In the course of my work I have considered hundreds of partnership and LLP members’ agreements. And in my dispute resolution role I have found and exploited weaknesses and loopholes in many such agreements. I can apply this experience for your benefit.
Partnership and LLP members agreements need to fulfil a number of functions:
- Cover every eventuality
- Clearly set out the rights and responsibilities of partners and members
- Achieve fairness between partners
- Preserve goodwill/client relationships
- Preserve continuity of the business
- Avoid provisions that are discriminatory
The law is constantly changing. Each new partnership or LLP law case (such as Tiffin, Seldon and van Winkelhof) has an impact on partnership and LLP members agreement drafting.
The consequences of not having an adequate partnership or LLP members agreement can be severe. Whether it is unintended discrimination or loose drafting of restrictive covenants, or some other failing, inadequate agreements can translate into expensive and distracting disputes, compensation payments, loss of key clients, partners and staff, and with them loss of turnover. If there is a loophole in your documentation it may well in due course be exploited.
If you do not have a partnership or LLP members agreement at all you are exposed to all manner of difficulties in the event of a falling out, or on the death of a partner or member.
Please feel free to telephone me on 020 7100 7766 for a confidential, no-obligation discussion of your situation.