Articles of partnership

From Wikipedia, the free encyclopedia
  (Redirected from Articles of Partnership)
Jump to: navigation, search

Articles of partnership is a voluntary contract between two or among more than two persons to place their capital, labor, and skills, and corporation in business with the understanding that there will be a sharing of the profits and losses between/among partners. Outside of North America, it is normally referred to simply as a partnership agreement.[1]

A partnership agreement is the written and legal agreement between business partners. It is always recommended but not essential for partners to have such an agreement.

Articles of Partnership[edit]

There are also multiple sections often included as well in articles of partnership, based on the circumstance:

  • Host agreement – includes the granting of one partner the rights to manage and administer the business or a specific department.
  • Majority management – includes the authorization of a majority of partners to manage the affairs of the entire partnership. This is particularly common where there are numerous partners.
  • Annual account – includes provisions to account for, annually, the property and debts of the business.
  • Consistent interest – includes the forbidding of any partner to carry out business unrelated to the partnership. This is usually implied in articles of partnership.
  • Misconduct expulsion – includes the allowance of expelling partners who commit gross misconduct or becomes insolvent, bankrupt, etc. This is particularly common where there are numerous partners.
  • Resolution of dispute – includes the submission of arguments to arbitration.
  • Causes income losses - includes the decline of income if companies losses profit.

External links[edit]

References[edit]

  1. ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 191. ISBN 0-13-063085-3. [dead link]