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60 40 Partnership Agreement Template for England and Wales

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Key Requirements PROMPT example:

60 40 Partnership Agreement

"I need a 60/40 Partnership Agreement for a new tech consulting business starting in March 2025, where I'll be the majority partner contributing technical expertise and initial funding, while my partner brings client relationships and industry contacts."

Document background
The 60/40 Partnership Agreement is designed for situations where two parties wish to enter into a business partnership with an uneven ownership split in England and Wales. This arrangement is commonly used when one partner contributes more capital, expertise, or resources to the venture. The agreement covers essential aspects such as profit sharing, voting rights, management responsibilities, and exit strategies, while ensuring compliance with the Partnership Act 1890 and related legislation. This document is particularly useful for businesses where partners want to maintain clear majority control while still offering significant minority ownership.
Suggested Sections

1. Parties: Details of the partners entering into the agreement

2. Background: Context and purpose of the partnership

3. Definitions: Key terms used throughout the agreement

4. Partnership Structure: 60/40 split details and capital contributions

5. Management Rights: Decision-making processes and voting rights

6. Profit and Loss Distribution: How profits and losses will be shared

7. Duration: Term of partnership and renewal provisions

8. Termination: Circumstances and process for ending the partnership

Optional Sections

1. Non-compete: Restrictions on competing activities when partners may have competing interests

2. Intellectual Property: Ownership and use of IP when relevant to the business

3. Death/Incapacity: Procedures following death or incapacity of a partner

4. International Operations: Provisions for international business when operating across borders

Suggested Schedules

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments

2. Schedule 2: Business Plan: Initial business plan and objectives

3. Schedule 3: Asset Register: List of partnership assets and their ownership

4. Appendix A: Partner Contact Details: Contact information for all partners

5. Appendix B: Banking Arrangements: Details of partnership bank accounts and signatories

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































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Industries

Partnership Act 1890: The fundamental legislation governing partnerships in England and Wales, defining basic partnership principles and rights

Limited Partnerships Act 1907: Governs the formation and operation of limited partnerships, may be relevant depending on partnership structure

Companies Act 2006: Contains provisions that may affect partnerships, particularly regarding business operations and documentation

Equality Act 2010: Ensures anti-discrimination compliance within the partnership structure and operations

Financial Services and Markets Act 2000: Relevant if the partnership engages in regulated financial activities

Data Protection Act 2018: Governs how the partnership must handle and protect personal data

UK GDPR: Provides additional data protection requirements for partnerships operating in the UK

Partnership (Accounts) Regulations 2008: Specifies requirements for partnership financial reporting and accounting

Business Names Act 1985: Regulates the use of business names and trading names by partnerships

Income Tax Act 2007: Determines how partnership income is taxed and distributed among partners

Corporation Tax Act 2009: May be relevant for certain aspects of partnership taxation and reporting

Value Added Tax Act 1994: Governs VAT obligations and compliance for partnerships

Employment Rights Act 1996: Relevant if the partnership will employ staff, defining employer obligations

National Insurance Contributions Act 2014: Governs national insurance obligations for partners and any employees

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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