Document background
The Shareholders Agreement Contract serves as a fundamental document in Indonesian corporate governance, establishing the framework for shareholder relationships and company management. It becomes essential when multiple shareholders are involved in a company, particularly in cases of joint ventures, foreign investment, or companies with complex ownership structures. The agreement must comply with Indonesian Company Law (Law No. 40 of 2007) and related regulations, including specific requirements for foreign investment under Law No. 25 of 2007. This document typically includes provisions for share transfers, voting rights, board representation, dividend policies, and dispute resolution mechanisms. It's particularly crucial for protecting minority shareholder rights and establishing clear governance structures in Indonesian companies, while ensuring alignment with local regulatory requirements and business practices.
