The Management Agreement Between Two Companies is a crucial commercial document used when one company seeks to engage another for professional management services or operational oversight. This agreement type is commonly utilized in New Zealand business relationships where specialized expertise, resource optimization, or strategic management capabilities are required. The document comprehensively addresses service scope, performance standards, commercial terms, and risk allocation while ensuring compliance with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Companies Act 1993, and Fair Trading Act 1986. It serves as the primary governing document for the management relationship, establishing clear expectations, responsibilities, and protections for both parties.
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1. Parties: Identifies and provides full legal details of both companies entering into the agreement
2. Background: Sets out the context and purpose of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Appointment and Scope: Establishes the appointment of the management company and outlines the scope of services to be provided
5. Term and Renewal: Specifies the duration of the agreement and any renewal provisions
6. Management Services: Details the specific management services to be provided, including key responsibilities and deliverables
7. Fees and Payment: Outlines the fee structure, payment terms, and invoicing requirements
8. Obligations of the Manager: Sets out the specific duties, responsibilities, and standard of care required from the management company
9. Obligations of the Client: Defines the client company's responsibilities, including provision of information and resources
10. Reporting and Performance Monitoring: Establishes reporting requirements and performance metrics
11. Confidentiality: Protects confidential information shared between the parties
12. Intellectual Property: Addresses ownership and usage rights of intellectual property
13. Liability and Indemnification: Sets out liability limitations and indemnification obligations
14. Termination: Specifies circumstances and procedures for ending the agreement
15. General Provisions: Includes standard legal provisions such as notices, governing law, and dispute resolution
1. Non-Competition: Restricts the management company from providing similar services to competitors - include when exclusivity is required
2. Force Majeure: Addresses unforeseeable circumstances preventing performance - important for critical management services
3. Data Protection: Include when significant personal data processing is involved in the management services
4. Insurance: Specifies required insurance coverage - important for high-risk management services
5. Change Control: Establishes procedures for changing service scope or terms - useful for long-term or complex arrangements
6. Staff and Subcontracting: Include when the management company needs to use specific personnel or subcontractors
7. Transition Services: Include when handover periods are needed at the start or end of the agreement
8. Business Continuity: Important when the management services are critical to business operations
9. Compliance with Laws: Include detailed compliance obligations when operating in regulated industries
1. Schedule 1 - Services Description: Detailed description of all management services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, charges, and payment terms
3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements
4. Schedule 4 - Key Personnel: Details of key staff members responsible for providing the services
5. Schedule 5 - Reporting Requirements: Templates and specifications for required reports
6. Schedule 6 - Governance Procedures: Details of management meetings, escalation procedures, and decision-making processes
7. Schedule 7 - Transition Plan: Timeline and responsibilities for service implementation or transition
8. Appendix A - Contact Details: Key contact information for both parties
9. Appendix B - Required Insurance: Specific insurance requirements and coverage levels
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