If you run a business with at least one other person, and your business is not a limited company, then you should have a partnership agreement in place. That’s the case even for family-run businesses, which tend to have more informal arrangements. A partnership agreement sets out how the relationship between the partners and how partners interact with each other. It will clarify important issues such as:
- How profits are distributed
- How decisions are made in the business
- What happens when a partner retires or leaves the partnership
- How you’ll deal with disputes between the partners
What you will get from this service
A 60 minute consultation with your lawyer to align objectives. You’ll discuss:
- Who the partners are and their roles in the business
- The ways in which you intend to share profits
- The objectives you want to achieve with the agreement
- Your specific questions about the agreement
- The key information your lawyer needs from you to begin drafting the agreement
- The default position under the Partnership Act 1980 if the agreement is not signed or you continue without a partnership agreement.
What this service will enable you to do
You will have a formal, legally binding document that regulates the relationship between the partners. This provides you with:
- Protection for your partners and their investment in the business
- Clarity on each individual’s roles, rights, responsibilities and obligations as partners in the business.
- Evidence of what was agreed between the parties in the event of a disagreement. This will keep costs down if the disagreement escalates into a formal dispute.
- Mechanisms by which to expel a partner from the business
- Protection for your business in terms of restraint of trade clauses effective on outgoing partners