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Contact Name
Agus Budianto
Contact Email
agus.budianto@uph.edu
Phone
+622125535168
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lexprospiciteditor@gmail.com
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Kampus Pascasarjana Universitas Pelita Harapan Plaza Semanggi lt. 16, Jl. Jend. Sudirman No. 50, RT.1/RW.4, Karet Semanggi, Kecamatan Setiabudi, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12930
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Kota tangerang,
Banten
INDONESIA
Lex Prospicit
ISSN : 29881781     EISSN : 29881773     DOI : -
Core Subject : Social,
Lex Prospicit is a scientific journal published by the Master of Law Study Program, Faculty of Law, Universitas Pelita Harapan in collaboration with Asosiasi Advokat Indonesia (AAI) and serves as a venue for scientific information in the field of law resulting from scientific research or research-based scientific law writing. The articles published in this journal cover a broad range of topics, including Business Law, Antitrust and Competition Law, Intellectual Property Rights Law, Criminal Law, International Law, Constitutional Law, Administrative Law, Agrarian Law, Health Law, Adat Law, Environmental Law, Banking Law, Cyber Law, Bankruptcy Law, WTO Law, Investment Law, Tax Law, Human Rights Law, ADR and Arbitration Law, and Labor Law.
Arjuna Subject : Ilmu Sosial - Hukum
Articles 43 Documents
Problema Kewajiban Pelaku Usaha untuk Membuat Pemberitahuan Pelaksanaan Aksi Korporasi ke Komisi Pengawas Persaingan Usaha Wonggo, Jeremy; Ketrina, Amanda
Lex Prospicit Vol. 2 No. 1: February 2024
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v2i1.7055

Abstract

There are regulations that require business entities to notify the implementation of corporate actions such as mergers, consolidations and takeovers to the KPPU. Violations of these regulations tend to dominate cases tried by the KPPU recently. Even though this regulation has good intentions to prevent monopolistic practices and unfair business competition, in practice it is very detrimental to the position of business entities and has the potential to cancel corporate actions that have previously been approved by the Minister. The aim of this research is to find a format for regulating the obligations of business actors in making corporate actions to the KPPU. The method used in this research is normative juridical, using secondary data. The research results show that corporate actions are accompanied by prohibited agreements, prohibited activities, and/or abuse of dominant positions. This regulation uses a rule of reason approach, where it is necessary to carry out prior proof/assessment regarding the impact on business competition carried out by the KPPU using various analyses. In addition, there are regulations that require business actors who carry out corporate actions to notify the KPPU a maximum of 30 (thirty) days from the effective date. This notification obligation is only required for transactions that cause the asset value to exceed 2 trillion rupiah (20 trillion for the banking business sector) and/or a transaction value of 5 trillion rupiah. In this case, there is ineffectiveness in regulating notification obligations for business actors because such notifications are very detrimental to business actors and only make tasks easier which should be the responsibility of the KPPU.Bahasa Indonesia Abstrak: Terdapat pengaturan yang mewajibkan badan usaha untuk melakukan pemberitahuan pelaksanaan aksi korporasi seperti penggabungan, peleburan, dan pengambilalihan ke KPPU. Pelanggaran atas aturan tersebut cenderung mendominasi kasus yang diadili oleh KPPU belakangan ini. Walaupun aturan ini bertujuan baik untuk mencegah terjadinya praktek monopoli dan persaingan usaha tidak sehat tetapi dalam prakteknya sangat merugikan posisi badan usaha hingga potensi pembatalan aksi korporasi yang sebelumnya telah disetujui oleh Menteri. Tujuan dari penelitian ini untuk mencari format tentang pengaturan kewajiban pelaku usaha dalam membuat aksi korporasi ke KPPU. Metode yang digunakan dalam penelitian ini adalah normatif yuridis, dengan menggunakan data sekunder. Hasil penelitian menunjukkan bahwa aksi korporasi yang disertai dengan adanya perjanjian yang dilarang, kegiatan yang dilarang, dan/atau penyalahgunaan posisi dominan. Pengaturan ini menggunakan pendekatan rule of reason, di mana perlu dilakukannya pembuktian/penilaian terlebih dahulu mengenai dampaknya terhadap persaingan usaha yang dilakukan oleh KPPU dengan menggunakan berbagai analisis. Selain itu, terdapat pengaturan yang mewajibkan pelaku usaha yang melakukan aksi korporasi untuk memberitahukannya kepada KPPU maksimal 30 (tiga puluh) hari sejak tanggal berlaku efektifnya. Kewajiban pemberitahuan tersebut hanya diwajibkan untuk transaksi yang menyebabkan nilai aset melebihi 2 triliun rupiah (20 triliun untuk bidang usaha perbankan) dan/atau nilai transaksi 5 triliun rupiah. Dalam hal ini, terjadi ketidakefektifan dari pengaturan kewajiban pemberitahuan bagi pelaku usaha karena pemberitahuan tersebut sangat merugikan pelaku usaha dan hanya mempermudah tugas yang seharusnya menjadi tanggung jawab KPPU.
Penerapan Prinsip Business Judgement Rule Pada Badan Usaha Milik Negara Dina, Monica Elizabeth
Lex Prospicit Vol. 3 No. 1: February 2025
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v3i1.7210

