Juridical Analysis of Directors Who Hold Concurrent Positions in Limited Liability CompaniesThe practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in L

The practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in Law Number 40 of 2007 concerning Limited Liability Companies (UUPT). Concurrent positions lead to legal loopholes that can cause potential losses to the company. This research aims to analyze the practice's suitability with the law's provisions and compare it with policies in the United States. This research uses a normative method with conceptual and statutory approaches and secondary data from relevant regulations. The results show that concurrent positions can cause conflicts of interest, weaken management, and undermine corporate governance. Legislation changes are needed in Indonesia to limit the number of positions a director can hold and impose more severe sanctions for violators. In conclusion, a law revision is needed to strengthen the regulation of concurrent positions to promote better corporate governance.

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Publication Details

Journal
AL-MANHAJ Jurnal Hukum dan Pranata Sosial Islam
Published
2024-11-21
DOI
https://doi.org/10.37680/almanhaj.v6i2.5636
Primary Topic
Indonesian Legal and Regulatory Studies
Type
article
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article

Juridical Analysis of Directors Who Hold Concurrent Positions in Limited Liability CompaniesThe practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in L

Herry M. Polontoh, Irsan Rahman, Kadir Katjong, Revie Kurnia Katjong et al.
AL-MANHAJ Jurnal Hukum dan Pranata Sosial Islam
Indonesian Legal and Regulatory Studies
article

Juridical Analysis of Directors Who Hold Concurrent Positions in Limited Liability CompaniesThe practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in L

Herry M. Polontoh, Irsan Rahman, Kadir Katjong, Revie Kurnia Katjong, Rizky Wisudawan Katjong
article en

Abstract

The practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in Law Number 40 of 2007 concerning Limited Liability Companies (UUPT). Concurrent positions lead to legal loopholes that can cause potential losses to the company. This research aims to analyze the practice's suitability with the law's provisions and compare it with policies in the United States. This research uses a normative method with conceptual and statutory approaches and secondary data from relevant regulations. The results show that concurrent positions can cause conflicts of interest, weaken management, and undermine corporate governance. Legislation changes are needed in Indonesia to limit the number of positions a director can hold and impose more severe sanctions for violators. In conclusion, a law revision is needed to strengthen the regulation of concurrent positions to promote better corporate governance.

AL-MANHAJ Jurnal Hukum dan Pranata Sosial IslamVol. 6(2)
Cenderawasih University (ID), Universitas Sembilanbelas November Kolaka (ID), Universitas Yapis Papua (ID)
Peace, Justice and strong institutions
Openalex Percentile: Top 67%
Indonesian Legal and Regulatory Studies
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Juridical Analysis of Directors Who Hold Concurrent Positions in Limited Liability CompaniesThe practice of concurrent positions carried out by the Board of Directors in the management of a PT does not yet have a legal basis regulated explicitly in L — Herry M. Polontoh, Irsan Rahman, et al. · AL-MANHAJ Jurnal Hukum dan Pranata Sosial Islam (2024) | TGRS Research Map | TGRS