Indonesia Law Review, Vol 1 (1)

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Legal Issues On Pledge Share Agreement

Suharnoko Suharnoko

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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