LEGAL ANALYSIS OF LIMITED LIABILITY COMPANIES AFTER BEING DECLARED BANKRUPTCY IN INDONESIA

Abstract

When a debtor is unable to pay their debts and cannot pay them, they may file for bankruptcy. In order to avoid harming connected parties, companies that have been declared bankrupt in this instance must be dissolved and have their legal entity status changed. When a limited liability company is declared bankrupt, it does not instantly cease operations and dissolve; rather, it continues to exist legally. In some situations, the limited liability company stays in business, avoids bankruptcy, and is still able to conduct its operations. This research poses two questions: first, what happens to a Limited Liability Company that files for bankruptcy? Second, what obligations does a Limited Liability Company have when a subsidiary files for bankruptcy? Normative juridical research methodology was applied in this instance. Secondary data is research in law that is done by reading existing literature. According to the study's findings, a general meeting of shareholders must be held before liquidation can begin. This means that, in the event that an LLC is declared bankrupt, its ability to manage and control its assets is also terminated.

Keywords

• legal analysis
• limited liability company
• bankruptcy
• indonesia