Management Agreement Between Two Companies Template for Saudi Arabia

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Key Requirements PROMPT example:

Management Agreement Between Two Companies

"I need a Management Agreement Between Two Companies under Saudi law for my technology consulting firm to provide IT management services to a manufacturing company, including cybersecurity oversight and digital transformation services, starting March 2025."

Document background
The Management Agreement Between Two Companies is a crucial document used when one company intends to provide management services to another company within the Saudi Arabian business environment. This agreement is particularly relevant for businesses seeking professional management expertise, operational oversight, or strategic guidance while operating under Saudi Arabian jurisdiction. The document comprehensively addresses service scope, performance standards, fee structures, and compliance requirements, incorporating both international best practices and local regulatory requirements including Sharia compliance. It's commonly used in situations requiring external management expertise, business restructuring, or professional administration services, and must align with Saudi Arabia's Companies Law, Commercial Courts Law, and related regulations. The agreement typically includes detailed provisions for governance structures, reporting mechanisms, risk management, and dispute resolution procedures specific to the Saudi business context.
Suggested Sections

1. Parties: Identification and details of the contracting companies, including registration numbers and addresses

2. Background: Context of the agreement, business relationship, and purpose of the management arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of management services

5. Duration and Term: Contract period, commencement date, and renewal terms

6. Management Services: Detailed description of services, deliverables, and performance standards

7. Fees and Payment: Management fees, payment terms, expenses, and invoicing procedures

8. Obligations of the Manager: Responsibilities, duties, and commitments of the managing company

9. Obligations of the Client: Responsibilities and commitments of the company receiving management services

10. Reporting and Performance: Reporting requirements, KPIs, and performance evaluation criteria

11. Representations and Warranties: Standard and specific warranties from both parties

12. Confidentiality: Protection and handling of confidential information

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

14. Liability and Indemnification: Liability limitations and indemnification obligations

15. Termination: Termination rights, procedures, and consequences

16. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction provisions

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

Optional Sections

1. Shariah Compliance: Specific provisions ensuring compliance with Islamic law, required when either party requires explicit Shariah compliance

2. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term agreements

3. Non-Competition: Restrictions on competitive activities, used when protecting business interests is crucial

4. Insurance: Insurance requirements and obligations, important for high-risk management services

5. Assignment and Subcontracting: Rights and restrictions regarding transfer of obligations, needed when such flexibility might be required

6. Anti-Corruption Compliance: Detailed anti-corruption provisions, essential when dealing with public sector or high-risk industries

7. Data Protection: Specific data handling and protection requirements, necessary when personal or sensitive data is involved

8. Change Control: Procedures for managing changes to services or terms, useful for complex or long-term arrangements

Suggested Schedules

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

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

3. Schedule 3 - Key Personnel: List of key management team members and their roles

4. Schedule 4 - Performance Metrics: Detailed KPIs and performance measurement criteria

5. Schedule 5 - Reporting Requirements: Templates and procedures for required reports

6. Schedule 6 - Service Levels: Specific service level requirements and metrics

7. Appendix A - Power of Attorney: If required, detailed scope of management authority

8. Appendix B - Compliance Procedures: Detailed compliance requirements and procedures

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

Real Estate

Hospitality

Healthcare

Retail

Construction

Technology

Education

Financial Services

Transportation and Logistics

Energy and Utilities

Telecommunications

Facilities Management

Industrial Services

Relevant Teams

Legal

Operations

Finance

Compliance

Risk Management

Corporate Governance

Business Development

Project Management

Human Resources

Strategy

Commercial

Administration

Relevant Roles

Chief Executive Officer

Managing Director

Chief Operating Officer

Operations Manager

Legal Counsel

Compliance Officer

Finance Director

Contract Manager

Business Development Manager

Project Manager

Risk Manager

Company Secretary

General Manager

Department Head

Regional Manager

Board Director

Commercial Director

Strategy Director

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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