Introduction to this document
Admission of new partner
to existing partnership
You’ve decided at allow a new partner to join the partnership. Use our agreement to ensure that the new partner is correctly integrated without creating problems in the future.
Advice
It’s not compulsory to have a written partnership agreement. Nonetheless, it makes sense to have one, not least so that you’re able to cater for things going wrong, e.g. getting rid of a partner who’s not performing. Taking on a new partner should give you the opportunity to examine your existing partnership agreement, and if need be, use this opportunity to bring things up to date.
Tip
When taking on a new partner, ensure that in the agreement you clearly and carefully define their role. Specify any limits on their authority to act as a partner, e.g. they can’t sign cheques or enter into contracts that exceed a certain value. You’ll also need to sort out with them about how much capital, if any, they’re expected to put up and when and how this is to be paid.
Document
02 Aug 2009