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Alex J.
Alex J., Solicitor
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Experience:  Solicitors 2 years plus PQE
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Can a partnership operate with one partner who has capital

Resolved Question:

Can a partnership operate with one partner who has capital invested and receiving 100% of the profits and two other partners with no capital investment but bringing skills to the partnership, but receiving drawings based on their skill input and no profit sharing ?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
This is possible but under the Partnership Act 1891 in the absence of a partnership agreement/deed it is presumed that everything is shared equally (assets and liabilities).
You will need to have a partnership agreement to described the rights to capital and the rights to profits. You should also place restrictions on things like who has the right to bind the partnership, who has access to bank accounts, who are the authorised signatories etc.
Kind regards
AJ
Customer: replied 1 year ago.

Can the non profit sharing partners get paid a varying amount each week/month based on their skill set and what work they do for the business in any one period?

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
That is possible, but would it not be easier to just have them as emoployees, or consultants who work and charge on a time and effort basis?
Kind regards
AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3557
Experience: Solicitors 2 years plus PQE
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