The Shared Services Agreement is a critical document used when organizations wish to consolidate and optimize their operational functions through a centralized service delivery model. This agreement, governed by Maltese law and compliant with EU regulations, is particularly relevant for companies looking to achieve economies of scale, standardize processes, and improve service quality through shared resources. It details the entire relationship between service provider and recipient entities, including service scope, performance metrics, cost allocation, governance structure, and compliance requirements. The document is essential for both intra-group arrangements and external service provisions, ensuring clear accountability, risk allocation, and operational efficiency while maintaining compliance with Maltese corporate law, data protection regulations, and relevant EU directives.
Shared Services Agreement for Malta
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Key Requirements PROMPT example:
Shared Services Agreement
"I need a Shared Services Agreement for my Malta-based technology company to provide IT support services, cybersecurity, and cloud infrastructure management to our three subsidiary companies, with service commencement planned for March 1, 2025."
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1. Parties: Identification and details of the service provider and recipient entities
2. Background: Context of the agreement, relationship between parties, and purpose of the shared services arrangement
3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents
4. Services: Detailed description of services to be provided, service levels, and delivery requirements
5. Term and Termination: Duration of agreement, renewal terms, termination rights and consequences
6. Charges and Payment: Fee structure, payment terms, invoicing, and cost allocation methodology
7. Service Provider Obligations: Key responsibilities, performance standards, and compliance requirements
8. Service Recipient Obligations: Cooperation requirements, access provisions, and support obligations
9. Governance and Reporting: Service management, performance review, and reporting requirements
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: GDPR compliance, data processing terms, and data security measures
12. Intellectual Property: IP ownership, licenses, and usage rights
13. Liability and Indemnification: Limitation of liability, indemnities, and risk allocation
14. Force Majeure: Events beyond reasonable control and their impact on obligations
15. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Personnel and Employment: Required when staff transfers or secondments are involved in the shared services arrangement
2. Business Continuity: Needed for critical services requiring disaster recovery and business continuity planning
3. Change Control: For complex services where formal change management procedures are necessary
4. Audit Rights: When regular audits of service delivery or compliance are required
5. Anti-Bribery and Corruption: For international arrangements or when dealing with public sector entities
6. Exit Management: For complex services requiring detailed transition arrangements upon termination
7. Insurance: When specific insurance coverage requirements need to be detailed
8. Environmental Compliance: When services have environmental impact or sustainability requirements
9. Sub-contracting: When service provider needs right to subcontract certain services
1. Schedule 1 - Services Description: Detailed specification of each service to be provided
2. Schedule 2 - Service Levels: Performance metrics, KPIs, and measurement methodology
3. Schedule 3 - Charges: Detailed pricing, cost allocation, and charging methodology
4. Schedule 4 - Governance: Detailed governance structure, meeting schedules, and escalation procedures
5. Schedule 5 - Key Personnel: Details of key staff and roles from both parties
6. Schedule 6 - Technical Requirements: IT systems, infrastructure, and technical specifications
7. Schedule 7 - Data Processing Agreement: Detailed GDPR-compliant data processing terms
8. Schedule 8 - Business Continuity Plan: Disaster recovery and business continuity procedures
9. Schedule 9 - Exit Plan: Detailed transition arrangements for service termination
10. Appendix A - Contact Details: Key contacts and notice details for both parties
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Professional Services
Healthcare
Retail
Telecommunications
Real Estate
Energy
Transportation and Logistics
Hospitality
Insurance
Banking
Education
Construction
Relevant Teams
Legal
Finance
Operations
Human Resources
Information Technology
Procurement
Facilities Management
Risk and Compliance
Commercial
Strategy
Corporate Services
Business Development
Administration
Internal Audit
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Head of Shared Services
Legal Counsel
Compliance Officer
Operations Director
Service Delivery Manager
Finance Director
HR Director
IT Director
Procurement Manager
Facilities Manager
Business Unit Head
Contract Manager
Risk Manager
Group Services Director
Commercial Director
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