Document background
The Shareholder Buy Sell Agreement is a crucial document for Indonesian private companies (PT) that provides a clear framework for managing ownership transitions. This agreement becomes essential when shareholders need predetermined mechanisms for share transfers, whether triggered by voluntary sales, retirement, death, or other significant events. It typically includes specific provisions required under Indonesian Company Law (Law No. 40 of 2007), addressing share valuation methods, transfer restrictions, right of first refusal, and compliance with foreign investment regulations where applicable. The agreement helps prevent potential disputes by establishing clear procedures while ensuring business continuity and protecting both majority and minority shareholder interests. It's particularly important for family-owned businesses, joint ventures, and companies with multiple shareholders where ownership changes need to be managed systematically.
