Document background
The Co-Founder Vesting Agreement is a crucial document for Indonesian startups and growing companies, typically implemented at company formation or during early growth stages. It serves to protect both the company and co-founders by ensuring long-term commitment through gradual share acquisition. This agreement becomes particularly important in scenarios where multiple founders are involved and there's a need to align interests and prevent early departures from destabilizing the company. The document must comply with Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies, and includes provisions for share vesting schedules, cliff periods, acceleration events, and mechanisms for handling founder departures. It's especially relevant for venture-backed companies or those planning to seek investment, as investors often require vesting arrangements to ensure founder retention.
