Partnership Agreements

Similar to shareholder agreements, partnership or joint venture agreements are a must for parties entering into a partnership for managing or running a business.

Compared to companies or trusts, partnerships are not a preferred business structure except where there is a partnership of companies or trusts (such as a joint venture).  Compared to overseas jurisdictions, partnerships have inherent risks akin to a sole trader structure and do not often have limited liability.

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What Should
Agreements Include?

At a minimum, a partnership agreement should include:

  1. How disputes are resolved;
  2. What are the responsibilities of each party in the arrangement;
  3. Are the partners required to provide financing / labour / equity and on what terms;
  4. What happens if one of the parties wants to exit the business;
  5. How are decisions to be made and are decisions to be by majority / unanimous;
  6. Are parties to be restrained from competing in similar businesses;
  7. The number of required meetings per year;
  8. Financial reporting obligations;
  9. Consequences of partners becoming insolvent and/or incapacitated.

Our team of lawyers can guide you through the process

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Meet Nick

Nick provides legal and tax solutions to start-up/small businesses and individuals. Quite separate to law, Nick understandsbusiness and has hands-on experience launching and running start-up organisations, including some of Australia’s first group-purchasing and consumer power platforms.

Nick is on the Board of the Crowd Funding Institute of Australia and is a Founder & Director of successful Australian crowdfunding plaform OzCrowd.com.

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