Application of business judgement rule in the management of multinational companies

Abstract

This research aims to identify and analyse the implementation of the Business Judgement Rule principle in the management of multinational company which includes the regulatory position and the application of the Business Judgement Rule principle policy which is the standard and values of the company specifically applied from the leadership to employees at Multinational Company. This research uses normative juridical legal research methods and is conducted with a statutory approach, namely with library materials and secondary data including laws and regulations, legal principles and comparative legal research. This research also takes a conceptual approach, namely analysing the concept of policies and standards in companies using legal logic reasoning. The results of this study indicate that the position and internal management policies of multinational companies, which have implemented general principles in accordance with the principles of the Business Judgement Rule (BJR) as stated in Article 97 paragraph (5) of Law No. 40 of 2007 concerning Limited Liability Companies. In terms of the application of the Business Judgement Rule (BJR) principle, multinational companies have specifically issued comprehensive local standards and guidelines to regulate and drive the expected behaviour of employees from the board of directors to the staff level in making strategic and operational decisions for business continuity in Indonesia.