LEGAL CONSEQUENCE OF HOLDING COMPANY BANKRUPTCY TOWARD SUBSIDIARY COMPANY ACCORDING TO LAW NO. 37 OF 2014 ABOUT BANKRUPTCY

Abstract

Legal relations between holding company and subsidiary company exist after the subsidiary company register under the management of holding company. The objective is to support the continuity of the group business. Legal consequences of holding company bankruptcy toward subsidiary company according to Law No. 37 Of 2014 about bankruptcymake the subsidiary company confiscated because its assets of the holding company according to the agreement with their creditors. This is caused by entrepreneur debt to the investors to develop their business without consider the effect of the debt on the period of time. The other problem of this thesis is about who is operator of the subsidiary company which isdifferent business with the holding company and how’s the responsibilities of debtor that have defaults on the creditor if the company bankrupt. Types of this research is normative juridical; research the case and review the data literature relating to bankruptcy. The results of this study is when the holding company is bankrupt then the subsidiary company was also confiscated because the subsidiary is the asset of the holding company then carried out by a curator cause the curator has authority to do the subsidiaries business are in bankruptcy, and debtors who are defaulting are no longer entitled on his assets and all business activities are terminated to fulfill the debt to the creditor. These needs a law to guarantees the continuity of subsidiary business company, all the component of the company should be has opportunity to solve the problems in the company, and also has protection by creditor’s law.