Director liabilities

[Imagem]

At the end of this month I am having a meeting to discuss the details of the directorship I have been offered. However it occurred to me as well as the positives I will get out of this, there could be some negatives. For instance if the company fails for any reason, would I have any personal liability as a director? Or personal liability in any other context?

Thanks

 

[snpark]

Yes you could, so cover your a55

 

[waarmstrong]

This is the wrong place to be getting specific advice, especially in response to brief question without an ounce of specific detail. If the company has a general counsel, ask him or her.

 

[Imagem]

I am not sure the company has even been formed as yet. I will get more info at the end of the month. Seems like it might not be as good a deal as I was thinking but I would appreciate some general info to go into the meeting with if anyone can give me some. For instance in what circumstances might a director be held personally liable. Thanks

 

[Davita]

I'm agree with Waarmstrong's post # 3.
The 'terms of reference' on the director's duties and obligations are where you should get precise details. Anything else is pure speculation.

Every country has different rules but wiki provides a general overview of those duties in major countries....
https://en.wikipedia.org/wiki/Directors'_duties

 

[centurion]

I suggest you to google and read Indonesian Law on Companies UU 40 Tahun 2007, there is a version in English as well and read it all.
The Law is in line with similar European laws.

 

[mauricio]

I am not sure the company has even been formed as yet. I will get more info at the end of the month. Seems like it might not be as good a deal as I was thinking but I would appreciate some general info to go into the meeting with if anyone can give me some. For instance in what circumstances might a director be held personally liable. Thanks

Taxation, be careful with taxation. There was a case of a South Korean company who got issued a ticket to pay a certain amount of tax. You know, when you get the ticket, you have to pay it whether you agree or not (rightly or wrongly). You can dispute later, but where do you complain? The tax office is the collector as well as the judge and jury, so expectation for justice is close to zero. Anyway, before they catch the South Korean director, the head office replaced him with another one from South Korea. So the unfortunate new director was jailed for not paying his company's tax arrears. I do not know if he is freed already but he can only be freed if his company pays. I remember he was in jail for months because his company is refusing to pay the "ransom".

 

[William King]

Can expatriates be Directors ?

 

[lifelongexpat]

Can expatriates be Directors ?

Of course. Expatriates can be directors of local PT companies as well as PT PMA companies.

 

[kroshka]

Expats can also be commissioners

 

[snpark]

I'm a director of a PT and I am not on the hook for anything (yet)

 

[Imagem]

Thanks everyone. I am still in two minds and I am having a dinner meeting tonight. :/

 

[snpark]

Thanks everyone. I am still in two minds and I am having a dinner meeting tonight. :/

Well there's the first thing you going to be liable for!

 

[Imagem]

Having dinner with the friend who wants to make me a director. Not sure what I am going to be liable for. I can't afford the bill where we are going

 

[ericjancoen]

some point i want you to look for:
1. read your company article of association (Anggaran Dasar), should be somewhere in article 11 (Pasal 11) about Director, you find everything you need about the position there.
2. make sure the previous director have properly dismissed or will be dismissed before you take the place, otherwise you "might" carry previous director responsibility if your position just an extension/replacement/filling for him/her.

i am a bit sleepy right now, need some sleep, cheers~
ps: look at your company yearly shareholder general meeting agenda, there should be a dismissed and appointed director agenda there if they done it properly.

 

[Imagem]

Thanks Eric. This will be a new company. We didn't get to discuss any details last night as there were other people at the dinner.