Leonard Kasler & Company
Newsletters
Partnership Agreement
The following things need to be discussed and agreed in forming a Partnership and preferably reduced to writing
1. The Partnership name and who owns it?
2. Whether decisions are made by unanimous or majority vote on the basis of one vote per partner or on the basis that each partner has a percentage vote?
3. How meetings should be called in the event that you have all fallen out?
4. The year end for the Accounts?
5. Whether a provision for tax is to be held back from the Partners?
6. How any assets owned by one Partner, but used by the Partnership should be dealt with?
7. The respective shares in the profits and losses?
8. In what circumstances can the Partners be required to introduce more capital?
9. How much each Partner can take by way of monthly drawings?
10. How a Partner giving a bank guarantee is to be protected?
11. Whether the Partnership will pay for Keyman Insurance, Private Medical Healthcare etc.?
12. What are the Holiday arrangements?
13. How long an ill (or otherwise absent) Partner will be "carried"?
14. At what age can a Partner be forced to retire?
15. In what circumstances can a Partner be expelled?
16. On what Notice can a Partner terminate the Partnership?
17. How should a retiring or expelled Partner be paid out?
18. Should any payment to a retiring or expelled Partner contain an element of payment for goodwill?
19. How should the goodwill figure be calculated?
20. To what restrictions on competition should an expelled Partner be subjected?
Michael Breeze
Leoanrd Kasler & Company
Sunday, 13. October 2002