Abstract

In implementing business judgment rule, State-Owned Enterprises must carefully consider financial aspects, including a comprehensive risk-benefit analysis, and ensure that decisions taken support the long-term goals of the SOE. This study aims to analyze the extent to which the application of the BJR principle in SOE decision-making includes aspects of transparency and accountability and to identify best practices in achieving transparency and accountability in SOE decision-making. This study uses a qualitative research method with a descriptive analytical approach. The literature study on the application of BJR in SOEs provides legal protection for directors in making decisions that are oriented towards the interests of the company. This principle provides flexibility to directors to make appropriate business decisions by considering the long-term interests of the company. Bahasa Indonesia Abstrak: Dalam penerapan business judgement rule, Badan Usaha Milik Negara harus mempertimbangkan aspek keuangan dengan cermat, termasuk analisis risiko dan manfaat yang menyeluruh, serta memastikan bahwa keputusan yang diambil mendukung tujuan jangka panjang BUMN. Penelitian ini bertujuan menganalisis sejauh mana penerapan prinsip BJR dalam pengambilan keputusan BUMN mencakup aspek transparansi dan akuntabilitas serta mengidentifikasi praktik terbaik dalam mencapai transparansi dan akuntabilitas dalam pengambilan keputusan BUMN. Penelitian ini menggunakan metode penelitian kualitatif dengan pendekatan deskriptif analitik studi literatur penerapan BJR pada BUMN memberikan perlindungan hukum bagi direksi dalam pengambilan keputusan yang berorientasi pada kepentingan perusahaan. Prinsip ini memberikan fleksibilitas kepada direksi untuk membuat keputusan bisnis yang tepat dengan mempertimbangkan kepentingan jangka panjang perusahaan.
Legal Standing of Land Ownership for Mixed-Marriages Between Balinese Wives and Foreign Husbands in Bali Mirabel, Aurellia Valeda
Lex Prospicit Vol. 2 No. 1: February 2024
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v2i1.7253

Abstract

The influx of foreign visitors to Bali has naturally led to increased interaction between foreign nationals and the local Balinese population. With mixed-marriages, there are special provisions for the nationality of the spouse, the nationality of the spouse, the nationality of the children, and property in the marriage.  Therefore, awareness is needed, especially for people of mixed-marriages to understand the provisions that apply to mixed-marriage spouses. This study uses normative juridical law which is a normative legal approach. The research emphasises the need for foreign nationals to understand the special provisions and restrictions for land ownership compared to Indonesian citizens. The Basic Agrarian Law of Indonesia (UUPA) governs land ownership regulations for mixed-marriages in Bali. Foreigners in Bali can acquire the right to use land through a Right to Use (Hak Pakai) or enter into leasehold agreements with Indonesian citizens or legal entities following to asas nasionalitas. However, land ownership rights are reserved exclusively for Indonesian citizens involved in mixed-marriages. The research highlights the influence of Hukum Adat, Balinese customary law, on land ownership in Bali. Mixed-marriage spouses should be aware of the regulatory disparities that arise after marriage and necessitate the arrangement of asset division. The customary law in Bali is in line with the existing statutory law in Indonesia.
Perlindungan Hukum Atas Saldo Uang Elektronik yang Hilang Adam, Yheskiel Januar; Inkiriwang, Timothy Joseph
Lex Prospicit Vol. 3 No. 1: February 2025
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v3i1.7743

