{"id":3213,"date":"2025-05-20T18:23:19","date_gmt":"2025-05-20T11:23:19","guid":{"rendered":"https:\/\/litaparomitasiregar.id\/?p=3213"},"modified":"2025-05-20T19:09:58","modified_gmt":"2025-05-20T12:09:58","slug":"how-indonesias-two-tier-board-system-differs-from-the-united-kingdom-one-tier-board","status":"publish","type":"post","link":"https:\/\/litaparomitasiregar.id\/en\/how-indonesias-two-tier-board-system-differs-from-the-united-kingdom-one-tier-board\/","title":{"rendered":"How Indonesia\u2019s Two-Tier Board System Differs from the United Kingdom One-Tier Board"},"content":{"rendered":"<blockquote><p>Lita, I understand that Indonesian companies have both a Board of Directors and a Board of Commissioners. Can you explain how that works in practice? In the U.K., we usually just have one board that handles both management and oversight.<\/p><\/blockquote>\n<p class=\"\" data-start=\"150\" data-end=\"598\">In many jurisdictions, such as the United Kingdom and the United States, companies adopt a one-tier board system, in which a single Board of Directors (BoD) is responsible for both the management and supervision of the company. Within this unified board, Executive Directors (EDs)\u2014who manage the company\u2019s day-to-day operations\u2014serve alongside Non-Executive Directors (NEDs), who provide oversight and ensure accountability.<\/p>\n<p class=\"\" data-start=\"600\" data-end=\"1042\">A typical one-tier board features two key leadership roles: the Chief Executive Officer (CEO) and the Chairman. The CEO is the highest-ranking executive, tasked with executing the company\u2019s strategy and managing its operations. The Chairman, on the other hand, leads the board and ensures that it fulfills its governance responsibilities effectively, including overseeing executive management and safeguarding shareholders\u2019 interests.<\/p>\n<p data-start=\"1189\" data-end=\"1463\"><span class=\"_fadeIn_m1hgl_8\">In <\/span><span class=\"_fadeIn_m1hgl_8\">contrast, <\/span><span class=\"_fadeIn_m1hgl_8\">Indonesia<\/span> <span class=\"_fadeIn_m1hgl_8\">adopts <\/span><span class=\"_fadeIn_m1hgl_8\">a <\/span><span class=\"_fadeIn_m1hgl_8\">two-<\/span><span class=\"_fadeIn_m1hgl_8\">tier <\/span><span class=\"_fadeIn_m1hgl_8\">board <\/span><span class=\"_fadeIn_m1hgl_8\">system<\/span><span class=\"_fadeIn_m1hgl_8\">, <\/span><span class=\"_fadeIn_m1hgl_8\">as <\/span><span class=\"_fadeIn_m1hgl_8\">mandated <\/span><span class=\"_fadeIn_m1hgl_8\">by <\/span><span class=\"_fadeIn_m1hgl_8\">Law <\/span><span class=\"_fadeIn_m1hgl_8\">No. <\/span><span class=\"_fadeIn_m1hgl_8\">40 <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">2007 <\/span><span class=\"_fadeIn_m1hgl_8\">concerning <\/span><span class=\"_fadeIn_m1hgl_8\">Limited <\/span><span class=\"_fadeIn_m1hgl_8\">Liability <\/span><span class=\"_fadeIn_m1hgl_8\">Companies<\/span><span class=\"_fadeIn_m1hgl_8\"> (<\/span><span class=\"_fadeIn_m1hgl_8\">commonly <\/span><span class=\"_fadeIn_m1hgl_8\">referred <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">as <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">Company <\/span><span class=\"_fadeIn_m1hgl_8\">Law<\/span><span class=\"_fadeIn_m1hgl_8\">). <\/span><span class=\"_fadeIn_m1hgl_8\">This <\/span><span class=\"_fadeIn_m1hgl_8\">structure <\/span><span class=\"_fadeIn_m1hgl_8\">separates <\/span><span class=\"_fadeIn_m1hgl_8\">management <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">supervisory <\/span><span class=\"_fadeIn_m1hgl_8\">functions <\/span><span class=\"_fadeIn_m1hgl_8\">into <\/span><span class=\"_fadeIn_m1hgl_8\">two <\/span><span class=\"_fadeIn_m1hgl_8\">distinct <\/span><span class=\"_fadeIn_m1hgl_8\">bodies:<\/span><\/p>\n<p data-start=\"1189\" data-end=\"1463\"><span class=\"_fadeIn_m1hgl_8\"><br \/>\n<\/span><strong><span class=\"_fadeIn_m1hgl_8\">1. <\/span><span class=\"_fadeIn_m1hgl_8\">Board <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">Directors (<\/span><span class=\"_fadeIn_m1hgl_8\">BoD)<\/span><\/strong><\/p>\n<p