Partnerships and Partnership Agreements

Partnership and partnership agreements

Our team of experts have helped many businesses navigate partnership agreement law to share the profits and challenges of business.

A partnership is formed when two or more parties come together in ownership of a company, and is governed by The Partnership Act 1890. The legislation sets out how partnerships should be created and brought to an end, as well as how profits and losses should be shared.

Every partnership is unique, as each party will have different requirements and expectations from an agreement. We work closely with you to understand and advise you on the best actions for your partnership based on the relevant law. You may also be in a position where the partnership operates under its own rules as a way to ensure that the partnership can be run as you wish it to be.

An agreement that’s suited to you

We can help you draw up a tailored partnership agreement that suits your needs and that of the partnership – no two partnerships are the same, from silent partnerships to sharing different portions of profits based on investments and hours committed to the partnership.

This can include:

  • The contributions of each partner and how profits and losses should be shared
  • The roles of each partner, as well as when they will work
  • The steps and actions that should be taken if a partner leaves or passes away
  • Terms such as holiday and sick leave, maternity and paternity leave and any other points that you would find in a contract of employment
  • Who can take money out of the business
  • The decision making process, such as what decisions can be made by individuals and which should be taken collectively.

 

Existing partnerships without agreements in place should consider having a partnership agreement to formalise the arrangement and ensure profits, losses and liabilities are to be shared agreeably.

If you’re in a partnership or about to enter into one, contact our team today to discuss your situation and how we can help you make the most of your partnership.


Duncan & Toplis

Legal and Probate Specialists