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Partnership Operating Agreement
"I need a Partnership Operating Agreement for a Hong Kong law firm with five equal partners, including specific provisions for profit sharing based on performance metrics and a detailed process for adding new partners starting January 2025."
1. Parties: Identifies and provides details of all partners entering into the agreement
2. Background: States the context and purpose of forming the partnership
3. Definitions: Defines key terms used throughout the agreement
4. Partnership Formation: Details of partnership establishment, name, business purpose, and term
5. Capital Contributions: Specifies initial and ongoing capital contributions from each partner
6. Ownership Interests: Outlines the percentage ownership and profit/loss sharing ratios
7. Management and Voting: Describes management structure, decision-making processes, and voting rights
8. Partners' Rights and Obligations: Details the rights, duties, and responsibilities of all partners
9. Financial Affairs: Covers accounting practices, banking, financial records, and distributions
10. Transfer Restrictions: Rules regarding transfer of partnership interests and admission of new partners
11. Withdrawal and Removal: Procedures for voluntary withdrawal and involuntary removal of partners
12. Dissolution and Liquidation: Process for partnership dissolution and asset distribution
13. Confidentiality: Obligations regarding confidential information and trade secrets
14. Dispute Resolution: Procedures for resolving disputes between partners
15. General Provisions: Standard clauses including notices, amendments, governing law, etc.
1. Non-Competition and Non-Solicitation: Restrictions on partners competing with the partnership or soliciting clients/employees - include when partners have access to sensitive information or significant client relationships
2. Intellectual Property Rights: Provisions regarding ownership and use of IP - include when the partnership develops or uses significant IP
3. Insurance: Requirements for partnership and partner insurance - include when there are significant liability risks
4. Employee Matters: Policies regarding hiring, management of employees - include when the partnership will have employees
5. Tax Matters: Detailed tax planning and allocation provisions - include when complex tax arrangements are needed
6. Foreign Operations: Provisions for international business activities - include when operating across jurisdictions
7. Deadlock Resolution: Specific procedures for resolving management deadlocks - include in 50/50 partnerships or where deadlock is likely
8. Partner Death/Incapacity: Detailed procedures for handling partner death or incapacity - include when partners are individuals rather than entities
1. Schedule 1: Partner Information: Detailed information about each partner, including contact details and representatives
2. Schedule 2: Initial Capital Contributions: Itemized list of each partner's initial capital contributions, including valuations
3. Schedule 3: Business Plan: Initial business plan and strategic objectives of the partnership
4. Schedule 4: Management Structure: Detailed organizational chart and management responsibilities
5. Schedule 5: Distribution Policy: Detailed procedures for calculating and making partner distributions
6. Appendix A: Banking Resolution: Banking arrangements and authorized signatories
7. Appendix B: Accounting Policies: Detailed accounting procedures and policies
8. Appendix C: Compliance Procedures: Regulatory compliance requirements and procedures
Authors
Professional Services
Legal Services
Accounting and Advisory
Real Estate
Trading and Distribution
Technology and Innovation
Healthcare
Consulting
Architecture and Design
Engineering
Food and Beverage
Retail
Investment and Financial Services
Manufacturing
Education and Training
Legal
Finance
Corporate Secretarial
Compliance
Risk Management
Business Development
Operations
Executive Leadership
Administrative
Partnership Management
Managing Partner
Senior Partner
Business Development Manager
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Corporate Secretary
Operations Director
Finance Director
Compliance Officer
Risk Manager
Partnership Administrator
Business Owner
Entrepreneur
Professional Partner
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