The Authority of Notarial Deeds In The Formation of Legal Entities Declared to Commit Corporate Crimes

Abstract

It is mandatory that the formation of legal entities is executed through a notarial deed. However, issues arise when a violation is committed by the board of directors. Notaries, official representatives of the government in private legal matters, particularly those concerning legal entities, have full legal authority in drafting deeds. This research adopts a normative legal approach with a prescriptive nature. This study employs several methodologies, including a conceptual approach and a statutory regulations approach. To ensure a comprehensive conclusion, the analysis incorporates relevant legal theories. The strength of Notarial deeds lies in their authenticity. When such authenticity is entirely fulfilled, any corporate crimes committed by the board of director members do not negatively affect the legal standing of the deed. In fact, the responsibility lies with the individual wrongdoers, and the notarial deeds remain legally valid. Yet, if it is proven that the deed’s formation involves a legal violation, the deed may be annulled or declared null and void by a court decision.