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Advisor Agreement Generator for Hong Kong

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Key Requirements PROMPT example:

Advisor Agreement

I need an advisor agreement for a consultant who will provide strategic guidance on business development for a startup, with a commitment of 10 hours per month. The agreement should include a confidentiality clause, a 3-month initial term with the option to renew, and compensation in the form of a monthly retainer.

What is an Advisor Agreement?

An Advisor Agreement spells out the working relationship between a company and its business advisor, laying out their roles, compensation, and confidentiality obligations under Hong Kong law. It protects both parties by clearly defining the scope of advisory services, which might include strategic guidance, market analysis, or industry expertise.

These agreements typically include key provisions required by Hong Kong's Contract Ordinance, such as payment terms, intellectual property rights, and non-compete clauses. Companies often use them when bringing on board members, industry experts, or consultants who will have access to sensitive business information but aren't full-time employees.

When should you use an Advisor Agreement?

Use an Advisor Agreement when bringing expert consultants or industry veterans into your Hong Kong business to provide strategic guidance. This becomes essential before sharing sensitive company information, market strategies, or intellectual property with outside advisors who aren't regular employees.

The agreement proves particularly valuable for startups seeking mentorship, companies exploring new markets, or businesses needing specialized expertise. It helps prevent misunderstandings about compensation, protects confidential information, and ensures compliance with Hong Kong's Contract Ordinance and Securities and Futures Commission regulations when advisors have access to material non-public information.

What are the different types of Advisor Agreement?

Who should typically use an Advisor Agreement?

  • Companies and Startups: From tech firms to financial institutions seeking expert guidance while protecting their interests and intellectual property
  • Industry Experts and Consultants: Professionals providing specialized knowledge, market insights, or strategic advice under Hong Kong's regulatory framework
  • Legal Counsel: In-house or external lawyers who draft and review these agreements to ensure compliance with Hong Kong law
  • Board Members: Directors and executives who approve and oversee advisor relationships, particularly in regulated industries
  • Compliance Officers: Professionals ensuring the agreement meets SFC requirements and corporate governance standards

How do you write an Advisor Agreement?

  • Scope Definition: Document the exact advisory services needed, including timelines, deliverables, and any industry-specific requirements
  • Advisor Details: Gather the advisor's credentials, experience, and registration details if required by Hong Kong regulators
  • Compensation Structure: Outline payment terms, including fees, expenses, and any performance-based incentives
  • Confidentiality Needs: Identify sensitive information the advisor will access and necessary protection measures
  • Term and Termination: Decide on agreement duration and conditions for ending the relationship
  • Final Review: Use our platform to generate a comprehensive, compliant agreement that includes all essential elements

What should be included in an Advisor Agreement?

  • Parties and Roles: Clear identification of the advisor and company, including business registration details
  • Services Scope: Detailed description of advisory services, deliverables, and performance standards
  • Compensation Terms: Payment structure, timing, and any performance-based elements aligned with Hong Kong regulations
  • Confidentiality Provisions: Protection of sensitive information under Hong Kong's data privacy laws
  • Term and Termination: Agreement duration and conditions for ending the relationship
  • Governing Law: Explicit statement of Hong Kong jurisdiction and applicable regulations
  • Intellectual Property: Ownership and usage rights of any IP created during the engagement

What's the difference between an Advisor Agreement and an Agency Agreement?

An Advisor Agreement differs significantly from an Agency Agreement in several key aspects, though both involve external parties working with a company. Here's how they differ:

  • Authority and Representation: Agency Agreements grant the agent power to represent and bind the company in transactions, while Advisor Agreements only allow for providing guidance without decision-making authority
  • Scope of Responsibility: Advisors provide strategic input and expertise but don't execute transactions or engage with third parties on behalf of the company
  • Legal Liability: Agents can create legal obligations for the company under Hong Kong law, while advisors bear no such power
  • Regulatory Requirements: Agency relationships often require specific licenses and face stricter regulatory oversight, particularly in financial services
  • Duration and Commitment: Advisory roles typically involve looser, more flexible arrangements compared to agency relationships, which often require more formal, long-term commitments

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