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Terms And Conditions Of Partnership Deed Template for Malaysia

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Key Requirements PROMPT example:

Terms And Conditions Of Partnership Deed

"I need a Terms and Conditions of Partnership Deed for a professional services firm in Kuala Lumpur with three partners, where profits will be shared 40-30-30 and we require strict non-compete clauses for all partners."

Document background
The Terms And Conditions Of Partnership Deed is a fundamental document for businesses operating as partnerships in Malaysia. It becomes necessary when two or more parties decide to enter into a business partnership, whether for professional services, trading, or any other legitimate business purpose. This document, governed by Malaysian law including the Partnership Act 1961 and Contracts Act 1950, serves as the constitutional document of the partnership. It comprehensively addresses aspects such as capital investment, profit sharing, management rights, partner obligations, and exit mechanisms. The deed must be properly executed and stamped in accordance with Malaysian law to be legally enforceable and should be carefully drafted to reflect the specific needs and agreements of the participating partners while ensuring compliance with local legal requirements.
Suggested Sections

1. Parties: Identifies and defines all partners entering into the partnership deed

2. Background: States the intention of the parties to form a partnership and brief context

3. Definitions: Defines key terms used throughout the partnership deed

4. Partnership Name and Business: Specifies the name under which the partnership will operate and nature of business

5. Commencement and Term: States when the partnership begins and its duration

6. Capital Contributions: Details the initial and any agreed future capital contributions of each partner

7. Profit and Loss Sharing: Specifies how profits and losses will be distributed among partners

8. Management and Decision Making: Outlines management structure and how decisions will be made

9. Partners' Duties and Obligations: Details the responsibilities and obligations of all partners

10. Banking and Financial Records: Specifies banking arrangements and requirements for maintaining financial records

11. Admission of New Partners: Procedures for admitting new partners to the partnership

12. Retirement and Expulsion: Processes for partner retirement and circumstances for expulsion

13. Death or Incapacity: Procedures following death or incapacity of a partner

14. Dissolution: Circumstances and procedures for partnership dissolution

15. Governing Law: Specifies that Malaysian law governs the partnership deed

Optional Sections

1. Non-Competition: Restricts partners from competing with the partnership - used when intellectual property or trade secrets are involved

2. Intellectual Property Rights: Addresses ownership and use of IP - included when partnership involves creation or use of intellectual property

3. Good Will: Defines treatment of partnership goodwill - important for professional services partnerships

4. International Operations: Addresses cross-border activities - included when partnership operates internationally

5. Alternative Dispute Resolution: Specifies mediation or arbitration procedures - useful for larger partnerships

6. Insurance: Details required insurance coverage - important for high-risk businesses

7. Environmental Compliance: Environmental obligations - needed for partnerships in industries with environmental impact

Suggested Schedules

1. Schedule 1: Capital Contributions: Detailed breakdown of each partner's capital contributions

2. Schedule 2: Profit Sharing Ratios: Specific percentages or formulas for profit and loss distribution

3. Schedule 3: Partners' Authority Limits: Detailed breakdown of spending and decision-making authority limits

4. Schedule 4: Partnership Assets: List of all assets owned by or transferred to the partnership

5. Appendix A: Partnership Premises: Details of business premises and any lease arrangements

6. Appendix B: Business Plan: Initial business plan and strategic objectives

7. Appendix C: Specimen Signatures: Partners' specimen signatures for banking and official documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































Clauses






























Relevant Industries

Professional Services

Retail

Manufacturing

Construction

Technology

Healthcare

Food and Beverage

Real Estate

Agriculture

Consulting

Education

Financial Services

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Secretarial

Business Development

Operations

Executive Leadership

Relevant Roles

Business Owner

Managing Partner

General Partner

Limited Partner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Company Secretary

Business Development Manager

Partnership Manager

Compliance Officer

Risk Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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