The Management Partnership Agreement is a crucial document used when establishing a managed partnership structure under Malaysian law. This agreement is particularly relevant when partners wish to formalize the appointment of specific partners or external professionals to manage the partnership's operations. The document comprehensively addresses key aspects such as management authority, profit sharing, decision-making processes, and operational procedures, while ensuring compliance with Malaysian legislation, particularly the Partnership Act 1961 and Companies Act 2016. It's essential for businesses seeking to establish clear management structures while maintaining the benefits of a partnership model, providing protection for all parties involved and establishing clear governance frameworks.
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1. Parties: Identification and details of all parties to the agreement, including the managing partner(s) and other partners
2. Background: Context of the agreement, including the purpose of the partnership and management arrangement
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpretation
4. Appointment and Scope: Formal appointment of managing partner(s) and detailed scope of management responsibilities
5. Term and Renewal: Duration of the management agreement and conditions for renewal
6. Management Rights and Obligations: Detailed rights and responsibilities of the managing partner(s)
7. Partnership Contributions: Details of capital contributions, assets, and resources provided by each partner
8. Profit Sharing and Remuneration: Structure of profit distribution and management fees
9. Decision Making Process: Procedures for business decisions, voting rights, and management authority limits
10. Financial Management: Procedures for financial control, accounting, and reporting
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition: Restrictions on competitive activities during and after the agreement
13. Termination: Grounds and procedures for termination of the agreement
14. Dispute Resolution: Procedures for resolving disputes between parties
15. Governing Law: Specification of Malaysian law as governing law and jurisdiction
1. Intellectual Property Rights: Management of IP rights and licensing arrangements, needed when IP is a significant aspect of the business
2. Insurance: Insurance requirements and obligations, important for high-risk businesses
3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile industries
4. Environmental Compliance: Environmental obligations and compliance requirements, necessary for businesses with environmental impact
5. Technology and Data Protection: Digital assets management and data protection obligations, essential for tech-focused businesses
6. International Operations: Provisions for international business activities, needed for cross-border operations
7. Succession Planning: Procedures for management succession, important for long-term partnerships
1. Schedule 1 - Business Plan: Detailed business plan and strategic objectives
2. Schedule 2 - Management Fee Structure: Detailed breakdown of management fees, performance bonuses, and payment terms
3. Schedule 3 - Partner Information: Detailed information about all partners, including contact details and shareholding
4. Schedule 4 - Asset Register: List of partnership assets and their allocation
5. Schedule 5 - Operating Procedures: Detailed operational procedures and management protocols
6. Schedule 6 - KPIs and Performance Metrics: Performance indicators and evaluation criteria for management
7. Appendix A - Required Approvals Matrix: Matrix showing approval requirements for different types of decisions
8. Appendix B - Reporting Ƶ: Standard templates for required management and financial reports
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