Differences of Commissioners and Directors

When running a business we need many aspects that can support the running of the business so that it develops, one of which is from the management side. As we also know that the management in a company is known by several terms, namely directors and commissioners.

For investors they have the assumption that the roles of directors and commissioners are the same even though these two positions are different both in terms of responsibilities and obligations. Therefore, below we will discuss the differences between directors and commissioners!!

Commissioner

According to Law No. 40 of 2007 Commissioner is an organ of the company that is tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.

The Board of Commissioners supervises management policies, and the course of management in general, both regarding the Company and the Company’s business, and provides advice to the Board of Directors. Supervision and providing advice is carried out for the benefit of the Company and in accordance with the purposes and objectives of the Company.

Director

According to Law no.  40  of  2007, the  Board of  Directors is the  Company’s organ that is authorized and fully responsible for the management of the Company for the benefit of the Company, in accordance with the purposes and objectives of the Company and represents the Company, both inside and outside the court in accordance with the provisions of the articles of association.

The Board of Directors carries out the management of the Company for the benefit of the Company and in accordance with the purposes and objectives of the Company and also comply with policies deemed appropriate within the limits specified in the Act or the Articles of Association.

The Board of Directors must have good intentions and be responsible for the management of the company.

The Board of Directors is also obliged to prepare and maintain a register of shareholders, minutes of the GMS, and minutes of the board of directors’ meetings, maintain the company’s books and report its share ownership.

In the event of negligence or loss, each member of the Board of Directors is personally responsible for the loss of the Company if he is concerned or negligent in carrying out his duties.

If the Board of Directors consists of 2 or more members of the Board of Directors, then the responsibility applies jointly and severally to each member of the Board of Directors. So it is easy to conclude that the directors are in charge and responsible for the company’s operations. In addition,  the  Board of  Directors is also the structural  party of the company who has responsibility for making decisions from the company.

Therefore, the wheels of business and company operations are the full responsibility of the duties and functions of the Board of Directors.

Now you understand about the difference between commissioners and directors? Understanding the difference between these two will certainly be very influential for those of you who are in the business world.