From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company
Corporate criminal liability has become an issue following the increase in corporate crimes. This study discusses the possibility of parent company to deny liability for crimes committed by its subsidiary companies. This normative legal research employed qualitative analysis. The results showed that...
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Universitas Muhammadiyah Yogyakarta
2019-12-01
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doaj-6aa13f53e3844cc98d82da5723367c282020-12-30T01:13:56ZengUniversitas Muhammadiyah YogyakartaJurnal Media Hukum0854-89192503-10232019-12-0126215816710.18196/jmh.201901313685From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent CompanyMahrus Ali0Universitas Islam IndonesiaCorporate criminal liability has become an issue following the increase in corporate crimes. This study discusses the possibility of parent company to deny liability for crimes committed by its subsidiary companies. This normative legal research employed qualitative analysis. The results showed that the parent company denied criminal liability by hiding behind the separate legal entities and limited liability doctrine. Through both doctrines, the parent company treats itself as a separate legal entity apart from the subsidiary company so that the former holds no liability for any crime committed by latter. Through piercing the corporate veil doctrine, the parent company intentionally uses the subsidiary company as a tool to maximize profits and applies total control. Therefore, based on the vicarious liability principle, the subsidiary company functioned as the parent company’s agent. It works for or on behalf of the parent company in which every profit made is owned by the parent company.https://journal.umy.ac.id/index.php/jmh/article/view/7018criminal liabilityparent’s companyseparate legal entitysubsidiary’s offense |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mahrus Ali |
spellingShingle |
Mahrus Ali From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company Jurnal Media Hukum criminal liability parent’s company separate legal entity subsidiary’s offense |
author_facet |
Mahrus Ali |
author_sort |
Mahrus Ali |
title |
From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company |
title_short |
From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company |
title_full |
From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company |
title_fullStr |
From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company |
title_full_unstemmed |
From Separate Legal Entity to Economic Unity: The Criminal Liability of Parent Company |
title_sort |
from separate legal entity to economic unity: the criminal liability of parent company |
publisher |
Universitas Muhammadiyah Yogyakarta |
series |
Jurnal Media Hukum |
issn |
0854-8919 2503-1023 |
publishDate |
2019-12-01 |
description |
Corporate criminal liability has become an issue following the increase in corporate crimes. This study discusses the possibility of parent company to deny liability for crimes committed by its subsidiary companies. This normative legal research employed qualitative analysis. The results showed that the parent company denied criminal liability by hiding behind the separate legal entities and limited liability doctrine. Through both doctrines, the parent company treats itself as a separate legal entity apart from the subsidiary company so that the former holds no liability for any crime committed by latter. Through piercing the corporate veil doctrine, the parent company intentionally uses the subsidiary company as a tool to maximize profits and applies total control. Therefore, based on the vicarious liability principle, the subsidiary company functioned as the parent company’s agent. It works for or on behalf of the parent company in which every profit made is owned by the parent company. |
topic |
criminal liability parent’s company separate legal entity subsidiary’s offense |
url |
https://journal.umy.ac.id/index.php/jmh/article/view/7018 |
work_keys_str_mv |
AT mahrusali fromseparatelegalentitytoeconomicunitythecriminalliabilityofparentcompany |
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1724367096673992704 |