UK Partnership Agreement - Interview
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🤝

What is the partnership name?

The trading name of your partnership business

📅

When is this agreement dated?

The official date this partnership agreement is made

🎯

What is the partnership business purpose?

Describe the nature of your partnership business activities

📍

Where is the principal place of business?

The main business address and when trading begins

👥

How many partners are there?

A partnership must have at least 2 partners

👥
2 Partners
👨‍👩‍👦
3 Partners
👨‍👩‍👧‍👦
4 Partners
➕
More than 4
📝

Enter partner details

Name, address, capital contribution, and profit share for each partner

📊

How should losses be shared?

Usually the same as profit sharing, but can be different

⚖️
Same as Profit
Sharing
📈
Different
Ratio
💰

Interest on capital contributions?

Annual interest paid on partners' capital before profit distribution

Interest on capital rewards partners for investing more capital. It's paid before profits are distributed.
❌
No Interest
5️⃣
5% per annum
🔟
10% per annum
✏️
Custom Rate
💵

How are additional capital contributions handled?

If the partnership needs more capital in the future

🤝
Unanimous
Consent
👍
Majority
Consent
📊
Proportional to
Existing Shares
💳

Can partners make regular drawings?

Monthly withdrawals for living expenses before profit distribution

Drawings allow partners to take regular income. They're set off against profit share at year end.
❌
No Regular
Drawings
⚖️
Equal Monthly
Drawings
📊
Proportional to
Profit Share
✏️
Custom
Amounts
💵

Do partners receive salaries?

Salaries paid before profit distribution for active working partners

Default Partnership Act: no partner salaries. Salaries are typically for partners who work more in the business.
❌
No Partner
Salaries
✅
Yes, Partners
Receive Salaries
📋

Who can make ordinary business decisions?

Day-to-day operational decisions like client acceptance, routine purchases

Default Partnership Act: every decision requires unanimous agreement. You can change this for efficiency.
👤
Any Single
Partner
👥
Majority
Vote
🤝
Unanimous
Consent
⚡

What approval is needed for major decisions?

Significant matters like capital expenditure over limit, taking loans, admitting partners

👥
Majority
Vote
🤝
Unanimous
Consent
💪
75%
Supermajority
💳

Set spending limits and banking authority

Maximum single transaction and who can sign cheques

Maximum amount a partner can spend without approval

📋

What are each partner's roles and duties?

Define responsibilities and general obligations

⏰

What time commitment is expected?

Expected working hours and rules for outside business activities

➕

Admission of new partners

What approval is needed and how capital is determined

🚪

Partner withdrawal and retirement

Notice period, retirement age, and buyout terms

💰

How is a departing partner's share valued?

Critical to avoid disputes when partners leave

⚠️

Expulsion of partners

Removal for serious misconduct or breach of duties

Courts will enforce reasonable expulsion terms for serious breaches, fraud, bankruptcy, or bringing partnership into disrepute.
🏥

What happens on partner death or incapacity?

Effect on partnership and payment to estate or incapacitated partner

🏥

Long-term incapacity provisions

What happens if a partner can't work for extended period

🔒

Non-compete restrictions after departure?

How long departing partners are restricted from competing

Must be reasonable to be enforceable. Courts scrutinize duration and geographic scope carefully.
❌
No Non-Compete
⏱️
6 Months
📅
12 Months
⏰
24 Months
🌍

Geographic scope of non-compete?

Where the non-compete restriction applies

📍
Local Area
(25 mile radius)
🗺️
Regional
(County/Region)
🇬🇧
United
Kingdom
🌐
No Geographic
Restriction
🤝

Client non-solicitation restriction?

Prevents departing partners from soliciting partnership clients

📅
12 Months
Post-Departure
⏰
24 Months
Post-Departure
♾️
Indefinite for
Active Clients
❌
No
Restriction
🔐

Confidentiality obligations

How long partners must keep partnership information confidential

♾️
Indefinite
(Trade Secrets)
5️⃣
5 Years
Post-Departure
3️⃣
3 Years
Post-Departure
⚖️

How should disputes be resolved?

Process before going to court - saves significant costs

🤝
Mediation, then
Arbitration
💬
Mediation
Only
⚖️
Arbitration
Only
👨‍⚖️
Expert
Determination
📜

Which arbitration framework?

If disputes go to arbitration

🏛️
LCIA
(London Court)
⚖️
CIArb
(Chartered Institute)
📋
ARIAS UK
📚

Voluntary dissolution of partnership

What majority is needed to dissolve the partnership

🤝
Unanimous
Consent
💪
75%
Supermajority
👥
Simple
Majority
💼

How are assets distributed on dissolution?

When the partnership ends

📜
Partnership Act
Order
📊
Proportional to
Profit Shares
⚖️
Equal
Distribution

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