data-start=\"1508\" data-end=\"1739\"><span class=\"_fadeIn_m1hgl_8\">The <\/span><span class=\"_fadeIn_m1hgl_8\">Indonesian <\/span><span class=\"_fadeIn_m1hgl_8\">Board <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">Directors<\/span> <span class=\"_fadeIn_m1hgl_8\">is <\/span><span class=\"_fadeIn_m1hgl_8\">responsible <\/span><span class=\"_fadeIn_m1hgl_8\">for <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">executive <\/span><span class=\"_fadeIn_m1hgl_8\">management<\/span> <span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company. <\/span><span class=\"_fadeIn_m1hgl_8\">Under <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">Company <\/span><span class=\"_fadeIn_m1hgl_8\">Law, <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoD <\/span><span class=\"_fadeIn_m1hgl_8\">has <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">authority <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">represent <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">out <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">court. <\/span><span class=\"_fadeIn_m1hgl_8\">Its <\/span><span class=\"_fadeIn_m1hgl_8\">core <\/span><span class=\"_fadeIn_m1hgl_8\">responsibilities <\/span><span class=\"_fadeIn_m1hgl_8\">include:<\/span><\/p>\n<ul data-start=\"1741\" data-end=\"1956\">\n<li data-start=\"1741\" data-end=\"1789\">\n<p data-start=\"1743\" data-end=\"1789\"><span class=\"_fadeIn_m1hgl_8\">Managing <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company\u2019s <\/span><span class=\"_fadeIn_m1hgl_8\">day-<\/span><span class=\"_fadeIn_m1hgl_8\">to-<\/span><span class=\"_fadeIn_m1hgl_8\">day <\/span><span class=\"_fadeIn_m1hgl_8\">operations<\/span><\/p>\n<\/li>\n<li data-start=\"1790\" data-end=\"1826\">\n<p data-start=\"1792\" data-end=\"1826\"><span class=\"_fadeIn_m1hgl_8\">Hiring <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">supervising <\/span><span class=\"_fadeIn_m1hgl_8\">employees<\/span><\/p>\n<\/li>\n<li data-start=\"1827\" data-end=\"1866\">\n<p data-start=\"1829\" data-end=\"1866\"><span class=\"_fadeIn_m1hgl_8\">Negotiating <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">executing <\/span><span class=\"_fadeIn_m1hgl_8\">contracts<\/span><\/p>\n<\/li>\n<li data-start=\"1867\" data-end=\"1910\">\n<p data-start=\"1869\" data-end=\"1910\"><span class=\"_fadeIn_m1hgl_8\">Making <\/span><span class=\"_fadeIn_m1hgl_8\">strategic <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">business <\/span><span class=\"_fadeIn_m1hgl_8\">decisions<\/span><\/p>\n<\/li>\n<li data-start=\"1911\" data-end=\"1956\">\n<p data-start=\"1913\" data-end=\"1956\"><span class=\"_fadeIn_m1hgl_8\">Representing <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">legal <\/span><span class=\"_fadeIn_m1hgl_8\">matters<\/span><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1958\" data-end=\"2071\"><span class=\"_fadeIn_m1hgl_8\">In <\/span><span class=\"_fadeIn_m1hgl_8\">essence, <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoD <\/span><span class=\"_fadeIn_m1hgl_8\">acts <\/span><span class=\"_fadeIn_m1hgl_8\">as <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">executive <\/span><span class=\"_fadeIn_m1hgl_8\">arm<\/span> <span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company, <\/span><span class=\"_fadeIn_m1hgl_8\">implementing <\/span><span class=\"_fadeIn_m1hgl_8\">policies <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">running <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">business.