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Why it is strongly advisable to have a written partnership agreement

PARTNERSHIP LAW IN IRELAND

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If you are in a partnership and don’t have a written partnership agreement..

The Partnership Act, 1890 will govern your partnership arrangement

This is likely to be completely inappropriate nowadays for your business

WHY A WRITTEN PARTNERSHIP AGREEMENT?

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The law assumes that any time 2 or more people come together to carry on a business and don’t form a

company..they are in a partnership

Many professionals such as doctors, dentists, accountants, solicitors are not allowed to form companies

ARE YOU IN PARTNERSHIP?

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A partnership, unlike a limited company, is not a separate legal entity

This means that each partner is jointly and individually liable for all the debts and losses of the partnership

Even where one partner acts fraudulently and puts the other partners on the hook

PARTNERSHIP V LIMITED COMPANY

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Partnership Act 1890 defines a partnership and essentially states that where 2 or more people carry on business with a

common view of profit, then a partnership exists

DEFINITION OF PARTNERSHIP

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Without a written partnership agreement the Partnership Act, 1890 will prevail

This means..

No right to expel a partner

Any partner may dissolve the partnership

If a partner dies, the partnership will dissolve automatically

There is no power to retire under the Partnership act, 1890

NO WRITTEN AGREEMENT?

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A written partnership agreement should contain a non compete agreement for when a partner leaves

Should set out the situation concerning the financial rights and obligations of the partners

Should provide for remuneration of the partners as the Partnership Act, 1890 does not permit remuneration for

partners

Should deal with partnership property-who owns what and what is partnership property?

Should provide for the expulsion of a partner

PARTNERSHIP AGREEMENT-WHAT TO INCLUDE

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Should provide for the dissolution of the partnership and what is to happen on the death of a partner

PARTNERSHIP AGREEMENT..

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For more information about partnership law and the law impacting on small business in Ireland visit my website:

http://BusinessAndLegal.ie

Click Here

Call 086/81 21 797

046/95 51 362

Email: terry@businessandlegal.ie

Special offer on having a partnership agreement drafted:

25% off regular fee when you quote ‘slideshow’ or ‘video’

Thanks for watching

TERRY GORRY, SOLICITOR