Articles of partnership
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(Redirected from Partnership agreement)
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]
[edit] Common components
There are also multiple sections which are often included as well in articles of partnership, based on the circumstance. These are:
- 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.
[edit] External links
- Articles of Partnership Defined & Explained
- Article about choosing a Partnership as a business entity
- Partnership agreement to constitute a Virtual Company
[edit] References
- ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 191. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4.[dead link]
