Partnership Formation

When drafting or reviewing your Partnership Deed, we pay meticulous attention to every critical detail to ensure clarity, fairness, and legal enforceability. A robust Partnership Deed typically includes:

• Name and Nature of the Firm: Clearly stating the name of the partnership firm and the nature of the business it will conduct.
• Names and Addresses of All Partners: Full legal identification of each individual entering into the partnership.
• Commencement of Business: The effective date from which the partnership will begin its operations.
• Duration of Partnership: Whether the partnership is for a fixed term, for a specific venture, or at will.
• Capital Contribution: The amount of capital (cash, assets, or services) each partner will contribute to the firm.
• Profit and Loss Sharing Ratio: The agreed-upon proportion in which profits will be distributed and losses will be borne by each partner. This can be equal or unequal.
• Salaries, Commissions, or Remuneration to Partners: Any agreed-upon payments to partners in addition to their share of profits.
• Drawings by Partners: Rules and limits regarding the amount of money partners can withdraw from the business for personal use.
• Interest on Capital, Drawings, and Loans: Provisions for interest payable on partners’ capital contributions, chargeable on drawings, or on loans provided by partners to the firm.
• Duties and Responsibilities of Each Partner: Clearly outlining the roles, functions, and specific responsibilities assigned to each partner.
• Management and Decision-Making: Procedures for day-to-day management, voting rights, and how major decisions will be made (e.g., unanimous consent, majority vote).
• Bank Account Operations: How the firm’s bank accounts will be operated (e.g., single signatory, joint signatories).
• Maintenance of Accounts: Requirements for keeping proper books of accounts and their auditing.
• Admission of New Partners: The process, conditions, and necessary consents for admitting new partners into the firm.
• Retirement or Death of a Partner: Procedures for the retirement, expulsion, or death of a partner, including valuation of their share, settlement of accounts, and continuation of the business.
• Dissolution of the Firm: Detailed provisions for the winding up of the partnership, including asset realization, payment of liabilities, and distribution of residual assets.
• Arbitration Clause: A vital provision for resolving disputes among partners through arbitration, offering a faster and often more cost-effective alternative to litigation.
• Governing Law & Jurisdiction: Specifying the legal framework that will govern the deed and the courts that will have jurisdiction over any disputes.
• Confidentiality: Clauses protecting sensitive business information.