o Limited Liability Partnerships
o Partnership Deeds
o Partnership Disputes
o Dissolving Partnerships
Partnerships are important business relationships. They are the business equivalent of a marriage and it is important that the partnership is properly regulated in the partnership documents so that all the partners understand their rights, and duties. Under English law if you do not have a formal partnership document it is presumed that profits and losses are shared equally. This rule is not sufficient for virtually all partnerships today. A partnership deed should define these rights and obligations more precisely.
There are many points to cover such as
• How will the partners contribute to capital
• How much can each partner draw?
• How should decisions be made?
• What happens if a partner wants to leave the partnership or retire?
If you are a partner in a business when did you last review these matters? The law might well have changed since you did so.
In reviewing these arrangements you can modernise the constitution of a partnership providing the secure motivation that all partners need to do their best for the business. It may be suitable that you reform the partnership as a Limited Liability partnership. This protects the personal wealth of the partners rather in the same way as a limited liability company does, but is this structure suitable for your business, and what are the taxation consequences.
Sometimes partnership disputes arise and these have to be sorted out, sooner rather than later. Kyriakides & Braier can provide all the solutions to all the legal issues that partnerships give rise to. We have a good record in resolving partnership disputes having acting for many partners in dispute, including solicitors, traders and property partnership.
To find out how we can help you, contact us.