Document background
The Founder Shareholder Agreement serves as a critical legal framework for companies establishing operations in Indonesia, particularly during their formation stage. This document is essential when two or more founders come together to establish a business, requiring clear definition of their respective rights, obligations, and ownership structures. It must comply with Indonesian corporate law, particularly Law No. 40 of 2007 and related regulations, while addressing key aspects such as share ownership, voting rights, management participation, and exit mechanisms. The agreement typically accompanies the company's Articles of Association and is crucial for preventing future disputes by clearly documenting the founders' intentions and agreements at the outset of their business relationship. It's particularly important in the Indonesian context where corporate governance requirements and foreign ownership restrictions may need special consideration.
