Commercial Partnership and LLP Agreement Solicitors
The law governing Partnerships is set out within The Partnership Act 1890. The Act is however somewhat limited in scope and can do little more than treat all partners equally. It provides that the Partnership will dissolve if one partner leaves the Partnership, deceases or becomes bankrupt. However, we understand that these provisions are often not appropriate for modern business life. For this reason and for the sake of clarity, it is common for partners to set out how their business will be run by creating a Partnership Agreement. Common provisions in such an agreement relate to; creating an option to purchase an outgoing partner’s share; providing a more detailed basis for setting out the division of profits as opposed to them being split equally; and, defining more clearly each partner’s role or function.
Similarly, those running a Limited Liability Partnership (LLP) will frequently find that having a professionally prepared agreement is advantageous to their business. In the absence of such an agreement, the provisions of the Limited Liability Partnership Act 2000 will automatically apply. Again, these default provisions are unlikely to coincide with the way you wish your business to be run. For example, under the Act all of the profits are split equally between the members regardless of their capital contributions. Given this, many businesses choose to clearly set out the internal workings of the LLP in an agreement. Typical provisions of an LLP Agreement relate to profit sharing, management and decision making and the admission of new members.
Both Partnership Agreements and LLP Agreements may be as simple or as complex as you wish and there is no requirement that the agreement be published, meaning that it can remain confidential.
O’Donnell Solicitors are able to advise on all aspects of general Partnership Agreements and LLP Agreements including whether and how your business may benefit from an agreement, the content which is to be incorporated and any disputes which may arise from an agreement. We recognise that the practical impact of an agreement on your business are often just as important as the legal aspects and we’ll endeavour to develop an agreement that represents the needs and requirements of all partners involved.
Although both Partnership and LLP Agreements are recommended at the time the business is formed, they can also be put in place at a later date.
Contact our Commercial Solicitors
The commercial team at O’Donnell Solicitors have helped many Partnerships and Limited Liability Partnerships by working with them to create bespoke Partnership Agreements. To speak to our team about instructing us to draft an agreement for your business, please contact us.