Management Agreement Contract Template for Denmark

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Management Agreement Contract

Document background

The Management Agreement Contract is a crucial document used when appointing senior executives or managers to leadership positions in Danish companies. It differs from standard employment contracts by incorporating specific provisions for executive authority, strategic decision-making powers, and enhanced responsibilities. This agreement is essential for establishing clear parameters of the management relationship, ensuring compliance with Danish corporate governance requirements, and protecting both the company's and the manager's interests. The document typically includes comprehensive details about remuneration packages, performance expectations, strategic responsibilities, and termination provisions. Under Danish law, these agreements must align with the Danish Companies Act (Selskabsloven), the Contracts Act (Aftaleloven), and other relevant legislation governing corporate management and executive employment relationships.

Suggested Sections

1. Parties: Identification of the company and the manager, including their full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the manager's appointment and any relevant corporate background

3. Definitions: Key terms used throughout the agreement, including 'Company', 'Board', 'Services', 'Confidential Information'

4. Appointment and Term: Terms of appointment, position title, and duration (fixed-term or indefinite)

5. Duties and Responsibilities: Detailed description of the manager's role, reporting lines, and key responsibilities

6. Time Commitment: Expected working hours, availability, and any provisions for other activities

7. Remuneration: Base salary, bonuses, benefits, and payment terms

8. Expenses: Policy on business expenses and reimbursement procedures

9. Holiday and Leave: Holiday entitlement, public holidays, and other leave provisions

10. Company Policies: Compliance with company policies, procedures, and codes of conduct

11. Confidentiality: Protection of company information and trade secrets

12. Intellectual Property: Ownership and protection of IP created during the management role

13. Data Protection: Compliance with GDPR and Danish data protection laws

14. Termination: Grounds for termination, notice periods, and consequences

15. Post-Termination Obligations: Ongoing obligations after agreement ends, including confidentiality

16. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction

Optional Sections

1. Share Schemes: Details of any share options or equity participation, used when manager is offered company ownership

2. Board Position: Additional terms for board membership, if manager also serves on company board

3. Insurance and Indemnity: Details of D&O insurance and indemnification, important for high-risk industries

4. Garden Leave: Provisions for placing manager on garden leave during notice period

5. International Travel: Specific provisions for international duties and travel requirements

6. Multiple Roles: Terms for managing multiple positions within group companies

7. Performance Targets: Specific KPIs and performance measurement criteria

8. Clawback Provisions: Terms for recovering bonus payments in specific circumstances

9. Relocation Terms: Used when position requires relocation

10. Change of Control: Special provisions in case of company ownership change

Suggested Schedules

1. Schedule 1 - Duties and Responsibilities: Detailed list of specific duties, authorities, and responsibilities

2. Schedule 2 - Remuneration Package: Detailed breakdown of all compensation elements

3. Schedule 3 - Bonus Scheme: Details of performance-related bonus calculations and terms

4. Schedule 4 - Benefits Package: Comprehensive list of benefits and their terms

5. Schedule 5 - Share Option Terms: Detailed terms of any share option or equity participation scheme

6. Schedule 6 - Expense Policy: Detailed company expense policies and procedures

7. Schedule 7 - Company Policies: Key company policies requiring explicit acknowledgment

8. Appendix A - Performance Criteria: Specific performance targets and measurement methods

9. Appendix B - Approved External Appointments: List of pre-approved external commitments or directorships

10. Appendix C - Company Car Policy: Terms of company car provision or car allowance

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