Abstract

Using e-money has risks, one of which is losing your balance. Loss of e-money balance can occur due to various factors, such as lost cards, hacked cards, or transactions carried out by irresponsible parties. The purpose of this research is to analyze if the current regulations sufficient to provide legal protection for e-money users, ways to improve the security of the e-money system to prevent balance loss, as well as ways to improve the identification of parties responsible for lost e-money balances. The research method used in this research is normative-empirical legal research with quantitative descriptive analysis. Legal protection for electronic money balances in Indonesia is still not completely adequate. This is because there are several factors that can hinder legal prosecution by e-money users, such as the difficulty of identifying the party responsible for lost balances, the difficulty of proving that there are defects in goods or services and the lack of knowledge of e-money users about legal protection. There are several ways to improve the security of the e-money system to prevent balance loss, namely, using more sophisticated security technology, increasing e-money users' awareness of security and increasing supervision of e-money issuers. There are several ways to increase the identification of parties responsible for lost e-money balances, namely providing obligations to e-money issuers to store e-money transaction data for a certain period of time, increasing cooperation between related parties, such as the government , e-money issuers, and internet service providers, and with improvements in regulations, e-money system security, and identification of parties responsible for lost e-money balances, it is hoped that it can provide more effective legal protection for e-money users. Bahasa Indonesia Abstrak: Penggunaan e-money memiliki risiko, salah satunya adalah kehilangan saldo. Kehilangan saldo e-money dapat terjadi karena berbagai faktor, seperti kartu hilang, kartu diretas, atau transaksi yang dilakukan oleh pihak yang tidak bertanggung jawab. Penelitian ini bertujuan untuk menganalisis perlindungan hukum bagi pengguna e-money, cara meningkatkan keamanan sistem e-money untuk mencegah terjadinya kehilangan saldo serta cara meningkatkan identifikasi pihak yang bertanggung jawab atas kehilangan saldo e-money. Penelitian ini adalah penelitian hukum normatif-empiris dengan analisis deskriptif kuantitatif. Perlindungan hukum atas saldo uang elektronik di Indonesia masih belum sepenuhnya memadai karena terdapat beberapa faktor yang dapat menghambat penuntutan hukum oleh pengguna e-money, seperti sulitnya mengidentifikasi pihak yang bertanggung jawab atas kehilangan saldo, sulitnya membuktikan adanya cacat pada barang atau jasa dan kurangnya pengetahuan pengguna e-money tentang perlindungan hukum. Cara untuk meningkatkan keamanan sistem e-money untuk mencegah terjadinya kehilangan saldo yaitu menggunakan teknologi keamanan yang lebih canggih, meningkatkan kesadaran pengguna e-money tentang keamanan dan meningkatkan pengawasan terhadap penerbit e-money. Cara untuk meningkatkan identifikasi pihak yang bertanggung jawab atas kehilangan saldo e-money yaitu memberikan kewajiban kepada penerbit e-money untuk menyimpan data transaksi e-money dalam jangka waktu tertentu, meningkatkan kerja sama antara pihak-pihak terkait, seperti pemerintah, penerbit e-money, dan penyedia jasa internet, dan dengan adanya perbaikan dalam regulasi, keamanan sistem e-money, dan identifikasi pihak yang bertanggung jawab atas kehilangan saldo e-money, diharapkan dapat memberikan perlindungan hukum yang lebih efektif bagi pengguna e-money.
Implikasi Hukum Atas Peralihan Kewenangan Pengaturan dan Pengawasan Aset Kripto dari Badan Pengawas Perdagangan Berjangka Komoditi Kepada Otoritas Jasa Keuangan Pasca Undang-Undang Nomor 4 Tahun 2023 Solichin, Arjana Bagaskara
Lex Prospicit Vol. 3 No. 1: February 2025
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v3i1.7762

