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Operating Management Agreement Template for Malaysia

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Key Requirements PROMPT example:

Operating Management Agreement

"I need an Operating Management Agreement for a luxury hotel in Kuala Lumpur, with specific provisions for performance-based incentive fees and detailed staff management requirements, targeting commencement in March 2025."

Document background
The Operating Management Agreement is essential for businesses and property owners in Malaysia seeking to delegate operational management to professional management companies while maintaining ownership control. This document is particularly relevant when owners wish to benefit from professional management expertise without transferring ownership rights. The agreement comprehensively covers operational control, management services, performance standards, financial arrangements, and risk allocation, while ensuring compliance with Malaysian legal requirements including the Contracts Act 1950, Companies Act 2016, and relevant industry regulations. It's commonly used in various sectors including hospitality, healthcare, and commercial property management, where specialized operational expertise is required. The document typically includes detailed provisions for reporting, performance metrics, and financial management, making it suitable for complex operational arrangements requiring professional management oversight.
Suggested Sections

1. Parties: Identifies and defines the property owner/principal and the management company

2. Background: Sets out the context of the agreement, including property details and management objectives

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Specifies the appointment of the manager and duration of the agreement

5. Manager's Rights and Obligations: Details the scope of management services and authority granted to the manager

6. Owner's Rights and Obligations: Outlines the owner's responsibilities and retained rights

7. Financial Arrangements: Covers management fees, operating accounts, budgets, and financial reporting

8. Staff and Employment: Addresses employment matters and allocation of responsibilities for personnel

9. Reporting and Performance Standards: Sets out reporting requirements and performance metrics

10. Insurance and Liability: Details insurance requirements and liability allocation between parties

11. Termination: Specifies termination events and processes

12. Confidentiality: Addresses confidentiality obligations and protection of proprietary information

13. Governing Law and Dispute Resolution: Specifies applicable law and dispute resolution mechanisms

14. General Provisions: Contains standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Intellectual Property Rights: Required when the management involves significant IP assets or branding elements

2. Force Majeure: Optional but recommended for long-term agreements to address unforeseen circumstances

3. Data Protection: Required when personal data processing is a significant aspect of operations

4. Environmental Compliance: Important for operations with environmental impact considerations

5. Competition Compliance: Necessary when the arrangement might raise competition law concerns

6. Step-In Rights: Optional provision allowing owner to take control in specific circumstances

7. Asset Management: Required when physical asset management is a key component of services

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property or business being managed

2. Schedule 2 - Services Scope: Comprehensive list of management services to be provided

3. Schedule 3 - Fee Structure: Detailed breakdown of management fees and payment terms

4. Schedule 4 - Performance Metrics: Key performance indicators and measurement criteria

5. Schedule 5 - Required Insurance: Specific insurance requirements and coverage details

6. Schedule 6 - Operating Procedures: Standard operating procedures and protocols

7. Schedule 7 - Initial Budget: First year operating budget and financial projections

8. Appendix A - Required Reports: Templates and specifications for required operational reports

9. Appendix B - Key Personnel: List of key management positions and qualifications

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

Hospitality

Real Estate

Healthcare

Manufacturing

Retail

Education

Leisure and Entertainment

Industrial Facilities

Commercial Properties

Residential Developments

Relevant Teams

Legal

Operations

Facilities Management

Asset Management

Risk and Compliance

Finance

Property Management

Contract Administration

Business Development

Senior Management

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Operations Director

Facility Manager

Property Manager

General Manager

Legal Counsel

Contracts Manager

Asset Manager

Operations Manager

Risk Manager

Compliance Officer

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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