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 name2. Partners names and addresses3. Nature of your business4. How much money each partner put

into the business5. How profits will be shared out (state

as a percentage)6. How many votes each partner will

have in any partnership meetings7. What each partner will be in control

of8. What happens if a partner wants to

leave

Deed of Partnership

Deed of Partnershipbetween

Name……Name……

The name of the business will be……

Name Name 56 Horton Avenue 6 Park Road

Oldham OldhamOL1 6VS OL4 7HT

The business willGive a brief description of what your business will do/sell

Each partner agrees to invest the sum ofSay how much each partner is investing into the business to start it up

ProfitsSay how much profit each partner will get and WHYE.g. each partner will get an equal share of the profit

ORE.g. Character A will get 60% share of the profit and Character B will get 40% share of the profit

VotingSay how many votes each partner will get at meetings

The duties of the partners will be as followsSay 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 familyThe partner or their family can draw out his or her share of the profit

Signed ..........................................................................Witnessed.....................................................................

Exam

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