Agreement For Appointment Of Managing Director Template for Indonesia

The Agreement For Appointment Of Managing Director is a crucial document required when appointing a Managing Director in an Indonesian company. It serves as the primary legal instrument defining the relationship between the company and its Managing Director, ensuring compliance with Law No. 40 of 2007 on Limited Liability Companies and related regulations. This document is typically used during new appointments, reappointments, or when formalizing existing arrangements to meet regulatory requirements. It encompasses essential elements such as corporate authority, duties, compensation, and governance obligations specific to Indonesian legal requirements. The agreement is particularly important as Managing Directors in Indonesia carry significant legal responsibilities and must operate within strict regulatory frameworks, making clear documentation of their appointment terms essential for both the company and the appointee.

1. Parties: Identification of the Company and the appointed Managing Director

2. Background: Context of the appointment, including company details and basis for appointment (e.g., shareholder resolution)

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Official appointment, position title, and duration of appointment

5. Duties and Responsibilities: Comprehensive list of Managing Director's duties under Indonesian Company Law and company requirements

6. Powers and Authority: Scope of Managing Director's powers and limitations thereof

7. Time Commitment: Expected working hours and dedication requirements

8. Remuneration and Benefits: Salary, bonuses, benefits, and payment terms

9. Expenses: Policy on business expense reimbursement

10. Compliance and Governance: Obligations to comply with laws, regulations, and company policies

11. Confidentiality: Protection of company confidential information

12. Intellectual Property: Ownership of IP created during directorship

13. Non-Competition and Non-Solicitation: Restrictions during and after directorship

14. Termination: Grounds and procedures for termination

15. Post-Termination Obligations: Duties and restrictions after termination

16. Company Policies: Adherence to internal policies and procedures

17. Notices: Communication procedures between parties

18. Governing Law: Application of Indonesian law and jurisdiction

19. General Provisions: Standard boilerplate clauses including amendments, waivers, etc.