International Journal of Law

ISSN: 2455-2194

Vol. 6, Issue 5 (2020)

The board of Directors personal responsibility for legal actions that harm third parties (Analysis of Supreme Court ruling No: 514 K/PDT. SUS-Bankruptcy/2013)

Author(s): Adi Purnomo, Albertus Sentot Sudarwanto, Yudho Taruno Muryanto
Abstract: The purpose of this research is to find out the responsibilities of the Board of Directors that led to the bankruptcy of the limited liability company. This research uses normative juridical research methods. It concluded that the Board of Director's responsibility towards the bankruptcy is a limited liability if the Board of Directors in carrying out the company's management duties in accordance to the principle of piercing the corporate veil and ultra vires and also have good faith and strive optimally for the company interest so that as not to suffer losses. However, if in carrying out the management duties of the company, a board of directors is found guilty or negligent, which then results in the company's bankruptcy, then the responsibility of the Board of Directors becomes unlimited and violates the principle of piercing the corporate veil which means the Board of directors must be personally responsible for the losses incurred. The Board of Directors' responsibility can be held in civil liability Article 1365 of the Civil Code and criminal Article 378 and Article 372 of the Criminal Code.
Pages: 255-258  |  146 Views  116 Downloads
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