This document is a clause which can be inserted into a partnership agreement, regarding the decision making process of the partnership.
Decision making processes will be different for each partnership and will depend on the nature of the partnership, the number of partners and the personalities of those partners. There is therefore no “one size fits all” decision making clause.
However, it is important to consider at the outset the process that the partners intend to use when making business decisions, and to set out a framework around the decision making process.
This precedent clause creates a framework, but will need to be populated and customised according to the agreed decision making processes.
Using this precedent
This is a general clause which can be inserted into a partnership agreement. This clause can also replace the management clause of the separate precedent “Partnership agreement (short form, general)”.
When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.
This document has been authored for LexisNexis by Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.