Indonesia:
New Regulation On Personal Liabilities Of Directors And Commissioners In State-Owned Enterprises
01 November 2022
Rajah & Tann
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On 8 June 2022, President Joko Widodo issued Government
Regulation No. 23 of 2022 on state-owned enterprises
("SOEs"), specifically regulating, among
others, the appointment and removal of directors and commissioners
in SOEs. In addition, the regulation also states that directors and
commissioners of SOEs will be personally liable for losses of the
SOEs if they are proven to have been negligent when conducting
their duties.
On the other hand, Articles 27(5) and 59(2) of the regulation
allow directors or commissioners to be exempted from liability
under the business judgment rule if they have performed their
duties in good faith, have no conflicts of interest, and have taken
steps to prevent the loss to the SOEs.
For more information, click here to read our Legal Update.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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