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Agreement For Sale And Purchase Of Shares for Indonesia

Agreement For Sale And Purchase Of Shares Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes the transfer of company shares from one party (seller) to another (purchaser). The agreement details the terms and conditions of the share transfer, including purchase price, payment terms, warranties, and conditions precedent. It ensures compliance with Indonesian Company Law (Law No. 40 of 2007) and related regulations, including requirements for foreign investment if applicable. The document includes provisions for regulatory approvals, tax considerations, and specific Indonesian corporate governance requirements, while incorporating necessary safeguards for both parties in the transaction.

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What is a Agreement For Sale And Purchase Of Shares?

The Agreement For Sale And Purchase Of Shares is a crucial document used in Indonesian corporate transactions to facilitate the transfer of company ownership through share sales. It is essential for both domestic and cross-border transactions, requiring careful consideration of Indonesian Company Law, Investment Law, and related regulations. This agreement is particularly important given Indonesia's complex regulatory environment, including specific requirements for foreign investment, mandatory corporate approvals, and sector-specific regulations. The document typically includes detailed provisions about the transaction structure, conditions precedent (including regulatory approvals), warranties, and post-completion obligations. It serves as the primary transaction document in share acquisitions, whether for partial or complete ownership transfers, and must comply with OJK (Financial Services Authority) requirements if the target is a public company.

What sections should be included in a Agreement For Sale And Purchase Of Shares?

1. Parties: Identification of the Seller(s), Purchaser(s), and the Target Company, including their complete legal names and addresses

2. Background: Context of the transaction, including brief description of the Target Company and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase of Shares: Core transaction terms including number of shares, class of shares, and percentage of ownership being transferred

5. Purchase Price: Consideration amount, payment terms, payment method, and any adjustments

6. Conditions Precedent: Prerequisites that must be satisfied before completion, including regulatory approvals and corporate authorizations

7. Pre-Completion Obligations: Obligations of parties between signing and completion, including conduct of business requirements

8. Completion: Mechanics of closing, including timing, location, and actions required at completion

9. Warranties and Representations: Standard warranties from both parties, particularly seller's warranties about the shares and target company

10. Tax Matters: Allocation of tax liabilities and obligations related to the transaction

11. Confidentiality: Obligations regarding confidential information and announcements

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

13. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement provisions

What sections are optional to include in a Agreement For Sale And Purchase Of Shares?

1. Non-Competition and Non-Solicitation: Restrictions on seller's future activities, used when seller could compete with target business

2. Employee Matters: Provisions dealing with employees and management, relevant when there are key personnel considerations

3. Foreign Investment Compliance: Additional provisions for compliance with Indonesian foreign investment laws, used when purchaser is foreign

4. Earn-out Provisions: Additional payment terms based on future performance, used in transactions with contingent pricing

5. Break Fee: Compensation payable if transaction fails, typically used in larger or public company transactions

6. Transitional Services: Arrangements for post-completion services by seller, used when target company relies on seller's infrastructure

7. Anti-corruption Compliance: Specific provisions regarding compliance with anti-corruption laws, important in cross-border transactions

What schedules should be included in a Agreement For Sale And Purchase Of Shares?

1. Details of the Shares: Complete description of shares being transferred including share certificates numbers and shareholding history

2. Target Company Information: Corporate information, including corporate structure, subsidiaries, and material contracts

3. Warranties: Detailed seller's warranties about the target company and its business

4. Properties and Assets: List of material assets and properties owned or used by the target company

5. Intellectual Property: Schedule of IP rights owned or licensed by the target company

6. Employee Information: Details of key employees, employment terms, and benefit schemes

7. Completion Obligations: Detailed list of documents and actions required at completion

8. Disclosed Matters: Specific disclosures against the warranties

9. Form of Resignation Letters: Template resignation letters for retiring directors/commissioners

10. Form of Corporate Approvals: Template shareholder and board resolutions required for the transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions








































Clauses




































Relevant Industries

Banking & Financial Services

Mining & Resources

Manufacturing

Technology

Real Estate & Property

Retail & Consumer Goods

Infrastructure & Construction

Agriculture & Plantation

Healthcare & Pharmaceuticals

Energy & Utilities

Telecommunications

Transportation & Logistics

Relevant Teams

Legal

Corporate Finance

Mergers & Acquisitions

Corporate Secretary Office

Risk & Compliance

Business Development

Finance

Treasury

Tax

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Corporate Secretary

General Counsel

Head of Mergers & Acquisitions

Investment Director

Corporate Finance Manager

Legal Counsel

Finance Director

Business Development Director

Risk Manager

Compliance Officer

Board Director

Transaction Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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