The Principally of the Obligations of Legal Consultant’s as a Capital Market Supporting Profession in the Preparation of Independent Legal Due Diligence

Abstract

The obligation of a legal consultant as a capital market supporting profession regulated in article 67 of Law Number 8 of 1995 on the Capital Market is “to provide an independent opinion or assessment”. When alignment with the Advocate Law, the formulation of the article contradicts the pricinple of an advocate in providing legal services as stipulated in Article 1 point 2 in Law Number 18 of 2003 on Advocates, that “an advocate takes legal action for the client’s legal interest”. Thus, this contradiction serves as the background of the following problem formulations proposed: (1) The principally of the obligations of legal consultant’s as a capital market supporting profession in the preparation of independent legal due diligence; (2) Legal due diligence as an independent opinion of a legal consultant to provide legal protection for investors. The two problem formulations were analyzed using normative legal research method, a research method to identify legal concepts and principles related to legal regulation in the capital market. After conducting a juridical, theoretical, and philosophical analysis, the findings obtained were: (1) The principally of the obligations of legal consultant’s as a capital market supporting profession in the preparation of independent legal due diligence is manifested through an independent attitude, meaning that it is not controlled, not affiliated, no conflict of interest, and no partial element with service users. (2) Since the legal relationship between the legal consultant and service users is bound by an agreement, the parties have built their respective internal legal protections. Although this legal relationship can be categorized as an internal legal protection effort based on the privity of contract, it must also pay attention to the legislation, customs, and propriety that develop (heteronomous elements).

Keywords: Legal Due Diligence, Independent, Internal Legal Protection

DOI: 10.7176/JLPG/101-02

Publication date:September 30^th 2020