Document background
The Sale of Shares Agreement is a crucial document used in Indonesian corporate transactions to facilitate and document the transfer of company ownership through share sales. This agreement is essential when shareholders wish to sell their ownership stake in an Indonesian company, whether partially or entirely. The document must comply with Indonesian law, particularly Law No. 40 of 2007 on Limited Liability Companies, and includes provisions covering share transfer mechanics, regulatory approvals (especially for foreign investment), corporate authorizations, and tax considerations. The agreement becomes particularly complex when involving foreign investors due to Indonesia's foreign investment restrictions and requirements for certain business sectors. It typically requires execution before an Indonesian notary and may need approval from or notification to various regulatory bodies, including the Investment Coordinating Board (BKPM) for foreign investment transactions.
