Document background
The Business Equity Agreement serves as a fundamental legal instrument for structuring equity relationships in Indonesian companies, whether for new investments, corporate restructuring, or joint ventures. This document is essential when companies seek to issue new shares, transfer existing equity, or establish specific rights and obligations among shareholders. It must comply with Indonesian corporate law framework, particularly Law No. 40 of 2007 on Limited Liability Companies and related investment regulations. The agreement typically includes detailed provisions on share ownership, voting rights, management participation, profit distribution, and exit mechanisms, while addressing specific requirements for both domestic and foreign investors. It's particularly crucial for ensuring proper documentation of ownership structures and protecting shareholder interests while maintaining compliance with Indonesian regulatory requirements.
