The Significance of Good Corporate Governance Principles in The Company Law of 2007

Irwan Sugiarto

Abstract


The purpose of this research was to identified the principles of Good Corporate Governance (GCG) which have not been significantly regulated in the Act Number 40 of 2007 on Limited Company. The research characteristic was qualitative descriptive. The data that used were secondary data with primary, secondary, and tertiary legal materials which were collected through a literature study. The result show that GCG principles which have not been significantly regulated in the Act Number 40 of 2007 on Limited Company were transparency principles; the requirement of direction and commissioner council, not all companies must be audited, and empowerment of the company secretary role. Accountability principles: requirement and duty of the independent commissioner, duty of audit committee, nomination, remuneration. Responsibility principle: not all companies should do the social and environmental responsibility. Independence principle: the stockholder domination. Fairness principles: the protection of minority stockholders, and CSR.


Keywords


Significance, Good Corporate Governance, Limited Company.

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References


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