Responsibility of the Board of Directors for Violations of Good Corporate Governance Principles in Company Management

Abstract

Taking into account the provisions of the Articles of the Limited Liability Company Law, it can be stated that there are no provisions governing the application of the GCG principles. because it only stipulates that the company is obliged to comply with all good things in a corporation, but it does not regulate the forms of GCG. itself, the procedures for implementing GCG, what are the responsibilities of a Board of Directors if the principle is violated and what are the sanctions that must be given to those who violate it. In that regard, this norm can certainly cause legal uncertainty. This paper use normative legal research method. Management responsibilities may emerge if there is a violation of GCG principles in the management of PT which can be in the form of: Civil and criminal liability.

The Role of Legal Practitioners in Mitigating Corporate Risks in Nigeria: A Comprehensive Review of Existing Literature on the Strategies and Approaches Adopted by Legal Practitioners in Nigeria to Mitigate Corporate Risks

“…Furthermore, legal practitioners are responsible for addressing violations of Good Corporate Governance (GCG) principles in management, ensuring adherence to legal and ethical standards. They are tasked with holding the board of directors accountable for any violations of GCG principles and addressing the resultant civil and criminal liabilities (Kristin et al, 2022). The evolving legal frameworks necessitate legal practitioners to be vigilant and proactive in addressing any discrepancies in corporate governance practices.…”