Partner contract? HELP!!!

[Softlysoftlycatchymonkey]

Not sure where I should post this - looking for advice on partnership contract.

My dp help start up a new limited buisness. The owner and his brother are directors. It's a small buisness but expanding fast.

My dp and his work colleague have been offered partnership.

They are to make the contract themselfs and take it to the owner (very laid back)

He will have a share of the new clients payment and a share in the company if it's sold

We havnt a fucking clue where to start!

Please can some one point me in the right direction.

Many thanks!!

BUMP

A limited company is a different type of entity to a partnership. Is the business currently registered as a limited company? If so, are they being offered shares/director roles i.e. business partners rather than partners in a partnership. As a partner in a partnership under 1890 Partnership Act your dh's liability with regard to the business would be unlimited. This needs to be considered very carefully and definitely not rushed into without full knowledge and proper legal advice.

Can I throw into the mix there are now limited liability partnerships (LLP).
Partnership agreements need legal advice from specialist solicitors, I have been in a partnership and it is really essential that's everyone's position is clear.

This is really an area you cannot cut corners on. Go and find a good specialist solicitor and get clued up fast.

What everyone else said. This needs drafting properly.

Hi thanks for replying - I got it wrong !
It's equity shares agreement/contract I need to look in to .

You shouldn't be looking into it at all, the owners of the business should be getting the relevant agreement professionally drafted. If they want to offer equity or shares or whatever in their business, they need to be the ones to set out the terms of that agreement, for your DO and his colleague to review and consider.

I agree with Flowery. I would be wary of taking a stake in a business run by someone this laid back. It doesn't bode well for their commitment to developing the company sustainably and profitably over the longer term or their ability to grow short term and sell at a premium. Is this equity being offered as a bonus or in lieu of pay/pay in line with contribution to business?