Director Liability

Directors of Indonesian limited liability companies actually have a lot of potential liability pursuant to the provisions of Law No. 40 of 2007 concerning Limited Liability Companies ("Company Law").

I. Director Liability

Good Faith Management
Articles 92(1) and 97(1) and (2) of the Company Law provide that the members of the Board of Directors of an Indonesian limited liability company are accountable for good faith management of the company for the interests of the company in accordance with the intentions and purposes of the company.

Personal Liability
Article 97(2) and (3) of the Company Law provides that every member of the Board of Directors is fully personally liable for losses of the company if the relevant member of the Board of Directors is at fault or negligent in the performance of his/her duties in accordance with the duty to act in good faith and with full responsibility.