A partnership deed, also known as a partnership agreement, is a legal document that outlines the terms and conditions of a partnership. It lays out the rights and responsibilities of the partners, the management of the business, and the distribution of profits and losses.
The partnership deed typically includes the following information:
- Names and addresses of the partners
- The nature of the business and the purpose of the partnership
- The capital contribution of each partner and the profit and loss sharing ratio
- The duties and powers of each partner
- The procedure for admitting new partners
- The procedure for the dissolution of the partnership
- The arbitration clause in case of any disputes
- The duration of the partnership, if it is not a permanent partnership
It’s important to have a partnership deed in place, as it helps to avoid future disputes and disagreements between the partners. It acts as an agreement which partners follows and governs their mutual relationships. It also gives a legal framework to the partnership which protects the interest of all partners in case of any disputes. It’s advisable to have this document prepared and reviewed by a lawyer to ensure that it complies with the laws of the country where the partnership is established.
