The Director Termination Letter is a critical corporate document used when a company needs to formally end its relationship with a member of its Board of Directors in Indonesia. This document is essential for ensuring compliance with Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies, and protecting both the company's and director's interests. It is typically used in situations such as voluntary resignation, performance-related dismissal, restructuring, or retirement of a director. The letter must carefully balance legal requirements, corporate governance standards, and professional courtesy while clearly documenting the termination terms, final settlements, and ongoing obligations. It should reflect any relevant provisions in the company's Articles of Association and the director's service agreement, and may require submission to Indonesian regulatory authorities for proper documentation of the change in corporate leadership.
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1. Company Letterhead and Date: Official company letterhead including company details, registration number, and date of the letter
2. Director's Details: Full name and address of the director being terminated
3. Subject Line: Clear indication that this is a termination notice
4. Formal Opening: Professional greeting and reference to director's position and appointment date
5. Termination Notice: Clear statement of termination decision and effective date
6. Legal Basis: Reference to relevant company resolutions, Articles of Association, or other legal grounds for termination
7. Termination Terms: Key terms including notice period, final working day, and handover requirements
8. Financial Settlements: Details of final payments, benefits, and any severance package
9. Company Property: Requirements for returning company assets and documents
10. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
11. Closing: Formal closing, including signature block for authorized company representative
1. Garden Leave: Include when the director is to be placed on garden leave during the notice period
2. Non-Compete Reminder: Include when there are existing non-compete clauses to be reinforced
3. Transition Plan: Include when specific handover arrangements need to be documented
4. Mutual Release: Include when both parties agree to release each other from future claims
5. Reference Provision: Include when the company agrees to provide future references
6. Outstanding Obligations: Include when there are specific ongoing projects or responsibilities to be addressed
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, benefits, and severance
2. Schedule B - Company Property List: Itemized list of company assets to be returned
3. Schedule C - Handover Checklist: List of documents, passwords, and responsibilities to be transferred
4. Appendix 1 - Board Resolution: Copy of relevant board resolution authorizing the termination
5. Appendix 2 - Acknowledgment Form: Form for director to acknowledge receipt and acceptance of termination terms
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Technology
Retail
Energy and Resources
Healthcare
Real Estate
Transportation and Logistics
Telecommunications
Consumer Goods
Professional Services
Construction
Agriculture
Mining
Education
Relevant Teams
Human Resources
Legal
Corporate Secretariat
Board of Directors
Board of Commissioners
Compliance
Corporate Governance
Executive Management
Finance
Risk Management
Relevant Roles
Chief Executive Officer
Managing Director
Executive Director
Non-Executive Director
Finance Director
Operations Director
Technical Director
Commercial Director
Regional Director
Country Director
Human Resources Director
Legal Director
Chief Financial Officer
Chief Operating Officer
Chief Technology Officer
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