The Management Contract is a crucial document in Belgian business practice, commonly used when engaging senior executives and directors through a management company structure rather than traditional employment. This arrangement is particularly favored in Belgium due to its tax efficiency and flexibility in structuring management relationships. The document is essential when a company wishes to engage professional management services while maintaining clear independence from standard employment relationships. It must comply with Belgian corporate law, tax regulations, and social security legislation, while addressing key aspects such as service scope, remuneration, intellectual property rights, and confidentiality. The contract is particularly relevant for both domestic Belgian companies and international organizations operating in Belgium who wish to engage management talent through a corporate structure rather than direct employment.
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1. Parties: Identification of the company and the management company/manager, including registration details and representatives
2. Background: Context of the agreement and confirmation of independent contractor status
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Formal appointment and detailed description of management services to be provided
5. Duration and Termination: Term of the agreement, renewal provisions, and termination circumstances
6. Remuneration and Expenses: Management fees, payment terms, expense reimbursement, and any variable compensation
7. Time Commitment and Availability: Expected time dedication and availability requirements
8. Obligations of the Manager: Key responsibilities, duties, and performance standards
9. Company's Obligations: Support, resources, and facilities provided by the company
10. Independence and Status: Explicit confirmation of independent contractor status and tax/social security implications
11. Intellectual Property: Ownership and protection of IP created during the management services
12. Confidentiality: Protection of company information and trade secrets
13. Data Protection: GDPR compliance and data handling requirements
14. Liability and Insurance: Liability limitations and required insurance coverage
15. General Provisions: Standard clauses including notices, amendments, severability, and governing law
1. Non-Competition: Restrictions on competing activities, used when protecting company interests is crucial
2. Non-Solicitation: Restrictions on hiring company employees or approaching clients, used when protecting relationships is important
3. Corporate Governance: Additional provisions for listed companies or regulated sectors
4. Performance Metrics: Specific KPIs and evaluation criteria, used when performance-based compensation is included
5. Group Company Provisions: Additional terms for management services extending to group companies
6. International Travel: Specific provisions for international responsibilities and travel requirements
7. Board Position: Additional terms if the manager holds a board position
8. Share Options/Incentives: Terms relating to equity-based compensation, if applicable
1. Services Description: Detailed outline of management services and responsibilities
2. Remuneration Structure: Detailed breakdown of fees, bonuses, and benefits
3. Company Policies: Key corporate policies applicable to the manager
4. Expense Policy: Detailed rules for expense claims and reimbursement
5. Performance Criteria: Detailed KPIs and evaluation methodology
6. Insurance Requirements: Specific insurance types and coverage levels required
7. Group Companies: List of group companies covered by the agreement
8. Approved Additional Activities: List of pre-approved external activities or directorships
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