Document background
The Sales Of Shares Agreement is a crucial document used in corporate transactions in Indonesia when transferring ownership of shares between parties. It is essential for both private and public company transactions, though public company transfers may require additional regulatory compliance. The agreement must comply with Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies, and may require approval from the Investment Coordinating Board (BKPM) for foreign investment cases. The document typically includes detailed provisions on share valuation, payment mechanisms, warranties about the company's condition, tax indemnities, and specific conditions that must be met before the transfer can complete. It's particularly important in mergers and acquisitions, corporate restructuring, and investment transactions, requiring careful consideration of both legal and commercial aspects under Indonesian jurisdiction.
