If you are considering entering into a partnership or LLP, it is vital you ensure you have signed a well-constructed written agreement.
General partnership and LLP agreements set out the vital terms of the business. Most agreements will deal with the following issues:
Duration of the partnership;
Details of partners/members initial capital contributions;
How profits and losses of the partnership are to be divided;
How the partnership is to be managed;
Provisions for retirement;
Provisions for dissolution of the partnership;
Provisions for expelling partners/members;
Restrictions of competition (also known as restrictive covenants);
Termination and winding up of the partnership.
Without a written agreement dealing with the issues set out above, your partnership or LLP will be governed by the default provisions of either the Partnership Act 1890 if you are entering into a general partnership or the Limited Liabilities Partnership Act 2000 if you are entering into a LLP. These provisions do not adequately deal with the specific needs and demands of most partners or members entering a partnership or LLP, restricting the way partners and members run their business.
At Ralli Partnership Law we have extensive experience of drafting partnership and LLP agreements in many different business settings. Please contact us for a consultation.