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Deed Of Assignment Of Shares Of Stock for Indonesia

Deed Of Assignment Of Shares Of Stock Template for Indonesia

A formal legal document governed by Indonesian law that effectuates the transfer of shares from one party (the Assignor) to another party (the Assignee) in an Indonesian company. This document must comply with Law No. 40 of 2007 on Limited Liability Companies and requires notarization under Indonesian law. It contains detailed provisions regarding the transfer of shares, including the number and class of shares, consideration, warranties, and completion obligations. The deed must meet specific formatting and content requirements under Indonesian corporate law and may require additional regulatory approvals, particularly in cases involving foreign investment.

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Deed Of Assignment Of Shares Of Stock

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What is a Deed Of Assignment Of Shares Of Stock?

The Deed of Assignment of Shares of Stock is a crucial legal instrument in Indonesian corporate transactions, used when transferring ownership of shares between parties. This document is essential for both domestic and cross-border transactions, requiring strict adherence to Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies. It is commonly used in various scenarios including corporate restructuring, mergers and acquisitions, investment transactions, and family business successions. The deed must be executed before an Indonesian notary and may require approval from relevant regulatory bodies, especially when involving foreign investment. It contains detailed information about the shares being transferred, parties involved, consideration, and completion requirements, serving as official evidence of the share transfer under Indonesian law.

What sections should be included in a Deed Of Assignment Of Shares Of Stock?

1. Parties: Identification of the Assignor (current shareholder) and Assignee (new shareholder), including their complete legal names, addresses, and any corporate registration details

2. Background: Context of the share transfer, including details about the company whose shares are being transferred and the basis for the transfer

3. Definitions: Definitions of key terms used throughout the deed, including 'Shares', 'Company', 'Completion Date', and other relevant terms

4. Subject Matter of Assignment: Detailed description of the shares being transferred, including number, class, and nominal value

5. Consideration: Details of the payment or consideration for the share transfer

6. Effective Date: Specification of when the transfer becomes legally effective

7. Representations and Warranties: Standard warranties from the Assignor regarding ownership, authority to transfer, and status of the shares

8. Completion Obligations: Actions required by each party to complete the transfer, including documentation and regulatory requirements

9. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

10. Execution: Formal execution block including notarial requirements under Indonesian law

What sections are optional to include in a Deed Of Assignment Of Shares Of Stock?

1. Conditions Precedent: Used when the transfer is subject to specific conditions such as regulatory approvals or third-party consents

2. Foreign Investment Provisions: Required when the transfer involves foreign investors, addressing compliance with Indonesian foreign investment regulations

3. Tax Provisions: Detailed tax arrangements when specific tax treatments or obligations need to be addressed

4. Staged Completion: Used when the share transfer will occur in multiple stages or tranches

5. Non-Competition and Non-Solicitation: Added when the Assignor needs to be restricted from competing or soliciting business post-transfer

6. Confidentiality: Detailed confidentiality obligations when sensitive information is involved

7. Further Assurance: Additional provisions for future actions that may be required to perfect the transfer

What schedules should be included in a Deed Of Assignment Of Shares Of Stock?

1. Share Details: Detailed schedule of shares being transferred, including share certificate numbers and shareholding history

2. Company Information: Key details about the company including registration number, address, and current shareholding structure

3. Required Regulatory Approvals: List of required government or regulatory approvals needed for the transfer

4. Transfer Documents: Forms and notices required for the share transfer under Indonesian company law

5. Payment Schedule: If payment is in installments or subject to adjustments, details of the payment structure

6. Existing Encumbrances: Details of any existing charges or encumbrances on the shares

7. Corporate Approvals: Copies of relevant corporate approvals, board resolutions, and shareholder resolutions

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 | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions














































Clauses









































Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Mining

Agriculture

Retail

Healthcare

Education

Transportation

Energy

Telecommunications

Professional Services

Construction

Import/Export

Relevant Teams

Legal

Corporate Secretarial

Finance

Compliance

Risk Management

Corporate Development

Investment

Board of Directors

Mergers & Acquisitions

Shareholder Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Secretary

Legal Counsel

Investment Manager

Compliance Officer

Business Development Director

Company Director

Corporate Lawyer

Investment Banker

Financial Controller

Risk Manager

Board Member

Managing Director

Shareholder Relations 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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