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Organisation Partnership Agreement Template for England and Wales

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Key Requirements PROMPT example:

Organisation Partnership Agreement

"Need an Organisation Partnership Agreement for a new tech consulting firm with three partners, where two partners will contribute equal capital of £500,000 each, and the third partner will contribute expertise only, with profit sharing to be 40-40-20 respectively, starting from March 2025."

Document background
The Organisation Partnership Agreement is essential when two or more parties wish to establish a formal business partnership under English and Welsh law. This document is crucial for defining the partnership structure, operational framework, and relationships between partners. It includes detailed provisions for capital contributions, profit sharing, management responsibilities, and dispute resolution mechanisms. The agreement should comply with the Partnership Act 1890 and other relevant legislation, while being tailored to the specific needs of the partnership. It serves as the founding document that governs all aspects of the partnership's operations and partner relationships.
Suggested Sections

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

2. Background: Context and purpose of the partnership

3. Definitions: Key terms used throughout the agreement

4. Partnership Business: Nature and scope of partnership activities

5. Capital Contributions: Initial and ongoing capital requirements

6. Profit and Loss Sharing: Distribution of profits and losses

7. Management and Decision Making: Governance structure and voting rights

8. Duration and Termination: Term of partnership and exit provisions

Optional Sections

1. Intellectual Property Rights: IP ownership and licensing terms - include when partnership involves creation or use of IP

2. Non-Competition: Restrictions on competing activities - include when partners want to prevent competition

3. International Operations: Provisions for cross-border activities - include when partnership operates internationally

4. Good Faith and Fiduciary Duties: Additional partner obligations - include when enhanced duties are required

Suggested Schedules

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

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

3. Schedule 3: Partner Details: Complete partner information and contact details

4. Schedule 4: Accounting Policies: Agreed accounting principles and procedures

5. Schedule 5: Property Schedule: List of partnership properties and assets - include when partnership owns significant assets

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

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Industries

Partnership Act 1890: Primary legislation defining partnerships, basic rights/obligations, and governing relationships between partners. Provides default provisions if not otherwise specified in agreement

Limited Partnerships Act 1907: Legislation governing limited partnerships structure and their specific requirements

Companies Act 2006: Relevant legislation for corporate partners involvement and registration requirements

Limited Liability Partnerships Act 2000: Legislation governing LLP structures as an alternative to traditional partnerships

Equality Act 2010: Legislation covering non-discrimination provisions and equal treatment of partners

Data Protection Act 2018 and UK GDPR: Legislation governing data handling between partners and privacy considerations

Competition Act 1998: Legislation covering anti-competitive practices and market restrictions

Finance Acts: Legislation governing tax treatment of partnership and capital gains considerations

Partnership (Accounts) Regulations 2008: Legislation covering financial reporting requirements for partnerships

Money Laundering Regulations 2017: Legislation covering due diligence requirements and compliance obligations for partnerships

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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