Management Contract

Management Contract Template for Denmark

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Document background

The Management Contract serves as a crucial legal document for establishing and governing the employment relationship between a company and its senior executives in Denmark. This document is typically used when appointing managing directors, C-suite executives, and other senior managers, providing a comprehensive framework that outlines their rights, responsibilities, and obligations. The contract must comply with Danish employment law, including mandatory provisions of the Danish Salaried Employees Act, while also addressing specific requirements of executive positions such as performance expectations, strategic responsibilities, and protection of company interests. The Management Contract includes detailed terms regarding remuneration packages, bonus schemes, equity participation, and post-employment restrictions, tailored to the specific needs of senior management roles while ensuring alignment with Danish legal requirements and corporate governance standards.

Suggested Sections

1. Parties: Identification of the company and the manager, including their full legal names and addresses

2. Background: Context of the appointment and brief description of the company and management position

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Position title, commencement date, and term of appointment (fixed-term or indefinite)

5. Duties and Responsibilities: Detailed description of management role, reporting lines, and key responsibilities

6. Time Commitment and Location: Working hours, place of work, and travel requirements

7. Remuneration: Base salary, review mechanisms, and payment terms

8. Benefits: Standard benefits package including pension, insurance, and company car if applicable

9. Holidays and Leave: Holiday entitlement and rules regarding other types of leave

10. Sickness and Absence: Procedures for reporting absence and sick pay entitlements

11. Confidentiality: Obligations regarding company confidential information

12. Intellectual Property: Ownership and protection of IP created during employment

13. Data Protection: Compliance with GDPR and Danish data protection laws

14. Termination: Notice periods and grounds for termination

15. Post-Termination Restrictions: Non-compete and non-solicitation clauses

16. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

Optional Sections

1. Bonus Arrangements: Details of performance-based bonuses or incentive schemes, used when variable compensation is part of the package

2. Share Options: Terms of any share option or equity participation schemes, included when equity-based compensation is offered

3. Board Position: Terms related to board membership, if the manager will also serve on the company's board

4. International Travel: Specific provisions for international assignments or regular travel, included for roles with significant international responsibilities

5. External Directorships: Rules regarding holding positions in other companies, included when relevant to the position

6. Relocation Package: Terms of relocation assistance, included when the manager needs to relocate

7. Change of Control: Provisions addressing manager's rights in case of company ownership change

8. Garden Leave: Provisions allowing the company to require the manager to stay away from work during notice period

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators

2. Schedule 2 - Remuneration Package: Detailed breakdown of salary, benefits, and bonus structures

3. Schedule 3 - Company Policies: Key company policies applicable to the management position

4. Schedule 4 - Bonus Scheme Rules: Detailed rules and calculations for any bonus arrangements

5. Schedule 5 - Share Option Scheme: Details of any share option or equity participation schemes

6. Appendix A - Confidential Information: Definition and examples of confidential information

7. Appendix B - Approved External Appointments: List of pre-approved external directorships or appointments

8. Appendix C - Company Car Policy: Terms and conditions of company car benefit if applicable

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