The framework provided by statute for the operation of LLPs is very basic and usually it is advisable for the LLP and its members to enter into an LLP agreement that sets out the terms on which the LLP is to operate.
An LLP agreement will normally cover aspects such as:
- The area of business in which the LLP will operate in;
- Capital contributions, profit shares, and drawings;
- Admission of new members, retirement, death, and expulsion;
- Meetings and decision-making process;
- Duties, restrictive covenants, and confidentiality.
The needs and requirements of members vary from one LLP to another and we can assist in preparing an LLP agreement that’s appropriate for the circumstances.