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Management Company Contract Template for Germany

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Key Requirements PROMPT example:

Management Company Contract

"I need a Management Company Contract for a German tech startup engaging a professional management company to handle our expansion into European markets, starting March 2025, with particular focus on data protection compliance and international operations."

Document background
The Management Company Contract is essential for businesses operating in Germany that wish to outsource or formalize their management functions. This document is particularly relevant when a company seeks to engage professional management services, restructure its management organization, or establish clear governance frameworks. The contract, governed by German law, typically includes detailed provisions on management responsibilities, decision-making authority, reporting structures, and compensation arrangements. It must comply with various German legal requirements, including the German Civil Code (BGB), Commercial Code (HGB), and corporate governance regulations. The Management Company Contract is crucial for risk management, ensuring clear accountability, and establishing professional management relationships while protecting both parties' interests under German law.
Suggested Sections

1. Parties: Identification of the company and the management company/manager, including full legal names and registered addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Terms of appointment, duration, and conditions for renewal

5. Scope of Services: Detailed description of management services to be provided

6. Authority and Limitations: Extent and limitations of management authority, including approval requirements

7. Duties and Responsibilities: Specific duties, reporting obligations, and performance standards

8. Remuneration: Management fees, payment terms, and any performance-based compensation

9. Expenses: Treatment of business expenses and reimbursement procedures

10. Compliance and Governance: Obligations regarding legal compliance and corporate governance

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of IP created during the management relationship

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Post-Termination Obligations: Continuing obligations after contract termination

15. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Compete and Non-Solicitation: Restrictions on competitive activities and employee solicitation - include when protection against competition is required

2. Insurance: Requirements for professional liability and other insurance - relevant for high-risk industries

3. International Operations: Specific provisions for cross-border activities - include when management services extend beyond Germany

4. Data Protection: Detailed GDPR compliance measures - expanded section when extensive personal data processing is involved

5. Force Majeure: Provisions for extraordinary circumstances - particularly relevant post-COVID or for sensitive industries

6. Succession Planning: Procedures for management transition - important for long-term or critical management relationships

7. Environmental, Social and Governance (ESG): ESG-related obligations - include when company has specific ESG commitments or requirements

Suggested Schedules

1. Schedule 1 - Service Description: Detailed breakdown of management services and deliverables

2. Schedule 2 - Fee Structure: Detailed calculation of management fees, including any variable components

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and evaluation criteria

4. Schedule 4 - Reporting Requirements: Format and frequency of required management reports

5. Schedule 5 - Authorized Representatives: List of authorized representatives and their signing authorities

6. Appendix A - Power of Attorney: Formal power of attorney document if required

7. Appendix B - Compliance Guidelines: Company-specific compliance requirements and procedures

8. Appendix C - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































Clauses
































Relevant Industries

Financial Services

Real Estate

Manufacturing

Technology

Professional Services

Healthcare

Retail

Industrial

Energy

Infrastructure

Telecommunications

Hospitality

Private Equity

Asset Management

Consulting

Relevant Teams

Legal

Executive Management

Corporate Governance

Compliance

Finance

Operations

Risk Management

Human Resources

Corporate Secretariat

Business Development

Strategy

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Chief Operating Officer

General Counsel

Legal Director

Corporate Secretary

Head of Compliance

Board Member

Executive Director

Management Consultant

Operations Director

Business Development Director

Senior Contract Manager

Risk Manager

Corporate Governance Officer

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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