Article 1653 of the civil code divides legal entities into 3 (three), namely :
1. Legal entities established by the government, such as : regional government (provincial government, city government or distric government etc...)
2. Legal entities recognize by the government for examples : associations, religious organizations, community organization, etc...
3. Legal entities establish for specific purpose that doesnot conflict with the law, morality such as : limited liability companies, associations, insurance, shipping, etc...
According to the doctrine, inorder for an agency / associations / bussiness entityto be considered a legal entity (Rechtspersoon). It must fulfill the following requrements :
1. The Existence of separate assets.
2. Have a specific goal.
3. Have their own interests.
4. There is anorderly organization
Legal Entity
Regulation The civil code does not completely and perfectly regulate legal entities. Legal entities are regulated in book II title IX article1653 to article 1665 with the term “Van Zedelijke Lichamen” which is seen as an agreemnet, therefore it is further stated in book III concerning Engagements. Regulation regading legal entities ara contained in :
1. Stb. 1870 no. 64 concerning recognition of legal entities.
2. Stb. 1972 no. 156 concerning the church and religious organizations.
3. Stb. 1939 no. 570 Jo. 717 concerning Indonesian Legal Entities. 4. Stb 1939 no.539 jo 717 about Indonesiache Maatshapij op de Aandelen.
5. Wet Boek van Kopenhandel (WvK) (Commercial Law Book/ KUHDagang) regarding limited liability companies, shipping comapies and insurance associations.
History of Corporate Law In Indonesia
Regulations regarding corporate law were first regulatedin article 36 to56 in the commercial law book (KUHDagang /WvK) which was effective in during the Ducth Colonial period until Indonesia became independent, limited liability companies at that time known as with the title “Naamloze Vennotschap” or “NV”.
Furthermore, starting in 1995, corporate law was regulated in act no 1/1995 concerning Limited Liability Companies called “Perseroan Terbatas” or “PT”.
Due to Act No. 1/1995 is no longer in accordance with legal developments and the needs of people, so further matters concerning coprporate laware regulated by act no. 40/2007 concerning Limited Liability Companies.
