Urgency of development of piercing the corporate veil doctrine to Governize a group company: Indonesian context
Various legal laxities in Indonesia have been exploited by entrepreneurs to expand their business domain. One of the many actionsconducted by entrepreneurs is building a group company by combining several limited liability companies into one economic entity under their control. These companies are respectively independent entities, suggesting that they must submit to various prevailing corporate doctrines. However, a group company has not been considered as a legal entity. In fact, the result of a study concerning theories of legal entities concluded that a group company has been qualified to be viewed as a legal entity. In addition, a group company has not been regulated in a specific law, arising various barriers in applying various corporate doctrines, including Piercing the Corporate Veil (PCV)doctrine within a group company. Such a condition makes it difficult to hold the shareholders accountable. In order to apply the PCV doctrine within a group company, it is necessary to enact a law regulating a group company by developing the PCV doctrine into Piercing the Holding Company Veil.