LEGAL IMPLICATIONS ON THE AUTHORITY OF REGIONAL GOVERNMENTS ON THE MANAGEMENT OF REGIONAL COMPANIES IN THE FLOBAMOR OF EAST NUSA TENGGARA LIMITED COMPANY

Abstract

This paper describes the efforts to strengthen regional revenue from separated regional assets, after the local government investment through the Limited Liability Company Flobamor as a RegionallyOwned Enterprise in strengthening the source of Regional Original Income in East Nusa Tenggara Province. This paper is the result of research with the formulation of the main problems (1) What are the legal implications of the existence of local government authority on the management of regional companies in the Flobamor Limited Liability Company, East Nusa Tenggara? and how are the efforts to overcome the legal implications for the management of regional companies in the Limited Liability Company, Flobamor, East Nusa Tenggara? The research method used is descriptive legal research with the type of normative-empirical legal research or applied law research. It was found that the regional government of East Nusa Tenggara as the shareholder was the General Meeting of Shareholders, because according to the rules of the Limited Liability Company, the Regional Government as the General Meeting of Shareholders was not submitted to the Directors and Commissioners of the Flobamor Limited Liability Company so it was difficult to find significant regional revenue. It was also found that the fundamental thing that local governments have is a strategic position in decisions to make capital participation, increase and decrease capital and share company profits. Meanwhile, regional company capital originating from separated regional assets results in a permanent investment of capital from the regional government without any efforts to maximize local revenue through the limited liability company in the Flobamor area of East Nusa Tenggara. It is hoped that supervision from the regional legislature and the community will immediately control regional capital participation through the Flobamor Regional Limited Liability Company, East Nusa Tenggara.