Comparative Analysis on the Validity of Nominee Agreement on the Ownership of Shares Between Indonesia and Singapore
Year: 2024
Type: article
Abstract: Share ownership as a form of investment is regulated by laws that protect companies and their shareholders. In addition to these laws and regulations, shareholder agreements and the Civil Code safeguard the interests of shareholders and the company. Nonetheless, legal circumvention often occurs due to investment restrictions, such as the widespread practice of Nominee Agreements. However, some of these regulations confuse the nominee and the Beneficial Owner (BO), allowing for abuse and violation of the law. This research focuses on the concept of nominee shareholding agreement in Indonesia and its comparison with Singapore, using the theories and concepts of comparative law, legal entity, corporate organ, agreement, share, shareholder, beneficial owner, and legal principles approach to show that Indonesia rejects and prohibits nominee agreements, while Singapore protects certain conditions for nominee shareholders and nominee directors who meet their requirements. This difference in approach is reflected in the legal consequences given to parties who violate these regulations in each country.
Authors: O.C. Kaligis & Associates, Claudio Ricky, Fajar Sugianto, Universitas Pelita Harapan, Yohanie Maretta, Universitas Pelita Harapan
Institution: Pelita Harapan University
Language: English
Topic: Corporate Governance and Law
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405911998