Partnership agreements & deeds service
Partnership agreements & deeds service for primary care organisations.
If everything runs smoothly, you won't need to use it
Partnership agreements & deeds service
A partnership agreement is somewhat like the insurance you buy for your car or house. If everything runs smoothly, you won't need to use it. However, just as failing to keep your insurer updated about changes like points on your driver's licence or a house extension can lead to a voided claim, neglecting to maintain proper documentation for your partnership can have similar consequences.
Under section 43 of the Indian Partnership Act, 1932
The protections within the agreement can become void if not properly upheld, resulting in a loss of the assumed coverage.
A partnership at will carries several risks due to its fundamental lack of structure and predictability. The following are key reasons why such a partnership is considered particularly hazardous:
Any business partner may issue a written notice to all other partners expressing their intention to dissolve your business. The dissolution takes effect on the date specified in the notice, and any partner has the authority to issue such notice at any time.
It is not permissible to expel a partner from your business; the only course of action available is to dissolve the partnership.
Your business / partnership will automatically terminate if any partner retires, dies, or becomes insolvent.
In cases where your business partners hold unequal capital shares, no method for calculating profit or loss will be applied. Instead, you are all entitled to an equitable distribution of profits and losses.
All your business partners have the right to participate in the management of the business, with no distinctions made between clinical and non-clinical partners. Furthermore, one of your partners may opt not to engage in management activities, thereby allowing others to assume those responsibilities. There shall also be no hierarchy or seniority among partners.
There will be no established framework governing entitlement to leave, the allocation of locum costs in such circumstances, or the extent to which your absent partners are entitled to a share of the profits.
There will be no probationary period provided for your existing partners to evaluate the professional and personal suitability of a new partner, nor for the new partner to assess the appropriateness of the organisation for long-term engagement. The lack of such a period may heighten the risk of conflicts and disputes within the partnership if unsuitable partners are admitted.
Should one of your partners depart, whether voluntarily or involuntarily, the partnership will automatically be dissolved, leading to the cessation of your business.
Absence of a dispute resolution process.
There is no prescribed procedure for addressing and resolving partnership disputes, rendering such disputes inherently disruptive and significantly costly.
How we can assist
We will craft a meticulously detailed and clearly defined partnership agreement to provide the utmost clarity and significantly reduce the risk of costly disputes down the line.
Our expertise includes drafting, reviewing, negotiating, and updating partnership agreements, as well as resolving issues with existing agreements.
By leveraging our comprehensive approach, you will benefit from expert advice tailored to both individual partners and the partnership as a whole, ensuring a well-managed and harmonious business relationship.
Complimentary partnership health checks
If we crafted your previous partnership agreement and it is still active, we offer a complimentary quarterly review to ensure that your agreement remains current and valid.
This proactive approach helps to identify and address any changes that might affect your agreement's effectiveness. If all aspects are in order, we will issue a certification of assurance for your records.
Should any updates be required, we will provide a competitively priced quote for the necessary revisions—significantly more cost-effective than alternative providers. This ensures you maintain the highest level of protection and clarity without incurring excessive costs.
