Document background
The Startup Shareholder Agreement serves as a fundamental document for Indonesian startups, establishing the legal framework for relationships between various shareholders and the company. It becomes essential when a startup moves beyond initial formation to include multiple shareholders, particularly during investment rounds or when implementing employee share schemes. The agreement must comply with Indonesian corporate law, particularly Law No. 40 of 2007, while addressing specific requirements for both domestic and foreign shareholders. This document typically comes into play during seed funding, Series A funding, or when formalizing arrangements between co-founders. It covers crucial aspects such as share transfer restrictions, voting rights, board representation, and exit mechanisms, while ensuring alignment with Indonesian investment regulations and corporate governance requirements.
