Implementation of the principles of accountability, transparency and publicity in maintaining the stability of the foundation management
Intan Era Purnamasari, Mulyoto, Hari Purwadi
This article aimed to analyze the implementation of the principles of accountability, transparency, and publicity for foundation organs concerning the amendments to the Articles of Association regarding the foundation's activities. The changes in activities carried out by the Governing Board are allowed based on the decision of the Foundation Governing Board meeting, which is outlined in an authentic deed by the Notary as the document for submitting approval from the Minister. However, in practice, the foundation Governing Board acts defiantly from paying less attention to the foundation's principles, thus influencing the foundation's management, which led to the foundation's bankruptcy. It is important to implement foundation principles to foundation organs in order to maintain harmony with the aims and objectives of the foundation. This study employed normative legal research and was supported by secondary materials related to research. The result of the study showed that the tendency of the community in establishing a foundation was not in accordance with the Articles of Association of the foundation, this deviation has triggered internal conflicts of the foundation. Foundations were managed by organs including Governing Board, Executive Board, and Supervisory Board who had a legal obligation to carry out the management of the foundation in terms of the foundation's assets by applying the principle of accountability, namely the performance of daily activities and annual financial reports, fulfilling the principle of transparency by applying the principle of transparency related to the responsibility of foundation organs and informing reports to the public, filling in the organ personnel of the foundation. Additionally, the principle of publicity states that the public must know the existence of a foundation by registering it at the Registrar's Office at the District Court where the foundation is domiciled. The connection with the amendments to the Articles of Association of the foundation is allowed according to the provisions stipulated in the Foundation Law as stated in Article 17 of the Foundation Law and Article 21 of the Foundation Law in accordance with the applicable terms and conditions and becomes a legal rule that is the guide for the community in general.
Intan Era Purnamasari, Mulyoto, Hari Purwadi. Implementation of the principles of accountability, transparency and publicity in maintaining the stability of the foundation management. International Journal of Law, Volume 7, Issue 2, 2021, Pages 136-141