ADVOKS GLOBAL · KENYA
The Crops (Tea Industry) Regulations
22. Management Agent Agreement
Edition: 2022-12-31 · In force
22. Management Agent Agreement
(1)A person who intends to manufacture or deal in tea may engage the services of a management agent upon such terms and conditions as may be agreed in the management agreement between them.(2)A management agent shall sign a management agreement or contract with each tea factory limited company that they intend to offer management agent services to.(3)Provided that a management agent agreement between a smallholder tea factory limited company and the management agent shall be for a period not exceeding five (5) years and the remuneration for services rendered by the management agent shall not exceed one point five percent (1.5%) of the net sales value of the tea sold at the auction per year.(4)Notwithstanding the provisions of subregulation (3) above staff costs for personnel seconded to the smallholder tea factory limited company by the management agent shall be borne by the management agent and not directly by the respective factory.(5)Company Secretary Service shall be excluded from services to be offered by a management agent to a smallholder tea factory limited company. For avoidance of doubt smallholder tea factory limited companies shall recruit their own in-house Company Secretaries or outsource the service.(6)A director or affiliate of a management agency service provider shall not serve as a director or have any direct commercial relationship with the tea factory limited company that they offer management agency services.(7)A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act.