Abstract 

Bankruptcy is a legal condition in which a debtor is unable to satisfy outstanding debts that have become due and payable. A company declared bankrupt is not automatically dissolved; rather, it continues to exist as a legal entity until the applicable legal procedures for dissolution and liquidation have been completed. Under certain circumstances, a bankrupt limited liability company may continue its business operations despite its bankruptcy status.

This study addresses two principal issues: (1) the legal process for dissolving a limited liability company after it has been declared bankrupt, and (2) the legal implications arising from such a declaration of bankruptcy.

The research employs a normative juridical methodology using a literature-based approach with secondary legal materials.

The findings indicate that the liquidation process begins with the convening of a General Meeting of Shareholders (GMS). Following a declaration of bankruptcy, the company loses its authority to manage and control its assets, and such authority is transferred in accordance with Indonesia's bankruptcy law.