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Contract for the provision of business management and management services

What is a contract for the provision of business management and management services?

A contract for the provision of company direction and management services is a type of contract where the scales are established by which the parent company (or “holding”) is in charge of directing and managing its subsidiary companies.

When to use this contract?

This contract is used when a parent company intends to assume the administration and management of one or more of its subsidiaries or affiliates. In this way, our model can be beneficial to establish the terms and conditions that will govern the benefit.

In addition, at LexDoka we have a service provision contract model, which differs from this model in that it is a more generic contract, with provisions that are not specified in this model.

Essential content

  • Identification of the parties and subsidiary companies.
  • The object of the contract: specify the content and characteristics of the services to be provided, as well as the tasks and responsibilities assumed by the parent company.
  • Duration of the contract
  • The consideration for the services provided: amount, form and term of payment, as well as applicable taxes.
  • Deadlines to complete and deliver reports such as advisory, accounting, etc.
  • Causes of resolution

Optional content

Necessary information

When drafting this contract, it is important to take into account the concept of parent company and subsidiary and its implications.

Related concepts

Applicable law

The applicable legislation (or “applicable regulations”) for this model, at a general level, will be that of the Commercial Code and that found in articles 1,088, 1,542 to 1,545 and 1,583 of the Civil Code.

In addition, the provisions of the Capital Companies Act, approved by Royal Legislative Decree 1/2010, of July 2, due to the scope of the contract, will apply.

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