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Manager Managed Operating Agreement

Manager Managed Operating Agreement Template for Singapore

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Manager Managed Operating Agreement

"I need a Manager Managed Operating Agreement for a Singapore-based tech startup with tHRee founding members and two professional managers, with specific provisions for future equity distribution and technology IP protection, to be effective from March 2025."

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What is a Manager Managed Operating Agreement?

The Manager Managed Operating Agreement is essential for companies in Singapore that opt for a professional management structure separate from ownership. This document becomes necessary when establishing a company where owners wish to delegate operational control to designated managers while maintaining their ownership rights. The agreement, governed by Singapore law, details management responsibilities, voting rights, capital requirements, and profit distribution mechanisms. It ensures compliance with Singapore's corporate regulations while providing a clear framework for company governance and dispute reֱ.

What sections should be included in a Manager Managed Operating Agreement?

1. Parties: Identification and details of all members and managers

2. Background: Context and purpose of the operating agreement

3. Definitions: Key terms used tHRoughout the agreement

4. Company Formation: Details of company structure and registration

5. Management Structure: Rights, powers, and duties of managers

6. Capital Contributions: Initial and ongoing capital requirements

7. Profit and Loss Distribution: Distribution methodology and timing

8. Voting Rights: Decision-making processes and voting tHResholds

9. Transfer of Interests: Rules for transferring ownership interests

10. Disֱ: Process for winding up the company

What sections are optional to include in a Manager Managed Operating Agreement?

1. Foreign Ownership Provisions: Required when foreign owners are involved - applies when company has non-Singapore owners

2. Intellectual Property Rights: IP ownership and protection provisions - needed when company owns or develops IP

3. Non-Compete Provisions: Restrictions on competitive activities - used when protecting business interests from member competition

4. Buy-Sell Provisions: Detailed procedures for ownership changes - applicable when detailed exit mechanisms are needed

What schedules should be included in a Manager Managed Operating Agreement?

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of member contributions

2. Schedule 2: Manager Details: Names, addresses, and roles of initial managers

3. Schedule 3: Profit Distribution Formula: Detailed calculation method for distributions

4. Appendix A: Company Policies: Standard operating procedures and policies

5. Appendix B: Forms: Standard forms for company operations

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions



































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Industries

Limited Liability Partnerships Act 2005: Primary legislation governing the formation, registration and regulation of limited liability partnerships in Singapore

Companies Act (Cap. 50): Core legislation governing corporate entities in Singapore, including their formation, operation, and disֱ

Business Names Registration Act 2014: Legislation governing the registration and regulation of business names in Singapore

Limited Partnerships Act 2008: Legislation governing the establishment and operation of limited partnerships in Singapore

ACRA Requirements: Regulatory requirements set by the Accounting and Corporate Regulatory Authority for business entities in Singapore

Singapore Income Tax Act: Legislation governing taxation of business entities and individuals in Singapore

Employment Act: Legislation governing employment relationships, relevant for manager-employee relationships and employment terms

Competition Act (Cap. 50B): Legislation governing fair competition and business practices in Singapore

Governance Structure Requirements: Specific requirements for management structure, voting rights, and decision-making processes in manager-managed entities

Fiduciary Duties: Legal obligations and responsibilities of managers acting in a fiduciary capacity

Corporate Governance Code: Singapore's corporate governance requirements and best practices for business entities

Corporate Tax Obligations: Specific tax compliance requirements and obligations for business entities in Singapore

Foreign Ownership Regulations: Rules and restrictions regarding foreign ownership of Singapore business entities

Dispute Reֱ Framework: Legal framework for resolving disputes under Singapore law, including court procedures and alternative dispute reֱ

Business Registration Requirements: Specific requirements for registering and maintaining a business entity in Singapore

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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