Comparative Study of Management Contracts Regulation in U.S.A., UK and German Legal Systems

Abstract:     
Management Contracts are a type of contract, whose content and legal purpose is the contractual transfer of corporate management from its board of directors to a third party, usually another corporation. Management Contracts are used by corporations as a method to succeed international growth, to transfer know-how, to achieve or sell corporate efficiency, to conceal some business activities and to gain the control of another corporation without participating in its capital. We conduct a comparative analysis of Management Contracts Regulation in three jurisdictions: USA, UK and Germany. The purpose of the paper is to show that management contracts, although facing some distrust, continue to grow and become acceptable by different legal orders. However, in all three jurisdictions examined, severe restraints and limitations are posed before the recognition of a management contract as valid.

Keywords: Management Contracts, Outsourcing, Corporate Management Transfer, Comparative Law

Accepted Paper Series