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Stock Sale And Purchase Agreement for Indonesia

Stock Sale And Purchase Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that documents the terms and conditions for the sale and purchase of shares in an Indonesian company. The document incorporates specific requirements under Indonesian corporate law, including Law No. 40 of 2007 on Limited Liability Companies, and addresses mandatory provisions for share transfers, regulatory approvals, and language requirements. It details the transaction structure, purchase price mechanics, representations and warranties, and closing conditions while ensuring compliance with Indonesian investment regulations and capital market rules where applicable.

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Stock Sale And Purchase Agreement

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What is a Stock Sale And Purchase Agreement?

The Stock Sale And Purchase Agreement serves as the primary transaction document for share transfers in Indonesian companies, whether for partial or complete ownership changes. It is essential for both domestic and cross-border transactions, requiring careful consideration of Indonesian corporate law, investment regulations, and specific sectoral requirements. The document must comply with Law No. 40 of 2007 on Limited Liability Companies and, where applicable, capital market regulations for public companies. It typically includes detailed provisions on purchase price, conditions precedent (including regulatory approvals), representations and warranties, and closing mechanics. For transactions involving foreign investors, additional considerations regarding investment restrictions and foreign ownership limitations must be addressed. The agreement must be prepared in Indonesian or bilingually to comply with Law No. 24 of 2009.

What sections should be included in a Stock Sale And Purchase Agreement?

1. Parties: Identification of the Seller(s), Purchaser(s), and the Company whose shares are being sold

2. Background: Context of the transaction, including current ownership structure and purpose of the sale

3. Definitions: Defined terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including number of shares, price, and payment terms

5. Conditions Precedent: Required conditions to be fulfilled before closing, including regulatory approvals

6. Completion: Closing mechanics, timing, and deliverables

7. Seller's Representations and Warranties: Statements of fact and assurances about the shares, company, and seller

8. Purchaser's Representations and Warranties: Statements of fact and assurances about the purchaser's capacity and authority

9. Pre-Completion Obligations: Obligations of parties between signing and closing, including conduct of business

10. Tax Matters: Allocation of tax liabilities and obligations

11. Confidentiality: Provisions regarding confidential information and announcements

12. Indemnification: Rights and obligations regarding losses and claims

13. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

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

What sections are optional to include in a Stock Sale And Purchase Agreement?

1. Tag-Along Rights: Optional section for minority shareholder protection, relevant in partial stake sales

2. Drag-Along Rights: Optional section for majority shareholder rights, relevant in controlling stake sales

3. Non-Competition: Restrictions on seller's future competitive activities, relevant when seller is an industry participant

4. Earn-out Provisions: Structure for additional payments based on future performance, used in performance-dependent valuations

5. Employee Matters: Provisions regarding key employees and management, relevant for controlling stake transfers

6. Transition Services: Terms for post-closing operational support, relevant when seller provides crucial services

7. Foreign Investment Compliance: Special provisions for foreign buyers, required when purchaser is non-Indonesian

What schedules should be included in a Stock Sale And Purchase Agreement?

1. Details of the Company: Corporate information, shareholding structure, and material contracts

2. Details of the Sale Shares: Specific description and details of shares being transferred

3. Purchase Price Calculation: Detailed breakdown of consideration and adjustments

4. Completion Deliverables: List of documents and items to be delivered at closing

5. Warranties: Detailed warranties about the business, assets, and liabilities

6. Encumbrances: List of existing liens, pledges, or other encumbrances on shares

7. Required Consents: List of third-party and regulatory approvals needed

8. Disclosed Matters: Disclosure schedule qualifying the warranties

9. Form of Resignation Letters: Template letters for retiring directors/commissioners

10. Form of Transfer Instruments: Required share transfer documentation under Indonesian law

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

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions












































Clauses






































Relevant Industries

Manufacturing

Technology

Financial Services

Real Estate

Mining

Agriculture

Retail

Healthcare

Energy

Infrastructure

Telecommunications

Consumer Goods

Professional Services

Transportation

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Corporate Secretarial

Due Diligence

Investment Relations

Treasury

Risk Management

Corporate Strategy

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Legal Counsel

Investment Director

Mergers & Acquisitions Director

Business Development Manager

Finance Director

Compliance Officer

Board Director

Commissioner

Transaction Manager

Due Diligence Manager

Corporate Finance Manager

Investment 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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