Responsibility of the Board of Directors in Decision Making of the Company Based on the Doctrine of Business Judgement Rule

DOI

10.2991/978-2-38476-024-4_50How to use a DOI?

Keywords

Business judgment rule doctrine; decision-making; the responsibility of the board of directors

Abstract

The business judgment rule doctrine is a reflection of the independence and discretion in making business decisions by the board of directors. This decision-making must be based on good faith and the interests of the company, but this must be proven because it often causes losses to the company. The research method used is normative juridical by examining the business judgment rule doctrine in Law Number 40 of 2007 concerning Limited Liability Companies. Discussion of this doctrine raises that the decision making of the board of directors must be accountable within the legal framework of the company, so that the board of directors, in accordance with the authority they have, cannot be accounted for, even though the business decision causes losses to the company.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sigit Irianto
AU  - Widyarini Indriasti Wardani
PY  - 2023
DA  - 2023/04/19
TI  - Responsibility of the Board of Directors in Decision Making of the Company Based on the Doctrine of Business Judgement Rule
BT  - Proceedings of the International Conference On Law, Economics, and Health (ICLEH 2022)
PB  - Atlantis Press
SP  - 507
EP  - 514
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-024-4_50
DO  - 10.2991/978-2-38476-024-4_50
ID  - Irianto2023
ER  -