 |
Partnerships
|
 |
Partnership Agreements
People starting up in partnership often ask whether it is really necessary to have a formal partnership agreement. The answer is definitely 'Yes'.
Basically, the agreement should set out the rules governing how the partnership operates, and should cover the main ´What happens if ...´ situations. If there is no agreement, there will be a large element of uncertainty, and applying the underlying law, such as the Partnership Act 1890, may well lead to unwanted results.
It is usually best to have a partnership agreement drawn up by a solicitor, but before you reach that stage you should think about exactly what you want the agreement to cover. In particular, you should consider:
Running the business
- partners´ duties
- working hours and holidays
- decision-making procedures
- business premises
- cars
Financial matters
- profit-sharing arrangements, and drawings on account
- partnership capital (and interest arrangements)
- banking and financial arrangements
- accounting arrangements
- making provision for tax payments
Special circumstances
- partner retirement procedures
- death of a partner
- providing for partners' retirements and dependants
- disability of a partner
- establishing the right to expel a partner
- arbitration for unresolved disputes
Do contact us if you would like further help or advice on this subject.
|
|
