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How we healthcheck intercompany agreements for TP compliance

Group Reorganisations

LCN Updates

Intercompany Agreements

17 October 2022


When we're reviewing intercompany agreements, we look at four key areas of alignment with TP policies: the delineation of the transaction, the risk allocation, the treatment of IP and intangibles, and the pricing.

We also look at a fifth area, namely general fitness for purposes. This includes obvious things such as whether the parties are correct and whether the agreement has actually been signed. It also includes considerations such as whether the agreement contains procedural provisions which are unlikely to be followed in practice.

The overall objective is to ensure that (a) the agreement aligns with and implements the TP intentions, and (b) the agreement makes sense from a commercial, legal and regulatory perspective.


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Article by
Paul Sutton
LCN Legal Co-Founder

Free Guide: Effective Intercompany Agreements for TP Compliance