Sub Management Agreement Template for South Africa

The Sub Management Agreement is essential in situations where a primary management company needs to delegate specific management responsibilities to another entity while maintaining oversight and control. This document is commonly used in South Africa across various sectors, particularly in financial services, property management, and corporate services. It sets out the framework for the delegation of management duties, establishing clear lines of authority, responsibilities, and accountability between the principal manager and sub-manager. The agreement must comply with South African legislation, including the Companies Act, FAIS Act (where applicable), and POPIA, while addressing industry-specific regulatory requirements. It typically includes detailed provisions for service delivery, performance metrics, fee structures, risk allocation, and termination rights, ensuring both parties' interests are protected while maintaining regulatory compliance.

1. Parties: Identification and details of the principal management company and the sub-manager

2. Background: Context of the agreement, including the principal's authority to delegate management functions

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation guidelines

4. Appointment and Scope: Formal appointment of the sub-manager and detailed scope of delegated management services

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

6. Sub-Manager's Obligations: Detailed responsibilities, service standards, and performance requirements

7. Principal's Obligations: Support, information, and resources to be provided by the principal manager

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

9. Compliance and Reporting: Regulatory compliance requirements and reporting obligations

10. Representations and Warranties: Standard warranties regarding capacity, authority, and capability to perform

11. Liability and Indemnification: Limitations of liability and mutual indemnification provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. Data Protection: POPIA compliance and data handling requirements

14. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution