Document background
The Contract of Sale of Shares is a fundamental document in Indonesian corporate transactions, essential for documenting and executing the transfer of company ownership through share sales. This document is required whenever there is a transfer of shares in an Indonesian company, whether in the context of a complete business sale, partial divestment, or corporate restructuring. The agreement must comply with Indonesian law, particularly Law No. 40 of 2007 on Limited Liability Companies, and may require additional provisions depending on whether the transaction involves foreign investors (subject to Investment Law requirements) or listed companies (subject to Capital Market Law). The document typically includes detailed provisions on share valuation, payment terms, warranties, and regulatory compliance requirements, making it crucial for both domestic and cross-border transactions in Indonesia.
