment of an individual LC which has the same power as the GMS. The establishment of a LC is carried out by a minimum of two people with a notarial deed, while in the Job Creation Law for the establishment of a company with the MSE criteria; it is established by an individual based on a statement of the establishment made in the Indonesian language without having to use a notarial deed. Before the enactment of the Job Creation Act, the minimum capital for establishing a LC was Rp. 50,000,000 (fifty million rupiahs). However, the enactment of the Job Creation Law resulted in no minimum capital for the establishment of a LC and the presence of an individual LC with the MSE criteria that could be established by an individual.