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Arrangement model for the implementation of pledge of shares execution for a public company by private sale to create sustainable economic development

Author

Listed:
  • Putri P. R. Marditia

    (Faculty of Law, Atma Jaya Catholic University, Jakarta, Indonesia)

  • James Xaverius

    (Faculty of Law, Atma Jaya Catholic University, Jakarta, Indonesia)

  • jeff Gerardo

    (Faculty of Law, Atma Jaya Catholic University, Jakarta, Indonesia)

  • Rya Terassa Manihuru

    (Faculty of Law, Atma Jaya Catholic University, Jakarta, Indonesia)

  • Ryan Ricardo

    (Faculty of Law, Atma Jaya Catholic University, Jakarta, Indonesia)

Abstract

Since 2020, the pledge of shares has been re-recognized as one of the efforts for business development, as an example of which will be carried out by PT Pegadaian after the merger with PT Bank Rakyat Indonesia. This fact shows that Pledge of Shares has developed as a new trend in economic development, especially in limited liability companies. However, in Indonesia, this trend growth has not been matched by a regulatory system that guarantees legal protection for debtors, especially in the Pledge Of Shares Execution for a Public Company, which are carried out by private sale. This condition has created many legal vacuums, which have led to inconsistent court decisions regarding the pledge of shares execution in public companies. Therefore, according to the above, through this writing, the author aims to describe a regulatory pattern that can create a protection mechanism for debtors related to the Pledge of Shares Execution for a Public Company by private Sale—aiming to provide recommendations on regulatory patterns based on a comparison of the pledge of shares execution for public companies in several countries that have a frequency of active business transaction activities with Indonesia, namely Singapore and the United States of America, in the hope of providing a comprehensive reference to determine the regulatory pattern that suits the needs Indonesia to produce sustainable economic development. The preparation of this writing was made using a normative juridical method. So that through the results of this writing, it can be an alternative solution to the legal vacuum. Key Words:Regulatory Model, Execution, Pledge of Shares, Public Company, Private Sale.

Suggested Citation

  • Putri P. R. Marditia & James Xaverius & jeff Gerardo & Rya Terassa Manihuru & Ryan Ricardo, 2022. "Arrangement model for the implementation of pledge of shares execution for a public company by private sale to create sustainable economic development," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 398-406, January.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:1:p:398-406
    DOI: 10.20525/ijrbs.v11i1.1685
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    References listed on IDEAS

    as
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    2. Fred D. Arditti, 1967. "Risk And The Required Return On Equity," Journal of Finance, American Finance Association, vol. 22(1), pages 19-36, March.
    3. Yoo, Seung-Hoon & Kim, Yeonbae, 2006. "Electricity generation and economic growth in Indonesia," Energy, Elsevier, vol. 31(14), pages 2890-2899.
    4. Mohd. Heikal & Muammar Khaddafi & Ainatul Ummah, 2014. "Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indo," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 101-114, December.
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