Liability of Individual Companies Against Third Party Losses

Abstract

Micro, Small and Medium Enterprises (UMKM) bring a heavy impact to raise Indonesia's economy. They accommodate the growth of the nation's gross income by 60.5% and employ 96.9 % of the total man power in this country. To raise the impact of small and medium enterprises the government aims to create more conductive business conditions with the Job Creation Act (UU Ciptaker). In this Act, the small and medium enterprise is allowed to build a limited liability company with only one share holder, named Individual Company for MSME's. The Individual Company for MSME's has the same liability as Limited Liability Company although the Individual Company is run by one person only. In The Individual Company, the company itself only has the same person as Director, and for the consequence of a company that only runs by one person that person also functions as the general meeting of shareholders (GMS). The job creation act is contrary to the limited liability company act. This research studies the liability of Individual Companies for MSME's with the third party. The result of this research can be used by the third party who runs a contract with the Individual Company for MSME's because the Indovidual Company for MSME's doesn't have a complete company organ. The founder of Individual Company for MSME's function as the director and general meeting of shareholders. In the Individual Company for MSME's doesn't have a commissioner, so the Individual Company for MSME's doesn't have a proper surveillance and "checks and balances". That condition makes the third party who has a contract with the Individual Company for MSME's need a proper legal protection.