Board of Directors (Jakarta)

Indonesia Criminal Justice System Laws,
Regulation and Procedures

Indonesia Criminal Code / Penal Code

Board of Directors

Article 399

Any director or commissioner of a limited liability company, Indonesian company on shares or cooperative society which has been adjudicated bankrupt or of which the judicial settlement has been ordered, shall be punished by a maximum imprisonment of seven years, if he, in order to fraudulently curtail the rights of the creditors of he limited liability company, the Indonesian company on shares or the cooperative society;

1. Either has invented or invents liabilities, or has not accounted or does not account for the assets, or has withdrawn or withdraw any property from the estate;

2. Has alienated any property either for nothing or obviously below the value;

3. On the occasion of the bankruptcy or the judicial settlement or at a moment when he knew that the bankruptcy or the judicial settlement could not be avoided, has benefited or benefits somehow one of the creditors;

4. Has not fulfilled or does not fulfill the obligations which rest on him in respect of keeping the records in compliance with Article 6, first paragraph of the Code of Commerce or in compliance with Article 27, first paragraph of the ordinance on the Indonesian company on shares, and the keeping and producing of books, documents and writings referred to in said Articles.

Article 27 states that :

The term of the temporary imprisonment and the light imprisonment shall be indicated in the Judicial verdict in days, weeks, months and years, not in parts thereof.

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