Document background
The Cross Purchase Buy Sell Agreement is a critical business succession planning tool used in Indonesian business contexts where multiple owners wish to maintain control over company ownership and ensure smooth transitions during key events. This document becomes essential when business partners want to establish clear protocols for ownership changes, particularly in closely-held companies or partnerships. It addresses various scenarios including death, disability, retirement, or voluntary exit of owners, providing detailed mechanisms for share valuation, purchase terms, and funding arrangements. The agreement must comply with Indonesian legal requirements, including the Company Law (Law No. 40 of 2007) and relevant regulations governing share transfers and corporate ownership. It typically includes insurance provisions to fund potential buyouts and helps prevent potential disputes by establishing clear procedures and expectations in advance.
