Reconstruction of the Business Judgment Rule Doctrine in Indonesia: Legal Comparison with England, Canada, the United States, and Australia

https://doi.org/10.29303/ius.v12i1.1371

Authors

Keywords:

Business Judgment Rule, Board of Directors, Company

Abstract

This research specifically analyzes the comparison of the substance of the business judgment rule doctrine in Indonesia with that in other countries by comparing several countries, namely: England, Canada, the United States and Australia. The aim of this research is to reconstruct the future regulation of the business judgment rule doctrine in Indonesia. This research is normative legal research that prioritizes conceptual, statutory, case, and comparative approaches. The research results show that the principles related to the business judgment rule doctrine in Indonesia include the principle of good faith, the principle of prudence, the principle of expediency, and the principle of legal certainty. The characteristics of the business judgment rule doctrine in Indonesia, as contained in statutory regulations and court decisions, actually emphasize the mechanisms that must be taken by directors before making a decision, namely the obligation to prioritize the willens aspect, namely knowing a decision to be taken, and the wettens aspect, namely wanting and understanding the potential consequences. by a decision to be taken. Reconstructing the business judgment rule doctrine in Indonesia by referring to practices in England, Canada, the United States, and Australia, the BJR regulations in Indonesia actually require reconstruction or updating in the future by formulating specific regulations regarding the BJR doctrine in Indonesia and providing space for judicial institutions to develop the application of the BJR doctrine according to developing cases.

Downloads

Download data is not yet available.

Author Biography

Faisal Santiago, Universitas Borobudur, Indonesia

Dosen Universitas Borobudur, Indonesia

References

Abdul Rahman, Annisa Khusnur Rosyida, Nur Afifah Aminudin, Saparyanto Saparyanto. “Principle of Proportionality as a Reflection of the Theory of Justice and Its Application by Judges in the Resolution of Business Contract Disputes.” De Lega Lata 7, no. 1 (2022): 164.

Ahmed, Abdullah, and Alkayat Alazemi. “Introducing The Business Judgment Rule In Select Countries Of The Arabian Gulf.” Comparative Law Review 28, no. 1 (2022): 16–20.

Angelita, Gloria, and Eko Saksono. “The Role of Communication Corporate To Save the Reputation of PT. Garuda Indonesia, Tbk (BUMN Companies Restructure & BJR Implimentation).” American Journal of Humanities and Social Sciences Research 7, no. 3 (2023): 64–69.

Berry Gunawan, Ariawan Gunadi. “Doctrin Business Judgment Rule Analysis As An Effort To Protect The Law Of Directors Of Limited Liability Companies In Indonesia And The United States.” Edunity 2, no. 10 (2023): 1198–1209.

Darmawangsa, Williem. “Interpretasi Yang Salah Mengenai Business Judgment Rule Pada Substansi Dan Struktur Hukum Di Indonesia.” Unes Law Review 5, no. 3 (2023): 1356–68.

Disemadi, Hari Sutra, Mochammad Abizar Yusro, and Ali Ismail Shaleh. “Perlindungan Hukum Keputusan Bisnis Direksi BUMN Melalui Business Judgement Rule Doctrine.” Jurnal Jurisprudence 10, no. 1 (2020): 127–45. https://doi.org/10.23917/jurisprudence.v10i1.11006.

Ersya, Muhammad Haris, Sahuri Lasmadi, Raffles. “Principles Of Business Judgment Rule For Directors Of State Owned Enterprises.” Das Sollen 9, no. 1 (2023): 549–61.

Fields, Gerard V. Mantese and Emily S. “The Business Judgment Rule.” Michigan Bar Journal 1, no. 1 (2020): 30–34.

Gaol, Selamat Lumban. “Aturan Kebijakan Bisnis (Business Judgment Rule) Sebagai Alasan Penghapus Pertanggungjawaban Pidana Pribadi Direksi Perseroan Terbatas Atas Kerugian Perseroan Terbatas Berdasarkan Yurisprudensi Mahkamah Agung Republik Indonesia Di Luar Kitab Undang-Undang.” Jurnal Ilmiah Hukum Dirgantara 12, no. 1 (2021): 52.

