Analysis of the Accountability of Corruption Crimes Due to Losses of Soes Based on the Doctrine of Business Judgement Rule (Study of Supreme Court Decision No. 34/PID. SUS-TPK/2019/PT. DKI)
- DOI
- 10.2991/assehr.k.220404.166How to use a DOI?
- Keywords
- Business Judgement Rule; Fiduciary Duties; Direksi; Corruption; State-Owned Enterprises (SOEs); director
- Abstract
State-Owned Enterprises (SOEs) in the form of Limited Liability Companies and run by a board of directors and their ranks do not cover the possibility of losses in running the company. If the board of directors takes a decision that harms the company, it will be considered to fulfill the elements of Article 2 paragraph (1) of the Law on the Eradication of Corruption. Business Judgement Rule is one of the doctrines that exist in business law to protect directors and their ranks in legal liability for business decisions they take. The Business Judgement Rule arises as a result of the implementation of fiduciary duties by a board of directors. The Board of Directors is required to take full responsibility for the management of the company, in the interests of the company. In carrying out its duties the board of directors is often faced with business decisions that are not in accordance with the agreed business strategy. As in the Supreme Court’s Decision 34/PID. SUS-TPK/2019/PT. DKI, a state-owned company board of directors of PT Pertamina is said to be found guilty of corruption offences due to the harm to the state’s finances amounting to Rp. 568,066,000,000 as a result of the acquisition or investment in BMG Australia. Thus, the doctrine of Business Judgement Rule should be applied as long as the board of directors can prove the business decisions taken in good faith, and prudence and not enrich themselves.
- Copyright
- © 2022 The Authors. Published by Atlantis Press SARL.
- Open Access
- This is an open access article distributed under the CC BY-NC 4.0 license.
Cite this article
TY - CONF AU - Felina Desiana AU - Rugun Romaida Hutabarat PY - 2022 DA - 2022/04/21 TI - Analysis of the Accountability of Corruption Crimes Due to Losses of Soes Based on the Doctrine of Business Judgement Rule (Study of Supreme Court Decision No. 34/PID. SUS-TPK/2019/PT. DKI) BT - Proceedings of the 3rd Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2021) PB - Atlantis Press SP - 1052 EP - 1057 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.220404.166 DO - 10.2991/assehr.k.220404.166 ID - Desiana2022 ER -