Overview

Usually, the running of a large-scale, limited-liability company involves plenty of involvement, both direct and indirect, from various parties, including employees, directors, commissioners, shareholders, general meetings of shareholders and so forth. While each of these parties has a specific contribution to make in terms of the business operations of the relevant companies, questions have now emerged regarding which parties retain true control over companies, as well as the true nature of corporate control itself. 

Unfortunately, despite continuous economic growth, Law No. 40 of 2007 on Limited-Liability Companies (“Company Law”), as amended through Law No. 11 of 2020 on Job Creation (“Job-Creation Law”), which serves as the legal framework for the operations of limited-liability companies, contains few or no provisions that specifically address matters pertaining to the issue of corporate control. This may ultimately lead to a lack of protection for investors, along with several other negative repercussions, including an elevated risk of money laundering, tax evasion, asset concealment and so forth.