Al-Manhaj: Jurnal Hukum dan Pranata Sosial Islam
Vol. 6 No. 2 (2024)

Juridical Analysis of Directors Who Hold Concurrent Positions in Limited Liability Companies

Rahman, Irsan (Unknown)
Polontoh, Herry (Unknown)
Katjong, Rizky Wisudawan (Unknown)
Katjong, Kadir (Unknown)
Katjong, Revie Kurnia (Unknown)



Article Info

Publish Date
21 Nov 2024

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.

Copyrights © 2024






Journal Info

Abbrev

almanhaj

Publisher

Subject

Religion Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Jurnal ini dikelola oleh Fakultas Syariah INSURI Ponorogo dan terbit dua kali dalam satu tahun (Januari dan Juli) dengan E-ISSN 2686-4819 dan P-ISSN 2686-1607. Hadirnya jurnal Al-Manhaj guna mewadahi karya tulis ilmiah dari civitas akademika, peneliti, mahasiswa, dan praktisi di bidang hukum dan ...