The document discusses key concepts regarding corporations and corporate governance. It defines a corporation as a legal fiction that has some rights like people. Corporations have characteristics like limited liability, transferability of shares, and centralized management. They have obligations to various stakeholders like shareholders, employees, communities, and the economy. Effective corporate governance involves balancing these obligations and maintaining transparency, accountability, and fairness.

2. • Corpus (body), a body of people organized to
act as one
• draw resources from a variety of groups and
establish and maintain its own persona
separate from all of them
• a structure established by law to allow different
parties to contribute capital, expertise, and
labor for the maximum benefit of all of them.
CORPORATION

3. • Legal Ficition
• do not actually exist but have legal significance
anyway
• not human beings, but have some of the rights
and powers that people have
• The assets of a corporation are owned by
shareholders and managed by the corporation’s
executive and board.
CORPORATION

4. CHARACTERISTICS OF CORPORATION
(Monks & Minow, 2011)
1. Limited Liability
The corporation is separate from its owners and
employees.
If a corporation goes bankrupt and is sued by its
creditors for recovery of debts, the individual
members of the corporation are not individually
liable

5. CHARACTERISTICS OF CORPORATION:
2. Transferability
The ability to transfer one’s holding freely
A partnership interest is complicated and
difficult to value, and there is no stock exchange
where partnership interests can be traded. By
contrast, stock is almost as liquid as cash.

6. CHARACTERISTICS OF CORPORATION:
3. Legal Personality
A corporation lives on for as long as it has
capital.
A partnership dies with its partners, or it dies
when one partner decides to quit. Continuing
after the death or resignation of the partners
can be complicated and expensive

7. CHARACTERISTICS OF CORPORATION:
4. Centralized management.
In a corporation, the power to determine the
company’s overall direction is given to the
directors and the power to control its day-to-day
operations is given to the managers.
Every partner has (if he/she wants it) a co-equal
say in the affairs of the company.

8. There are two views as to whom the corporation has a
responsibility:
(1) the shareholders only, or
(2) the shareholders as well as the community,
employees, and the economy.
However…
To meet the needs of the shareholder would mean that
the corporation maximizes its share value, which would
be done by building the most successful business
possible thus meeting the needs of other parties.
PURPOSE

9. Meeting the needs of
Employees
by providing job
security and
adequate support for
employees
Meeting the needs of
Community
by enacting a social
consciousness
Meeting the needs of
Market Members
by providing service &
value to customers/
clients
Meeting the needs of
Shareholders
by promoting stock value
Interrelated Obligations
of a Corporation

11. •Corporations have an obligation to meet the needs
of the economy (in addition to shareholder’s)
•Government intervention and regulation of
corporate activity is geared toward
protecting the interests of the economy and the
society
while at the same time
fostering successful business efforts
THE GOVERNMENT, THE ECONOMY & THE
CORPORATION

12. THE GOVERNMENT, THE ECONOMY & THE
CORPORATION
• sustaining of a successful economy that provides jobs
• establishment of regulations : fair treatment, safe
working environ, & minimum pay
The employee
• fostering of a competitive marketplace provides variety
• against consumer fraud, hazardous products, and other
consumer-related risks
The consumer
• the establishment of laws and policies that regulate
hazardous materials, pollution, and other
environmentally unsound practices
The
environment
• the establishment of policies that encourage market
growth and investment, while preventing accounting
fraud and other economically damaging activities
The economy

13. •Related with how corporations raise fund/finance
themselves
•May include combination of Equity, Bonds, and
loans
•The exact formula used is different for each
corporation
•every entity works to discover the optimal
combination that provides the greatest stock
value and lowest cost.
CAPITAL STRUCTURE

14. GOVERNANCE

15. Suatu struktur dan proses yang digunakan untuk
mengarahkan dan mengelola usaha untuk
mencapai kemajuan usaha dan akuntabilitas
korporasi
dengan tujuan akhir menciptakan nilai korporasi
dan kekayaan pemegang saham secara
berkelanjutan
dengan memerhatikan kepentingan para pemangku
kepentingan
CORPORATE GOVERNANCE(1)
1Pedoman Umum Governansi Korporat Indonesia (PUG-KI) (Komite Nasional
Kebijakan Governasi, 2021)

