Directors’ Responsibilities in a Corporate Bankruptcy

Abstract

The Board of Directors is a limited liability company organ (PT) has an important role in managing the company and conducting activities to represent the company, both inside and outside the court. The Board of Directors is fully responsible for the management of PT. In conducting authorities, directors should able to start from the foundation which the tasks and positions obtained are based on several principles, called the fiduciary duty principle, the principal duty of skill and care, the principal duty of loyalty, and the principle of no secret profit rule doctrine of corporate opportunity. In the case of a PT bankruptcy, the directors may be asked for responsible, if the directors of the PT are unavailable or negligence. This study aimed to determine explicitly of directors' responsibilities in the bankruptcy of the company for the creditors to get their rights when a company is declared bankrupt by the Commercial Court. While the source of data comes from secondary data which are consisting of primary, secondary and tertiary legal material. Primary legal material consists of legislation relating to the UUPT and UUKPKPU as well as other relevant policies. Secondary legal material in the form of consumer protection books, papers, other scientific works related to the bankruptcy of a company.