Document background
The Manager Managed LLC Operating Agreement is a crucial document for businesses in Pakistan seeking to establish a professional management structure while maintaining limited liability protection. This agreement becomes necessary when LLC members wish to delegate day-to-day management responsibilities to appointed professional managers, rather than managing the company themselves. Under Pakistani law, particularly the Companies Act 2017, this document formalizes the relationship between owners and managers, setting clear boundaries and responsibilities. The agreement includes comprehensive provisions for company operations, capital structure, profit distribution, and decision-making processes, while ensuring compliance with SECP requirements. It's particularly relevant for growing businesses, family-owned companies transitioning to professional management, and enterprises requiring specialized management expertise.
