Partnership Deed - PDF by cuttiegyrl

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                               Partners for life? Why you need a Partnership Deed.

       By Tailored Marketing Solutions Limited
       Dated: Nov 19, 2008

       As a partner in a business did you know that you are governed by a law created more than 100 years ago?
       Tallents Solicitors explains why you should have a Partnership Deed drawn up to protect your business.

       Having a partner in business can help halve the workload, provide support when times are hard and
       improve your customer service. However when things take a turn for the worse, many partners don’t realise
       that they are governed by an Act created more than 100 years ago.

        The provisions of the Partnership Act of 1890 govern all business partnerships which do not have a
       partnership deed or agreement in place. Unfortunately this piece of legislation is now quite antiquated and
       does not often meet the needs of most modern day business partnerships.

        Says Jeremy Blatherwick, partner at Tallents Solicitors,

        “Obviously, a piece of legislation that was drafted more than 100 years ago will not address many current
       business concerns. A partnership deed is vital to set out the formalities of the business partnership so there
       are no grey areas. For example, it will define what each partner is entitled to do and is restricted from
       doing, their obligations and responsibilities and all the rights and benefits they enjoy. No modern business
       partnership should be without one.”

        It is often the case that many business partnerships are formed by friends, relatives or married couples,
       rather than by business professionals, and in this case, people don’t understand there is still a need for a
       partnership deed.

        Jeremy continues,
        “If you don’t have a partnership deed then you will be governed by the provisions of the Partnership Act of
       1890. This means that any partner can leave the partnership and immediately require it to be dissolved and
       the assets sold. The remaining partner has no say in this. Any proceeds from the sale would be used to settle
       debts and liabilities before being shared out between the partners.

        “If a partner dies, the partnership is automatically dissolved. Similarly, if one partner is made bankrupt
       then the partnership is automatically dissolved. Unfortunately, these examples are not exhaustive so
       running your business without a partnership deed is potentially very risky.”

        Even if you already have a deed, it is worth checking that it is as detailed as possible so that all the partners
       can rest assured and the business can grow safely.

        Says Jeremy,
        “The detail in the deed is key to protecting the business. In addition to the obvious formalities like who
       invested what sum of capital, it should also cover areas like car and benefits details, holiday entitlement, the
       absence policy and any exclusion clauses. Tallents can help every modern partnership to have a partnership
       deed that is relevant to their circumstances and their business.”

        For more information, contact Tallents on 01636 671881




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Tallents Solicitors, 3 Middlegate, Newark
Tel: 01636 671881

www.tallents.co.uk

###

ABOUT TALLENTS

 Established in 1774 and with offices in Newark, Mansfield and Southwell, Tallents Solicitors services the
legal needs of private individuals, company and commercial clients and farmers in North Nottinghamshire
and Lincolnshire.

 We still offer a personal service to our clients and our size and structure ensures that partners are never
remote from our clients. We provide a full range of legal services and our expertise covers all areas of law
including:

 Agricultural law, criminal law, commercial and domestic property transactions, inheritance tax planning,
trust and estate administration, wills and probate, commercial and general litigation, employment law,
company and commercial law, intellectual property, matrimonial and family law, personal injury claims
and children issues.

Category           Business, Legal
Tags               tallents, solicitors, newark, southwell, mansfield, partnership deed, Business, partnership act 1890
Email              Click to email author
Country            United Kingdom




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