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Investment Club Partnership Agreement for Indonesia

Investment Club Partnership Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the operation of an investment club partnership. The document outlines the rights and obligations of members, capital contribution requirements, investment decision-making processes, profit sharing mechanisms, and exit procedures. It ensures compliance with Indonesian investment regulations, particularly Law No. 25 of 2007 on Investment and relevant OJK regulations, while providing a framework for collective investment activities. The agreement includes detailed provisions for governance, risk management, and dispute resolution specifically tailored to the Indonesian legal context.

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Investment Club Partnership Agreement

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What is a Investment Club Partnership Agreement?

The Investment Club Partnership Agreement serves as the foundational document for groups of individuals or entities looking to pool their resources for collective investment purposes in Indonesia. This agreement is essential when establishing a formal investment club structure that complies with Indonesian partnership laws, investment regulations, and OJK requirements. It details crucial aspects such as capital contributions, investment strategies, profit distribution, member rights and obligations, and governance structures. The document becomes particularly relevant when investors seek to formalize their investment collaboration while maintaining flexibility in investment decisions and member participation. It incorporates necessary provisions to comply with Indonesian regulatory requirements while protecting member interests and establishing clear operational procedures.

What sections should be included in a Investment Club Partnership Agreement?

1. Parties: Identifies all founding members of the investment club, including their full legal names, addresses, and contact information

2. Background: Sets out the context and purpose of forming the investment club, including the general investment objectives

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Formation and Name: Establishes the partnership's official name and confirms its formation under Indonesian law

5. Purpose and Investment Objectives: Details the specific investment goals, strategies, and permitted investment types

6. Capital Contributions: Specifies initial and ongoing capital contribution requirements, payment schedules, and consequences of default

7. Membership Interest: Defines how ownership interests are calculated, recorded, and may be adjusted

8. Management and Administration: Outlines the management structure, decision-making processes, and administrative procedures

9. Investment Decisions: Details how investment decisions are made, including voting rights and approval thresholds

10. Meetings and Voting: Specifies procedures for regular and special meetings, voting methods, and quorum requirements

11. Accounting and Records: Sets requirements for financial record-keeping, reporting, and member access to information

12. Profit and Loss Allocation: Defines how profits and losses are calculated and distributed among members

13. Transfer Restrictions: Outlines limitations on transferring membership interests and right of first refusal provisions

14. Withdrawal and Exit: Describes procedures for voluntary withdrawal and forced exit of members

15. Dissolution: Specifies conditions and procedures for partnership dissolution and asset distribution

16. Governing Law and Dispute Resolution: Confirms Indonesian law as governing law and sets out dispute resolution procedures

What sections are optional to include in a Investment Club Partnership Agreement?

1. Investment Committee: Details the formation and operation of an investment committee - recommended for larger clubs with more complex decision-making needs

2. Professional Advisors: Establishes procedures for engaging external advisors - useful for clubs seeking professional investment guidance

3. Leverage Restrictions: Sets limits on borrowing and use of leverage - important if the club plans to use debt financing

4. Valuation Procedures: Detailed procedures for valuing non-listed investments - necessary for clubs investing in private companies or real estate

5. Tax Matters: Specific provisions for tax handling and reporting - important for clubs with complex tax situations

6. Insurance: Requirements for maintaining insurance coverage - relevant for clubs with significant assets or liability concerns

7. Confidentiality: Detailed confidentiality obligations - important for clubs sharing sensitive investment information

What schedules should be included in a Investment Club Partnership Agreement?

1. Schedule A - Member Registry: Current list of all members, their contact details, and capital contributions

2. Schedule B - Initial Capital Contributions: Detailed breakdown of each member's initial capital contribution

3. Schedule C - Investment Policy: Detailed investment guidelines, restrictions, and target allocations

4. Schedule D - Valuation Methodology: Specific procedures for valuing different types of investments

5. Schedule E - Fee Structure: Details of any management fees, administrative costs, and expense allocation

6. Schedule F - Meeting Procedures: Detailed procedures for conducting meetings and voting

7. Appendix 1 - Member Subscription Agreement: Standard form for new members joining the club

8. Appendix 2 - Transfer Notice: Standard form for members wishing to transfer their interests

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

Cost

Free to use
Relevant legal definitions





































































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Relevant Industries

Financial Services

Investment Management

Private Equity

Real Estate

Technology

Healthcare

Consumer Goods

Energy

Infrastructure

Agriculture

Manufacturing

Mining

Education

Relevant Teams

Legal

Compliance

Investment Management

Risk Management

Finance

Tax

Corporate Governance

Treasury

Portfolio Management

Client Relations

Relevant Roles

Investment Manager

Legal Counsel

Compliance Officer

Risk Manager

Financial Advisor

Partnership Administrator

Chief Investment Officer

Chief Financial Officer

Investment Analyst

Portfolio Manager

Managing Partner

Corporate Secretary

Tax Advisor

Wealth Manager

Fund Administrator

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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