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Intercompany Agreement Between Parent And Subsidiary Template for Malaysia

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Key Requirements PROMPT example:

Intercompany Agreement Between Parent And Subsidiary

"I need an Intercompany Agreement Between Parent And Subsidiary for our Malaysian manufacturing company and its new subsidiary, covering shared services including HR, IT, and accounting support, with implementation planned for March 2025 and specific focus on transfer pricing compliance."

Document background
The Intercompany Agreement Between Parent And Subsidiary is a crucial document for corporate groups operating in Malaysia, required whenever a parent company establishes or maintains a formal business relationship with its subsidiary. This agreement is essential for compliance with Malaysian corporate law, particularly the Companies Act 2016, and tax regulations including transfer pricing requirements. It should be implemented when establishing new subsidiary relationships, restructuring existing arrangements, or formalizing group operational procedures. The document typically covers areas such as management control, financial arrangements, service provisions, resource sharing, and compliance requirements. It's particularly important for demonstrating proper corporate governance to regulatory authorities and establishing clear operational boundaries within the group structure. The agreement needs regular review and updates to ensure continued compliance with evolving Malaysian regulatory requirements and changing business needs.
Suggested Sections

1. Parties: Identification of the parent company and subsidiary company, including registration numbers and registered addresses

2. Background: Context of the agreement, including the parent-subsidiary relationship and purpose of the arrangement

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

4. Scope of Agreement: Overview of the services, support, or arrangements covered by the agreement

5. Rights and Obligations: Detailed responsibilities and rights of both parent and subsidiary companies

6. Financial Terms: Payment terms, pricing mechanisms, and transfer pricing considerations

7. Governance and Control: Management structure, reporting requirements, and decision-making processes

8. Intellectual Property Rights: Ownership and usage rights of intellectual property between parties

9. Confidentiality: Protection of confidential information and trade secrets

10. Compliance: Obligations to comply with relevant laws, regulations, and corporate policies

11. Term and Termination: Duration of agreement and circumstances for termination

12. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Service Level Requirements: Specific performance standards and metrics, used when the agreement includes service provision

2. Staff and Resources: Terms regarding shared employees or resources, included when there are shared services arrangements

3. Technology and Systems: Terms for shared IT systems and technology infrastructure, needed when technology sharing is involved

4. Corporate Support Services: Details of support services provided by parent company, used in shared services arrangements

5. Risk Allocation: Specific risk sharing arrangements, important for regulated industries or high-risk activities

6. Group Policies: Incorporation of group-wide policies, relevant when standardizing operations across the group

7. Audit Rights: Detailed audit provisions, important for regulated industries or complex financial arrangements

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of services or arrangements covered by the agreement

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing mechanisms, payment schedules, and transfer pricing methodology

3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements

4. Schedule 4 - Key Personnel: List of key personnel and their roles in managing the relationship

5. Schedule 5 - Compliance Requirements: Detailed compliance obligations and reporting requirements

6. Appendix A - Group Policies: Relevant group policies that apply to the relationship

7. Appendix B - Technical Requirements: Technical specifications or requirements for shared systems or services

8. Appendix C - Reporting Templates: Standard templates for required reports and documentation

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

Manufacturing

Financial Services

Technology

Retail

Healthcare

Energy

Transportation

Professional Services

Real Estate

Telecommunications

Consumer Goods

Industrial Services

Relevant Teams

Legal

Finance

Compliance

Tax

Corporate Secretarial

Risk Management

Corporate Governance

Operations

Treasury

Internal Audit

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Corporate Secretary

Head of Compliance

Finance Director

Tax Director

Operations Director

Group General Counsel

Corporate Governance Officer

Transfer Pricing Manager

Risk Management Officer

Group Financial Controller

Managing Director

Company Director

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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