LLP (Limited Liability Partnership), partnership, and shareholder agreements are essential legal documents that serve to define the rights, responsibilities, and relationships among the individuals or entities involved in a business.

As these agreements are used to define important factors such as roles and responsibilities, profit sharing rights, operational decision-making processes, and exit strategies it is vital to ensure legal advice is obtained to ensure they serve their purpose in helping to protect shareholder interests, resolve disputes and maintaining compliance with regulations.

Here’s an overview of our role in drafting each type of agreement:

LLP Agreement:

  • Understanding Business Structure: The solicitor begins by understanding the specific needs and goals of the LLP. They consider the roles and responsibilities of each partner and the overall structure of the business.
  • Customisation: Draft a bespoke LLP agreement tailored to the needs of the business. This includes outlining the contributions, profit-sharing arrangements, decision-making processes, and other key aspects.
  • Legal Compliance: Ensure that the LLP agreement complies with the relevant legal requirements and regulations governing LLPs in the UK.
  • Dispute Resolution: Include provisions for dispute resolution mechanisms and procedures to address conflicts among partners.
  • Advisory Role: Provide legal advice to the partners regarding their rights and obligations under the LLP agreement.

Partnership Agreement:

  • Business Understanding: Work with the partners to understand the nature of the business, the roles of each partner, and the goals of the partnership.
  • Drafting: Draft a comprehensive partnership agreement that defines the rights, responsibilities, and profit-sharing arrangements among partners.
  • Capital Contributions: Specify the contributions each partner makes to the partnership, whether in the form of capital, skills, or other resources.
  • Exit Strategies: Include provisions for the dissolution of the partnership, retirement of partners, and other exit strategies.
  • Legal Compliance: Ensure that the partnership agreement complies with applicable laws and regulations.

Shareholder Agreement:

  • Understanding Share Structure: Work with the shareholders to understand the company’s share structure, including classes of shares, voting rights, and dividend policies.
  • Customisation: Draft a shareholder agreement tailored to the specific needs of the company and its shareholders. This may include provisions related to share transfers, decision-making processes, and restrictions on share transfers.
  • Pre-Emptive Rights: Specify pre-emptive rights, allowing existing shareholders the opportunity to purchase additional shares before they are offered to external parties.
  • Management and Control: Define the roles of shareholders in the management and control of the company, including the appointment of directors.
  • Exit Strategies: Include provisions for the sale of shares, drag-along and tag-along rights, and other mechanisms to address exit scenarios.
  • Dispute Resolution: Incorporate mechanisms for resolving disputes among shareholders.

In drafting LLP, partnerships, and shareholder agreements we consider the unique circumstances of each business and create tailored legal documents based on needs of each business structure. We ensure legal compliance and provide ongoing legal advice to the parties involved.

If you would like help creating your agreements, please get in touch.