Legal Protection on Share Transfer Owned by a Foundation to the Affiliated Company

DOI

10.2991/aebmr.k.200513.042How to use a DOI?

Keywords

legal protection, foundation, affiliated

Abstract

The foundation’s management in transferring, transferring and selling the foundation’s wealth is limited in accordance with article 5 paragraph (1) of Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations. And also in article 38 paragraph (1) it is stated that foundations are prohibited from entering into agreements with organizations affiliated with the foundation, the builder, the management and / or supervisors of the foundation, or someone who works for the foundation. This research is a study of legal protection for the sale of shares owned by the Kartika Eka Paksi Foundation to the company conducted by the foundation’s management which is affiliated with the company and its legal consequences. Research method used in this search is an descriptive analytic research by using juridical normative approach, namely research that puts an emphasis on the secondary data and data used are secondary and tertiary data, namely data obtained through library research and other supporting data related to the topic of discussion. Basically the foundation’s executive board is prohibited to enter into an agreement with an organization affiliated to the company, governing board, executive board and/or supervising board of the foundation, or someone working to the company, except if the agreement is useful for the foundation/does not harm the foundation in order to achieve the foundation’s objectives. Legal consequence of an agreement which does not meet the objective requirements should be null and void by the law, however if the agreement is in form of authentic deed irrevocably and may be considered non-existent, however the annulment must be submitted to the court.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rokhmat
PY  - 2020
DA  - 2020/05/20
TI  - Legal Protection on Share Transfer Owned by a Foundation to the Affiliated Company
BT  - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)
PB  - Atlantis Press
SP  - 197
EP  - 200
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200513.042
DO  - 10.2991/aebmr.k.200513.042
ID  - 2020
ER  -