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Business Prenup Template for England and Wales

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Key Requirements PROMPT example:

Business Prenup

"I need a Business Prenup for my new tech startup with two co-founders, where we'll have unequal capital contributions but want equal voting rights, and need strong IP protection clauses as we're developing proprietary software."

Document background
The Business Prenup is essential for protecting the interests of business partners operating under English and Welsh jurisdiction. It should be implemented at the outset of any business partnership or when new partners join an existing business. The agreement typically includes provisions for ownership structure, profit distribution, decision-making processes, dispute resolution, and exit strategies. As a comprehensive legal framework, the Business Prenup helps prevent misunderstandings and provides clear guidelines for managing various business scenarios, from daily operations to major changes in ownership or structure.
Suggested Sections

1. Parties: Identification and details of all business partners

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Business Structure: Legal form and ownership structure of the business

5. Capital Contributions: Initial and ongoing financial commitments of each partner

6. Profit and Loss Sharing: Distribution of profits and allocation of losses between partners

7. Management Rights: Decision-making authority, voting rights, and management processes

8. Exit Provisions: Procedures for partner withdrawal, termination, and business dissolution

Optional Sections

1. Intellectual Property Rights: Ownership and usage rights of business IP, including pre-existing IP and newly developed IP

2. Non-Compete Provisions: Restrictions on competitive activities during and after partnership

3. International Operations: Provisions governing cross-border business activities and jurisdiction

4. Dispute Resolution: Procedures for resolving disputes between partners, including mediation and arbitration

Suggested Schedules

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partner investments and valuations

2. Schedule 2: Business Plan: Initial business strategy, projections, and milestones

3. Schedule 3: Valuation Methodology: Agreed methods for business valuation in case of exit or dispute

4. Appendix A: Partner Details: Comprehensive information about partners including contact details and roles

5. Appendix B: Asset Register: List of business assets, ownership details, and valuations

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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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Partnership Act 1890: Primary legislation defining partnerships, establishing basic rights and obligations between partners, and providing default provisions that apply if not otherwise agreed in the partnership agreement

Companies Act 2006: Core legislation governing incorporated businesses, defining director duties, responsibilities, and shareholder rights that may become relevant if the business incorporates

Law of Property (Miscellaneous Provisions) Act 1989: Key contract law legislation governing the formation and execution of contracts, including requirements for writing and signatures

Equality Act 2010: Legislation ensuring non-discrimination and fair treatment in business relationships and employment matters

Data Protection Act 2018 & UK GDPR: Legal framework for data protection and privacy, establishing obligations for handling personal data in business operations

Copyright, Designs and Patents Act 1988: Legislation protecting intellectual property rights, particularly relevant for safeguarding business innovations and creative works

Trade Marks Act 1994: Legislation governing the protection of business brands, logos, and other distinctive marks

Competition Act 1998: Legislation preventing anti-competitive practices and unfair market restrictions in business operations

Common Law Precedents: Relevant case law establishing principles for partnership disputes, contractual interpretation, and enforcement of business agreements

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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