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Limited Liability Agreement
"I need a Limited Liability Agreement for a tech startup in Lahore, with three founding partners contributing different capital amounts, where two partners will be actively involved in management and one will be a silent partner starting March 2025."
1. Parties: Identification and details of all parties entering into the agreement
2. Background: Context and purpose of the agreement, including any relevant history or circumstances
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Scope of Limited Liability: Clear delineation of the extent and limitations of liability for each party
5. Business Structure: Description of the business organization, management structure, and operational framework
6. Capital Contributions: Details of initial and ongoing capital contributions by parties
7. Profit and Loss Distribution: Terms for sharing profits and losses among parties
8. Management Rights and Responsibilities: Outline of management structure, decision-making processes, and voting rights
9. Transfer of Interests: Procedures and restrictions for transferring ownership interests
10. Dissolution and Termination: Conditions and procedures for dissolving the arrangement
11. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and relevant jurisdiction
12. Dispute Resolution: Procedures for resolving disputes between parties
13. Notices: Requirements for formal communications between parties
14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Intellectual Property Rights: Provisions regarding ownership and use of intellectual property, necessary when IP is involved in the business
2. Confidentiality: Provisions for protecting confidential information, recommended when sensitive business information is involved
3. Non-Competition: Restrictions on competitive activities, useful when protecting business interests from partner competition
4. Insurance Requirements: Specific insurance obligations, important for high-risk business activities
5. Employment Matters: Provisions regarding employee management and responsibilities, necessary when the business will have employees
6. Tax Matters: Specific tax arrangements and responsibilities, useful for complex tax structures
7. Foreign Investment Provisions: Special provisions for foreign investors, required when international parties are involved
8. Religious Compliance: Provisions ensuring compliance with Islamic banking principles, if required by the parties
1. Schedule 1: Capital Contributions: Detailed breakdown of each party's capital contributions
2. Schedule 2: Profit Sharing Ratios: Specific percentages and calculations for profit distribution
3. Schedule 3: Management Structure: Detailed organizational chart and management responsibilities
4. Schedule 4: Business Plan: Initial business plan and operational strategy
5. Schedule 5: Asset Register: List of company assets and their ownership status
6. Appendix A: Shareholder Information: Detailed information about all shareholders and their holdings
7. Appendix B: Registration Documents: Copies of relevant business registration and regulatory compliance documents
8. Appendix C: Special Resolutions: Any pre-agreed special resolutions or decisions
Authors
Technology
Manufacturing
Professional Services
Real Estate
Retail
Construction
Healthcare
Financial Services
Agriculture
Education
Energy
Telecommunications
Logistics
Consulting
Hospitality
Legal
Corporate Affairs
Compliance
Finance
Risk Management
Business Development
Operations
Corporate Governance
Investment
Executive Leadership
Chief Executive Officer
Managing Director
Business Owner
Corporate Lawyer
Legal Counsel
Company Secretary
Chief Financial Officer
Business Development Manager
Risk Manager
Compliance Officer
Investment Manager
Partner
Board Member
Operations Director
General Counsel
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