Where two or more people are carrying on business together in partnership, it is usually advisable to put in place a partnership agreement. If there is no agreement, then the provisions of the Partnership Act 1890 will govern the terms of the partnership. However, in many situations, the default terms provided by the legislation aren’t consistent with the way the partners wish to operate the partnership.
Partnership agreements generally cover things such as:
- Capital contributions;
- Allocation of profit shares;
- Procedure on the retirements, death or expulsion of a partner or the joining of a new partner;
- Duties of the partners;
- Holiday and other types of leave;
- Voting rights and meeting procedures;
- Restrictive covenants and confidentiality obligations.
Each partnership and the needs of its partners are different and we can produce an agreement that is designed for your circumstances.