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Management Company Contract for Philippines

Management Company Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions under which a management company provides professional management services to a client company. This document outlines the scope of management services, responsibilities of both parties, compensation structure, performance metrics, and compliance requirements with Philippine corporate and labor laws. It includes provisions for reporting, accountability, and governance structure while ensuring adherence to local regulatory requirements, including those set by the Securities and Exchange Commission and other relevant Philippine authorities.

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Management Company Contract

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What is a Management Company Contract?

The Management Company Contract is essential for businesses in the Philippines seeking professional management services or outsourced operational oversight. This document is particularly relevant when a company requires external expertise for management, restructuring, or operational improvement while complying with Philippine corporate law and regulatory requirements. The contract typically details the scope of management services, performance standards, fee structures, and reporting requirements, while ensuring compliance with local labor laws, foreign investment regulations (if applicable), and corporate governance standards. It's commonly used in scenarios involving business expansion, turnaround situations, or when specialized management expertise is needed, and must align with requirements set forth by Philippine regulatory bodies including the Securities and Exchange Commission and Department of Trade and Industry.

What sections should be included in a Management Company Contract?

1. Parties: Identification of the contracting parties - the company receiving management services and the management company

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the management company and detailed scope of services

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Management Company's Obligations: Detailed responsibilities and duties of the management company

7. Client Company's Obligations: Responsibilities and duties of the client company

8. Fees and Payment Terms: Management fees, payment schedule, and other financial arrangements

9. Performance Standards: Expected service levels and performance metrics

10. Reporting and Accountability: Regular reporting requirements and accountability measures

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination and termination procedures

13. Governing Law and Jurisdiction: Application of Philippine law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Management Company Contract?

1. Foreign Investment Compliance: Required when the management company involves foreign ownership or control

2. Intellectual Property Rights: Needed when management services involve creation or use of intellectual property

3. Data Protection: Required when management services involve handling personal or sensitive data

4. Staff Transfer Provisions: Needed when management services involve transfer or secondment of employees

5. Insurance Requirements: Detailed insurance obligations when specific coverage is required

6. Force Majeure: Extended force majeure provisions for high-risk or critical management services

7. Anti-Corruption Compliance: Detailed compliance provisions for high-value or government-related contracts

8. Environmental Compliance: Required for management services in environmentally sensitive industries

9. Change Control Procedure: Needed for complex management arrangements requiring formal change management

What schedules should be included in a Management Company Contract?

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees and payment calculations

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria

4. Schedule 4 - Required Reports: List and format of required management reports

5. Schedule 5 - Key Personnel: Details of key management team members and their roles

6. Schedule 6 - Operating Procedures: Detailed operational procedures and protocols

7. Schedule 7 - Service Levels: Detailed service level requirements and metrics

8. Appendix A - Power of Attorney: If required for specific management actions

9. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements

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

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





































Clauses




































Relevant Industries

Manufacturing

Retail

Hospitality

Real Estate

Information Technology

Business Process Outsourcing

Healthcare

Education

Construction

Agriculture

Mining

Energy

Transportation and Logistics

Financial Services

Tourism

Relevant Teams

Legal

Operations

Finance

Human Resources

Compliance

Risk Management

Corporate Affairs

Business Development

Project Management

Executive Management

Administrative

Procurement

Strategy

Relevant Roles

Chief Executive Officer

Managing Director

Chief Operating Officer

Chief Financial Officer

Legal Counsel

Corporate Secretary

Operations Manager

Contract Manager

Compliance Officer

Human Resources Director

Business Development Manager

Project Manager

Risk Manager

General Manager

Country Manager

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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