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Partnership Operating Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Partnership Operating Agreement

"I need a Partnership Operating Agreement for a Hong Kong law firm with five equal partners, including specific provisions for profit sharing based on performance metrics and a detailed process for adding new partners starting January 2025."

Document background
The Partnership Operating Agreement serves as the foundational document for businesses operating as partnerships in Hong Kong. This document is essential when two or more parties wish to formalize their business relationship under Hong Kong's Partnership Ordinance (Cap. 38). It comprehensively addresses crucial aspects such as partnership formation, capital structure, management rights, profit sharing, decision-making processes, and partner obligations. The agreement provides legal protection for all partners while establishing clear operational guidelines and governance structures. It should be prepared at the outset of forming a partnership or when restructuring an existing partnership, ensuring compliance with Hong Kong's legal requirements while accommodating the specific needs of the business venture.
Suggested Sections

1. Parties: Identifies and provides details of all partners entering into the agreement

2. Background: States the context and purpose of forming the partnership

3. Definitions: Defines key terms used throughout the agreement

4. Partnership Formation: Details of partnership establishment, name, business purpose, and term

5. Capital Contributions: Specifies initial and ongoing capital contributions from each partner

6. Ownership Interests: Outlines the percentage ownership and profit/loss sharing ratios

7. Management and Voting: Describes management structure, decision-making processes, and voting rights

8. Partners' Rights and Obligations: Details the rights, duties, and responsibilities of all partners

9. Financial Affairs: Covers accounting practices, banking, financial records, and distributions

10. Transfer Restrictions: Rules regarding transfer of partnership interests and admission of new partners

11. Withdrawal and Removal: Procedures for voluntary withdrawal and involuntary removal of partners

12. Dissolution and Liquidation: Process for partnership dissolution and asset distribution

13. Confidentiality: Obligations regarding confidential information and trade secrets

14. Dispute Resolution: Procedures for resolving disputes between partners

15. General Provisions: Standard clauses including notices, amendments, governing law, etc.

Optional Sections

1. Non-Competition and Non-Solicitation: Restrictions on partners competing with the partnership or soliciting clients/employees - include when partners have access to sensitive information or significant client relationships

2. Intellectual Property Rights: Provisions regarding ownership and use of IP - include when the partnership develops or uses significant IP

3. Insurance: Requirements for partnership and partner insurance - include when there are significant liability risks

4. Employee Matters: Policies regarding hiring, management of employees - include when the partnership will have employees

5. Tax Matters: Detailed tax planning and allocation provisions - include when complex tax arrangements are needed

6. Foreign Operations: Provisions for international business activities - include when operating across jurisdictions

7. Deadlock Resolution: Specific procedures for resolving management deadlocks - include in 50/50 partnerships or where deadlock is likely

8. Partner Death/Incapacity: Detailed procedures for handling partner death or incapacity - include when partners are individuals rather than entities

Suggested Schedules

1. Schedule 1: Partner Information: Detailed information about each partner, including contact details and representatives

2. Schedule 2: Initial Capital Contributions: Itemized list of each partner's initial capital contributions, including valuations

3. Schedule 3: Business Plan: Initial business plan and strategic objectives of the partnership

4. Schedule 4: Management Structure: Detailed organizational chart and management responsibilities

5. Schedule 5: Distribution Policy: Detailed procedures for calculating and making partner distributions

6. Appendix A: Banking Resolution: Banking arrangements and authorized signatories

7. Appendix B: Accounting Policies: Detailed accounting procedures and policies

8. Appendix C: Compliance Procedures: Regulatory compliance requirements and procedures

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














































Clauses









































Relevant Industries

Professional Services

Legal Services

Accounting and Advisory

Real Estate

Trading and Distribution

Technology and Innovation

Healthcare

Consulting

Architecture and Design

Engineering

Food and Beverage

Retail

Investment and Financial Services

Manufacturing

Education and Training

Relevant Teams

Legal

Finance

Corporate Secretarial

Compliance

Risk Management

Business Development

Operations

Executive Leadership

Administrative

Partnership Management

Relevant Roles

Managing Partner

Senior Partner

Business Development Manager

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Secretary

Operations Director

Finance Director

Compliance Officer

Risk Manager

Partnership Administrator

Business Owner

Entrepreneur

Professional Partner

Industries







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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