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Corporation Shareholder Agreement Template for Indonesia

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Key Requirements PROMPT example:

Corporation Shareholder Agreement

"Need a Corporation Shareholder Agreement for an Indonesian technology startup with three local founders and a Singapore-based venture capital investor, including provisions for future funding rounds and an IPO target by March 2025."

Document background
The Corporation Shareholder Agreement is a fundamental document used to establish and maintain clear governance structures and relationships between shareholders in Indonesian companies. This document becomes essential when multiple shareholders are involved in a corporation, particularly in cases of joint ventures, foreign investment, or companies with diverse ownership structures. It must comply with Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies, and address unique aspects of Indonesian corporate governance such as the mandatory dual board system. The agreement typically includes provisions for share transfers, voting mechanisms, appointment of directors and commissioners, dividend policies, and dispute resolution procedures, while ensuring alignment with Indonesian investment regulations and foreign ownership restrictions where applicable.
Suggested Sections

1. Parties: Identification of all shareholders and the company as parties to the agreement

2. Background: Context of the agreement, including company details and purpose of the arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Share Capital and Shareholding Structure: Details of authorized, issued, and paid-up capital, and current shareholding distribution

5. Shareholders' Rights and Obligations: Fundamental rights and obligations of shareholders, including voting rights and capital contribution requirements

6. Board Structure and Corporate Governance: Composition and appointment procedures for Board of Directors and Board of Commissioners

7. General Meeting of Shareholders: Procedures for conducting GMS, voting mechanisms, and quorum requirements

8. Transfer of Shares: Rules and restrictions on share transfers, including right of first refusal and tag-along rights

9. Pre-emptive Rights: Shareholders' rights in new share issuances and capital increases

10. Dividend Policy: Framework for dividend declarations and distributions

11. Reserved Matters: Actions requiring special shareholder approval

12. Confidentiality: Obligations regarding company and shareholder confidential information

13. Dispute Resolution: Procedures for resolving disputes between shareholders

14. Term and Termination: Duration of the agreement and circumstances for termination

15. General Provisions: Standard clauses including notices, amendments, and governing law

Optional Sections

1. Anti-dilution Protection: Protection mechanisms for existing shareholders against value dilution, used when future capital raises are anticipated

2. Drag-along Rights: Rights forcing minority shareholders to join in sale of company, included when exit possibilities are considered

3. Non-compete and Non-solicitation: Restrictions on competitive activities, relevant for closely-held companies

4. Deadlock Resolution: Specific procedures for resolving deadlock situations, important for 50/50 joint ventures

5. Share Valuation: Methods for determining share value in various scenarios, important for private companies

6. Foreign Investment Provisions: Special provisions required when foreign shareholders are involved

7. IPO Rights: Provisions regarding future public listing, included when IPO is contemplated

8. Management Participation: Provisions for management shareholding schemes, relevant for companies with employee ownership plans

Suggested Schedules

1. Schedule 1: Share Capital and Shareholding Structure: Detailed breakdown of share capital and current shareholding

2. Schedule 2: Initial Business Plan: Company's initial business plan and financial projections

3. Schedule 3: Reserved Matters List: Comprehensive list of matters requiring special approval

4. Schedule 4: Board of Directors and Commissioners: Current composition of the Board of Directors and Board of Commissioners

5. Schedule 5: Deed of Adherence: Template for new shareholders to agree to the terms of the agreement

6. Schedule 6: Company's Articles of Association: Copy of the current Articles of Association

7. Schedule 7: Share Valuation Methodology: Agreed methods and procedures for share valuation

8. Schedule 8: Corporate Governance Guidelines: Detailed corporate governance procedures and policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































Clauses







































Relevant Industries

Technology

Manufacturing

Financial Services

Real Estate

Mining

Agriculture

Retail

Healthcare

Education

Transportation

Energy

Construction

Telecommunications

Professional Services

Media and Entertainment

Relevant Teams

Legal

Corporate Secretariat

Compliance

Finance

Corporate Governance

Investor Relations

Board Administration

Executive Leadership

Risk Management

Corporate Affairs

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Corporate Secretary

Legal Counsel

Corporate Lawyer

Board of Directors Member

Board of Commissioners Member

Chief Financial Officer

Investment Manager

Compliance Officer

Corporate Governance Officer

Shareholder Relations Manager

Business Development Director

Company Director

Legal Director

Investment Director

Managing Partner

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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