A question came to us: if the company whose shares were purchased by the public goes bankrupt, do the shareholders get a distribution of the bankruptcy assets because they, in this case, have invested their money in the company? What are the rights of shareholders when the company goes bankrupt?

Shareholders, according to the Limited Liability Company Law, have the right to dividends. However, in the event the company is in a state of bankruptcy, the shareholders cannot demand the distribution of dividends because shareholders are not creditors who are prioritized to obtain the payment of the bankruptcy assets. However, it is possible for Shareholders to obtain their rights if the bankruptcy process ends in liquidation. The Limited Liability Company Law explicitly stipulates that after the liquidator pays the liquidation proceeds to all creditors and there are still remaining proceeds, then the Shareholders are entitled to proportional dividend payments. Further explanations from our lawyers in DSLC can be read in the article through the link below.

The article is available in the Indonesian Language. Feel free to contact us to read the English version. Please consider that this article is provided for general discussion only and is not intended as legal advice or legal opinion.

 

Read the article:

https://www.hukumonline.com/klinik/a/hak-pemegang-saham-saat-perusahaan-jatuh-pailit-lt625e8362e28d2