Can a Limited Liability Company (PT) Be Dissolved?

A Limited Liability Company (PT) may be dissolved. Article 142 paragraph (1) of Law Number 40 of 2007 on Limited Liability Companies sets out the grounds on which a Company's dissolution may occur:

• by resolution of the General Meeting of Shareholders (GMS);
• because the term of its establishment stipulated in the articles of association has expired;
• by court order;
• by the revocation of bankruptcy based on a commercial court decision that has obtained permanent legal force, where the bankruptcy estate of the Company is insufficient to pay the costs of the bankruptcy;
• because the bankruptcy estate of the Company, which has been declared bankrupt, is in a state of insolvency as regulated in the Law on Bankruptcy and Suspension of Obligations for Payment of Debts; or
• because the business license of the Company has been revoked, requiring the Company to carry out liquidation in accordance with the provisions of laws and regulations.