Plenary ruling hearing of the judicial review of the Limited Liability Company Law, Thursday (14/2) in the Plenary Courtroom of the Constitutional Court. Photo by Humas MK/Ganie.

JAKARTA, Public Relations of the Constitutional Court—The Constitutional Court (MK) rejected the judicial review of the provision on liquidators as stipulated in Law No. 40 of 2007 on Limited Liability Companies (PT Law), Thursday (14/2/2019) in the Plenary Courtroom of the Constitutional Court. The constitutional justices viewed the petition not having legal grounds.

In the petition, several liquidators affiliated with the Indonesian Liquidator Profession Association (PPLI) were registered as Petitioners of case No. 29/PUU-XVI/2018. They questioned the absence of clear requirements related to the liquidator profession. This has led to legal uncertainty and criminalization threat of the Petitioners\\' profession. The Petitioners said that the factual losses that they suffered are that many non-Indonesian citizens (foreign) liquidators conduct liquidation practices on Indonesian legal entities or foreign companies in Indonesia. On the other hand, the potential loss that liquidators can suffer is the absence of legal protection due to unclear definition of the liquidator. This is seen as a cause to the criminalization of the liquidator profession. (ARS/LA/Yuniar Widiastuti)

Deputy Chief Justice Aswanto, when reading the legal considerations of the Constitutional Court, said that the Petitioners\\' argument that the liquidator authority carried out by the board of directors not independent and have potential conflict of interest was an excessive and unfounded concern. He explained that in carrying out their duties and responsibilities, the liquidator authority carried out by directors and liquidators appointed by the GMS were always monitored and could be given advice by the board of commissioners.

"They can also be temporarily dismissed if they are suspected of being negligent in carrying out their duties and responsibilities. They can also be dismissed permanently if the reason for temporary dismissal by the board of commissioners is accepted at the GMS," he said firmly.

Moreover, Justice Aswanto said, there were other sanctions for negligence of both liquidators from the directors and the GMS-liquidators on actions that caused losses to both the company and other parties. This includes the fact that creditors and liquidators can be sued personally or jointly.

The Court is of the opinion that the argument of the Petitioners that the liquidator must be Indonesian citizens and directors cannot act as liquidators, as stipulated in Article 142 paragraph (3) of Law 40/2007, has no legal grounds,” he stressed. (Arif Satriantoro/LA/Yuniar Widiastuti)