The Management Partnership Agreement serves as a foundational document for partnerships seeking to establish clear management structures and responsibilities within New Zealand's legal framework. This agreement is particularly useful when partners wish to delegate management responsibilities to specific partners or external management entities, or when establishing tiered partnership structures with different levels of management authority. The document addresses key aspects required under New Zealand law, including compliance with the Partnership Act 1908 and relevant commercial legislation. It typically includes detailed provisions for management duties, decision-making processes, financial arrangements, and operational procedures. The agreement is essential for businesses seeking to formalize their management structure while maintaining the flexibility and tax benefits of a partnership model.
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1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses
2. Background: Sets out the context of the agreement, including the purpose of the partnership and management arrangement
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Partnership Structure: Outlines the nature of the partnership, ownership structure, and capital contributions
5. Management Rights and Responsibilities: Details the specific management duties, authority levels, and decision-making powers
6. Financial Arrangements: Covers management fees, profit sharing, expense allocation, and financial reporting requirements
7. Operational Procedures: Establishes day-to-day management procedures, reporting lines, and operational policies
8. Term and Termination: Specifies the duration of the agreement and circumstances for termination
9. Dispute Resolution: Outlines the process for resolving disagreements between parties
10. Confidentiality: Defines confidential information and obligations to maintain confidentiality
11. General Provisions: Contains standard legal clauses including notices, amendments, and governing law
1. Intellectual Property: Include when the partnership involves creation or use of intellectual property
2. Non-Compete and Non-Solicitation: Add when partners want to restrict competitive activities
3. Insurance Requirements: Include when specific insurance coverage needs to be maintained
4. Exit Strategy: Add when partners want to define specific exit mechanisms or succession planning
5. International Operations: Include for partnerships operating across multiple jurisdictions
6. Environmental Compliance: Add for businesses with environmental impact considerations
7. Technology and Data Protection: Include when the partnership involves significant IT systems or data handling
1. Schedule 1: Partner Details and Capital Contributions: Detailed information about partners and their initial and ongoing capital contributions
2. Schedule 2: Management Fee Structure: Detailed breakdown of management fees, calculation methods, and payment terms
3. Schedule 3: Key Performance Indicators: Specific performance metrics and targets for management evaluation
4. Schedule 4: Operational Procedures Manual: Detailed procedures for day-to-day management and operations
5. Schedule 5: Asset Register: List of partnership assets under management
6. Appendix A: Financial Reporting Templates: Standard templates for required financial reports
7. Appendix B: Delegated Authority Matrix: Detailed breakdown of decision-making authority levels
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