<br \/>\n<\/span><span class=\"_fadeIn_m1hgl_8\"><br \/>\n<strong>2. <\/strong><\/span><strong><span class=\"_fadeIn_m1hgl_8\">Board <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">Commissioners (<\/span><span class=\"_fadeIn_m1hgl_8\">BoC)<\/span><\/strong><\/p>\n<p data-start=\"2120\" data-end=\"2342\"><span class=\"_fadeIn_m1hgl_8\">The <\/span><span class=\"_fadeIn_m1hgl_8\">Board <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">Commissioners<\/span> <span class=\"_fadeIn_m1hgl_8\">has <\/span><span class=\"_fadeIn_m1hgl_8\">a <\/span><span class=\"_fadeIn_m1hgl_8\">supervisory <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">advisory<\/span> <span class=\"_fadeIn_m1hgl_8\">role. <\/span><span class=\"_fadeIn_m1hgl_8\">It <\/span><span class=\"_fadeIn_m1hgl_8\">is <\/span><span class=\"_fadeIn_m1hgl_8\">tasked <\/span><span class=\"_fadeIn_m1hgl_8\">with <\/span><span class=\"_fadeIn_m1hgl_8\">overseeing <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoD\u2019s <\/span><span class=\"_fadeIn_m1hgl_8\">actions <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">ensuring <\/span><span class=\"_fadeIn_m1hgl_8\">that <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company <\/span><span class=\"_fadeIn_m1hgl_8\">complies <\/span><span class=\"_fadeIn_m1hgl_8\">with <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">law <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">adheres <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">good <\/span><span class=\"_fadeIn_m1hgl_8\">corporate <\/span><span class=\"_fadeIn_m1hgl_8\">governance <\/span><span class=\"_fadeIn_m1hgl_8\">practices.<\/span><\/p>\n<p data-start=\"2344\" data-end=\"2352\"><span class=\"_fadeIn_m1hgl_8\">The <\/span><span class=\"_fadeIn_m1hgl_8\">BoC:<\/span><\/p>\n<ul data-start=\"2353\" data-end=\"2561\">\n<li data-start=\"2353\" data-end=\"2396\">\n<p data-start=\"2355\" data-end=\"2396\"><span class=\"_fadeIn_m1hgl_8\">Does <\/span><span class=\"_fadeIn_m1hgl_8\">not <\/span><span class=\"_fadeIn_m1hgl_8\">engage <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">daily <\/span><span class=\"_fadeIn_m1hgl_8\">operations<\/span><\/p>\n<\/li>\n<li data-start=\"2397\" data-end=\"2511\">\n<p data-start=\"2399\" data-end=\"2511\"><span class=\"_fadeIn_m1hgl_8\">Does <\/span><span class=\"_fadeIn_m1hgl_8\">not <\/span><span class=\"_fadeIn_m1hgl_8\">represent <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">company <\/span><span class=\"_fadeIn_m1hgl_8\">legally<\/span><span class=\"_fadeIn_m1hgl_8\">, <\/span><span class=\"_fadeIn_m1hgl_8\">except <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">specific <\/span><span class=\"_fadeIn_m1hgl_8\">cases (<\/span><span class=\"_fadeIn_m1hgl_8\">e.<\/span><span class=\"_fadeIn_m1hgl_8\">g., <\/span><span class=\"_fadeIn_m1hgl_8\">when <\/span><span class=\"_fadeIn_m1hgl_8\">all <\/span><span class=\"_fadeIn_m1hgl_8\">BoD <\/span><span class=\"_fadeIn_m1hgl_8\">positions <\/span><span class=\"_fadeIn_m1hgl_8\">are <\/span><span class=\"_fadeIn_m1hgl_8\">vacant)<\/span><\/p>\n<\/li>\n<li data-start=\"2512\" data-end=\"2561\">\n<p data-start=\"2514\" data-end=\"2561\"><span class=\"_fadeIn_m1hgl_8\">Must <\/span><span class=\"_fadeIn_m1hgl_8\">not <\/span><span class=\"_fadeIn_m1hgl_8\">interfere <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">operational <\/span><span class=\"_fadeIn_m1hgl_8\">decisions<\/span><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2563\" data-end=\"2815\"><span class=\"_fadeIn_m1hgl_8\">While <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoC <\/span><span class=\"_fadeIn_m1hgl_8\">supervises <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoD, <\/span><span class=\"_fadeIn_m1hgl_8\">it <\/span><span class=\"_fadeIn_m1hgl_8\">does <\/span><span class=\"_fadeIn_m1hgl_8\">not <\/span><span class=\"_fadeIn_m1hgl_8\">have <\/span><span class=\"_fadeIn_m1hgl_8\">higher <\/span><span class=\"_fadeIn_m1hgl_8\">authority<\/span><span class=\"_fadeIn_m1hgl_8\">\u2014<\/span><span class=\"_fadeIn_m1hgl_8\">both <\/span><span class=\"_fadeIn_m1hgl_8\">boards <\/span><span class=\"_fadeIn_m1hgl_8\">are <\/span><span class=\"_fadeIn_m1hgl_8\">equal <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">rank<\/span> <span class=\"_fadeIn_m1hgl_8\">but <\/span><span class=\"_fadeIn_m1hgl_8\">have <\/span><span class=\"_fadeIn_m1hgl_8\">distinct <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">complementary <\/span><span class=\"_fadeIn_m1hgl_8\">functions. This<\/span><span class=\"_fadeIn_m1hgl_8\">\u00a0<\/span><span class=\"_fadeIn_m1hgl_8\">two-<\/span><span