Abstract

This research aims to analyze the dynamics of cryptocurrency regulation in Indonesia, particularly regarding the transfer of regulatory authority from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) following the enactment of Law Number 4 of 2023. The research methodology employed is the normative legal research method with legislative and conceptual approaches. The analysis is conducted through a review of Law Number 4 of 2023, relevant regulations, and management concepts related to cryptocurrency management, focusing on risk management principles and strategic policies. The results of this study indicate that the comparative analysis of regulations between Bappebti and OJK indicates significant differences in approach. Bappebti emphasizes technical and commercial aspects, while OJK tends to focus on legal and systemic aspects. The transfer of authority has the potential to impact consumer protection and market security. The regulatory flexibility and cross-sectoral coverage of OJK provide the potential for synergy and harmonization with Bappebti. Active collaboration between OJK, Bappebti, Bank Indonesia, PPATK, and relevant institutions is required to achieve clear regulations, optimal consumer protection, and sustainable development of the cryptocurrency industry. Bahasa Indonesia Abstrak: Penelitian ini bertujuan untuk menganalisis dinamika regulasi aset kripto di Indonesia, khususnya terkait peralihan kewenangan pengaturan dari Badan Pengawas Perdagangan Berjangka Komoditi (Bappebti) ke Otoritas Jasa Keuangan (OJK) setelah Undang-Undang Nomor 4 Tahun 2023. Metode penelitian yang digunakan adalah metode penelitian hukum normatif dengan pendekatan perundang-undangan dan pendekatan konseptual. Analisis dilakukan melalui tinjauan terhadap Undang-Undang Nomor 4 Tahun 2023, peraturan perundang-undangan terkait, dan konsep manajemen terkait pengelolaan aset kripto, dengan fokus pada prinsip-prinsip manajemen risiko dan kebijakan strategis. Hasil studi ini menunjukkan bahwa analisis perbandingan regulasi antara Bappebti dan OJK mengindikasikan perbedaan pendekatan yang signifikan. Bappebti lebih menekankan aspek teknis dan komersial, sedangkan OJK lebih cenderung pada aspek legal dan sistemik. Peralihan kewenangan tersebut berpotensi mempengaruhi perlindungan konsumen dan keamanan pasar. Fleksibilitas regulasi dan cakupan lintas sektor OJK memberikan potensi untuk sinergi dan harmonisasi dengan Bappebti. Diperlukan kerjasama aktif antara OJK, Bappebti, Bank Indonesia, PPATK, dan lembaga terkait untuk mencapai regulasi yang jelas, perlindungan konsumen optimal, dan pengembangan industri aset kripto yang berkelanjutan.
The Role of Road Traffic Laws in Increasing Competitiveness and Overcoming Violations Lookman, Kyatmaja
Lex Prospicit Vol. 2 No. 1: February 2024
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v2i1.7954

Abstract

This research analyzes the role of the Road Traffic and Transportation Law in increasing the competitiveness of trucking companies and also addressing violations committed. Transport companies are part of another company's supply chain. Not all trucking companies deal with the goods owner directly, some are through third-party intermediaries (brokers). Tiered transactions are the structure of this industry because there are several levels of parties between the carrier company and the owner of the goods. Field phenomena show that this condition has not yet been achieved. This research aims to discover existing problems with existing laws for future improvements. This research uses normative juridical methods by studying existing laws and conducting comparative studies. Secondary data is also used to obtain the desired results. The results show that current laws cannot increase competitiveness and optimally prevent violations committed by trucking companies. Therefore, future legislation must be able to solve this problem.
Protection of Minority Shareholders from Fraud in Limited Liability Company Dividend Distribution Hartanto, Stefanie
Lex Prospicit Vol. 2 No. 1: February 2024
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v2i1.8020

