Limited Partnership Agreement

Limited Partner - 5 Parties

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Description:

Five Parties Limited Partnership Agreement (a general partnership) will be established under local law. It provides a basic Limited Partnership framework only. This agreement is drafted in favour of the Limited Partner.

LP1, LP2, LP3 and LP4 (each a "Limited Partner", together the "Limited Partners”) wish to establish a partnership with the General Partner (each a “Partner”, together the “Partners”) in [Territory] under the name of [name] (the Partnership) for the purpose of [business].

The Partners wish to regulate their relationship as partners in the Partnership and the management of the Partnership in accordance with the terms of this Agreement.

The Business shall be conducted in the best interests of the Partnership on sound commercial profit-making principles in accordance with the Business Plan. The Partners shall use all reasonable endeavours to procure its prompt and effective implementation.

The Partners shall respectively make initial contributions to the capital of the Partnership as follows:

(a) General Partner: [describe or refer to commitment to provide initial contribution: cash, assets, transfer of property etc.]

(b) LP1: [describe or refer to commitment to provide initial contribution: cash, assets, transfer of property etc.]

(c) LP2: [describe or refer to commitment to provide initial contribution: cash, assets, transfer of property etc.]

The Partners acknowledge and agree that, following the initial contributions:

(a) General Partner's Capital Account shall be credited;

(b) LP1's Capital Account shall be credited;

(c) LP2's Capital Account shall be credited.

The Percentage Shares of the Partners shall accordingly be X per cent for General Partner, Y per cent for LP1 and Z per cent for LP2 (or such other percentages as may from time to time be a consequence of any sale, assignment, transfer or disposal of the whole or part of a Partner's Partnership Interest pursuant to or as permitted by this Agreement).

Each Partner undertakes that it will during the term of this Agreement contribute its Percentage Share of all funding required by any relevant Budget or as agreed by the General Partner.

The following Reserved Matters shall in any event require unanimity of the General Partners:

(a) any change in the nature or scope of the Business (including any material business acquisition or disposal exceeding [amount] in value or any material partnership or joint venture);

(b) any material change in the organisation of the Partnership;

(c) appointing or removing the Chief Executive or other Executive Member or any material change in their respective employment terms;

(d) approving the Business Plan and Budget or any material deviation from the Business Plan or Budget;

(e) any expenditure on any particular item which is more than [amount] (except as provided for in the relevant Budget);

(f) disposing (including the grant of any security interest or other encumbrance over) any Partnership property where the value of the property exceeds [amount];

(g) any transaction with a Partner or its Affiliate (or any material amendment to any contract with a Partner or its Affiliates);

(h) removing Auditors and appointing new Auditors;

(i) any change in the accounting policies of the Partnership;

(j) commencing, settling or ceasing any litigation or arbitration involving the Partnership other than any litigation or arbitration involving (i) a dispute pursuant to this Agreement or (ii) a claim of less than [amount];

(k) the borrowing or lending by the LLP or the giving of [amount];

(l) any guarantee or undertaking by the LLP of or in respect of any sum or connected sums being (in the aggregate where appropriate) in excess of [amount];

(m) any determination whether any cash available to the Partnership is surplus to the requirements of the Partnership.

Except as provided below, the Limited Partners shall not have either the obligation or the right to take part, directly or indirectly, in the active management or control of the business of the Partnership. The following Partnership actions may only be taken after approval by vote of the Partners:

(a) veto of a call for additional capital;

(b) admission of an additional General Partner;

(c) admission of an additional Limited Partner;

(d) admission of a Successor General Partner;

(e) amendment of the Partnership Agreement as provided in

(f) the sale or transfer of the Business;

(g) any loan by a Partner to the Partnership;

(h) consent to dissolution;

(i) remuneration of the General Partner; and

(j) election of a new general partner.

The quorum for any meeting of the Partners (other than an adjourned meeting) is Partners holding more than 50% of the voting power shall be present in person or by proxy with at least one representative from each General Partner. If that quorum is not present within 30 minutes from the time appointed for the meeting or if during the meeting the quorum ceases to be present, the meeting shall be adjourned for seven (7) Business Days.

At least thirty (30) Business Days' written notice shall be given of any meeting of the Partners, provided that a shorter period of notice may be given with the written approval of all Partners. Any such notice shall include an agenda identifying in reasonable detail the matters to be discussed (in particular, of any matter set out in clause 7.14) and shall be accompanied by copies of any relevant papers to be discussed at the meeting and any resolutions to be tabled. A meeting of the Partners may consist of a conference between Partners who are not all in one place, but of whom each is able (directly or by telephonic communication) to speak to each of the others and to be heard by each of the others simultaneously; and the word meeting in this Agreement shall be construed accordingly.

Except where otherwise expressly set forth in this Agreement, all of the acts shall be approved by fifty-one percent (51%) vote of the interests of the Partners, each Partner having one vote for each one percent (1%) interest in profits and losses owned by that Partner with the General Partner having the same voting rights as a Limited Partner.

The General Partner shall devote such care, attention, and business capacity to the affairs of the Partnership as may be reasonably necessary and shall exercise reasonable business judgment in managing the affairs of the Partnership.

Any of the Partners may engage in or possess an interest in other business ventures of every nature and description independently or with others, and neither the Partnership nor the Partners shall have any right by virtue of this Agreement in and to any such independent ventures or to the income or profits derived therefrom.

How to use this Document?

This document should be carefully read by the Individual General Partner and Limited Partners.

This limited partnership agreement document may be used upon the formation and establishment of a limited partnership with five parties involved. Whereby the agreement outlines the framework of the limited partnership. 

Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.

How to Tailor the Document to Your Need

 

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Document Type:

Agreements / contracts

Category:

Business > Setup of Business / Entity > Partnership / Limited Partnership / LLP Agreement

 
Keywords:

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limited liability

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