Document background
The Subscription And Shareholders Agreement is a fundamental document used in Indonesian corporate transactions where new investors are entering a company while simultaneously establishing long-term governance arrangements. This document is particularly crucial in the Indonesian context due to specific regulatory requirements under Law No. 40 of 2007 on Limited Liability Companies and various investment regulations. It serves multiple purposes: documenting the terms of share subscription, establishing corporate governance mechanisms, protecting minority shareholder rights, and setting out clear procedures for future corporate actions. The agreement is commonly used in private equity investments, venture capital transactions, joint ventures, and strategic corporate investments. It must be drafted with careful consideration of Indonesian language requirements, foreign ownership restrictions, and mandatory corporate governance provisions.
