The Business Co-Ownership Agreement serves as a foundational document for establishing and managing joint business ownership in Indonesia. This document is essential when two or more parties wish to formalize their business relationship and clearly define their rights, responsibilities, and obligations under Indonesian law. It is particularly crucial given Indonesia's specific regulatory requirements for business ownership, including foreign investment restrictions and local partnership requirements. The agreement typically covers crucial aspects such as ownership percentages, capital contributions, management rights, profit-sharing mechanisms, and exit strategies, all while ensuring compliance with Indonesian business regulations and corporate governance requirements. This document is fundamental for new business partnerships, family business arrangements, joint ventures, and any situation where multiple parties seek to establish clear co-ownership terms while operating within Indonesia's legal framework.
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1. Parties: Identification of all co-owners including their full legal names, addresses, and business registration details
2. Background: Context of the business relationship, history of the business if existing, and purpose of the agreement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Business Structure and Ownership: Legal structure of the business, ownership percentages, and initial capital contributions
5. Management and Control: Decision-making processes, voting rights, and management structure
6. Capital Contributions: Details of initial and ongoing capital contributions, valuation methods, and treatment of additional capital needs
7. Profit and Loss Distribution: Formula and timing for distribution of profits and allocation of losses
8. Rights and Obligations: Specific rights and duties of each co-owner, including participation in management and operations
9. Transfer Restrictions: Limitations on transfer of ownership interests and procedures for permitted transfers
10. Deadlock Resolution: Procedures for resolving disputes and deadlock situations between co-owners
11. Exit Mechanisms: Procedures for voluntary and involuntary exit, including buy-sell provisions and valuation methods
12. Confidentiality: Protection of business secrets and confidential information
13. Non-Competition: Restrictions on competing activities during and after ownership
14. Term and Termination: Duration of the agreement and circumstances leading to termination
15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intellectual Property Rights: Ownership and use of intellectual property, relevant for businesses with significant IP assets
2. Employment Matters: Co-owners' involvement in employment decisions and policies, relevant when owners are also employees
3. Insurance: Requirements for business insurance and key person insurance, important for high-risk businesses
4. Foreign Ownership Provisions: Special provisions required when one or more co-owners are foreign entities
5. Family Succession Rights: Provisions for family business succession and inheritance of ownership interests
6. Digital Assets and Cryptocurrency: Special provisions for businesses dealing with digital assets or cryptocurrency
7. Environmental Compliance: Special provisions for businesses with environmental impact considerations
8. Related Party Transactions: Procedures for handling transactions with related parties or other businesses owned by co-owners
1. Schedule A - Initial Capital Contributions: Detailed breakdown of each owner's initial capital contributions, including valuations of non-cash contributions
2. Schedule B - Business Plan: Initial business plan and strategic objectives
3. Schedule C - Management Structure: Detailed organizational chart and management responsibilities
4. Schedule D - Reserved Matters: List of decisions requiring special majority or unanimous consent
5. Schedule E - Valuation Methodology: Agreed methods for business valuation in various scenarios
6. Schedule F - Key Performance Indicators: Metrics for measuring business and management performance
7. Appendix 1 - Company Registration Documents: Copies of business registration certificates and licenses
8. Appendix 2 - Specimen Signatures: Authorized signatures of all co-owners
9. Appendix 3 - Related Companies: List of other businesses owned by co-owners that may present conflicts of interest
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Retail
Food and Beverage
Professional Services
Real Estate
E-commerce
Healthcare
Education
Construction
Agriculture
Mining
Tourism and Hospitality
Financial Services
Media and Entertainment
Transportation and Logistics
Renewable Energy
Consumer Goods
Relevant Teams
Legal
Corporate Affairs
Finance
Compliance
Risk Management
Business Development
Corporate Governance
Investment
Operations
Strategy
Executive Leadership
Shareholder Relations
Relevant Roles
Chief Executive Officer
Managing Director
Business Owner
Company Director
Chief Financial Officer
Legal Counsel
Corporate Secretary
Business Development Manager
Investment Manager
Partnership Manager
Compliance Officer
Risk Manager
Board Member
Shareholder Representative
Family Business Advisor
Corporate Governance Officer
General Manager
Operations Director
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