Reconstruction of the Piercing the Corporate Veil Concept from a Restorative Justice Perspective on the Environmental Impact of Monopolistic Practices
DOI:
https://doi.org/10.38035/gijlss.v3i3.601Keywords:
Piercing The Corporate Veil, Restorative Justice, Environmental Impact, Monopolistic Practices, Corporate AccountabilityAbstract
Business monopoly practices often cause significant environmental impacts, while multi-layered corporate structures are exploited to avoid legal liability. The doctrine of piercing the corporate veil allows for the breach of the legal personality of a company, allowing shareholders, directors, or controllers to be held personally liable. This study examines the reconstruction of this concept from a restorative justice perspective to ensure environmental restoration and compensation for affected communities. A juridical normative approach is used through an analysis of laws and regulations, legal doctrine, and court decisions, including Law No. 40 of 2007 concerning Limited Liability Companies, Law No. 32 of 2009 concerning Environmental Protection and Management, and Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices, along with restorative justice guidelines. The study results show that this doctrine effectively penetrates legal entity protection when corporations are used to shift responsibility for environmental damage, while the integration of restorative justice principles broadens the focus from mere criminalization to ecosystem restoration, socio-economic recovery of victims, and prevention of recurrence of violations. This study recommends strengthening regulations with clear veil-piercing criteria in environmental and monopoly cases, restorative-based compensation mechanisms, and collaboration between law enforcement agencies and the community, so that a balance between legal certainty, environmental protection, and a sense of justice for victims can be achieved.
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