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Management Partnership Agreement for United Arab Emirates

Management Partnership Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions of a management partnership between two or more parties. This document outlines management rights, responsibilities, profit-sharing arrangements, and operational control while ensuring compliance with UAE Federal Law No. 32 of 2021 and other relevant UAE regulations. It includes provisions for decision-making processes, capital contributions, dispute resolution mechanisms, and specific considerations for UAE business practices, including potential free zone requirements and local ownership regulations.

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What is a Management Partnership Agreement?

The Management Partnership Agreement is a crucial document for businesses operating in the United Arab Emirates that wish to establish a formal management structure between partners while ensuring compliance with local laws and regulations. This agreement is particularly relevant when partners seek to define their management roles, responsibilities, and profit-sharing arrangements in sectors ranging from real estate to professional services. The document addresses key requirements under UAE Federal Law No. 32 of 2021 and related regulations, including provisions for local ownership if required, free zone considerations, and Sharia compliance where applicable. It serves as a foundational document for businesses seeking to establish clear management control, operational procedures, and partnership terms while operating within the UAE's dynamic business environment.

What sections should be included in a Management Partnership Agreement?

1. Parties: Identification of all parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including the business purpose and intentions of the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Partnership Structure: Legal structure of the partnership, ownership percentages, and capital contributions

5. Management Rights and Responsibilities: Detailed outline of management roles, decision-making authority, and operational control

6. Financial Arrangements: Terms regarding profit sharing, loss allocation, and financial management

7. Capital Contributions: Details of initial and ongoing capital contributions, including valuation of non-cash contributions

8. Decision Making Process: Procedures for management decisions, voting rights, and resolution of deadlocks

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition: Restrictions on competitive activities during and after the partnership

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

13. General Provisions: Standard legal provisions including notices, amendments, and severability

What sections are optional to include in a Management Partnership Agreement?

1. Intellectual Property Rights: Required when the partnership involves creation or use of intellectual property

2. Islamic Finance Compliance: Required when the partnership involves Islamic financing structures

3. Free Zone Specific Provisions: Required when the partnership operates within a UAE free zone

4. International Operations: Required when the partnership conducts business outside the UAE

5. Employee Transfer: Required when the partnership involves transfer of employees between entities

6. Technology License: Required when the partnership involves licensing of technology or software

7. Property Management: Required when the partnership involves management of real estate assets

8. Environmental Compliance: Required when the business activities have environmental implications

What schedules should be included in a Management Partnership Agreement?

1. Schedule 1 - Business Plan: Detailed business plan including objectives, strategies, and financial projections

2. Schedule 2 - Capital Contributions: Detailed breakdown of each partner's capital contributions

3. Schedule 3 - Management Structure: Organizational chart and detailed management responsibilities

4. Schedule 4 - Profit Distribution Mechanism: Detailed formula and procedures for profit calculation and distribution

5. Schedule 5 - Key Performance Indicators: Metrics for measuring management performance

6. Schedule 6 - Operational Procedures: Day-to-day operational guidelines and procedures

7. Appendix A - Required Licenses and Permits: List of necessary licenses and permits for operation

8. Appendix B - Partner Information: Detailed information about each partner including corporate documents

9. Appendix C - Insurance Requirements: Details of required insurance coverage and policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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