Implementing Business Judgment Rules in Corporate Decision-Making: A Focus on the Tourism Industry
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Published:
Jul 14, 2024
Keywords:
Business Judgement Rule; Directors; Limited Liability Company
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Abstract
The Board of Directors assumes responsibility for managing a Limited Liability Company, making decisions amidst uncertain circumstances that may lead to company losses. Directors must adherence to the principles of the business judgment rule and act without conflict of interest and with utmost good faith towards the company's best interests. This study explores the application of business judgment rules by directors in corporate governance, employing normative juridical methods. Directors' accountability for company losses under these rules were examined based on the primary, secondary, and other relevant data sources. The research concludes that directors can effectively apply business judgment rules when they operate with integrity and prioritize the company's well-being, emphasizing the importance of maintaining good corporate governance standards.
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Johan, S. (2024). Implementing Business Judgment Rules in Corporate Decision-Making: A Focus on the Tourism Industry. UNES Law Review, 6(4), 11311-11315. https://doi.org/10.31933/unesrev.v6i4.2071
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This work is licensed under a Creative Commons Attribution 4.0 International License.
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References
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Harahap, H. B., Nasution, B., Juwana, H., & Siregar, M. (2021). The Dilemma of Managing Limited Liability State-Owned Enterprises in Applying the Business Judgment Rule. ICOLEG, (40). https://doi.org/10.4108/eai.29-6-2021.2312616
Irianto, S., & Wardani, W. I. (2023). Responsibility of the Board of Directors in Decision Making of the Company Based on the Doctrine of Business Judgement Rule. ICLEH 2022, ASSEHR, 507–514. https://doi.org/10.2991/978-2-38476-024-4_50
Johan, S. (2022). Sanksi Administratif Denda Pendekatan Laporan Keuangan Atas Pelanggaran Persaingan Usaha Tidak Sehat. Masalah-Masalah Hukum, 51(1), 20–28. https://doi.org/10.14710/mmh.51.1.2022.20-28
Johan, S. (2023). Pelaksanaan Eksekusi Jaminan Pribadi Pada Transaksi Pembiayaan Ritel Oleh Lembaga Keuangan Berdasarkan Perundang-undangan. Masalah Masalah Hukum, 52(1), 64–73.
Marzuki, M. P. (2017). Penelitian Hukum: Edisi Revisi (Revisi). Retrieved from https://opac.perpusnas.go.id/DetailOpac.aspx?id=1409842
Nulhakim, F. A., & Novianto, W. T. (2023). The Considerations of the Panel of Judges in Rejecting the Business Judgment Rule Principles in Corruption Crime Case Decisions of PT. Asuransi Jiwasraya. International Journal of Multicultural and Multireligious Understanding, 10(10), 514–523. https://doi.org/10.18415/ijmmu.v10i10.5211
Ramadhan, E. M. R., Wijaya, M. B. L., & Ruslan, B. (2022). Corporate Governance and Principal-Agent Theory: a Critical Review. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 10(2), 1391–1404. https://doi.org/10.37676/ekombis.v10i2.2108
Sandi, F. (2020). Resmi! Eks Bos Pertamina Karen Agustiawan Hirup Udara Bebas. Retrieved from https://www.cnbcindonesia.com/news/20200310192342-4-143898/resmi-eks-bos-pertamina-karen-agustiawan-hirup-udara-bebas
Schillemans, T., & Bjurstrøm, K. H. (2020). Trust and verification: balancing agency and stewardship theory in the governance of agencies. International Public Management Journal, 23(5), 650–676. https://doi.org/10.1080/10967494.2018.1553807
Simbolon, A., & Pramarta, C. (2023). The Ambiguity Application of Business Judgment Rule Doctrine As Director Immunity Right in the Company Law (Analysis of Supreme Court Verdict No 121k/Pid.Sus/2020). Journal Equity of Law and Governance, 3(1), 1–12. https://doi.org/10.55637/elg.3.1.6613.1-12
Sutarna, I. T., & Subandi, A. (2023). Korupsi Dana Desa Dalam Perspektif Principal-Agent. Jurnal Administrasi Pemerintahan Desa, 4(2), 121–136. https://doi.org/10.47134/villages.v4i2.52
Syahputra, E. (2023). Gandeng Kejagung, Waskita Perkuat GCG. Retrieved from https://www.cnbcindonesia.com/news/20230915155031-4-472837/gandeng-kejagung-waskita-perkuat-gcg
Tim Detik.com. (2023). Advokat Boris Ungkap Business Judgment Rule, Apa Itu? Retrieved from https://news.detik.com/berita/d-6937050/advokat-boris-ungkap-business-judgment-rule-apa-itu
UU No. 40 / 2007. (2007).
Wardoyo, D. U., Rahmadani, R., & Hanggoro, P. T. (2021). Good Corporate Governance Dalam Perspektif Teori Keagenan. EKOMA : Jurnal Ekonomi, Manajemen, Akuntansi, 1(1), 39–43. https://doi.org/10.56799/ekoma.v1i1.25
Yunus, N. R., & Nasution, L. (2021). Transformasi dan Pengawasan Keuangan Negara pada BUMN dengan Prinsip Business Judgement Rule. Jurnal Hukum Samudra Keadilan, 16(1), 192–203.