Partnerships and LLps

Question 1

how to have a partnership?

Answer 1

2 or more people have a view to make a profit.

Question 2

what are the key terms of a partnership agreement?

Answer 2

• All partners are entitled to a share equally in the capital and profits of the business and to contribute equally towards the losses of the business.
• No entitlement to salary.
• Have a duty to act in good faith.
• If a new partner joint or existing partner leaves, would be a technical dissolution.
• Decisions are taken on a majority business.
• Partnership will be bound and liable as principal for any act of a partner done in the usual course of business, of the kind carried on by the business.

Question 3

are LLps required to have a LLP agreement?

Answer 3

NO! or articles association.

Question 4

who are people with significant control?

Answer 4

PSC is defined by share ownership and control of voting rights.
More than 25%.
Company is required to file the updated PSC information with Companies house.

Question 5

is a partner liable for debts once they leave?

Answer 5

if the departure was published in the London gazette (providing constructive notice to third parties) then no!

Question 6

will a partner’s unauthorised act bind the firm?

Answer 6

yes if the act is for carrying on business of the kind carried on by the firm and in the usual way, and the third party id not know that the partner was unauthorised.