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2011•Indonesia Law ReviewOpen access

Legal issue on Pledge share aggrement

Suharnoko Suharnoko

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Abstract

The creditors are considered as unsecured creditors if they are relying only to article 1131 and 1132 of the Civil Code. In order to become a secured creditor, a security agreement must be made. Many financial institutions are now prefer securing its credit by pledge of shares of the customer’s enterprise. This article focuses on the legal issues regarding the validity and execution on pledge share agreement.

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What this paper is about

The creditors are considered as unsecured creditors if they are relying only to article 1131 and 1132 of the Civil Code. In order to become a secured creditor, a security agreement must be made. Many financial institutions are now prefer securing its credit by pledge of shares of the customer’s enterprise. This article focuses on the legal issues regarding the validity and execution on pledge share agreement.

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Available abstract

The creditors are considered as unsecured creditors if they are relying only to article 1131 and 1132 of the Civil Code. In order to become a secured creditor, a security agreement must be made. Many financial institutions are now prefer securing its credit by pledge of shares of the customer’s enterprise. This article focuses on the legal issues regarding the validity and execution on pledge share agreement.

Key concepts: Pledge, Creditor, Order (exchange), Business, Civil code, Code (set theory), Law and economics, Accounting

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