Abstract

This research investigates the potential fraudulent actions carried out by majority shareholders and other corporate organs in the context of stock distribution. The primary focus is on the continuity of practices that may disadvantage minority shareholders and undermine the legal protections they should receive. Majority shareholders, often wielding significant influence in the General Meeting of Shareholders (RUPS), may exploit their power to manipulate decisions related to stock distribution. The presence of a quorum that can be achieved without the participation of minority shareholders increases the risk of fraud in this process. The aim of this research is to identify various fraudulent actions that may occur in stock distribution by majority shareholders and related corporate organs. Using a legal analysis approach and case studies, this research also explores ways in which minority shareholders might prevent or respond to fraudulent actions. Furthermore, the research examines the extent to which Law No. 40 of 2007 concerning Limited Liability Companies (UU PT) provides a legal basis to prevent and respond to fraudulent actions in stock distribution. Practical implications of potential fraud are analyzed to provide recommendations that can strengthen legal protections for minority shareholders. This research is expected to contribute to a deeper understanding of the dynamics of fraud in stock distribution, outline the legal challenges faced by minority shareholders, and formulate concrete steps to prevent and respond to such fraud in companies.
Perlindungan Hukum Pemegang Saham yang Tidak Setuju Terhadap Keputusan Buyback Saham Tanpa RUPS Hakim, Azizul; Patiaraja, Alfi Arian; Putriguena, Alana Christy
Lex Prospicit Vol. 3 No. 2: July 2025
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v3i2.8028

Abstract

The existing problem of OJK Circular Letter Number 3/SEOJK.04/2020 which refers to POJK Number 2/POJK.04/2013 is regarding the determination of the appropriate share price for share buybacks if it is not determined in advance through the GMS. There is still uncertainty in determining the share price for share buybacks. In market conditions that fluctuate significantly, prices change very quickly. The purpose of the research is to analyze legal protection of shareholders who disagree with the decision to buyback shares without GMS. This research is normative legal research with statute approach. The results showed that SE OJK No. 3/SEOJK.04/2020 related to share buybacks when the market fluctuates significantly refers to POJK No. 2/POJK.04/2013 which specifically regulates these conditions. Furthermore, market conditions that fluctuate significantly are when the composite stock price index on the Stock Exchange drops 15% cumulatively in a row for 3 days or other conditions determined by OJK. The absence of information disclosure obligations to Shareholders by the Company in OJK Circular Letter No. 3/SEOJK.04/2020 which refers to POJK No. 2/POJK.04/2013 and buyback decisions that do not go through the GMS mechanism results in unfulfilled legal protection for shareholders if they do not approve the decision to buyback shares and various risks that will arise from the decision. Therefore, the Shareholders' right to obtain information disclosure in the form of full and fair disclosure from the Company is not fulfilled. Therefore, the determination of the share price for the share buyback must be further elaborated regarding the determination mechanism, which will not harm the Company and Shareholders. Bahasa Indonesia Abstrak: Permasalahan dalam Surat Edaran OJK Nomor 3/SEOJK.04/2020 yang merujuk pada POJK Nomor 2/POJK.04/2013 adalah perihal penetapan harga saham yang tepat untuk aksi buyback saham apabila tidak ditetapkan terlebih dahulu melalui RUPS. Masih terjadi ketidakpastian penetapan harga saham untuk aksi buyback saham. Dalam kondisi pasar yang berfluktuasi secara signifikan, harga berubah sangat cepat. Tujuan penelitian untuk membahas perlindungan hukum pemegang saham yang tidak setuju terhadap keputusan buyback saham tanpa RUPS. Analisis menggunakan metode penelitian hukum dengan pendekatan perundang-undangan. Tujuan penelitian ini adalah untuk menganalisis perlindungan hukum pemegang saham yang tidak setuju terhadap keputusan buyback saham tanpa RUPS. Penelitian ini adalah penelitian yuridis normatif dengan pendekatan perundang-undangan. Hasil penelitian menunjukkan SE OJK No 3/SEOJK.04/2020 terkait buyback saham saat pasar berfluktuasi secara signifikan merujuk pada POJK No 2/POJK.04/2013 yang secara khusus mengatur kondisi tersebut. Lebih lanjut, kondisi pasar yang berfluktuasi secara signifikan adalah ketika indeks harga saham gabungan di Bursa Efek turun 15% secara kumulatif berturut-turut selama 3 hari ataupun kondisi lain yang ditetapkan oleh OJK. Tidak adanya kewajiban keterbukaan informasi kepada Pemegang Saham oleh Perseroan pada SE OJK No 3/SEOJK.04/2020 yang merujuk pada POJK No 2/POJK.04/2013 dan keputusan buyback yang tidak melalui mekanisme RUPS menghasilkan tidak terpenuhinya perlindungan hukum bagi pemegang saham apabila tidak menyetujui keputusan untuk buyback saham dan berbagai risiko yang akan ditimbulkan dari keputusan tersebut. Oleh karena itu, hak Pemegang Saham untuk mendapatkan keterbukaan informasi berupa full and fair disclosure dari Perseroan menjadi tidak terpenuhi. Sehingga terkait penentuan harga saham untuk buyback saham harus dielaborasikan lebih lanjut perihal mekanisme penentuannya, yang sehingga tidak akan merugikan Perseroan dan Pemegang Saham.
The Application of Joint Custody Concept in Relation to the Custody of the Child Effendy, Edrick Edwardina
Lex Prospicit Vol. 2 No. 1: February 2024
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v2i1.8029

