Abstract
The supervisory board is eligible to represent a limited liability company, within and outside the court, including forming a contract in a commercial transaction, pursuant to its articles of incorporation and approval from its general meeting of shareholders if all directors are unavailable, involved in any conflict of interest, or suspended. According to the explanation, this article discusses the validity of the contract formed by the supervisory board dan its legal consequences. For addressing such issues, conceptual and statute approaches are adopted. After the analysis, the contract concluded by the supervisory board remains valid and binding if it fulfills requirements for the valid contract, laws, and the articles of incorporation. Therefore, the supervisory board is capable of acting on the company’s behalf under relevant rules. As a suggestion, the supervisory board is required to understand and exercise its authority in accordance with laws and related articles of incorporation. Keywords: supervisory board; contract; limited liability company
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