Limitation of the Board of Directors' Authority in the Sale of Company Assets based on the Principles of Good Corporate Governance
DOI:
https://doi.org/10.31305/rrijm.2024.v09.n10.015Keywords:
Board of Directors, Limited Liability Company, Company AssetsAbstract
This study aims to examine and analyze the boundaries of the Board of Directors' authority when it comes to selling company assets, as well as to explore the principles of oversight in limited liability companies grounded in good corporate governance. The research follows a normative legal approach, utilizing both statutory and conceptual methods. Data sources include both primary and secondary information, with secondary data encompassing primary, secondary, and tertiary legal materials from literature. According to Law No. 40 of 2007 on Limited Liability Companies (UUPT), the Board of Directors holds the authority to represent the company in transferring its assets. If there are multiple directors, each member of the Board retains the right to represent the company.
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This is an open access article under the CC BY-NC-ND license Creative Commons Attribution-Noncommercial 4.0 International (CC BY-NC 4.0).