class=\"_fadeIn_m1hgl_8\">tier <\/span><span class=\"_fadeIn_m1hgl_8\">system <\/span><span class=\"_fadeIn_m1hgl_8\">ensures <\/span><span class=\"_fadeIn_m1hgl_8\">a <\/span><span class=\"_fadeIn_m1hgl_8\">clear <\/span><span class=\"_fadeIn_m1hgl_8\">separation <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">powers<\/span> <span class=\"_fadeIn_m1hgl_8\">between <\/span><span class=\"_fadeIn_m1hgl_8\">management <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">oversight, <\/span><span class=\"_fadeIn_m1hgl_8\">supporting <\/span><span class=\"_fadeIn_m1hgl_8\">internal <\/span><span class=\"_fadeIn_m1hgl_8\">checks <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">balances<\/span><span class=\"_fadeIn_m1hgl_8\">. <\/span><span class=\"_fadeIn_m1hgl_8\">A <\/span><span class=\"_fadeIn_m1hgl_8\">significant <\/span><span class=\"_fadeIn_m1hgl_8\">feature <\/span><span class=\"_fadeIn_m1hgl_8\">of <\/span><span class=\"_fadeIn_m1hgl_8\">this <\/span><span class=\"_fadeIn_m1hgl_8\">model <\/span><span class=\"_fadeIn_m1hgl_8\">is <\/span><span class=\"_fadeIn_m1hgl_8\">that <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">same <\/span><span class=\"_fadeIn_m1hgl_8\">individual <\/span><span class=\"_fadeIn_m1hgl_8\">cannot <\/span><span class=\"_fadeIn_m1hgl_8\">simultaneously <\/span><span class=\"_fadeIn_m1hgl_8\">serve<\/span> <span class=\"_fadeIn_m1hgl_8\">on <\/span><span class=\"_fadeIn_m1hgl_8\">both <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoD <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">BoC <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">same <\/span><span class=\"_fadeIn_m1hgl_8\">company. <\/span><span class=\"_fadeIn_m1hgl_8\">This <\/span><span class=\"_fadeIn_m1hgl_8\">structural <\/span><span class=\"_fadeIn_m1hgl_8\">separation <\/span><span class=\"_fadeIn_m1hgl_8\">is <\/span><span class=\"_fadeIn_m1hgl_8\">designed <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">strengthen <\/span><span class=\"_fadeIn_m1hgl_8\">corporate <\/span><span class=\"_fadeIn_m1hgl_8\">governance <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">maintain <\/span><span class=\"_fadeIn_m1hgl_8\">independence.<\/span><\/p>\n<p class=\"\" data-start=\"2995\" data-end=\"3255\">At the end of each financial year, both the BoD and BoC are held accountable to shareholders at the Annual General Meeting of Shareholders (AGMS). The BoD is responsible for convening the AGMS and presenting the Annual Report, which typically includes:<\/p>\n<ul data-start=\"3257\" data-end=\"3661\">\n<li class=\"\" data-start=\"3257\" data-end=\"3395\">\n<p class=\"\" data-start=\"3259\" data-end=\"3395\">Audited financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity, and explanatory notes)<\/p>\n<\/li>\n<li class=\"\" data-start=\"3396\" data-end=\"3460\">\n<p class=\"\" data-start=\"3398\" data-end=\"3460\">A report on the company\u2019s activities and overall performance<\/p>\n<\/li>\n<li class=\"\" data-start=\"3461\" data-end=\"3550\">\n<p class=\"\" data-start=\"3463\" data-end=\"3550\">A report on the company\u2019s Corporate Social and Environmental Responsibility (CSR)<\/p>\n<\/li>\n<li class=\"\" data-start=\"3551\" data-end=\"3612\">\n<p class=\"\" data-start=\"3553\" data-end=\"3612\">Disclosure of any significant legal or operational issues<\/p>\n<\/li>\n<li class=\"\" data-start=\"3613\" data-end=\"3661\">\n<p class=\"\" data-start=\"3615\" data-end=\"3661\">Remuneration details for BoD and BoC members<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"3663\" data-end=\"3777\"><span class=\"_fadeIn_m1hgl_8\">The <\/span><span class=\"_fadeIn_m1hgl_8\">BoC <\/span><span class=\"_fadeIn_m1hgl_8\">also <\/span><span class=\"_fadeIn_m1hgl_8\">provides <\/span><span class=\"_fadeIn_m1hgl_8\">a <\/span><span class=\"_fadeIn_m1hgl_8\">supervisory <\/span><span class=\"_fadeIn_m1hgl_8\">report<\/span><span class=\"_fadeIn_m1hgl_8\">, <\/span><span class=\"_fadeIn_m1hgl_8\">outlining <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">oversight <\/span><span class=\"_fadeIn_m1hgl_8\">it <\/span><span class=\"_fadeIn_m1hgl_8\">has <\/span><span class=\"_fadeIn_m1hgl_8\">carried <\/span><span class=\"_fadeIn_m1hgl_8\">out <\/span><span class=\"_fadeIn_m1hgl_8\">over <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">year.