Management Services Agreement

This Management Services Agreement is between a corporation and a subsidiary in which the parent corporation agrees to provide management services to the subsidiary for a service fee. This agreement sets out the details of this arrangement including the specific services to be provided (financial, planning, public affairs) and the formula on which the service fee is based. This type of business transaction should not be left to oral interpretation. A written Management Services Agreement will be valuable in the event there are disagreements or misunderstandings regarding the arrangement. (continued ...)