Gönenç Gürkaynak, Esq., Gülşen Pazarbaşı and Ece İlci. “Business Judgment Rule: A Legal Theory or a Real Protection for the Board Members in Turkey?,” 2020. https://doi.org/10.1016/j.qref.2017.01.001%0Ahttp://dx.doi.org/10.1016/j.cirp.2016.06.001%0Ahttp://dx.doi.org/10.1016/j.powtec.2016.12.055%0Ahttps://doi.org/10.1016/j.ijfatigue.2019.02.006%0Ahttps://doi.org/10.1016/j.matlet.2019.04.024%0Ahttps://doi.org/1.

Gunadi, Genta Arief, Rajanner P Simarmata, Catur Widiatmoko, and Rahadi Budi. “Peran Stake Holder Dalam Pemenuhan Prinsip Business Judgement Rule ( BJR ) Direksi BUMN.” Jurnal Pendidikan Tambusai 8, no. 1 (2024): 405–14.

Halberda, Jan. “The Principle of Good Faith and Fair Dealingin English Contract Law.” Pravovedenie 64, no. 3 (2020): 313.

Hamadziripi, Friedrich, and Patrick C. Osode. “A Critical Analysis of Zimbabwe’s Codified Business Judgment Rule and Its Place in the Corporate Governance Landscape.” Law, Democracy and Development 25, no. 2021 (2021): 1–29. https://doi.org/10.17159/2077-4907/2021/ldd.v25.20.

Hartanto, Ghani Satria, Dewi Kania Sugiharti, and Anita Afriana. “Aktualisasi Mitigasi Risiko Bisnis Berdasarkan Prinsip Fiduciary Duty Dan Business Judgment Rule.” Jurnal Sains Sosio Humaniora 5, no. 2 (2021): 1191–1202. https://doi.org/10.22437/jssh.v5i2.16535.

Hidayatulloh, and Éva Erdős. “State-Owned Enterprise’s Debt in the State Financial Regime.” Sriwijaya Law Review 7, no. 1 (2023): 105–20. https://doi.org/10.28946/slrev.vol7.iss1.1843.pp105-120.

Januarsyah, Mas Putra Zenno, Dwidja Priyatno, Agung Sujati Winata, and Khairul Hidayat. “Penerapan Doktrin Business Judgment Rule Dalam Perkara Tindak Pidana Korupsi Karen Agustiawan.” Jurnal Ius Constituendum 7, no. 1 (2022): 143. https://doi.org/10.26623/jic.v7i1.4922.

Josková, Lucie. “The Business Judgment Rule in the Czech Republic.” Acta Universitatis Carolinae Iuridica 68, no. 3 (2022): 37–47. https://doi.org/10.14712/23366478.2022.34.

Loughrey, Joan. “Business Judgments And Directors’ Accountability.” School of Law, Queen’s University Belfast, 2018.

MacIntosh, Jeffrey. “The Business Judgment Rule, the Public Interest Powers, and the ‘Fair and Reasonable’ Test: Fellow Travellers or Ships in the Night?” Osgoode Hall Law Journal 60, no. 1 (2023): 73–125. https://doi.org/10.60082/2817-5069.3876.

OECD-Latin America Roundtable on Corporate Governance. “The Business Judgement Rule: A Comparative Analysis,” 2023.

Peter De Cruz. Comparative Law in a Changing World. London: Taylor & Francis Group, 2015.

Rissy, Yafet Yosafet Wilben. “Business Judgement Rule: Ketentuan Dan Pelaksanaannya Oleh Pengadilan Di Inggris, Kanada Dan Indonesia.” Mimbar Hukum - Fakultas Hukum Universitas Gadjah Mada 32, no. 2 (2020): 275. https://doi.org/10.22146/jmh.56117.

