A legal entity is the subject of civil legal relations, however, the participation in civil and economic relations… of a legal entity is always through the behavior of the representative, through the behavior of the members of the legal entity. The acts of representatives and members of legal entities, in addition to bringing rights to the legal entity, also bring obligations to that legal entity. If members of a legal entity cause damage while performing work assigned by the legal entity, the legal entity must compensate for the damage. Article 597 of the 2015 Civil Code stipulates: “A legal entity must compensate for damage caused by its person while performing the tasks assigned by the law…”
When determining compensation for damage caused by people of legal entities, it is necessary to pay attention to:
– The subject subject to compensation in this case is a legal entity, so it is necessary to clearly determine the conditions of an organization considered to have legal status or not according to the provisions of Article 74 of the 2015 Civil Code . This consideration is important because in many cases where members of an organization cause damage but that organization does not have legal status, compensation does not fall under the provisions of Article 597 of the 2015 Civil Code. (for example: a member of a cooperative group causes damage when performing the work of the cooperative group).
– “Your person” according to the provisions of Article 597 of the 2015 Civil Code is understood as any member of the legal entity. This member can be recruited by a legal entity to work under long-term, short-term contract relationships, or be on probationary period…
– Damage caused by a member of a legal entity for which the legal entity must compensate the damaged person is directly related to the tasks that the legal entity assigned to that member to perform.
The law stipulates that legal entities must compensate for damage caused by members of the legal entity while performing tasks assigned by the legal entity in order to determine management responsibility.
