A Management Agreement is essential when a company seeks to engage professional management services for its operations in Malaysia. This document is commonly used when businesses require external expertise, during corporate restructuring, or when establishing new operations that need professional management oversight. The agreement must comply with Malaysian legal requirements, including the Companies Act 2016, Employment Act 1955, and Contract Act 1950. It typically includes detailed provisions for service scope, performance standards, compensation, liability allocation, and termination conditions. The document is particularly relevant for businesses seeking to professionalize their management structure or when parent companies want to establish formal management relationships with subsidiaries.
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1. Parties: Identification of the service provider (Manager) and the company/entity receiving management services
2. Background: Context of the agreement, brief description of the business and purpose of the management arrangement
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Appointment and Scope: Formal appointment of the manager and detailed scope of management services
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Manager's Duties and Responsibilities: Detailed obligations and responsibilities of the manager
7. Company's Obligations: Responsibilities and obligations of the company receiving services
8. Fees and Payment Terms: Management fees, payment schedule, expenses, and related financial terms
9. Performance Standards: Expected service levels and performance metrics
10. Reporting and Accountability: Required reports, meetings, and accountability measures
11. Confidentiality: Protection of confidential information and trade secrets
12. Intellectual Property Rights: Ownership and usage rights of IP created during the management services
13. Liability and Indemnification: Allocation of risks and responsibilities for losses
14. Termination: Grounds for termination and termination procedures
15. Post-Termination Obligations: Obligations surviving termination and transition arrangements
16. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Non-Competition: Restrictions on competitive activities, used when manager has access to sensitive business information
2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements
3. Anti-Corruption Compliance: Required for international agreements or when dealing with public entities
4. Data Protection: Detailed data handling procedures when personal data processing is significant
5. Currency and Exchange Rate: Required for international agreements with cross-border payments
6. Insurance: Specific insurance requirements when significant operational risks are involved
7. Environmental Compliance: Required for industries with environmental impact considerations
8. Dispute Resolution: Alternative dispute resolution procedures, particularly important for international agreements
1. Schedule 1 - Scope of Services: Detailed breakdown of management services to be provided
2. Schedule 2 - Fee Structure: Detailed breakdown of fees, including base fees, performance bonuses, and expense categories
3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria
4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports
5. Schedule 5 - Key Personnel: List of key management personnel and their roles
6. Schedule 6 - Company Assets: Inventory of assets under management control
7. Schedule 7 - Operational Procedures: Detailed operational protocols and procedures
8. Appendix A - Power of Attorney: If required, specific powers granted to the manager
9. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and minimums
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Hospitality
Manufacturing
Retail
Healthcare
Education
Technology
Financial Services
Construction
Energy
Agriculture
Logistics
Professional Services
Relevant Teams
Legal
Operations
Human Resources
Finance
Compliance
Risk Management
Corporate Services
Business Development
Project Management
Executive Leadership
Relevant Roles
Chief Executive Officer
Managing Director
Operations Director
Legal Counsel
Contract Manager
Business Development Manager
Human Resources Director
Finance Director
Project Manager
Compliance Officer
Risk Manager
Department Head
General Manager
Company Secretary
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