Intercompany Agreements

Limited Risk Distribution Agreements – Key Considerations for Documenting Intercompany Arrangements

5 July 2025   Paul Sutton

Limited risk distributors (sometimes referred to as ‘LRDs’) are a common feature of intercompany transactions within multinational groups. The essence of the arrangement is of course to de-risk the role of the intra-group distributor, resulting in a correspondingly lower return or margin for the distributor. In many ways, the position of the distributor is commercially…