Document background
The Shareholder Buyout Agreement is a crucial document used when one or more shareholders wish to sell their ownership stake to other existing shareholders or new investors in an Indonesian company. This agreement is particularly important in the Indonesian context as it must comply with specific requirements under Law No. 40 of 2007 on Limited Liability Companies, including mandatory involvement of an Indonesian notary for share transfers, potential foreign ownership restrictions, and specific corporate approval processes. The document typically includes detailed provisions on share valuation, payment terms, warranties, and regulatory compliance requirements, while addressing specific Indonesian law requirements such as language requirements (bilingual agreements), notarization procedures, and investment coordination board (BKPM) approvals where applicable.
