Management Agreement Template for Malaysia

A Management Agreement sets out the terms when one party takes over running another's business operations or property. In Malaysia, these contracts are common in hotel management, property development, and asset administration, spelling out exactly what the managing party can and cannot do.

The agreement covers key areas like operational control, performance standards, fees, and decision-making authority. It must comply with Malaysian contract law and specific industry regulations - for example, property management firms need approval from the Board of Valuers, Appraisers, Estate Agents and Property Managers. Good agreements protect both sides by clearly defining responsibilities, reporting requirements, and how parties can end the relationship.

Consider using a Management Agreement when your business needs professional expertise to run specific operations. This is especially relevant for Malaysian property developers hiring specialist firms to manage condominiums, hotel owners partnering with international chains, or asset owners seeking expert administration of their investments.

The agreement becomes essential when operations require specialized knowledge, licensing, or regulatory compliance - like property management firms needing BOVAEA registration. It's also valuable when expanding into new markets where local expertise matters, or when separating ownership from day-to-day management to improve operational efficiency and reduce direct involvement in complex business functions.

• Property Management Contract: Specific to real estate operations, covering building maintenance, tenant relations, and BOVAEA compliance
• Business Management Agreement: Broader scope for complete business operations, including strategy and daily management
• Managerial Agreement: Focuses on executive-level management services and leadership responsibilities
• Management Agreement Contract: Comprehensive version covering multiple aspects of operations and performance metrics
• Management Services Agreement: Emphasizes specific management services like consulting, advisory, or specialized operational support

• Property Owners: Individuals or companies who need professional management of their real estate assets, from condominiums to commercial buildings
• Management Companies: Licensed firms providing operational expertise, especially those registered with BOVAEA for property management
• Hotel Chains: International brands managing local properties under Malaysian hospitality regulations
• Legal Advisors: Corporate lawyers drafting and reviewing agreements to ensure compliance with Malaysian contract law
• Asset Management Firms: Professional organizations handling investment portfolios and business operations on behalf of owners
• Industry Regulators: Government bodies overseeing specific sectors and ensuring compliance with Malaysian regulations

• Basic Details: Gather full legal names, registration numbers, and addresses of all parties involved in the management arrangement
• Scope Definition: List specific services, operational areas, and management responsibilities to be covered
• Compliance Check: Verify necessary licenses and permits, especially BOVAEA registration for property management
• Financial Terms: Outline management fees, payment schedules, and performance-based incentives
• Duration Planning: Decide contract term, renewal conditions, and termination procedures
• Performance Metrics: Define clear KPIs and reporting requirements
• Risk Assessment: Identify potential operational challenges and necessary insurance coverage
• Document Generation: Use our platform to create a legally-sound agreement that includes all required elements

• Party Details: Complete legal names, registration numbers, and addresses of all entities involved
• Service Scope: Detailed description of management responsibilities and operational boundaries
• Duration Terms: Contract period, renewal options, and termination conditions under Malaysian law
• Fee Structure: Management fees, payment terms, and performance-based compensation details
• Performance Standards: Specific KPIs, reporting requirements, and quality benchmarks
• Compliance Clauses: References to relevant Malaysian regulations and required licenses
• Liability Provisions: Risk allocation, insurance requirements, and indemnification terms
• Dispute Resolution: Malaysian jurisdiction choice and conflict resolution procedures
• Confidentiality Terms: Data protection and business information handling protocols

A Management Agreement differs significantly from a Agency Agreement in several key aspects, though both involve one party acting on behalf of another. Understanding these differences is crucial for Malaysian businesses to choose the right legal framework.

• Scope of Authority: Management Agreements grant comprehensive operational control over specific business functions, while Agency Agreements typically limit authority to specific transactions or representations
• Duration and Commitment: Management Agreements usually involve long-term, ongoing operational responsibility, whereas Agency Agreements often cover shorter periods or specific deals
• Responsibility Level: Managers take on broader operational decision-making power and accountability, while agents mainly execute specific tasks under more limited authority
• Regulatory Requirements: Management Agreements often need specific licenses (like BOVAEA for property management), while Agency Agreements have different regulatory frameworks under Malaysian agency law
• Performance Metrics: Management Agreements include detailed KPIs and operational standards, while Agency Agreements focus more on specific transaction outcomes