APPLICATION OF THE BUSINESS JUDGMENT RULE DOCTRINE IN INDONESIAN COMPANIES

Abstract

The Business Judgment Rule Doctrine is a doctrine that provides protection to Directors who have good faith in the loss of the company. The point is that as long as the Board of Directors acts in good faith and acts solely for the benefit of the company, but it turns out that the company continues to suffer losses, it does not necessarily become the personal responsibility of the Board of Directors. Therefore, the Board of Directors cannot be held responsible for the company's losses if the Board of Directors in taking action has fulfilled all of its obligations with the principles of Good Corporate Governance (GCG). If all the obligations and GCG principles have been fulfilled, then the Board of Directors is categorized as having good faith and cannot be declared wrong. This research is normative legal research with a legal approach. The results of the author's study, in the context of the Business Judgment Rule Doctrine, the losses that occur are normal or reasonable business losses and therefore the company is responsible, and no one can be punished if there is no mistake.