Responsibility of the Board of Directors to the Non-Performing Loans in Banking Company Based on Law Number 40 of 2007

  • Sandra Dewi
  • Andrew Shandy Utama

Abstract

Bank is a company whose business activities raise funds, channel funds, and provide financialservices. Of the three bank business activities, fund distribution activities are activities that are sources of bank-wide income. However, large profits are directly proportional to the high level of risk, namely the occurrence of Non-Performing Loans. The problem that will be discussed in this research is how is the responsibility of the Board of Directors for the occurrence of Non-Performing Loans in banking companies based on Law Number 40 of 2007 concerning Limited Liability Companies? The method used in this research is normative legal research using the statutory approach. The results of this research are that one of the causes of
the occurrence of Non-Performing Loans in banks is inaccurate credit analysis conducted by bank employees in the credit department and the absence of supervision conducted by the Directors as leaders in banking companies. Pursuant to Article 97 of Law Number 40 of 2007 concerning Limited Liability Companies, it is stated that the Board of Directors is personally responsible for the company's losses if the person concerned is guilty or negligent in carrying out his duties. This means, as the party who gives approval in lending, the Board of Directors must take full responsibility if the disbursed credit becomes a problem in the future and becomes a bad credit that causes losses to the company.

Downloads

Download data is not yet available.
Published
2019-12-09
Abstract views: 44 , pdf downloads: 12