The Corporate Management Agreement serves as a crucial document for businesses operating in Indonesia that seek to establish professional management arrangements or restructure their management framework. This agreement is particularly relevant when companies require external management expertise, during corporate restructuring, or when implementing professional management systems. The document, governed by Indonesian law, specifically Law No. 40 of 2007 on Limited Liability Companies, details the scope of management services, decision-making authority, reporting structures, and performance expectations. It addresses key aspects such as compliance with local regulations, corporate governance requirements, and risk management protocols while protecting both the company's and stakeholders' interests. The agreement is essential for ensuring clear delineation of management responsibilities and establishing accountability measures within Indonesia's business regulatory framework.
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1. Parties: Identification of the contracting parties - typically the company and the management entity/individual
2. Background: Context of the agreement, including company status and reason for engaging management services
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and detailed scope of management services to be provided
5. Duration and Term: Period of the agreement, including commencement date and renewal terms
6. Management Rights and Authority: Specific powers granted to management, including decision-making authority and limitations
7. Duties and Responsibilities: Detailed obligations of the management team, including reporting requirements and performance standards
8. Fees and Payment Terms: Management fees, payment schedule, and any performance-based compensation
9. Reporting and Accountability: Requirements for financial and operational reporting, meetings, and performance reviews
10. Confidentiality: Provisions regarding confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and employee solicitation
12. Termination: Grounds for termination, notice requirements, and consequences
13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms
14. General Provisions: Standard clauses including notices, amendments, and severability
1. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant in volatile markets
2. Intellectual Property Rights: Required when management services involve creation or use of intellectual property
3. Insurance and Indemnification: Detailed insurance requirements and indemnification provisions, important for high-risk industries
4. Anti-Corruption and Compliance: Specific compliance requirements, especially important when dealing with government contracts or international operations
5. Environmental and Social Responsibility: Required for industries with significant environmental impact or public interest
6. Technology and Data Protection: Necessary when management services involve handling sensitive data or technology systems
7. Succession Planning: Important for long-term management agreements or family-owned businesses
8. Emergency Management Provisions: Relevant for essential services or critical infrastructure management
1. Schedule A - Scope of Services: Detailed breakdown of management services and responsibilities
2. Schedule B - Fee Structure: Detailed breakdown of fees, including base fees, performance bonuses, and expense policies
3. Schedule C - Key Performance Indicators: Specific performance metrics and evaluation criteria
4. Schedule D - Reporting Requirements: Templates and timing for required reports and updates
5. Schedule E - Key Personnel: List of key management team members and their roles
6. Schedule F - Company Assets: Inventory of assets under management control
7. Appendix 1 - Power of Attorney: Formal delegation of management authority as required under Indonesian law
8. Appendix 2 - Corporate Authorizations: Relevant board resolutions and corporate approvals
9. Appendix 3 - Compliance Procedures: Detailed compliance requirements and procedures
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