Juridical Analysis Of The Involvement Of Directors As Defendants In Breach Of Contract Disputes Of Limited Liability Companies Study Of Decision Number 359/Pdt.G/2021/Pn Jkt.Utr

Abstract

Breach of contract disputes involving limited liability companies often raise legal issues regarding the boundary between corporate liability and the personal liability of directors, as analyzed in Decision Number 359/Pdt.G/2021/PN Jkt.Utr through this normative legal research. Under the Company Law, a company is an independent legal entity; thus, legal actions performed by directors within their authority inherently bind the company. Personal liability of a director only arises upon proof of fault, negligence, or unauthorized acts. The findings indicate that the panel of judges meticulously separated the civil liability of PT Buana Artha Tekno Sains from its corporate officer, affirming that naming a director as a defendant does not automatically impose personal financial liability.