Management Partnership Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Management Partnership Agreement

"I need a Management Partnership Agreement for a Saudi-based technology consulting firm where my company will be the managing partner providing strategic management services to a local Saudi company, with an expected commencement date of March 1, 2025."

Document background
The Management Partnership Agreement is essential for businesses operating in Saudi Arabia who wish to formalize a partnership where one party takes primary responsibility for management activities. This document is particularly relevant when establishing joint ventures, family businesses, or professional service firms where expertise and management capabilities are key contributions. The agreement must comply with Saudi Companies Law, Ministry of Commerce regulations, and Sharia principles, making it distinct from similar agreements in other jurisdictions. It typically includes detailed provisions for management structure, profit sharing, decision-making processes, and partner obligations, while addressing specific Saudi Arabian regulatory requirements such as foreign investment restrictions and local partner participation rules.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including the business purpose and intent of the parties to enter into the management partnership

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpretation

4. Partnership Structure: Legal structure of the partnership, capital contributions, and ownership percentages

5. Management Rights and Responsibilities: Detailed outline of management authority, decision-making powers, and operational responsibilities

6. Financial Arrangements: Profit sharing, loss allocation, management fees, and financial reporting requirements

7. Operations and Decision Making: Day-to-day management procedures, voting rights, and decision-making thresholds

8. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

9. Confidentiality: Protection of confidential information and trade secrets

10. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of employees or customers

11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

12. General Provisions: Standard legal provisions including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Required when the partnership involves creation or use of intellectual property

2. Shariah Compliance: Detailed section needed when parties specifically require adherence to Islamic finance principles

3. Foreign Investment Provisions: Required when one or more partners are foreign entities

4. Employee Matters: Needed when the partnership involves transfer or sharing of employees

5. Insurance Requirements: Detailed insurance obligations when significant assets or risks are involved

6. Exit Rights: Specific procedures for partners to exit the partnership, including buy-out provisions

7. Force Majeure: Detailed provisions for handling unforeseen circumstances and their impact on the partnership

Suggested Schedules

1. Schedule 1 - Business Plan: Detailed business plan and strategic objectives of the partnership

2. Schedule 2 - Management Services: Comprehensive list of management services to be provided

3. Schedule 3 - Fee Structure: Detailed breakdown of management fees, calculation methods, and payment terms

4. Schedule 4 - Key Performance Indicators: Performance metrics and evaluation criteria for management

5. Schedule 5 - Authorized Representatives: List of authorized representatives and their signing authorities

6. Schedule 6 - Assets and Contributions: Detailed list of assets and contributions made by each partner

7. Appendix A - Required Approvals: List of regulatory approvals and licenses required for the partnership

8. Appendix B - Governance Procedures: Detailed procedures for partnership governance and management meetings

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

Real Estate Development

Manufacturing

Healthcare

Hospitality

Retail

Technology

Financial Services

Construction

Education

Professional Services

Energy

Transportation and Logistics

Relevant Teams

Legal

Corporate Affairs

Executive Leadership

Operations

Finance

Compliance

Business Development

Strategy

Investment

Risk Management

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Chief Operating Officer

Business Development Director

Legal Counsel

Corporate Lawyer

Partnership Manager

Operations Director

Chief Financial Officer

Compliance Officer

Investment Manager

Strategy Director

Board Member

Company Secretary

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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