Document background
The Restricted Share Agreement is a fundamental document used by Indonesian companies to implement share-based incentive programs while maintaining control over share ownership and transfer. This agreement is particularly relevant when companies wish to provide equity incentives to key employees or executives while ensuring their continued commitment through vesting periods and transfer restrictions. The document must be structured in compliance with Indonesian corporate law, capital market regulations (if applicable), and tax requirements. It typically includes detailed provisions on share vesting schedules, conditions for share ownership, transfer limitations, and forfeiture circumstances. The agreement is commonly used as part of employee retention strategies, executive compensation packages, or corporate restructuring initiatives. Given Indonesia's specific requirements regarding corporate documentation and foreign ownership restrictions, the agreement must be carefully drafted to ensure enforceability and regulatory compliance.
