Document background
The Share Allocation Agreement is a crucial document in Indonesian corporate transactions, used when a company wishes to issue and allocate new shares to specific recipients. This document is particularly important in the context of Indonesian corporate law, which requires formal documentation of share issuances and transfers. The agreement needs to comply with Law No. 40 of 2007 on Limited Liability Companies and related regulations, including specific requirements for foreign investment if applicable. It typically includes detailed provisions about the shares being allocated, payment terms, conditions precedent, and completion requirements. The Share Allocation Agreement is commonly used in various scenarios including capital raises, employee share schemes, strategic investments, and corporate restructuring, requiring careful consideration of both regulatory compliance and commercial objectives.
