Glossary
| Term |
Description |
| De-Equitisation |
The removal of equity from a partner. This needs to be under the terms of a well drafted Partnership Agreement. |
| Designated Member |
is a member of an LLP who is noted at Companies House as being responsible for regulatory matters. An LLP must have at least two Designated Members. |
| Dissolution |
is the process of ending a partnership and splitting up the assets and liabilities between the partners. |
| Drawings |
Partners or members of LLPs are not employees (unless they are salaried partners) and so are not paid a salary. they are self employed (Schedule D) and their share of the profits are taken as drawings.
Most partnership agreements have a mechanism which allows partners to take an anticipated share of their drawings each month. |