51Ƶ

Business Equity Agreement for Indonesia

Business Equity Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for the purchase, sale, or transfer of equity interests in an Indonesian company. The agreement complies with Law No. 40 of 2007 on Limited Liability Companies and related regulations, addressing key aspects such as share subscription, ownership rights, corporate governance, and shareholder obligations. It includes provisions for share transfer mechanisms, pre-emptive rights, and other shareholder protections while ensuring compliance with Indonesian foreign investment regulations and capital market requirements.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Business Equity Agreement?

The Business Equity Agreement serves as a fundamental legal instrument for structuring equity relationships in Indonesian companies, whether for new investments, corporate restructuring, or joint ventures. This document is essential when companies seek to issue new shares, transfer existing equity, or establish specific rights and obligations among shareholders. It must comply with Indonesian corporate law framework, particularly Law No. 40 of 2007 on Limited Liability Companies and related investment regulations. The agreement typically includes detailed provisions on share ownership, voting rights, management participation, profit distribution, and exit mechanisms, while addressing specific requirements for both domestic and foreign investors. It's particularly crucial for ensuring proper documentation of ownership structures and protecting shareholder interests while maintaining compliance with Indonesian regulatory requirements.

What sections should be included in a Business Equity Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including company information, purpose of the equity arrangement, and current shareholding structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Subscription and Purchase of Shares: Details of the equity transaction, including number of shares, class of shares, and purchase price

5. Consideration: Payment terms, method of payment, and timing of the equity purchase

6. Completion: Conditions precedent, completion mechanics, and timing of the transaction

7. Representations and Warranties: Statements of fact and assurances from all parties

8. Pre-emptive Rights: Existing shareholders' rights regarding future share issuances

9. Share Transfer Restrictions: Limitations and conditions on the transfer of shares

10. Corporate Governance: Management structure, board composition, and voting rights

11. Reserved Matters: Decisions requiring special approval from certain shareholders

12. Confidentiality: Obligations regarding confidential information

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Business Equity Agreement?

1. Tag-Along Rights: Optional provision giving minority shareholders the right to join in the sale of shares by majority shareholders

2. Drag-Along Rights: Optional provision allowing majority shareholders to force minority shareholders to join in the sale of shares

3. Anti-dilution Protection: Include when protecting certain shareholders from equity dilution is required

4. Dividend Policy: Include when specific dividend distribution rules need to be established

5. Exit Rights: Include when specific provisions for company sale or IPO need to be established

6. Non-Competition: Include when restrictions on competitive activities are necessary

7. Deadlock Resolution: Include for joint ventures or when shareholders have equal voting rights

8. Strategic Rights: Include when certain shareholders require specific strategic or operational rights

What schedules should be included in a Business Equity Agreement?

1. Schedule 1 - Share Capital and Shareholding Structure: Detailed breakdown of share capital, share classes, and shareholding before and after the transaction

2. Schedule 2 - Completion Deliverables: List of documents and actions required for completion

3. Schedule 3 - Reserved Matters: Detailed list of matters requiring special approval

4. Schedule 4 - Company Information: Detailed corporate information including assets, contracts, and liabilities

5. Schedule 5 - Warranties: Detailed warranties given by the parties

6. Appendix A - Board Resolution: Copy of board resolution approving the equity transaction

7. Appendix B - Shareholders Resolution: Copy of shareholders resolution approving the equity transaction

8. Appendix C - Share Certificate Form: Template of share certificate to be issued

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Equity Agreement

Cost

Free to use

Find the exact document you need

Shadow Equity Agreement

An Indonesian law-governed agreement providing synthetic equity rights that mirror the economic benefits of share ownership without actual share transfer.

Download

Business Equity Agreement

An Indonesian law-governed agreement establishing terms for equity ownership and transfer in an Indonesian company, including shareholder rights and obligations.

Download

Private Equity Fund Subscription Agreement

An Indonesian law-governed agreement documenting an investor's subscription to a private equity fund, including investment terms and regulatory compliance requirements.

Download

Employer Employee Agreement

An Indonesian law-compliant employment agreement establishing terms and conditions between employer and employee, aligned with Law No. 13 of 2003 on Manpower.

Download

Future Equity Agreement

An Indonesian law-governed agreement allowing investors to provide funding in exchange for future equity rights, with conversion triggered by subsequent financing rounds.

Download

Sweat Equity Contract

An Indonesian law-governed agreement for the exchange of services for company equity, with defined vesting conditions and performance requirements.

Download

Equity Linked Agreement

An Indonesian law-governed agreement linking contractual obligations to equity performance, subject to OJK regulations and Capital Markets Law.

Download

Equity For Services Agreement

An Indonesian law-governed agreement where a company compensates a service provider with equity shares instead of cash payment for their services.

