Intercompany Management Fees Agreement Template for New Zealand

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Key Requirements PROMPT example:

Intercompany Management Fees Agreement

"I need an Intercompany Management Fees Agreement for my New Zealand parent company to provide IT management and strategic planning services to three subsidiaries, with a cost-plus pricing model and quarterly performance reviews starting from March 2025."

Document background
The Intercompany Management Fees Agreement is essential for corporate groups operating in New Zealand where one entity provides management services to related entities. This document is typically used when establishing formal arrangements for shared services, executive oversight, administrative support, or technical expertise within a group structure. It addresses key requirements under New Zealand law, including tax implications, GST treatment, and transfer pricing considerations. The agreement provides clarity on service scope, delivery standards, and fee calculations while ensuring compliance with the Companies Act 1993 and financial reporting obligations. It's particularly important for demonstrating arm's length arrangements to tax authorities and maintaining proper corporate governance within group structures.
Suggested Sections

1. Parties: Identification of the service provider and recipient companies

2. Background: Context of the agreement, relationship between the parties, and purpose of the arrangement

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

4. Services: Detailed description of management services to be provided

5. Service Standards: Quality and performance standards for service delivery

6. Fees and Payment: Fee calculation methodology, payment terms, and invoicing requirements

7. Tax and GST: Treatment of taxes, GST, and any withholding obligations

8. Records and Reporting: Requirements for maintaining records and providing reports

9. Intellectual Property: Ownership and usage rights of IP created or used in providing services

10. Confidentiality: Protection of confidential information exchanged during service provision

11. Term and Termination: Duration of agreement and circumstances for termination

12. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Service Levels: Specific performance metrics and KPIs, used when quantitative measurement of service quality is required

2. Audit Rights: Rights to audit service provision and fee calculation, particularly important for larger group structures

3. Staff and Resources: Details of personnel and resources allocation, relevant when specific expertise or resources are critical

4. Dispute Resolution: Specific dispute resolution procedures, recommended for high-value or complex arrangements

5. Force Majeure: Provisions for unforeseen circumstances, important when service continuity is critical

6. Transfer Pricing Compliance: Detailed transfer pricing provisions, necessary when cross-border services are involved

Suggested Schedules

1. Schedule 1 - Services Description: Detailed breakdown of management services to be provided

2. Schedule 2 - Fee Calculation: Detailed methodology for calculating management fees

3. Schedule 3 - Service Levels: Specific performance metrics and service standards

4. Schedule 4 - Key Personnel: List of key personnel involved in service delivery

5. Appendix A - Transfer Pricing Documentation: Documentation supporting arm's length nature of fees

6. Appendix B - Reporting Templates: Standard formats for required reports and documentation

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

Financial Services

Manufacturing

Professional Services

Technology

Retail

Construction

Healthcare

Energy

Mining

Telecommunications

Real Estate

Transportation and Logistics

Relevant Teams

Finance

Legal

Tax

Treasury

Compliance

Corporate Governance

Commercial

Operations

Shared Services

Risk Management

Internal Audit

Accounting

Relevant Roles

Chief Financial Officer

Finance Director

Tax Manager

Group Financial Controller

Legal Counsel

Company Secretary

Commercial Director

Operations Director

Head of Shared Services

Transfer Pricing Manager

Group Accountant

Financial Planning Manager

Treasury Manager

Compliance 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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