LEGAL PROBLEMS CONCERNING CAPITAL RESERVE IN LIMITED COMPANY

Abstract

Capital Reserve is the important thing for administration of limited company and utilize to adapt structure and management of limited company. This Thesis aims to study some shortcoming of the Civil and Commercial Code, book 3 Specific Contract, Title 22 Limited Company, about capital reserve, stating unclear provisions that cause conflicting of interpretations and lack of stakeholder’s protections in line with legal theories. There are 2 legal issue as follows: First issue, the allocation of capital reserve from profit. Second issue, the transfer of surplus capital reserve’s that can be separate for 3 legal issue: First, the allocation of capital reserve from establishment and increasing capital. Second, the allocation of capital reserve from decreasing capital. And the last, the transfer of surplus capital reserve’s for compensate loss.