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Reconstructions And Restructuring

Posted on 01 Jun 2011 by admin | Filled under: trademarks

Business restructuring is often complex and involves the transfer of business assets and company control. A partnership is where more than one individual or entity gets together for a business venture with a view to make a profit. Traditionally people have seen partnerships between: Family members, whether they are siblings or spouses, operating small businesses; and Professionals, such as accountants and lawyers.

Generally, an act of a partner binds the others in the partnership unless it had been known to the third party affected that the partner was not so authorized.
Partnerships are regulated by the Partnership Act 1892 (NSW) ("the Act"). However, not everything in respect of a partnership is dealt with by the Act, thus the need for an agreement.

A good partnership agreement should cover at least the following issues:
The individuals or entities who will be partners and the maximum number of partners
whether it is a new partnership or continuation of an existing partnership
The business name, type of business of the partnership and the location of the business
Each partner's share in the business pursuant to which profit/loss is to be distributed
Each partner's capital contribution to the business and whether any interest will be paid on the capital

How will drawings be made from the business and whether a partner will be entitled to a salary, how each partner will be reimbursed for expenses
Bank, accountant and lawyer for the business and bookkeeping and preparation of accounts for the business.

Insurance for the partnership business and in respect of individual partner
What are the duties of each partner and who will be responsible for day-to-day management of the business. How decisions are to be made, what decisions require all or some partners and management meetings. For competent professional advice on partnership agreement or drafting a partnership agreement, please contact LAC Lawyers.

A partnership is where more than one individual or entity gets together for a business venture with a view to make a profit. Traditionally people have seen partnerships between:

1. family members, whether they are siblings or spouses, operating small businesses; and

2. professionals, such as accountants and lawyers.

Generally, an act of a partner binds the others in the partnership unless it had been known to the third party affected that the partner was not so authorized.