Australian Partnership Agreement Drafting

Identify each partner, the business, State or Territory and commencement date. Describe cash, property, services and other contributions, together with the intended profit and loss shares. Include drawings, remuneration and future funding instructions so the draft distinguishes ownership, payment and capital arrangements.

Set out day-to-day roles, voting thresholds, reserved decisions and limits on spending or borrowing. Explain who may enter contracts, operate accounts and access records. Review the proposed authority rules against the applicable partnership framework and how the business will present each partner's role to others.

Provide instructions for retirement, a new partner, incapacity, death, disputes and business closure. Identify the intended valuation method, buyout timetable and treatment of ongoing commitments. Review the clauses together so an exit mechanism does not conflict with funding, decision-making or dissolution arrangements.

Do not assume a partnership agreement creates the same liability position as a company. The structure and applicable State or Territory law need assessment. A legal practitioner can review personal exposure, authority and indemnities, and whether the proposed partnership is suitable for the participants and business.