Document background
The Founders Shares Agreement is a crucial document used when establishing a new company or formalizing the relationship between existing founders in Indonesia. It is particularly important in the context of Indonesian corporate law, which requires specific formalities for PT (Perseroan Terbatas) entities. This agreement sets out the fundamental rights and obligations of founding shareholders, including share ownership, vesting schedules, transfer restrictions, and governance mechanisms. It must comply with Indonesian Company Law No. 40/2007 and related regulations, while also addressing practical business needs such as intellectual property rights, confidentiality, and dispute resolution. The document is typically executed at company formation or during early-stage operations, often in conjunction with other corporate documentation required by Indonesian authorities.
