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Articles of partnership

From Wikipedia, the free encyclopedia

Articles of partnership is a voluntary contract between/among two or more persons to place their capital, labor, and skills into business, with the understanding that there will be a sharing of the profits and losses between/among partners. Outside of North America, it is normally referred to simply as a partnership agreement.[1]

A partnership agreement is the written and legal agreement between/among business partners. It is always recommended but not essential for partners to have such an agreement.

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Transcription

Contents

Articles of partnership

Multiple sections are often included in articles of partnership, based on the circumstances:

  • the granting of the partner the rights to manage and administer the business or a specific department.
  • the authorization of a majority of partners to manage the affairs of the entire partnership. This is particularly common where there are numerous partners.
  • provisions to account for, annually, the property and debts of the business.
  • the forbidding of any partner to carry out business unrelated to the partnership. This is usually implied in articles of partnership.
  • the allowance of expelling partners who commit gross misconduct or becomes insolvent, bankrupt, etc. This is particularly common where there are numerous partners.
  • the submission of arguments to arbitration.
  • the allocation of business income and losses among partners.

See also

References

  1. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 191. ISBN 0-13-063085-3.

External links

This page was last edited on 24 September 2016, at 04:42
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