The Rule of Indonesian Company Law in Conserving Environment

Abstract

Since the concept of social responsibility, the birth of the obligation to consider environmental and social aspects, which are made in a regulation. One of these regulations is the Act No. 40 of 2007 concerning Limited Liability Company (Company Law). The purpose this study to analyze how of the rule of company law in conserving environment. The research method is the normative legal normative research with qualitative analysis. The results reveal that Act Number. 40 of 2007 can be used as guidelines by the company to participate in preserving the environment, namely with the principle of piercing the corporate veils and social and environmental responsibility. The word “limited” in a limited liability company that showed the limited liability of shareholders that are characteristic of a corporation. But can be broken with the principle of piercing the corporate veil as a development which is the responsibility of shareholders in the company. This principle may apply to the shareholders if proven to be involved tort actions pollution / environmental damage done by a limited liability company. With these provisions, the Act Number 40 of 2007 can be used as guidelines by the stakeholders in environmental conservation.