<![CDATA[The Board of Directors occupies a central position in the governance of a limited liability company (Perseroan Terbatas/PT), possessing the authority to manage and represent the company while simultaneously bearing legal responsibility for decisions and actions undertaken in the company's interests. This study aims to analyze the legal liability of directors under Law Number 40 of 2007 concerning Limited Liability Companies, particularly in relation to the principles of fiduciary duty and the Business Judgment Rule (BJR). The study employs a normative legal research method using statutory, conceptual, and case-based approaches. Data were collected through a literature review of legislation, court decisions, legal doctrines, academic literature, and relevant scholarly journals, and were analyzed using normative-qualitative analysis. The findings demonstrate that directors' liability is inseparable from their managerial authority and fiduciary position. Under Articles 92 through 104 of Law Number 40 of 2007, particularly Article 97, directors may incur personal liability for company losses when proven to have acted negligently, unlawfully, or in violation of their fiduciary obligations. Such liability may arise in civil, administrative, or criminal forms depending on the nature of the violation. At the same time, the BJR provides legal protection for directors who make business decisions in good faith, with due care, based on adequate information, and within the scope of their authority. However, the study identifies continuing legal uncertainty because the parameters for distinguishing legitimate business risk from negligence, bad faith, abuse of authority, or breach of fiduciary duty remain insufficiently clear and comprehensive. Therefore, strengthening the regulation and interpretation of the BJR, together with the reinforcement of Good Corporate Governance principles, is necessary to establish a balanced framework between directors' managerial discretion, corporate accountability, stakeholder protection, and legal certainty.]]>
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