Abstract

In Indonesia, the execution of court decisions regarding child custody is still a matter of debate among legal experts because the object is a person (human), not an inanimate object. This research will focus on discussing how regulations and execution of court decisions regarding child custody are carried out as well as how the concept of joint custody can be applied to minimize disputes related to child custody. This research is normative juridical research with a statutory and conceptual approach. Even though there are no regulations in Indonesia that comprehensively regulate child custody or its execution, the execution related to child custody can still be carried out guided by generally applicable procedures regarding execution of court decisions. The execution of child custody rights carried out in this way has a low level of success and is prone to causing problems where children's rights which should be protected are violated. For this reason, it is hoped that the concept of joint custody can be applied to minimize the emergence of disputes related to child custody.
Legal Framework of Property Ownership for Foreign Citizens in Indonesia Effendy, Edrick Edwardina; Winargo, William
Lex Prospicit Vol. 3 No. 2: July 2025
Publisher : Universitas Pelita Harapan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19166/lp.v3i2.8308

Abstract

Indonesia is rich with abundant natural resources. This wealth invites many foreign investors to come and develop their business in Indonesia. The presence of foreign nationals certainly requires a place to live in order to develop their business sustainably and requires a relatively long period of time. The purpose of this study is to analyze the regulations on property ownership in Indonesia for foreigners and to the best ways of property ownership for the foreigners in relation to increasing the investment in Indonesia. This study employs a normative juridical method to describe and analyze legal issues, facts, and other symptoms related to property ownership for foreigners in Indonesia, including the Job Creation Law and its implementing regulations to obtain a comprehensive understanding. The result of the research is that a notable issue arises from Agrarian Minister Regulation 18/2021, which allows for residential areas exceeding 2,000 m² for foreigners under "certain extraordinary circumstances." This provision is problematic due to its lack of a defined maximum limit, creating a legal vacuum ("empty norm"). This absence of clear restriction is seen as a violation of the principles of nationality and Article 33 of the 1945 Constitution, which prioritizes land for the welfare of Indonesian people. The study also identifies that foreigners often resort to "legal smuggling" practices, specifically nominee arrangements, to circumvent ownership restrictions and acquire Hak Milik (Freehold Title). In such arrangements, an Indonesian citizen registers the property title on behalf of a foreigner. However, Article 26 paragraph (2) of Law 5/1960 explicitly states that any direct or indirect transfer of property rights to foreigners is null and void by law. Consequently, if a nominee arrangement is discovered, the land title is cancelled and the land reverts to the State.