Articles of Partnership
Articles of partnership is a voluntary contract between two or among more than two persons to place their capital, labor, and skills, and corporation in 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.
Common components
There are also multiple sections which are often included as well in articles of partnership, based on the circumstance. These are:
▪ Host agreement – includes the granting of one partner the rights to manage and administer the business or a specific department. ▪ Majority management – includes the authorization of a majority of partners to manage the affairs of the entire partnership. This is particularly common where there are numerous partners. ▪ Annual account – includes provisions to account for, annually, the property and debts of the business. ▪ Consistent interest – includes the forbidding of any partner to carry out business unrelated to the partnership. This is usually implied in articles of partnership. ▪ Misconduct expulsion – includes the allowance of expelling partners who commit gross misconduct or becomes insolvent, bankrupt, etc. This is particularly common where there are numerous partners. ▪ Resolution of dispute – includes the submission of arguments to arbitration. ▪ Causes income losses - includes the decline of income if companies losses profit.
ARTICLES OF PARTNERSHIP
The name given to an instrument of writing by which the parties enter into a partnership, upon the conditions therein mentioned. This instrument generally contains certain provisions which it is the object here to point out. 2. But before proceeding more particularly to the consideration of the Subject, it will be proper to observe that sometimes preliminary agreements to enter into a partnership are formed, and that questions, not unfrequently, arise as to their effects.
Common components
There are also multiple sections which are often included as well in articles of partnership, based on the circumstance. These are:
▪ Host agreement – includes the granting of one partner the rights to manage and administer the business or a specific department. ▪ Majority management – includes the authorization of a majority of partners to manage the affairs of the entire partnership. This is particularly common where there are numerous partners. ▪ Annual account – includes provisions to account for, annually, the property and debts of the business. ▪ Consistent interest – includes the forbidding of any partner to carry out business unrelated to the partnership. This is usually implied in articles of partnership. ▪ Misconduct expulsion – includes the allowance of expelling partners who commit gross misconduct or becomes insolvent, bankrupt, etc. This is particularly common where there are numerous partners. ▪ Resolution of dispute – includes the submission of arguments to arbitration. ▪ Causes income losses - includes the decline of income if companies losses profit.
ARTICLES OF PARTNERSHIP
The name given to an instrument of writing by which the parties enter into a partnership, upon the conditions therein mentioned. This instrument generally contains certain provisions which it is the object here to point out. 2. But before proceeding more particularly to the consideration of the Subject, it will be proper to observe that sometimes preliminary agreements to enter into a partnership are formed, and that questions, not unfrequently, arise as to their effects.