Rohmah, Anisatur, and Ahmad Musadad. “Konsep Business Judgement Rule Dalam Perspektif Maṣlaḥah Mursalah.” Nukhbatul ’Ulum 9, no. 2 (2023): 178–92. https://doi.org/10.17977/um019v6i1p72-81.1.

Sage, Nick. “Relational Wrongs and Agency in Tort Theory.” Oxford Journal of Legal Studies 41, no. 4 (2021): 1012–39. https://doi.org/10.1093/ojls/gqab009.

Seenacherry, Melissa. “Liability of Company Directors: The Business Judgment Rule As Developed in the Us and Adopted By Germany Compared To the Netherlands’ Approach.” Amsterdam Law Forum 12, no. 1 (2020): 75. https://doi.org/10.37974/alf.345.

Sili, Eduardus Bayo, Kurniawan Kurniawan, and Gatot Dwi Hendro Wibowo. “Implementation of the Doctrine of Business Judgment Rule in Management of Limited Liability Companies.” International Journal of Multicultural and Multireligious Understanding 8, no. 2 (2022): 627–45.

Siregar, Imastian Chairandy, Sunarmi Sunarmi, Mahmul Siregar, and Detania Sukarja. “Tanggung Jawab Dan Tata Kelola Perseroan Perorangan Sebagai Badan Hukum Baru Di Indonesia.” Locus Journal of Academic Literature Review 1, no. 1 (2022): 26–35. https://doi.org/10.56128/ljoalr.v1i1.49.

Syaflizar, Larassati Putri. “Business Judgment Rule: Sebuah Prinsip Tanggung Jawab Direksi Atas Kerugian Dalam Pengelolaan Bumn (Persero).” Jurnal Privat Law 11, no. 1 (2023): 140. https://doi.org/10.20961/privat.v11i1.45950.

Turava, Marika. “The Scope of the Business Judgment Rule and Its Relation to the Fiduciary Duties of Company Directors.” Journal of Law 1, no. 1 (2023): 224–51. https://doi.org/10.60131/jlaw.1.2023.7073.

Villsen, Mikkel Skriver. “The Business Judgment Rule – Reglens Ophav Og Dens Indmarch i Dansk Retspraksis The Business Judgment Rule - The Origin of the Rule and Its Entrance into Danish Jurisprudence,” 2021, 1–43.

Wardani, Desty Sari. “Perlindungan Direksi Terhadap Keputusan Bisnis Melalui Penerapan Prinsip Business Judgement Rules Di Amerika Serikat, Jepang, Dan Indonesia.” Dharnasisya 2, no. 3 (2023): 1141. https://doi.org/10.1080/14735970.2017.1412688.

Wijaya, Andika. “Implementation of the Doctrine of the Business Judgment Rule on Bankruptcy Law in Indonesia.” Yuridika 35, no. 1 (2019): 1. https://doi.org/10.20473/ydk.v35i1.12436.

Wilda Shafira, Ananda Elena Nur Azizah, Primanadya Dian Pamella, Nabila Ghina Dzakirah. “Business Judgment Rule Dalam Perspektif Hukum Progresif: Esensi Dan Implikasinya Di Indonesia.” Rechtsidee 11, no. 1 (2022).

Wiratraman, Herlambang Perdana. “The Challenges of Teaching Comparative Law and Socio-Legal Studies at Indonesia’s Law Schools.” Asian Journal of Comparative Law 14, no. 1 (2019): 236.

Zahara, Shinta. “Construction Application by Business Judgment Rule Principle as Legal Protection against Directors’ Decisions That Harm the Company.” Legal Brief 11, no. 5 (2022): 2722–4643. https://doi.org/10.35335/legal.xx.xx.

Published

2024-04-29

How to Cite

Santiago, F. (2024). Reconstruction of the Business Judgment Rule Doctrine in Indonesia: Legal Comparison with England, Canada, the United States, and Australia. Jurnal IUS Kajian Hukum Dan Keadilan, 12(1), 107–121. https://doi.org/10.29303/ius.v12i1.1371