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The Investment Club Partnership Agreement is essential for groups of investors in South Africa who wish to pool their resources and invest collectively while maintaining a formal legal structure. This document is typically used when two or more individuals or entities decide to form an investment club, requiring a formal partnership agreement that complies with South African partnership law and financial regulations. The agreement comprehensively covers crucial aspects such as capital contributions, investment strategies, profit sharing, management responsibilities, and partner rights and obligations. It provides the legal framework necessary for the club's operation while protecting all partners' interests. The document must adhere to South African legal requirements, including compliance with the Financial Advisory and Intermediary Services Act (FAIS), Financial Intelligence Centre Act (FICA), and relevant tax laws. It's particularly important for establishing clear governance structures and decision-making processes while managing potential risks and disputes.

1. Parties: Identification of all founding partners and their contact details

2. Background: Context of the agreement and purpose of establishing the investment club

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Formation of Partnership: Formal establishment of the partnership, name, and commencement date

5. Purpose and Objectives: Investment objectives, strategy, and scope of partnership activities

6. Contributions and Capital Accounts: Initial and ongoing capital contributions, maintenance of capital accounts

7. Partnership Interests: Partners' ownership percentages and voting rights

8. Management and Administration: Governance structure, decision-making processes, and administrative procedures

9. Investment Policy: Investment criteria, restrictions, and decision-making process for investments

10. Meetings and Voting: Procedures for partner meetings, voting requirements, and quorum

11. Financial Matters: Banking, accounting, auditing, and financial reporting requirements

12. Profit and Loss Distribution: Allocation of profits, losses, and distributions among partners

13. Transfer of Partnership Interests: Rules regarding transfer, sale, or encumbrance of partnership interests

14. Admission and Withdrawal of Partners: Procedures for admitting new partners and handling partner withdrawals

15. Duration and Termination: Term of partnership and circumstances leading to termination

16. Dissolution and Liquidation: Procedures for winding up the partnership and distributing assets

17. Confidentiality: Protection of partnership and partner confidential information

18. Dispute Resolution: Procedures for resolving disputes between partners

19. General Provisions: Standard legal clauses including notices, amendments, and governing law