Majority Rule Principle In Limited Liability Company As Monopoly Of Business Competition Antithesis Of Pancasila Economic Justice

Abstract

Limited Liability Company (PT), as the dominant form of business entity in the Indonesian economic system, has a decision-making structure based on the majority rule principle. Although this principle is considered efficient in running the company, in practice, it can lead to the domination of the majority group over minority shareholders. When this principle is practiced absolutely without a minority protection mechanism, it can lead to monopolistic practices and ignore the principle of economic justice of Pancasila, which prioritizes the balance between individual interests and collective interests. This research aims to analyze the application of the majority rule principle in Limited Liability Companies in Indonesia. This research uses normative research. Legal Materials in Legal Material Collection Procedures in this Research, namely Normative Legal Research, are legal materials that are studied and analyzed, including primary, secondary, and tertiary legal materials conducted by library research. The technique for reviewing and collecting the three legal materials uses document studies. The data obtained was collected in the manner described earlier, arranged systematically, and then analyzed qualitatively. The results show that Indonesia adheres to the concept of a Welfare State based on Pancasila, which is reflected in the Preamble of the 1945 Constitution and Article 33 of the 1945 Constitution, which mandates the government to protect, prosper, and educate the nation's life, as well as participate in world order for social justice. However, the inclusion of elements of capitalism through the amendment of Article 33 paragraph (4), which emphasizes the "efficiency of justice," has led to misalignment with the initial goal of social justice for all people, which can be seen from the high poverty and unemployment rates. Therefore, the Economics Analysis of Law (EAL) approach becomes relevant to analyze and bridge justice and legal certainty, encouraging a return to the Pancasila economic system based on the principle of kinship in order to realize welfare and substantive justice for all Indonesian people.