Limited Partnership Agreement

Neutral - 4 Parties

No. of Prokens Required: 3 |

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Four 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 Neutral Form.

LP1, LP2 and LP3 (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.

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.

All capital contributed by General Partner, LP1 and LP2 to meet funding shall (unless otherwise agreed by the Partners) be treated as a capital contribution and credited to its respective Capital Account.

Each Partner undertakes that, if the General Partner resolves that further funding from the Partners is required in addition to any such finance provided for in any relevant Budget and/or obtained from any third party borrowing, it will contribute its Percentage Share of the additional required funding on the terms set out or on such other terms as the Partners agree.

All sums contributed shall also be credited to the relevant Partner's Capital Account.

The Partners are not obliged to provide guarantees to support the Partnership's financing commitments. If they do so, such guarantees shall be given in proportion to each Partner's Percentage Share. The liabilities of the Partners under such guarantees (so far as possible) shall be several and not joint and several. If a claim is made under any such guarantee against a Partner, it is entitled to such a contribution from the other Partner as will ensure that the aggregate liability is borne by the Partners in their respective Percentage Shares.

The amount of profits and losses in respect of any Accounting Period shall be determined from the Accounts of the Partnership. All profits and losses of the Partnership for any Accounting Period shall be allocated to the Partners in proportion to their Percentage Shares, unless the Partners agree otherwise.

All profits and losses allocated under clause 6.1 shall be respectively credited or debited to the Partners' current accounts.

Any cash available to the Partnership which the General Partner determines is surplus to the requirements of the Partnership shall, at the request of any Partner, be distributed to General Partner, LP1 and LP2 in accordance with their respective Percentage Shares.

Overall supervision of the Business is the responsibility of the General Partner. The General Partner has authority to act on behalf of the Partnership in all matters in connection with the Business and will carry out its duties in such manner as the General Partner considers to be in the best interests of the Partnership.

Resolutions of the General Partner shall be passed as follows:

(a) Each General Partner has one vote. Any General Partner who is absent from the meeting may nominate any other General Partner who is present to act as his alternate and to vote in his place at the meeting.

(b) The General Partners present (if constituting a quorum) shall nominate a chairperson for that meeting; any General Partner acting as such a chairperson shall continue to have his vote.

(c) Resolutions of the General Partners are passed by simple majority.

(d) Should the number of votes be identical under (c), the resolutions shall be passed by a majority of the shares (51%) of the General Partners.

In the event of deadlock on any vote taken which cannot be resolved after a further meeting of the General Partners, the matter shall be referred to the Chief Executives or other senior representatives of the Partners whose determination (if unanimous) shall bind the General Partners.

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 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 ;

(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

(i) 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 fourteen (14) 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 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.

Document Type:

Agreements / contracts


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




partnership agreement


4 parties


four parties




limited partnership


general partner


limited partner


limited liability


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