Workshop on Legal Aspect of Directors’ Commisioners’ Duties and Liabilities

Workshop on Legal Aspect of Directors’ Commisioners’ Duties and Liabilities

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The Limited Liability Company (“PT”) is a legal entity recognized as a legal subject before the law. It has a capacity and
authority to act before the law equally with human or persons. In this regard directors and commissioners as agents to
manage  the  company  also  have  limited  liabilities  toward  their  position.  However,  since  the  doctrine  of  lifting  the corporate veil  is introduced, the directors and commissioners can be personally  liable  for their action  in managing the company  and  sued  either  by  shareholders  or  stakeholders.  The  legal  risk  of  directors  and  commissioners  position increased  in  line  with  law  and  the  corporate  governance  reform  which  accommodate  the  possibility  for  either shareholders or  stakeholder  to  take  legal  action  toward directors or  commissioners.  The  increasing  awareness of  the society  in the corporate  legal implementation and the massive scrutiny  from the government to  improve transparency and eradicating corruption has also increasing the legal risk for directors and commissioners.

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Lex Mundus is a training and consultancy firm that focuses on Indonesian general corporate issues

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