Business Management Agreement Template for Austria

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Key Requirements PROMPT example:

Business Management Agreement

"I need a Business Management Agreement for our Vienna-based tech startup to engage a professional management company to handle our expansion into Germany and Switzerland, starting March 2025, with specific focus on performance-based compensation and clear KPIs for market penetration."

Document background
The Business Management Agreement serves as a crucial legal framework for companies seeking to engage external management expertise or formalize internal management arrangements under Austrian law. This document is particularly relevant when a company requires professional management services, whether for overall business operations, specific projects, or departmental oversight. It carefully balances the autonomy needed for effective management with appropriate oversight mechanisms, incorporating Austrian corporate governance requirements and commercial practices. The agreement typically includes detailed provisions for service scope, performance metrics, reporting structures, and risk allocation, while ensuring compliance with Austrian employment, corporate, and data protection laws. It's especially valuable for companies undergoing transformation, requiring specialized management expertise, or implementing professional management structures.
Suggested Sections

1. Parties: Identification of the contracting parties - the company and the management service provider

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Formal appointment of the manager/management company and duration of the agreement

5. Scope of Services: Detailed description of management services to be provided

6. Manager's Duties and Responsibilities: Specific obligations, authority levels, and responsibilities of the manager

7. Company's Obligations: Responsibilities of the company, including provision of information and resources

8. Fees and Payment Terms: Management fees, payment schedule, and expense reimbursement terms

9. Reporting Requirements: Regular reporting obligations and performance metrics

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and usage rights of IP created during the management services

12. Data Protection: Compliance with GDPR and Austrian data protection laws

13. Liability and Indemnification: Extent of manager's liability and mutual indemnification provisions

14. Termination: Grounds for termination and notice requirements

15. Post-Termination Obligations: Obligations that survive termination and handover requirements

16. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction

17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Non-Compete and Non-Solicitation: Restrictions on competitive activities and employee solicitation - include when protecting business interests is crucial

2. Performance Bonus: Structure for additional performance-based compensation - include when offering incentive-based payments

3. Insurance Requirements: Specific insurance coverage requirements - include when management services involve significant risks

4. Force Majeure: Provisions for unforeseeable circumstances - include when services might be affected by external events

5. Delegation of Authority: Terms for delegating management tasks - include when sub-delegation might be necessary

6. Corporate Governance: Specific governance requirements - include for listed companies or regulated industries

7. Compliance Requirements: Industry-specific compliance obligations - include for regulated sectors

8. International Services: Provisions for cross-border services - include when management services extend beyond Austria

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of management services and deliverables

2. Schedule 2 - Fee Structure: Detailed fee calculations, rates, and payment terms

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and evaluation criteria

4. Schedule 4 - Reporting Templates: Standard formats for required management reports

5. Schedule 5 - Authorized Representatives: List of key contacts and their authority levels

6. Appendix A - Power of Attorney: Format of power of attorney if required for specific actions

7. Appendix B - Compliance Policies: Relevant company policies and procedures

8. Appendix C - Insurance Requirements: Detailed insurance coverage specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Manufacturing

Technology

Financial Services

Healthcare

Real Estate

Retail

Hospitality

Construction

Energy

Transportation

Media and Entertainment

Education

Telecommunications

Consulting

Relevant Teams

Legal

Operations

Human Resources

Finance

Compliance

Risk Management

Corporate Governance

Business Development

Strategy

Administrative

Procurement

Internal Audit

Relevant Roles

Chief Executive Officer

Managing Director

Chief Operating Officer

Business Unit Manager

Project Manager

Department Head

Operations Manager

General Manager

Country Manager

Regional Director

Interim Manager

Management Consultant

Business Development Manager

Corporate Governance Officer

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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