A partnership agreement is a legal agreement between two or more people that formally regulates an ongoing relationship between partners in a business. The aim of a partnership agreement is to protect the shared intentions and interests of each partner involved in a business pursuit.
Partnership Agreements for small business
When entering a partnership in business, it’s crucial your business agreements are formalised. A partnership agreement governs and outlines the foundations of the business conduct of your partnership. This legally-binding partnership contract ensures your intentions and goals are clearly communicated, agreed upon and protected, and determines that profits, responsibilities and risks are shared by each partner, as are the actions of individuals within the partnership. It also provides every individual with a blueprint for mediating and resolving any potential disputes.
This written partnership contract clearly outlines the maintenance of the Partnership account, the duties, responsibilities and limitations of each partner, the operation of shares, and the sharing of property, capital and profit (or losses). This beneficial business partnership contract also outlines the specific rules that govern the dissolution of the partnership and the terms regarding retirement, death or the dismissal of a partner.
At Lawbase, we understand that every business partnership is unique, so it’s important to avoid generic templates that are often ambiguous and unenforceable. If you’d like to protect your business agreements with a tailored, personalised partnership agreement, please talk to us today.
Joint Venture Agreements
A joint venture agreement documents the terms and objectives of a joint business venture. A joint venture agreement (JVA) is specific to temporary business enterprises or arrangements, and importantly, is beneficial for two or more individuals or companies that wish to maintain their separate entity.
Joint venture agreements for small business
Joint Venture Agreements are essential for individuals or companies with different resources, skills, expertise or connections, but who possess a mutual goal (usually to generate profit). A joint venture agreement provides opportunities for business growth and flexibility, and allows all parties to share the costs of a potentially expensive venture, rather than bear the expenses on their own.
It’s crucial to formalise your legal agreements, and a customised joint venture agreement will effectively outline the unique objectives and management of your enterprise, while the terms will dictate who is responsible for which costs, and how profits will be distributed.
There are two types of joint ventures – an informal unincorporated joint venture agreement, where the relationship is regulated by the terms within the agreement, or an incorporated joint venture, where individuals form a separate company and become shareholders. The company will own the assets associated with the venture and will administer its activities through a board of directors.
At Lawbase, we’re committed to listening to and assessing your distinctive business needs, and we can tailor an agreement that will protect your interests and clearly define your rights and obligations. Contact us today so we can help you get started.
A shareholders agreement is a contract negotiated by shareholders when, on incorporation, members wish to regulate vital aspects of the company’s management in the context of their ownership of securities. It governs the obligations, rights and liabilities of shareholders (or members), and is supplementary to a company’s constitution.
Formalise your obligations and rights with a shareholder agreement
Shareholder agreements are highly beneficial because they ensure that the relationship between the company’s shareholders is agreed and documented. Typically, important terms incorporated in the agreement apply to the duties of the directors, the general operation of the business, board meetings and general meetings, as well as dividends, capital, loans, insurance and confidentiality.
A Shareholder Agreement will outline how critical business decisions will be made, and clauses can be customised to suit your company’s specific requirements. This includes a structure allowing the company to be valued independently in the event of a shareholder dispute, the management of intellectual property by shareholders, directors and key personnel, good and bad leaver provisions, the balance of power between majority and minority shareholders, pre-emptive rights, tag-along rights and drag-along rights.
At Lawbase, we understand that unexpected issues can arise when circumstances change in a company, and a failure to anticipate this can have serious consequences. We have extensive experience providing comprehensive and professional legal advice for small businesses across Australia, so if you’d like us to draft a customised shareholder agreement to protect your rights and the integrity of your enterprise, please talk to us today.