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Managing Director Agreement Template for Malaysia

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Key Requirements PROMPT example:

Managing Director Agreement

"I need a Managing Director Agreement for a technology startup in Kuala Lumpur, with strong emphasis on equity compensation and performance-based bonuses, starting from March 1, 2025, including provisions for international travel and remote work arrangements."

Document background
The Managing Director Agreement is a crucial document used when appointing the highest-level executive position within a Malaysian company. It combines elements of both an employment contract and a corporate governance instrument, reflecting the unique position of a Managing Director who often serves as both the head of operations and a board member. The agreement must comply with Malaysian corporate law, particularly the Companies Act 2016, and typically includes comprehensive provisions on duties, authority limits, remuneration, performance metrics, and protection of company interests. This document is essential for establishing clear parameters of authority, accountability, and expectations while protecting both the company's and the director's interests.
Suggested Sections

1. Parties: Identification of the company and the managing director, including full legal names and addresses

2. Background: Context of the appointment and brief description of the company's business

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Terms of appointment, commencement date, and duration of the agreement

5. Duties and Responsibilities: Detailed description of the MD's roles, duties, and responsibilities

6. Time Commitment: Expected working hours and commitment to the role

7. Remuneration and Benefits: Base salary, bonuses, and other benefits

8. Expenses: Policy on reimbursement of business expenses

9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements

10. Confidentiality: Obligations regarding confidential information

11. Intellectual Property: Ownership and rights to intellectual property created during employment

12. Termination: Grounds and procedures for termination of the agreement

13. Post-Termination Obligations: Continuing obligations after the end of employment

14. Governing Law: Specification of Malaysian law as governing law and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments

Optional Sections

1. Board Seat: Terms of appointment to the board of directors, used when the MD will also serve as a board member

2. Share Options: Details of any share option schemes, used when equity compensation is part of the package

3. Performance Metrics: Specific KPIs and performance evaluation criteria, used when performance-based compensation is significant

4. International Travel: Provisions for international travel and overseas work, used for companies with international operations

5. Garden Leave: Provisions for garden leave during notice period, used for sensitive positions

6. Change of Control: Provisions dealing with company ownership changes, used particularly for listed companies

7. Non-Compete: Restrictions on post-employment competition, used when protecting market position is crucial

8. Relocation: Terms for relocation if required, used when the role involves moving to a different location

Suggested Schedules

1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, bonuses, and benefits

2. Schedule 2 - Job Description: Detailed description of roles and responsibilities

3. Schedule 3 - Performance Criteria: Specific KPIs and performance evaluation metrics

4. Schedule 4 - Company Policies: List of applicable company policies and procedures

5. Schedule 5 - Benefits: Detailed description of all benefits and entitlements

6. Appendix A - Share Option Terms: Details of any share option or equity participation schemes

7. Appendix B - Approved Outside Interests: List of pre-approved directorships or business interests

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































Clauses






































Relevant Industries

Financial Services

Manufacturing

Technology

Retail

Healthcare

Energy

Telecommunications

Real Estate

Construction

Professional Services

Education

Hospitality

Logistics

Agriculture

Mining

Relevant Teams

Human Resources

Legal

Board of Directors

Executive Management

Corporate Secretarial

Compliance

Finance

Corporate Governance

Risk Management

Operations

Relevant Roles

Managing Director

Chief Executive Officer

Executive Director

Group Managing Director

Country Managing Director

Regional Managing Director

Joint Managing Director

Executive Vice President

Chief Operating Officer

General Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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