Document background
The Share Cancellation Agreement is a crucial document used in Indonesian corporate transactions when a company needs to cancel existing shares, whether as part of a capital reduction, corporate restructuring, or share buyback program. This document is essential under Indonesian Company Law (Law No. 40 of 2007) and must comply with various regulatory requirements, including obtaining necessary corporate and regulatory approvals. The agreement typically addresses key aspects such as the identification of shares to be cancelled, consideration (if any), tax implications, and the effect on the company's capital structure. It's particularly important in scenarios involving listed companies, corporate reorganizations, or when implementing shareholder exit mechanisms. The document must be executed in compliance with Indonesian legal requirements, often requiring notarization and registration with relevant authorities.
