Journal of International Islamic Law, Human Right and Public Policy
Vol. 4 No. 3 (2026): September

An Analysis of Legal Fairness in the Protection of Dividend Rights for Minority Shareholders in Limited Liability Companies

Hermanto (Universitas 17 Agustus 1945 Cirebon)
Suci Hati Handayani (University of 17 August Cirebon)
Ingka Harsani Nasution (University of 17 August Cirebon)



Article Info

Publish Date
26 Jul 2026

Abstract

This article analyzes legal fairness in the protection of dividend rights for minority shareholders in limited liability companies. The issue is significant because dividend distribution represents a fundamental economic right of shareholders, yet minority shareholders often occupy a vulnerable position when corporate decisions are dominated by majority shareholders through the General Meeting of Shareholders. This study aims to examine whether existing legal norms and corporate governance principles provide fair and proportional protection for minority shareholders in dividend-related decisions. The research applies a normative juridical method with statutory and conceptual approaches. Data were collected through literature study and analysis of relevant laws, regulations, legal doctrines, and corporate governance principles; therefore, this study does not involve respondents or informants. The data were analyzed qualitatively through legal interpretation, conceptual analysis, and systematic reasoning. The findings indicate that legal protection for minority shareholders’ dividend rights remains largely formal and depends heavily on transparency, accountability, and good faith in corporate decision-making. Majority control may create potential unfairness when dividend policies are determined without sufficient consideration of minority shareholders’ legitimate economic interests. This study concludes that stronger substantive legal protection and fairer governance mechanisms are necessary to promote equitable dividend distribution and enhance corporate accountability.

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Journal Info

Abbrev

ojs

Publisher

Subject

Religion Law, Crime, Criminology & Criminal Justice

Description

This journal emphasizes specifics in the discourse of Islamic Law and Humanity, as well as communicating actual and contemporary research and problems related to Islamic studies. This journal openly accepts contributions from experts from related scientific disciplines. All articles published do not ...