16. •Corporate governance involves a set of
relationships between a company’s management,
its board, its shareholders and other stakeholders.
•Corporate governance also provides the structure
through which the objectives of the company are
set, and the means of attaining those objectives
and monitoring performance are determined.
CORPORATE GOVERNANCE
ECD (2015), G20/OECD Principles of Corporate Governance, OECD Publishing, Paris.
http://dx.doi.org/10.1787/9789264236882-en

17. Meeting the needs of
Employees
by providing job
security and
adequate support for
employees
Meeting the needs of
Community
by enacting a social
consciousness
Meeting the needs of
Market Members
by providing service &
value to customers/
clients
Meeting the needs of
Shareholders
by promoting stock value
Interrelated Obligations
of a Corporation
CORPORATE GOVERNANCE
oHak dan kewajiban serta hubungan di antara
stakeholders
oBukan saja untuk kepentingan shareholders tetapi
menjaga keseimbangan dengan kebutuhan
stakeholders yang lainnya

18. CORPORATE GOVERNANCE
Governansi > tata Kelola
Frasa tata kelola dalam korporasi lebih berfokus
pada pengurusan internal korporasi, sedangkan
Governansi berkaitan dengan pemangku
kepentingan yang lebih luas

19. CORPORATE GOVERNANCE THEORY
AGENCY THEORY (Jensen and Meckling 1976)
the conflicts of interests that may exist between a so-called
agent (Management) and the agent’s principal (shareholders)
- MORAL HAZARD While the agent has been asked by the
principal to carry out a specific duty, the agent may not act in
the best interest of the principal once the contract between the
two parties has been signed and may prefer to pursue his own
interests.
- ASYMMETRIC INFORMATION refers to situations where one
party, typically the one that agrees to carry out a certain duty
or agrees to behave in a certain way, i.e. the agent, has more
information than the other party, the principal

20. Corporate governance system is the combination of
mechanisms which ensure that the management
runs the firm for the benefit of one or several
stakeholders.
•Stakeholders may cover shareholders, creditors,
suppliers, clients,employees and other parties with
whom the firm conducts its business
CORPORATE GOVERNANCE

21. Struktur Governansi Korporat (UU No.40 tahun 2007)
CORPORATE GOVERNANCE
• RUPS
• Kumpulan para
pemegang
saham
korporasi
Organ
kepemilikan
• Direksi
• Mengelola
korporasi
Organ
pengelolaan
• Komisaris
• Mengawasi
aktivitas
pengelolaan
direksi
Organ
pengawasan
forum
pertanggungjawaban
Direksi dan Komisaris

23. (Maria Aluchna in Handbook of Corporate Governance and Social Responsibility, Edited by
Güler Aras and David Crowther, 2010)

24. CORPORATE GOVERNANCE
Prinsip Governansi Indonesia
(8 Prinsip)
Kelompok prinsip yang mengatur fungsi
pengurusan (Direksi) dan pengawasan
(Komisaris) korporasi
PRINSIP 1 - 3
Kelompok prinsip yang mengatur proses
dan keluaran yang dihasilkan oleh
Direksi dan Dewan Komisaris
PRINSIP 4 - 6
Kelompok prinsip yang mengatur pemilik
sumberdaya, yang terutama akan
menerima manfaat dari pelaksanaan
governansi korporat
PRINSIP 7 -8

25. CORPORATE GOVERNANCE
Prinsip 1: Peran dan Tanggung Jawab Direksi dan Dewan Komisaris
Prinsip 2: Komposisi dan Remunerasi Direksi dan Dewan Komisaris
Prinsip 3: Hubungan Kerja antara Direksi dan Dewan Komisaris
Prinsip 4: Perilaku Etis
Prinsip 5: Manajemen Risiko, Pengendalian Intern dan Kepatuhan
Prinsip 6: Pengungkapan dan Transparansi
Prinsip 7: Hak-hak Pemegang Saham
Prinsip 8: Hak-hak Pemangku Kepentingan

26. CORPORATE GOVERNANCE
Pilar Governansi Korporat
Transparansi
Akuntabilitas
Responsibilita
s
Independensi
Keadilan/
Kesetaraan
(Fairness)
Perilaku
Beretika
Akuntabilitas
Transparamsi
Keberlanjutan
Pedoman Umum Governansi
Korporat Indonesia tahun 2019
Pedoman Umum Governansi
Korporat Indonesia tahun 2021

27. CORPORATE GOVERNANCE
Pilar
Governansi
Korporat