The importance of Roles and Duties of An Indonesian Directors in A Foreign Investment Company


Written by Kiki Setiawan, S.H., LL.M.
Partner of Corporate and Commercial Division at Rima Baskoro & Partners


Roles and Duties of Board of Directors

The Indonesian Company Law, as regulated in Law Number 40 of 2007 regarding limited liability company, generally provides roles and duties of Board of Directors in a limited liability company. The main responsibility of board of directors to undertake the management of the company for the interest of the company and in accordance with the company’s purposes and objectives.

As a care taker of the company, board of directors is mandated to represent the company inside or outside the courts of justice. In a particular case, board of directors is not authorized to represent the company if: i) there is a case before the courts between the company and the member of board of directors concerned; or ii) the member of the board of directors concerned has a conflict of interests with the company.

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