Whether you are looking to draft a new partnership agreement or need legal advice on amending an existing one, our experienced Corporate Team are on hand to help. Regardless of your personal relationship, it is essential that you are clear about how the business is run and what your plans are for the future. A partnership agreement will address the potential issues that could occur and consider the long term plans.
In the absence of a partnership agreement being in place, there is default legislation which would apply and govern the relevant arrangements. The position is different in terms of the legislation and what is required, depending on whether you are operating in general partnership together or as a Limited Liability Partnership (LLP). Often, the fallback position is not suitable for the arrangements in question and an agreement properly documenting the parties’ intention is needed. This also has the advantage of further protections being included and being able to more precisely document arrangements, including:
- Day-to-day decision making
- Profit sharing arrangements
- Drawings and capital accounts
- Admission and retirement
- Dealing with disputes
- Restrictive covenants
It is important to ensure you have adopted the correct structure when setting up and forming a business. In addition to considering setting up a partnership or an LLP, you should consider whether a company would be a better structure for your needs. In which case, the position would be different, and you may be interested to view our page in respect of shareholders’ agreements which is the equivalent document used for companies.
We have experience of advising clients in various sectors on setting up partnership arrangements and in particular, in respect of professional firms and farming and agricultural clients. You may be interested to see our dedicated Agriculture & Estates Team pages who work closely alongside our Corporate and Commercial Team in advising on farming partnership arrangements.
If you wish to discuss putting in place a partnership agreement or wish to review an existing one, please do contact the team who will be happy to assist.
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