After doing in successful undertakings for more than 5 years, PT Yellow Cat (PT YC), a successful transportation company in Jakarta finally discontinue its operation in 2021. Mr Budi the CEO of PT YC was questioned by the Shareholder for being liable for the sudden downturn of the company from very successful and cash rich to become suddenly insolvent with short term debt larger than asset and later have to file for bankruptcy.
1. The shareholder plan to file for civil lawsuit against Mr Budi as CEO of the company for being poorly managing the company and causing the loss, as well as for investigating possible fraud
2. Can Mr Budi as director be held personally liable for the insolvency of PT YC? Why do you think it can and why do you think it cannot.
3. Can Mr Budi argue that PT YC insolvency was caused by external factor, i.e the Pandemic, which makes it is impossible to do business regularly because government has implemented The Community Activities Restrictions Enforcement or PPKM and also Presidential Decision Number 12 Tahun 2020 on the Establishment of Non Natural Disaster, Transmission of CoVID 2019 as national disaster. Please explain including the reason!!
4. Apparently the investigation turns out that shortly before the insolvency, PT YC make corporate action in form of investments in stock market without the reporting it to the shareholder, and the investment turns out to be loss, as the company that PT YC invest was apparently involved in some illegal activities. Can Mr Budi as CEO be held criminally liable for the loss and be prosecuted under Anti Corruption Law? Please Explain.

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Civil Lawsuit Against Mr Budi Shareholders can file a civil lawsuit against Mr Budi alleging mismanagement and potential fraud If they can prove that ... View the full answer