Management Agreement Between Two Companies Template for Pakistan

The Management Agreement Between Two Companies is a crucial document used when one company seeks to engage another company's expertise in managing specific operations, departments, or the entire business. This type of agreement is commonly utilized in Pakistan when companies seek professional management services, during business expansion, or when bringing in specialized operational expertise. The document must comply with Pakistani legislation, including the Companies Act 2017, Contract Act 1872, and relevant corporate regulations. It is particularly important in situations involving joint ventures, business restructuring, or when companies want to benefit from professional management expertise without changing ownership structures. The agreement typically covers comprehensive details about service scope, performance metrics, fee structures, and operational protocols while ensuring alignment with local business practices and legal requirements.

1. Parties: Identification and details of the contracting companies

2. Background: Context of the agreement and brief description of both companies and their intention to enter into a management arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the management company and detailed scope of management services

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Management Services: Detailed description of management services to be provided

7. Obligations of the Management Company: Specific duties and responsibilities of the managing company

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

9. Fees and Payment Terms: Management fees, payment schedule, and related financial terms

10. Performance Standards: Expected service levels and performance metrics

11. Confidentiality: Protection of confidential information and trade secrets

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

13. Indemnification: Mutual indemnification provisions and liability limitations

14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

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