What Are Some Of The Items That Need To Be Included In The Partnership Agreement. If the event where there is no such partnership agreement, how does this being covered under the Malaysian Partnership Act 1961,

November 18th, 2009 Comments off
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Answer:

What items to be included in a usual partnership agreement?

Generally, the following are the important items that need to be included in any partnership agreement:

  • Amount of capital to be contributed by individual partner;
  • Profit sharing ratio;
  • Salaries to be paid to the partners;
  • Interest on capital contributed;
  • Interest on loans from partners
  • Drawings
  • Interest on drawings,etc

In the event, there is no partnership agreement, the terms should follow under the MALAYSIAN Partnership Act 1961 which are:

  • All partners should contribute an equal amount of capital;
  • Partners should not receive salaries;
  • Interest on capital or on drawings is not allowed;
  • Partners should share profits and losses equally;
  • An interest of 8% should be paid on loans from partners.

 

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