The Sub Management Agreement serves as a critical legal instrument in the Indian business environment where companies seek to delegate specific management functions to specialized service providers. This document becomes necessary when a company holding management rights wishes to subcontract certain management responsibilities to another entity with specific expertise or operational capabilities. The agreement must comply with Indian contract law and relevant industry regulations while clearly delineating the scope of delegated authority, operational parameters, and accountability mechanisms. Key considerations include ensuring the arrangement doesn't violate any existing management obligations, maintaining appropriate control and oversight, and protecting both parties' interests. The Sub Management Agreement typically includes detailed provisions for service delivery, performance metrics, fee structures, and risk allocation, all within the framework of Indian legal requirements.
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1. Parties: Identification of the Principal Company and the Sub-Manager with their complete legal details
2. Background: Context of the agreement, including the Principal Company's authority to delegate management and the Sub-Manager's qualifications
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Appointment and Scope: Formal appointment of the Sub-Manager and detailed scope of management services
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Sub-Manager's Obligations: Detailed responsibilities, performance standards, and reporting requirements
7. Principal Company's Obligations: Support, access, and resources to be provided by the Principal Company
8. Fees and Payment Terms: Management fees, payment schedule, and expense reimbursement
9. Performance Monitoring: KPIs, performance review process, and quality standards
10. Confidentiality: Protection of confidential information and trade secrets
11. Intellectual Property Rights: Ownership and usage rights of IP created during the management services
12. Liability and Indemnification: Limitation of liability and mutual indemnification provisions
13. Termination: Grounds for termination, notice periods, and consequences
14. Post-Termination Obligations: Transition arrangements and continuing obligations
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and force majeure
1. Regulatory Compliance: Specific regulatory obligations when operating in regulated industries like financial services or healthcare
2. Data Protection: Detailed data handling and privacy provisions when personal data processing is involved
3. Staff Transfer Provisions: Terms governing the transfer or secondment of employees when the sub-management involves workforce management
4. Non-Compete: Restrictions on competitive activities, required when there's significant exposure to business-critical information
5. Insurance: Specific insurance requirements when the services involve significant operational risks
6. Environmental Compliance: Environmental obligations when management services involve industrial or manufacturing operations
7. Anti-Corruption Compliance: Detailed anti-corruption provisions when dealing with government contracts or high-risk sectors
8. Force Majeure: Expanded force majeure provisions for businesses particularly susceptible to external disruptions
1. Schedule 1 - Services Description: Detailed specification of management services and deliverables
2. Schedule 2 - Fee Structure: Detailed breakdown of fees, calculations, and payment terms
3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria
4. Schedule 4 - Required Reports: List and formats of required management reports
5. Schedule 5 - Key Personnel: Details of key management team members and their roles
6. Schedule 6 - Operating Procedures: Standard operating procedures and management protocols
7. Schedule 7 - Service Levels: Detailed service level requirements and penalties
8. Appendix A - Power of Attorney: If required, authorization document for specific management actions
9. Appendix B - Compliance Checklist: Industry-specific compliance requirements and certifications
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate & Property Management
Hospitality & Hotels
Manufacturing & Industrial
Healthcare & Medical Facilities
Educational Institutions
Retail & Commercial Operations
Information Technology
Infrastructure & Facilities Management
Asset Management
Business Process Outsourcing
Relevant Teams
Legal
Operations
Compliance
Risk Management
Facilities Management
Project Management
Contract Administration
Business Development
Asset Management
Corporate Governance
Finance
Human Resources
Relevant Roles
Chief Executive Officer
Chief Operating Officer
General Manager
Operations Director
Legal Counsel
Contract Manager
Facility Manager
Project Director
Business Development Manager
Risk Manager
Compliance Officer
Property Manager
Asset Manager
Operations Manager
Management Services Director
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