Shareholders as Directors and Aspects of Fairness for Stakeholders

Abstract

A company is an organization that is set to maximize profit with the smallest expenses, this purpose still embedded in the mindset of every entrepreneur. The Board of Directors, who are also majority and minority shareholders, are concurrent positions that often occur in the practice of a company, by regulation this is not regulated in existing positive laws in various countries. This article is expected to contribute to the development of regulations that specifically regulate the position of the Board of Directors and Shareholders. Because it affects fairness for other stakeholders, the author intends to discuss in this article to find a link between the Board of Directors who are also Shareholders in running the company and aspects of fairness for other stakeholders. The purpose of writing this article is to examine the position of the Board of Directors who is also as Shareholders in fairness theory, while the orientation of this analysis is in the form of theoretical and comparative approaches. The need for intervention from regulators, legislators to make adjustments to the provisions in order to ensure fairness for all stakeholders is realized and distributed.