Review of liability companies in the form of social enterprise

Abstract

Abstract

Progress social enterprise As a business model that integrates economic goals and social objectives pose normative challenges in corporate law, especially when the Limited liability Company is used as its legal platform. In Indonesia, the legal regime of the Company is limited profit oriented, up to search not yet fully capable of accommodating the dual purpose character attached to it social enterprise. This condition raises the normative tension between the company’s profit orientation and the company’s social mission. This research aims to analyze the concept of limited-form companies social enterprise In Indonesian law and law, it examines the normative tension between profit orientation and social goals. This research uses normative legal research methods with a statutory and conceptual approach. The results of the research show that the law of limited liability companies has not given explicit normative recognition to social enterprise, thus, the social purpose does not have a position equal to the interests of the company. As a result, there is legal uncertainty in the determination of the company’s interests and the fiduciary obligations of the directors. This research confirms the need for the reconstruction of corporate law in order to be able to accommodate social enterprise justice and justice.