The 60 40 Partnership Agreement is designed for businesses operating in Singapore where two parties wish to formalize their business relationship with an unequal ownership structure. This document is particularly useful when one partner contributes more capital or takes on greater operational responsibility, warranting a larger ownership share. The agreement complies with Singapore's Partnership Act and provides comprehensive coverage of partnership operations, including capital contributions, profit sharing, management rights, and exit provisions. It's commonly used in new business ventures or when restructuring existing partnerships to reflect different levels of involvement or investment.
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1. Parties: Identification and details of all partners
2. Background: Context and purpose of the partnership
3. Definitions: Key terms used in the agreement
4. Partnership Structure: 60-40 ownership split and capital contributions
5. Management and Control: Decision-making processes and voting rights
6. Profit and Loss Sharing: Distribution of profits and losses according to partnership ratio
7. Duration: Term of partnership and renewal provisions
8. Termination: Circumstances and procedures for ending the partnership
1. Non-compete: Restrictions on competing activities when partners have other business interests
2. Intellectual Property: Ownership and use of IP when partnership involves creation or use of intellectual property
3. Dispute Resolution: Procedures for resolving disagreements when specific dispute resolution mechanisms are desired
4. Insurance: Required insurance coverage when specific risks need to be covered
1. Capital Contributions Schedule: Detailed breakdown of initial and ongoing capital contributions
2. Business Plan: Initial business plan and objectives
3. Asset Register: List of partnership assets and their ownership
4. Partner Responsibilities: Detailed outline of each partner's roles and duties
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