Document background
The Director Shareholder Agreement is a crucial document for Indonesian companies seeking to establish clear governance frameworks and protect the interests of both directors and shareholders. This agreement is particularly important when setting up new companies, bringing in new investors, or restructuring existing corporate arrangements in Indonesia. It addresses key aspects of corporate governance required under Indonesian law, including Law No. 40 of 2007, while providing mechanisms for efficient business operations and dispute resolution. The document typically becomes necessary when companies have multiple shareholders or directors, need to implement specific voting rights, or want to establish clear protocols for corporate decision-making. It serves as a foundational document that helps prevent future conflicts and ensures smooth corporate operations while maintaining compliance with Indonesian regulatory requirements.
