Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia
This critical analysis seeks to explore the inclusivity and feasibility of the legal application of organizational governance principles related to limited liability companies (LLCs) in Indonesia, which are considered essential pillars of Indonesia’s economic stability. The investigators employed th...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2019-09-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12493/PPM_2019_03_Hartanto.pdf |
| _version_ | 1811324325920243712 |
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| author | Joseph Andy Hartanto Sulaksono Sulaksono |
| author_facet | Joseph Andy Hartanto Sulaksono Sulaksono |
| author_sort | Joseph Andy Hartanto |
| collection | DOAJ |
| description | This critical analysis seeks to explore the inclusivity and feasibility of the legal application of organizational governance principles related to limited liability companies (LLCs) in Indonesia, which are considered essential pillars of Indonesia’s economic stability. The investigators employed the non-probability purposive sampling to select 150 study participants from a population of 250 administrative panel members working in PT Bank Rakyat Indonesia and PT Bank Mandiri. Structured and semi-structured questionnaires were constructed and distributed online through emails. The subjects’ responses were coded manually, using the NVivo software for ease of analysis. The result showed that (1) 84.5% of participants believed that ineffective relationship building approaches, corruption, and inadequate information disclosure mechanisms among internal and external shareholders formed the main challenges to implementation of corporate governance principles in Indonesian LLCs, (2) 97.8% of the respondents believed the Indonesian Company Law (ICL) had achieved significant milestones in guiding the application of sound corporate governance principles by explicitly outlining the roles and responsibilities of stakeholders and providing sufficient protection for minority stakeholders, and (3) 78% of participants agreed that the ICL has introduced and reinforced critical rights and protections to shield shareholders from unfair regulations internally formulated by a company. In its findings, the investigation confirmed that poorly structured information sharing systems, fraud, and ineffective relationship building were the main factors that contributed to current inadequacies. 84.5% of the respondents believed that ineffective relationship building approaches, corruption, and inadequate information disclosure mechanisms among internal and external shareholders formed the main challenges, trends, and issues to the implementation of corporate governance principles in Indonesian LLCs. The study also confirmed that the implementation of GCG related legislations had reinforced the professional duties and obligations of stakeholders, alongside offering legal protections for minority business actors. |
| first_indexed | 2024-04-13T14:12:20Z |
| format | Article |
| id | doaj.art-9941db8f5334418da50637b65ae51558 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-13T14:12:20Z |
| publishDate | 2019-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-9941db8f5334418da50637b65ae515582022-12-22T02:43:45ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672019-09-0117341042010.21511/ppm.17(3).2019.3312493Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in IndonesiaJoseph Andy Hartanto0Sulaksono Sulaksono1Ph.D., Senior Lecturer, Department of Law, Universitas Narotama, SurabayaPh.D., Senior Lecturer, Department of Law, Universitas Dr. Soetomo, SurabayaThis critical analysis seeks to explore the inclusivity and feasibility of the legal application of organizational governance principles related to limited liability companies (LLCs) in Indonesia, which are considered essential pillars of Indonesia’s economic stability. The investigators employed the non-probability purposive sampling to select 150 study participants from a population of 250 administrative panel members working in PT Bank Rakyat Indonesia and PT Bank Mandiri. Structured and semi-structured questionnaires were constructed and distributed online through emails. The subjects’ responses were coded manually, using the NVivo software for ease of analysis. The result showed that (1) 84.5% of participants believed that ineffective relationship building approaches, corruption, and inadequate information disclosure mechanisms among internal and external shareholders formed the main challenges to implementation of corporate governance principles in Indonesian LLCs, (2) 97.8% of the respondents believed the Indonesian Company Law (ICL) had achieved significant milestones in guiding the application of sound corporate governance principles by explicitly outlining the roles and responsibilities of stakeholders and providing sufficient protection for minority stakeholders, and (3) 78% of participants agreed that the ICL has introduced and reinforced critical rights and protections to shield shareholders from unfair regulations internally formulated by a company. In its findings, the investigation confirmed that poorly structured information sharing systems, fraud, and ineffective relationship building were the main factors that contributed to current inadequacies. 84.5% of the respondents believed that ineffective relationship building approaches, corruption, and inadequate information disclosure mechanisms among internal and external shareholders formed the main challenges, trends, and issues to the implementation of corporate governance principles in Indonesian LLCs. The study also confirmed that the implementation of GCG related legislations had reinforced the professional duties and obligations of stakeholders, alongside offering legal protections for minority business actors.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12493/PPM_2019_03_Hartanto.pdfGood Corporate GovernanceIndonesian Company Lawlimited liability company |
| spellingShingle | Joseph Andy Hartanto Sulaksono Sulaksono Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia Problems and Perspectives in Management Good Corporate Governance Indonesian Company Law limited liability company |
| title | Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia |
| title_full | Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia |
| title_fullStr | Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia |
| title_full_unstemmed | Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia |
| title_short | Applications of good corporate governance relating to shareholders, commissioners, and directors of limited liability companies in Indonesia |
| title_sort | applications of good corporate governance relating to shareholders commissioners and directors of limited liability companies in indonesia |
| topic | Good Corporate Governance Indonesian Company Law limited liability company |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12493/PPM_2019_03_Hartanto.pdf |
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