If you’re a business owner and part of a partnership it is imperative that you have an up-to-date and relevant partnership agreement. And no I’m not talking about the template your lawyer pulled out all those years ago or the copy gathering dust in the archives.
Not only will a partnership agreement define the roles and responsibilities of each parties it is also a safety mechanism for all parties. Best case, you have a great working relationship with all parties and never need to use it. Worst case, you don’t get along with your partners, you get ill, the business is adversely affected, you need to exit.
Our advice in these matters is simple … sit around a table with your partners and agree on how the partnership will works, what the responsibilities are and what the expectations are. Have a lawyer draft the agreement and distribute for review. Now here’s the most important part – READ THE DOCUMENT – before you sign it!
The document should be subject to an annual review (or as agreed) and will need to be changed should circumstances within the partnership or the business change.
Get it right and be safe knowing that you are protected.
Do you have some knowledge to share? Perhaps a horror story? Perhaps a good story?
Who do you use and recommend?
Tell us at [email protected].