Indonesia market also is recognized
as the most important emerging markets to be discussed regarding the role of
the board of directors. It has been suggested by D. Sundarasen, et al. (2016),
that board of directors are authorized as
well as responsible for the effective management of the organization for the
aspect of interest meeting as well as meeting the objectives of the
organization by representing the organization from inside and also from outside
in the competitive market. Under the company law, the roles and
responsibilities of the board of directors in Indonesia market have been highlighted as below:
Delivering an annual
report along with the financial statement of the organization after the
examination of the report by the board of commissioners in the general meeting
of the company shareholders within the first 6 months of the completion of the
financial year of the organization.
Board of directors
also is liable to plan an effective plan
of business. They are also responsible to submit the development business plan
to the board of commissioners so that the board of commissioners will be able to approve the business plan to be
executed (D. Sundarasen, et al., 2016).
Board of directors
also is about to prepare as well as
maintain the register of shareholders of the organization holding the required
information on the company ownership in the organization itself containing the
effective board of members.
They are also liable
to archive the solution for the group of the shareholders and also for the
board of the directors of the company along with the group of board of
commissioners of the organization.
of the board of directors is to obtain the required approval from shareholders general meeting in order to
transfer more than 50 percent of their assets to
the organization for some transactional purpose.
Board of directors is liable to hold a general meeting of the
shareholders in two forms wither as annually or in extraordinary form as called
by the shareholders based on the urgent
requirement of the organization (D. Sundarasen, et al., 2016).
It is also the duty of
the board of directors to make know the law minister and any change of human rights
to the composition of the commissioners as well as the board of directors within
the limit of 30 days from the date of resolution in general meeting of the
shareholders of the organization based on the change in organisation elements
of decision making approach.
The board of directors
also are liable to record any type of share transfer in the company and make
alert to MLHR (ministry of law and human rights) regarding the change in a number of shares of the shareholders within
the 30 days of the share transfer occurrence in the organization. Thus, proper
information flow is perfectly balanced by the board of directors in Indonesia
emerging market effectively (D. Sundarasen, et al., 2016).
organization board of directors also is closely responsible to alert the
creditors of the organization in case there will be any reduction in the
capital amount of the organization within the last 7 days of resolution
offering in general meeting through the article publish in any of the newspaper(Darmadi, 2013)