Partnership Contract

Negotiating means taking risks. But you don't want to run uncertain or unacceptable risks. We all agree that the collaboration commitments reached must be written and established in an unequivocal way. Companies usually are made up of more than one person. Sometimes they are incorporated as limited companies, or as general partnerships. Professionals such as doctors, auditors, and for example, lawyers, usually group in non-commercial partnerships.

It is wrongly believed that agreements among these individuals are stipulated in the Articles of Association of the corresponding company. Reality becomes evident when a disaster occurs, i.e. too late. For instance, establishing work-related agreements in writing is often considered unnecessary. Who will establish the terms and conditions for the dissolution when the company has just started business? This is exactly what you should do.

A successful and long-lasting professional collaboration starts, therefore, with (prior) work -related agreements and things of the kind. The best option is to establish these and other important agreements in a partnership contract.

When agreements are not stipulated beforehand, problems may arise later. What do these agreements provide for in case of death or work incapacity of one of the partners? What is the term to be able to sell the shares and at what price? Can a partner hire personnel on his/her own, or should this be agreed with the other partners? What has been agreed as regards the director remuneration and allocation of profit? Who represents the company? What will you and your partners do if an interesting offer for the company arises? If all this is not clearly established beforehand, as it often happens, in case of internal conflict or problems at the company, a joint solution is difficult to reach.

Gimbrère International Advocaten may advise you and is experienced in the establishment and dissolution of professional collaboration associations of entrepreneurs and other groups of professionals, such as physicians, lawyers or auditors.

Of course, the content of a partnership contract is fully dependent on the specific situation. Each company is different from the others.

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