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Topic: Company and partnership documents

admission of new partner to existing partnership
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Admission of new partner to existing partnership

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.

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