Abstract

This study focuses on an examination of the liability of directors who commit unlawful acts resulting in the bankruptcy of a limited liability company; and an analysis of the legal considerations in Supreme Court Decision No. 98 PK/Pdt.Sus/2010 regarding the Bankruptcy of a Limited Liability Company. This study employs a descriptive-analytical normative legal research method using a statutory approach and a case-based approach. A literature review was used to obtain secondary data, including primary, secondary, and tertiary legal materials. The data was then analyzed using qualitative data analysis methods. Based on the research results, it was concluded that unlawful acts committed by the Board of Directors that result in the bankruptcy of a Limited Liability Company consist of any acts that fail to fulfill the Board of Directors’ obligations as managers of the LLC. The liability of directors who commit unlawful acts resulting in the bankruptcy of a limited liability company may be categorized as compensation for damages. The legal reasoning in Supreme Court Decision No. 98 PK/Pdt.Sus/2010 regarding the Bankruptcy of a Limited Liability Company contains an error in that it failed to include a consideration of the primary cause of the bankruptcy of PT. Rasico Industry, which was the unlawful acts of the Board of Directors, resulting in the company’s inability to pay its debts to creditors. The judge failed to consider Article 97(3) in conjunction with Article 104(2) of the Limited Liability Company Law to include the Board of Directors’ liability therein.