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Multi Member Operating Agreement Template for Australia

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Key Requirements PROMPT example:

Multi Member Operating Agreement

"I need a Multi Member Operating Agreement for a technology startup with four founding members, including provisions for future equity investors and protection of intellectual property, to be implemented by March 2025."

Document background
A Multi Member Operating Agreement is essential for any Australian business with multiple owners seeking to establish clear governance and operational frameworks. This document is particularly crucial when forming new business partnerships or restructuring existing ones, as it provides comprehensive coverage of member rights, responsibilities, and business operations under Australian law. The agreement includes vital provisions for capital contributions, profit sharing, management structure, decision-making processes, and dispute resolution, all while ensuring compliance with the Corporations Act 2001 and relevant state legislation. It serves as the foundational document that governs the internal operations of the business and the relationships between its members, providing clarity and legal certainty for all parties involved.
Suggested Sections

1. Parties: Identifies and provides details of all members entering into the agreement

2. Background: Sets out the context and purpose of the agreement, including the business objectives

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Formation and Name: Details of business registration, trade name, and establishment

5. Purpose and Powers: Specifies the business purpose and scope of activities

6. Capital Contributions: Details initial and ongoing capital contributions requirements from members

7. Membership Interests: Defines ownership percentages and classes of membership interests

8. Management Structure: Outlines the management framework and decision-making processes

9. Meetings and Voting: Procedures for member meetings and voting requirements

10. Financial Affairs: Covers accounting, banking, and financial management procedures

11. Distributions: Rules for profit distribution and allocation of losses

12. Transfer of Interests: Procedures and restrictions for transferring membership interests

13. Exit Provisions: Processes for member withdrawal, retirement, or expulsion

14. Dissolution: Circumstances and procedures for winding up the business

15. Dispute Resolution: Procedures for handling disputes between members

16. Confidentiality: Obligations regarding confidential information

17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Intellectual Property: Required when the business owns or develops significant IP assets

2. Employment of Members: Needed when members may also be employed by the business

3. Competition Restrictions: Include when non-compete and non-solicitation provisions are necessary

4. Insurance: Detailed insurance requirements when business has specific risk profiles

5. Related Party Transactions: Include when members may conduct business with the company

6. Tag-Along and Drag-Along Rights: Include for businesses that may seek future investment or sale

7. Pre-emptive Rights: Include when members want first right to purchase other members' interests

8. External Financing: Include when the business anticipates seeking loans or external funding

9. Special Purpose Vehicles: Required when business structure includes subsidiary entities

10. International Operations: Include for businesses operating across multiple jurisdictions

Suggested Schedules

1. Schedule 1 - Member Details: Complete member information including contact details and initial capital contributions

2. Schedule 2 - Business Plan: Initial business plan and strategic objectives

3. Schedule 3 - Membership Interest Register: Current register of all membership interests and their holders

4. Schedule 4 - Valuation Methodology: Agreed methods for valuing membership interests

5. Schedule 5 - Deed of Accession: Template for new members joining the business

6. Schedule 6 - Initial Officers: List of initial management team and their roles

7. Appendix A - Consent Forms: Standard forms for member approvals and consents

8. Appendix B - Meeting Procedures: Detailed procedures for conducting meetings

9. Appendix C - Financial Procedures: Detailed financial management and reporting procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















































Clauses











































Relevant Industries

Professional Services

Technology

Manufacturing

Retail

Construction

Healthcare

Food and Beverage

Real Estate

Financial Services

Consulting

Agriculture

Mining

Education

Transport and Logistics

Creative Industries

Relevant Teams

Legal

Corporate Governance

Executive Leadership

Finance

Compliance

Risk Management

Operations

Company Secretariat

Board of Directors

Business Development

Relevant Roles

CEO

Managing Director

Company Secretary

Chief Financial Officer

Chief Legal Officer

General Counsel

Business Development Manager

Operations Manager

Finance Director

Compliance Officer

Corporate Lawyer

Business Owner

Partner

Board Member

Executive Director

Risk Manager

Company Director

Founding Member

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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