<\/span><\/p>\n<p class=\"\" data-start=\"3779\" data-end=\"4159\">Based on the Annual Report, shareholders may choose to grant a release and discharge (acquit et decharge) to both the BoD and BoC. If this release is not granted, members of the BoD and BoC may be held personally and jointly liable for any losses suffered by the company due to their actions or negligence during the reporting period, as stipulated in the Company Law.<\/p>\n<p data-start=\"4450\" data-end=\"4754\"><span class=\"_fadeIn_m1hgl_8\">The <\/span><span class=\"_fadeIn_m1hgl_8\">Indonesian <\/span><span class=\"_fadeIn_m1hgl_8\">two-<\/span><span class=\"_fadeIn_m1hgl_8\">tier <\/span><span class=\"_fadeIn_m1hgl_8\">board <\/span><span class=\"_fadeIn_m1hgl_8\">system <\/span><span class=\"_fadeIn_m1hgl_8\">offers <\/span><span class=\"_fadeIn_m1hgl_8\">a <\/span><span class=\"_fadeIn_m1hgl_8\">distinct <\/span><span class=\"_fadeIn_m1hgl_8\">approach <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">corporate <\/span><span class=\"_fadeIn_m1hgl_8\">governance <\/span><span class=\"_fadeIn_m1hgl_8\">compared <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">one-<\/span><span class=\"_fadeIn_m1hgl_8\">tier <\/span><span class=\"_fadeIn_m1hgl_8\">models <\/span><span class=\"_fadeIn_m1hgl_8\">found <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">countries <\/span><span class=\"_fadeIn_m1hgl_8\">like <\/span><span class=\"_fadeIn_m1hgl_8\">the <\/span><span class=\"_fadeIn_m1hgl_8\">UK. <\/span><span class=\"_fadeIn_m1hgl_8\">By <\/span><span class=\"_fadeIn_m1hgl_8\">ensuring <\/span><span class=\"_fadeIn_m1hgl_8\">separation <\/span><span class=\"_fadeIn_m1hgl_8\">between <\/span><span class=\"_fadeIn_m1hgl_8\">management <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">oversight, <\/span><span class=\"_fadeIn_m1hgl_8\">it <\/span><span class=\"_fadeIn_m1hgl_8\">aims <\/span><span class=\"_fadeIn_m1hgl_8\">to <\/span><span class=\"_fadeIn_m1hgl_8\">improve <\/span><span class=\"_fadeIn_m1hgl_8\">accountability, <\/span><span class=\"_fadeIn_m1hgl_8\">independence, <\/span><span class=\"_fadeIn_m1hgl_8\">and <\/span><span class=\"_fadeIn_m1hgl_8\">transparency <\/span><span class=\"_fadeIn_m1hgl_8\">in <\/span><span class=\"_fadeIn_m1hgl_8\">corporate <\/span><span class=\"_fadeIn_m1hgl_8\">decision-<\/span><span class=\"_fadeIn_m1hgl_8\">making.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Lita, I understand that Indonesian companies have both a Board of Directors and a Board of Commissioners. Can you explain how that works in practice? In the U.K., we usually just have one board that handles both management and oversight. In many jurisdictions, such as the United Kingdom and the United States, companies adopt a [&hellip;]<\/p>","protected":false},"author":1,"featured_media":3214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[],"class_list":["post-3213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-perusahaan-dan-penanaman-modal"],"_links":{"self":[{"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/posts\/3213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/comments?post=3213"}],"version-history":[{"count":6,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/posts\/3213\/revisions"}],"predecessor-version":[{"id":3217,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/posts\/3213\/revisions\/3217"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/media\/3214"}],"wp:attachment":[{"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/media?parent=3213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/categories?post=3213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/litaparomitasiregar.id\/en\/wp-json\/wp\/v2\/tags?post=3213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}