Management Services Agreement
This month we have updated our Management Services Agreement. This agreement can be used when a company wishes to contract with an independent company to manage its business or a defined part of its business.
Whilst this agreement sits with our Directors’ Service Contracts, it is not intended that the manager takes fiduciary responsibility away from the directors or that the manager acts as a shadow director. The manager acts rather in a quasi-directorial capacity and has delegated responsibility from the board of directors for certain administrative and advisory functions that they require the manager to carry out.
A company may require this type of management agreement for a variety of reasons. This could be because its size means it does not have the relevant in-house level of expertise required or it may make more sense financially than employing someone to carry out the specific tasks required or a business owner may be ill or on a sabbatical, requiring the management of the business to be handled by an outside third party for a specific period of time.
The range of responsibilities and duties that the contractor will take on will depend on the size of the company, however, included are provisions to cover administrative and secretarial services, bank account and treasury services, financing, insurance and the negotiation, conclusion and performance of contracts.
This template has been recently updated to refresh and modernise it, with a much wider range of content covered to create a more complete template agreement.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.