Director's Accountability in A Limited Liability Company in Relation to Carrying Out His Duties and Authorities

Director accountability in a limited liability company (PT) is a vital aspect of modern corporate governance. Directors are not only responsible for managing the company effectively and efficiently, but also for ensuring compliance with legal regulations and safeguarding the interests of shareholders. This study aims to examine the implementation and challenges in carrying out the duties and authorities of PT directors, with a focus on the legal framework and management practices applied. This study uses a qualitative approach by analyzing related literature, laws and regulations, and case studies to identify the roles and responsibilities inherent in directors. The main findings show that directors have broad responsibilities, including in terms of strategic decision-making, risk management, and compliance with applicable regulations. The use of good corporate governance principles is key to ensuring that directors carry out their duties with integrity and transparency, and are able to face complex challenges in a dynamic business environment. By considering the role of internal and external supervision, this study also identifies several supporting factors and obstacles in the implementation of director accountability. The implication of this study is the importance of strengthening the company's internal control mechanisms and promoting a culture of compliance and accountability at all levels of the organization. Companies in a country, whether local companies, foreign-local mixtures, or foreign companies that run their businesses in a particular country have a role in the economic development of that country. These companies have various forms and types, and operate in all areas of community life. Some of these companies are based in the country where the company was founded, some are branches of other countries that open/expand their businesses in other countries. In Indonesia, there are Limited Liability Companies, CVs, Associations, Firms, and Civil Partnerships. These companies are run by a management that regulates the running of the business itself, regardless of whether it is a large, medium or small company. In running its business, the company needs humans to operate because the company itself is a virtual or abstract form so that in operations humans are still needed for that. Individuals or people who run a business are people who are responsible for the operational activities of the Company. It has been explained above that Companies can be established in various forms and types. In Indonesia, we know 2 (two) types; legal entities and business entities. Both types of businesses are managed by individuals who are responsible for the running of the Company. How far is the individual responsible in running his business. If he is the owner himself or he shares with his partner or he only works in the Company, or he only invests? In a limited liability company, the person responsible for the business operations is one or several directors. What the researcher will examine is the responsibility of a director for his actions in carrying out his work in a limited company.