Partnership Act 1980 When a partnership is set up the Partnership Act 1980 states that each partner is EQUAL! The Partnership Act states that everything including decision making, responsibility and profit is split equally between the partners. However, if the partners invest unequal amounts of work & different hours they often get a solicitor to draw up a DEED OF PARTNERSHIP!

Deed of Partnership A Deed of Partnership is a document which sets out the rights and responsibilities of each partner. A solicitor is hired to draw up the partnership agreement. It states such things as:  who the partners are  how much money each partner has invested in the business  how profit will be shared out  how much responsibility each partner has  how many votes each partner has at meetings  what will happen if a partner wishes to leave or a new partner wants to join

Deed of Partnership It is advisable for the partners to have a Deed of Partnership drawn up so all partners to know their position in the business and their rights and responsibilities. It will help avoid disagreements as every partner knows where they stand in the business.

1.Business name 2.Partners names and addresses 3.Nature of your business 4.How much money each partner put into the business 5.How profits will be shared out (state as a percentage) 6.How many votes each partner will have in any partnership meetings 7.What each partner will be in control of 8.What happens if a partner wants to leave Deed of Partnership

between Name …… The name of the business will be …… Name 56 Horton Avenue6 Park RoadOldham OL1 6VSOL4 7HT The business will Give a brief description of what your business will do/sell Each partner agrees to invest the sum of Say how much each partner is investing into the business to start it up Profits Say how much profit each partner will get and WHY E.g. each partner will get an equal share of the profit OR E.g. Character A will get 60% share of the profit and Character B will get 40% share of the profit Voting Say how many votes each partner will get at meetings The duties of the partners will be as follows Say what jobs and duties each partner will be in charge of E.g. accounts, sales, customer service, ICT, etc Leaving the partnership If any of the partners retire, die or wish to leave the partnership then they agree to the following: Any outstanding debts will be paid by the partner or their family The partner or their family can draw out his or her share of the profit Signed Witnessed Example