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Business Management Agreement for Malta

Business Management Agreement Template for Malta

A comprehensive legal agreement governed by Maltese law that establishes the terms and conditions under which a professional manager or management company assumes responsibility for operating and managing a business on behalf of its owners. The document outlines management authority, responsibilities, performance metrics, compensation structures, and reporting requirements while ensuring compliance with Malta's corporate and commercial regulations. It includes provisions for risk management, confidentiality, and dispute resolution specific to the Maltese legal framework.

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What is a Business Management Agreement?

The Business Management Agreement is essential for businesses operating in Malta that seek to delegate management responsibilities to professional managers or management companies. This document is particularly relevant in scenarios where owners want to separate ownership from management, during succession planning, or when specialized expertise is required for business operations. The agreement, governed by Maltese law, typically includes detailed provisions for management scope, authority limits, performance metrics, reporting requirements, and compensation structures. It must comply with Malta's Companies Act, Commercial Code, and relevant industry-specific regulations. The document is crucial for protecting both the business owner's interests and providing clear parameters for management authority.

What sections should be included in a Business Management Agreement?

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

2. Background: Context of the agreement, brief description of the business, and purpose of engaging management services

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

4. Appointment and Term: Formal appointment of the manager, duration of the agreement, and renewal terms

5. Scope of Services: Comprehensive outline of management services to be provided

6. Manager's Authority and Limitations: Extent and limitations of management authority, including spending limits and decision-making powers

7. Duties and Responsibilities: Specific obligations of the manager in running the business

8. Fees and Payment Terms: Management fees, payment schedule, expenses, and reimbursement policies

9. Reporting and Performance Standards: Required reports, frequency of reporting, and performance metrics

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Intellectual Property: Ownership and usage rights of IP created during the management period

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

13. Post-Termination Obligations: Duties and restrictions after the agreement ends

14. Liability and Indemnification: Extent of manager's liability and mutual indemnification provisions

15. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Business Management Agreement?

1. Staff Management: Include when manager has authority over hiring, firing, and managing employees

2. Property Management: Required if management includes responsibility for physical premises

3. Insurance Requirements: Detailed insurance obligations when management involves high-risk activities or valuable assets

4. Non-Competition: Include when protecting against competitive activities is crucial

5. Emergency Protocols: Necessary for businesses requiring specific emergency response procedures

6. Environmental Compliance: Include for businesses with environmental impact considerations

7. Data Protection Compliance: Required when management involves significant data processing activities

8. Succession Planning: Include when long-term management transition planning is required

What schedules should be included in a Business Management Agreement?

1. Schedule 1 - Services Description: Detailed breakdown of management services and responsibilities

2. Schedule 2 - Fee Structure: Detailed fee calculations, performance bonuses, and expense categories

3. Schedule 3 - Key Performance Indicators: Specific metrics and targets for measuring management performance

4. Schedule 4 - Reporting Templates: Standard formats for required management reports

5. Schedule 5 - Authorized Personnel: List of key personnel and their authority levels

6. Schedule 6 - Business Assets: Inventory of assets under management control

7. Appendix A - Power of Attorney: If required, specific powers granted to the manager

8. Appendix B - Compliance Requirements: Industry-specific regulatory requirements and compliance procedures

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

Malta

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions















































Clauses








































Relevant Industries

Financial Services

Hospitality and Tourism

Gaming and iGaming

Real Estate and Property Management

Retail and Consumer Services

Manufacturing

Technology and Software

Maritime and Shipping

Professional Services

Healthcare Services

Education and Training

Relevant Teams

Legal

Executive Leadership

Operations

Finance

Corporate Governance

Risk Management

Compliance

Human Resources

Business Development

Strategy

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

Business Owner

Company Secretary

General Manager

Department Head

Executive Director

Business Development Manager

Compliance Officer

Risk Manager

Corporate Lawyer

Board Member

Financial Controller

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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