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Co Ownership Business Agreement Template for New Zealand

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Key Requirements PROMPT example:

Co Ownership Business Agreement

"I need a Co-Ownership Business Agreement for a technology consulting firm in Auckland with three equal partners, including specific provisions for profit-sharing based on individual performance and a clause allowing for bringing in new partners after January 2025."

Document background
The Co-Ownership Business Agreement is a crucial legal document used in New Zealand when two or more parties wish to establish a formal structure for jointly owning and operating a business. This document becomes essential when parties need to clearly define their ownership rights, responsibilities, and operational procedures while ensuring compliance with New Zealand legislation, including the Partnership Act 1908 and Companies Act 1993. It is particularly valuable for new business ventures, family businesses, professional practices, and existing businesses transitioning to shared ownership. The agreement typically includes detailed provisions for ownership structure, capital contributions, profit sharing, decision-making processes, dispute resolution, and exit strategies, providing a solid foundation for the business relationship and helping prevent future disagreements.
Suggested Sections

1. Parties: Identifies all co-owners with their full legal names and addresses

2. Background: Outlines the context of the agreement, including the business nature and co-owners' intention to jointly own and operate the business

3. Definitions: Defines key terms used throughout the agreement

4. Ownership Structure: Details the ownership percentages and capital contributions of each co-owner

5. Business Operations: Establishes how the business will be managed, including decision-making processes and voting rights

6. Financial Management: Covers financial obligations, profit distribution, and accounting requirements

7. Rights and Obligations: Specifies the rights and responsibilities of each co-owner

8. Decision Making: Details the process for making business decisions, including voting thresholds for different types of decisions

9. Transfer of Ownership: Establishes rules for transferring ownership interests, including first right of refusal

10. Dispute Resolution: Outlines the process for resolving disputes between co-owners

11. Term and Termination: Specifies the agreement duration and circumstances for termination

12. General Provisions: Includes standard legal clauses such as governing law, notices, and amendments

Optional Sections

1. Intellectual Property: Required when the business owns or develops significant IP assets

2. Non-Competition: Include when co-owners want to restrict their ability to compete with the business

3. Death or Incapacity: Important when co-owners want specific provisions for succession planning

4. Insurance Requirements: Include when specific insurance coverage is required for the business or co-owners

5. Employment of Co-owners: Needed when co-owners will also be employees of the business

6. External Financing: Include when the business anticipates taking on external debt or investment

7. Property Management: Required when the business owns or leases significant physical assets

8. Confidentiality: Include when there's sensitive business information to protect

Suggested Schedules

1. Schedule 1: Capital Contributions: Detailed list of initial and subsequent capital contributions by each co-owner

2. Schedule 2: Business Assets: Comprehensive inventory of business assets and their agreed values

3. Schedule 3: Ownership Percentages: Current ownership structure and any historical changes

4. Schedule 4: Management Structure: Detailed outline of management roles and responsibilities

5. Schedule 5: Distribution Policy: Specific rules and formulas for profit distribution

6. Appendix A: Business Plan: Initial business plan and strategy

7. Appendix B: Valuation Method: Agreed methodology for valuing the business and ownership shares

8. Appendix C: Required Insurances: List of required insurance policies and coverage levels

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

Retail

Professional Services

Manufacturing

Technology

Hospitality

Construction

Real Estate

Healthcare

Agriculture

Education

Consulting

Creative Industries

Food and Beverage

Transportation and Logistics

Relevant Teams

Legal

Executive Leadership

Finance

Corporate Governance

Business Development

Operations

Compliance

Risk Management

Strategy

Relevant Roles

Business Owner

Managing Director

Chief Executive Officer

Company Director

Business Partner

General Counsel

Legal Counsel

Chief Financial Officer

Corporate Lawyer

Business Development Manager

Operations Manager

Partnership Manager

Company Secretary

Financial Controller

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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