Partnerships

We offer a broad range of services relating to partnerships, as follows:

• Preparation of new partnership agreements
• Advice on the business structure and what it offers the parties involved
• Advice on existing partnership agreements and what rights they give the existing partners
• Advice on how to terminate a partnership – whether there is a partnership agreement or not
• An explanation of the relevant terms of the Partnership Act and how they apply to a particular situation and what protection it affords
• Assistance with the resolution of partnership disputes.

DID YOU KNOW?

Following are some interesting facts that you may wish to consider before entering a partnership arrangement.

1. Each partner has an equal say.
2. Each partner can enter into a contract on behalf of both or all of the partners and each of the partners will be liable to meet the obligations created by that contract.
3. If a partner dies, the partnership is automatically terminated unless otherwise agreed.
4. If a partner becomes insolvent, the partnership is terminated unless otherwise agreed.
5. All partners share profits equally unless otherwise agreed.

These facts are confronting if you are considering entering into a partnership.

They make clear the importance of choosing the right partner to enter into a business arrangement with.

ISSUES TO RESOLVE WITH YOUR PARTNER BEFORE YOU START

If you are considering entering into a partnership arrangement, the sorts of issues that you need to discuss and resolve are:

• what the trading name of the partnership is going to be
• which bank the partnership is going to use
• which Accountant the partnership is going to use
• what share of the partnership each of you own – whether it is an equal share or some other share
• how liabilities are to be apportioned in the partnership – whether that is equally or otherwise
• how profits are to be shared between the partners
• how disputes are to be resolved
• in what circumstances the partnership will be terminated
• how a partner is able to “get out of” the partnership – including terms about how much notice is required, how the value of the partnership is determined and how long the remaining partner has to pay the retiring partner for their share in the partnership
• what responsibilities each of the partners have.