Non Compete Partnership Agreement

Non Compete Partnership Agreement Template for Malaysia

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Key Requirements PROMPT example:

"I need a Non Compete Partnership Agreement for our Malaysian consulting firm with three partners, restricting competition within Kuala Lumpur and Penang for 24 months after partner departure, to be effective from March 2025."

Document background

The Non-Compete Partnership Agreement is essential for Malaysian business partnerships seeking to protect their legitimate business interests, client relationships, and competitive advantages. This document is typically used when establishing new partnerships, admitting new partners, or managing partner departures. It must comply with Malaysian legal requirements, including the Contracts Act 1950, Partnership Act 1961, and Competition Act 2010. The agreement balances the partnership's need to protect its business interests against individual partners' rights to future employment and business opportunities. It includes specific provisions on restricted activities, geographic scope, duration, and enforcement mechanisms, all structured to meet Malaysian courts' requirements for reasonable and enforceable non-compete provisions.

Suggested Sections

1. Parties: Identification and details of all partnership parties entering into the agreement

2. Background: Context of the agreement, nature of the partnership business, and purpose of the non-compete provisions

3. Definitions: Key terms used throughout the agreement, including specific business activities, territory, and competitive activities

4. Duration of Non-Compete: Specific timeframe during which the non-compete obligations will be effective

5. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas

6. Geographic Coverage: Specific territorial limits of the non-compete restrictions

7. Partnership Obligations: General duties and responsibilities of partners during the partnership

8. Confidentiality: Obligations regarding protection of partnership's confidential information

9. Exit Provisions: Terms governing partner departure and continuation of non-compete obligations

10. Consideration: Benefits or compensation provided in exchange for non-compete commitments

11. Remedies and Enforcement: Legal remedies available for breach of non-compete provisions

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

13. General Provisions: Standard clauses including severability, entire agreement, and amendments

Optional Sections

1. Intellectual Property Rights: Specific provisions regarding ownership and use of IP when relevant to the partnership's business

2. Customer and Supplier Non-Solicitation: Additional restrictions on approaching partnership's customers or suppliers, if applicable

3. Employee Non-Solicitation: Restrictions on hiring partnership employees, if the partnership has employees

4. Training and Trade Secrets: Specific provisions for partnerships involving specialized training or proprietary methods

5. Dispute Resolution: Alternative dispute resolution mechanisms like mediation or arbitration

6. International Operations: Additional provisions for partnerships operating across multiple jurisdictions

Suggested Schedules

1. Schedule A - Business Description: Detailed description of partnership's business activities and protected interests

2. Schedule B - Territory Definition: Detailed maps or descriptions of geographic areas covered by non-compete

3. Schedule C - Competitive Activities: Comprehensive list of specific prohibited competitive activities

4. Schedule D - Partner Contributions: Details of each partner's capital contributions and ownership interests

5. Schedule E - Consideration Details: Specific details of compensation or benefits provided for non-compete obligations

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Professional Services

Management Consulting

Legal Services

Medical Practices

Accounting and Financial Services

Technology and Software Development

Engineering Services

Architecture and Design

Real Estate Services

Business Advisory Services

Relevant Teams

Legal

Executive Leadership

Corporate Governance

Business Development

Operations

Human Resources

Compliance

Risk Management

Partner Relations

Strategic Planning

Relevant Roles

Managing Partner

Senior Partner

Executive Partner

Partnership Director

Chief Executive Officer

Chief Operating Officer

Legal Counsel

Business Development Director

Practice Head

Department Director

Regional Manager

Senior Associate

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