The Intercompany Shared Services Agreement is essential for corporate groups operating in Australia seeking to optimize operational efficiency through centralized service delivery. This document is typically used when a company within a group provides various support services (such as IT, HR, finance, or administrative services) to other group entities. It addresses key requirements under Australian law, including Corporations Act 2001 compliance, transfer pricing regulations, and privacy laws. The agreement establishes clear service expectations, pricing mechanisms, governance frameworks, and risk allocation while ensuring regulatory compliance. It's particularly relevant for organizations implementing shared service centers or consolidating support functions across their corporate structure.
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1. Parties: Identification of the service provider and recipient entities, including registration details and addresses
2. Background: Context of the agreement, relationship between the parties, and purpose of the shared services arrangement
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Term and Commencement: Duration of the agreement, including start date and renewal provisions
5. Services: Overview of services to be provided, with reference to detailed service descriptions in schedules
6. Service Levels: General principles of service quality and performance standards
7. Charges and Payment: Pricing methodology, payment terms, and transfer pricing compliance
8. Governance and Reporting: Management structure, reporting requirements, and review processes
9. Personnel: Requirements for personnel delivering services, including qualifications and conduct
10. Intellectual Property: Ownership and licensing of IP used in or created through service delivery
11. Confidentiality and Data Protection: Protection of confidential information and compliance with privacy laws
12. Liability and Indemnities: Allocation of risks and responsibilities between parties
13. Termination: Termination rights and process
14. Post-Termination: Obligations and transition arrangements following termination
15. General Provisions: Standard boilerplate clauses including notices, amendment process, and governing law
1. Cross-Border Requirements: Include when services are provided across international borders, addressing regulatory compliance and currency considerations
2. IT Systems and Security: Include when services involve significant IT components or system access
3. Staff Transfers or Secondments: Include when personnel will be transferred or seconded between entities
4. Business Continuity and Disaster Recovery: Include for critical services requiring specific continuity arrangements
5. Compliance with Group Policies: Include when specific corporate group policies must be followed
6. Asset License and Usage: Include when significant assets or licenses are being shared
7. Tax and VAT/GST Provisions: Include detailed tax provisions for complex cross-border arrangements
8. Change Control Process: Include for complex service arrangements requiring formal change management
1. Schedule 1 - Service Descriptions: Detailed descriptions of each service to be provided
2. Schedule 2 - Service Levels and KPIs: Specific performance metrics and measurement methods
3. Schedule 3 - Charges and Pricing Methodology: Detailed pricing calculations and transfer pricing documentation
4. Schedule 4 - Governance Framework: Detailed governance structure, meeting schedules, and escalation procedures
5. Schedule 5 - Technical Requirements: Technical specifications and requirements for service delivery
6. Schedule 6 - Contact Details and Key Personnel: List of key contacts and responsible personnel
7. Schedule 7 - Service Locations: Locations where services will be provided and received
8. Schedule 8 - Exit Plan Template: Framework for service transition upon termination
9. Appendix A - Form of Reports: Templates for required service reports and documentation
10. Appendix B - Security and Access Requirements: Detailed security protocols and access procedures
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