Lex Recta: Journal of Law and Normative Justice
Vol. 1 No. 3 (2026): : September: Lex Recta: Journal of Law and Normative Justice

Analysis of the Abuse of Extraordinary General Shareholders’ Meetings in the Removal of Directors (A Study of Judgment No. 2/PDT.G/2019/PN.PRN)

Gusti Rahmadani (Universitas Islam Indonesia)



Article Info

Publish Date
03 Sep 2026

Abstract

A limited liability company operates through corporate organs whose respective authorities are regulated by statutory provisions to ensure lawful and accountable corporate governance. The General Meeting of Shareholders (GMS) possesses authority to appoint and dismiss directors, but such authority must be exercised in accordance with mandatory procedural requirements. This study examines the legal validity of the Extraordinary General Meeting of Shareholders (EGMS) used to dismiss the President Director of PT Rahmah Mandiri Mulia, as considered in Paringin District Court Decision Number 2/Pdt.G/2019/PN Prn. The study aims to analyze the legal standing of the EGMS, identify the legal consequences of its invalidity, and examine whether the exercise of shareholder authority constituted an abuse of authority and violated principles of fiduciary responsibility and good corporate governance. This study employs normative legal research using statutory, conceptual, case, and comparative approaches, with legal materials analyzed qualitatively and descriptively. The findings demonstrate that the disputed EGMS was legally invalid because the meeting failed to satisfy essential procedural requirements concerning formal notice, quorum, voting, and the director's opportunity to present a defense. The invalid resolution also affected subsequent changes in the company's management structure and provided grounds for restoring the director's legal position. The case demonstrates that shareholder authority is not absolute and must be exercised within statutory limits, good faith, procedural fairness, and corporate accountability.

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Journal Info

Abbrev

lex-recta

Publisher

Subject

Description

Lex Recta: Journal of Law and Normative Justice is a peer-reviewed academic journal dedicated to publishing high-quality scholarly works in the field of legal studies, with a primary focus on normative and doctrinal legal research. The journal provides an international platform for legal scholars, ...