<![CDATA[This study examines the legality of the unilateral dismissal of the President Director of the Regional Development Bank of East Nusa Tenggara through an Extraordinary General Meeting of Shareholders (EGMS), which has generated conflicting judicial decisions. The main issue lies in whether such dismissal complies with procedural and substantive requirements under Law Number 40 of 2007 concerning Limited Liability Companies, particularly regarding the obligation to provide clear reasons and the right of defense. The purpose of this research is to analyze the validity of the dismissal and to evaluate judicial considerations in resolving the dispute. This study employs a normative legal method using statutory, case, and conceptual approaches, supported by analysis of relevant court decisions. The findings indicate that, although the General Meeting of Shareholders holds authority to dismiss directors, such authority is not absolute and must adhere to due process, transparency, and fairness. In the examined case, procedural deficiencies and weak substantive grounds suggest potential legal defects. However, judicial decisions tend to prioritize formal authority over procedural justice. This study highlights the need to strengthen the application of good corporate governance principles to ensure legal certainty and protection of directors’ rights.]]>
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