Ipso Jure
Vol. 1 No. 12 (2025): Ipso Jure - January

Legal Protection for Minority Shareholders in Limited Liability Companies According to the PT Law

Herry Polontoh (Faculty of Law, Cendrawasih University)
Nurul Fadhilah (Sriwijaya University)
Harry A Tuhumury (Yapis Papua University)
Tamaulina Br Sembiring (Pembangunan Panca Budi University)



Article Info

Publish Date
27 Jan 2025

Abstract

Minority shareholders play an important role in the ownership structure of Limited Liability Companies (PT), but often face challenges due to the dominance of majority shareholders. This power imbalance threatens minority rights such as access to information, dividend distribution, and voting rights in General Meetings of Shareholders (GMS). Law No. 40/2007 on Limited Liability Companies (PT Law) provides legal protection for minority shareholders, but its implementation still faces obstacles such as weak supervision, lack of legal understanding, and regulatory gaps. This research uses a normative juridical method to analyze legal protection for minority shareholders, including a review of legal norms, doctrines, and court decisions. The results show that although the Company Law has provided a legal foundation, there are still gaps between ideal norms and business practices, such as manipulation of GMS results by the majority or limited transparency. Regulatory reform is needed to strengthen supervision, increase sanctions, and adopt international best practices, such as appraisal rights in the United States. These measures are expected to create more inclusive, fair and sustainable corporate governance, while increasing investor confidence in Indonesia's capital market.

Copyrights © 2025






Journal Info

Abbrev

IJJ

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

Ipso Jure is an international, peer-reviewed, open access journal dedicated to advancing scholarly research and discourse in the field of law, with a particular emphasis on the principles of the rule of law. The journal aims to provide a platform for academics, legal practitioners, policymakers, and ...