Download

Employment Bargaining Agreement

An Indonesian law-governed collective agreement between employer and unions establishing employment terms and conditions in accordance with Law No. 13 of 2003 on Manpower.

Download

Founder Equity Agreement

An Indonesian law-governed agreement establishing equity arrangements and rights between company founders, compliant with Law No. 40 of 2007 on Limited Liability Companies.

Download

Startup Employee Equity Agreement

An Indonesian law-governed agreement outlining terms for granting company equity to startup employees, including vesting schedules and regulatory compliance requirements.

Download

Private Equity Finders Fee Agreement

An Indonesian law-governed agreement establishing terms for finder's services in private equity investments, including fee structures and regulatory compliance requirements.

Download

Restricted Stock Grant Agreement

An Indonesian law-governed agreement for granting restricted company shares to employees/executives, subject to vesting conditions and regulatory compliance.

Download

Equity Incentive Agreement

An Indonesian law-governed agreement establishing terms for granting equity-based incentives to company personnel, ensuring compliance with local corporate and securities regulations.

Download

Convertible Agreement Regarding Equity

An Indonesian law-governed convertible investment agreement allowing for future conversion of investment into company equity, compliant with local regulations.

Download

Equity Buyout Agreement

An Indonesian law-governed agreement detailing the terms and conditions for purchasing equity shares in a company, including price, warranties, and regulatory compliance requirements.

Download

Employee Training Reimbursement Agreement

An Indonesian law-compliant agreement establishing terms for employer-sponsored training and employee reimbursement obligations if service commitments are not met.

Download

Private Equity Investment Agreement

An Indonesian law-governed agreement establishing terms and conditions for private equity investment, including investment structure, shareholder rights, and regulatory compliance requirements.

Download

Phantom Stock Agreement

An Indonesian law-governed agreement establishing phantom stock arrangements between company and participant, providing equity-like incentives without actual share issuance.

Download

Equity Loan Agreement

An Indonesian law-governed agreement establishing terms for a loan secured by equity shares as collateral, incorporating local regulatory requirements and security arrangements.

Download

Equity Pledge Agreement

An Indonesian law security document creating a pledge over shares in an Indonesian company as collateral for secured obligations.

Download

Standby Equity Purchase Agreement

An Indonesian law-governed agreement establishing an investor's commitment to purchase newly issued shares on a standby basis, subject to OJK regulations.

Download

Restricted Stock Unit Agreement

An agreement governing the grant of restricted stock units to employees under Indonesian law, outlining vesting conditions and compliance requirements.

Download

Employee Equity Agreement

Indonesian law-governed agreement establishing terms for employee equity ownership, including vesting, exercise rights, and compliance with local corporate regulations.

Download

Standby Equity Distribution Agreement

An Indonesian law-governed agreement establishing a committed equity financing facility where an investor agrees to purchase newly issued shares from a company on a periodic basis.

Download

Equity Participation Agreement

An Indonesian law-governed agreement detailing terms and conditions for equity investment in a target company, including share subscription, governance rights, and regulatory compliance.

Download

Equity Grant Agreement

An Indonesian law-governed agreement establishing terms for granting company equity to recipients, compliant with local corporate and securities regulations.

Download

Equity Financing Agreement

An Indonesian law-governed agreement establishing terms and conditions for equity investment in an Indonesian company, including share allocation, investor rights, and governance requirements.

Download

Vested Equity Agreement

An Indonesian law-governed agreement establishing terms for gradual equity ownership in a company through a vesting schedule.

Download

Private Equity Subscription Agreement

An Indonesian law-governed agreement detailing terms and conditions for private equity investment through share subscription in a target company.

Download

Equity Transfer Agreement

An Indonesian law-governed agreement for transferring company shares, outlining terms, conditions, and regulatory compliance requirements.

Download

Equity Contribution Agreement

A legal agreement governed by Indonesian law that establishes the terms for an investor's capital contribution to a company in exchange for equity shares.

Download

Equity Buyback Agreement

An Indonesian law-governed agreement for a company to repurchase its shares from existing shareholders, complying with Indonesian company law and OJK regulations.

Download

Limited Partnership Agreement Private Equity

An Indonesian law-governed agreement establishing a private equity limited partnership structure, defining relationships between General and Limited Partners and key operational terms.

Download

Equity Ownership Agreement

An Indonesian law-governed agreement establishing terms for company share transfers and ownership rights, compliant with local corporate and investment regulations.

Download

Employee Stock Options Agreement

An Indonesian law-governed agreement setting out terms for granting company stock options to employees, including vesting conditions and exercise rights.

Download

Employment Agency Contract

An Indonesian law-governed agreement between an employment agency and client company for worker placement services and related obligations.

Download

Employment Agency Agreement

An Indonesian law-governed agreement between an employment agency and client company for recruitment and placement services.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it