Construction application by business judgment rule principle as legal protection against directors' decisions that harm the company
Keywords:
Business Judgment Rule, Liability, Directors, Losses, CompanyAbstract
Based on the principle of business judgment rule, the Board of Directors is not personally responsible for actions committed for and on behalf of the company based on the authority it has, this is because the actions of the board of Directors are the act of making decisions for and on behalf of the company which is the subject of independent law so that the company is responsible for the actions of the company itself which in this case is represented by the Board of Directors. The problem in this study is the application of the Judgment rule principle which is used as legal protection against Directors' decisions that harm the company and to what extent the limit of liability of the Company's directors is either on personal behalf or on behalf of the directors representing the company under the Limited Liability Company Law.
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