PRINCIPLES OF GOOD CORPORATE GOVERNANCE AND THE PRINCIPLE OF FAIRNESS AS LIMITATIONS ON VICARIOUS LIABILITY OF LIMITED LIABILITY COMPANIES

Authors

  • Theodora Pritadianing Saputri Universitas Katolik Parahyangan

DOI:

https://doi.org/10.24246/jrh.2024.v8.i2.p249-268

Keywords:

good corporate governance;, vicarious liability, limited liability, tanggung jawab pengganti, prinsip kewajaran

Abstract

A limited liability company, as a fictional person in law, is represented by its organs in carrying out legal actions. When a third party suffers damages, the limited liability company should be responsible for the actions of its representative. The question arises whether the limited liability company should remain responsible for the action of its representative which is beyond its authority (ultra vires). This study uses a normative juridical research method to set limits for the application of vicarious liability against a limited liability company. This article draws several limitations which are (1) the link between the unlawful act and the perpetrator's position as a limited liability company employee, (2) the fact that the limited liability company through its management has implemented good corporate governance including carrying out internal controls, and (3) victims, relying on reasonableness principle, are allowed to assume that employees are carrying out their scope of work.

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Published

2024-12-08

How to Cite

Saputri, T. P. (2024). PRINCIPLES OF GOOD CORPORATE GOVERNANCE AND THE PRINCIPLE OF FAIRNESS AS LIMITATIONS ON VICARIOUS LIABILITY OF LIMITED LIABILITY COMPANIES. Refleksi Hukum: Jurnal Ilmu Hukum, 8(2), 249–268. https://doi.org/10.24246/jrh.2024.v8.i2.p249-268