Document background
The Share Redemption Agreement is a crucial document used in Indonesian corporate transactions when a company seeks to repurchase its own shares from existing shareholders. This type of agreement is commonly utilized in situations such as corporate restructuring, shareholder exits, employee share scheme terminations, or capital structure optimization. The document must comply with Indonesian Law No. 40 of 2007 on Limited Liability Companies, which sets out specific requirements for share redemptions, including maintaining minimum capital requirements and obtaining necessary corporate and regulatory approvals. The agreement typically includes detailed provisions on valuation methodology, payment terms, tax implications, and completion mechanics, while ensuring compliance with OJK regulations for listed companies and Bank Indonesia requirements for transactions involving foreign shareholders.
