Proceedings of the International Conference On Law, Economics, and Health (ICLEH 2022)

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

Authors
Sigit Irianto1, *, Widyarini Indriasti Wardani1
1University 17 Agustus, Semarang, Indonesia
*Corresponding author. Email: sigitirianto70@gmail.com
Corresponding Author
Sigit Irianto
Available Online 19 April 2023.
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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Volume Title
Proceedings of the International Conference On Law, Economics, and Health (ICLEH 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
19 April 2023
ISBN
978-2-38476-024-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-024-4_50How to use a DOI?
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.

Cite this article

risenwbib
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  -