Document background
The 50/50 Operating Agreement is a fundamental document used when two parties wish to establish an equal partnership under Canadian jurisdiction. This type of agreement is particularly crucial when partners want to ensure equal control and participation in business operations while maintaining clear guidelines for management and decision-making. The document addresses key aspects required by Canadian federal and provincial legislation, including corporate governance, partnership rights, and tax considerations. It provides comprehensive coverage of operational matters, financial arrangements, dispute resolution mechanisms, and exit strategies. The agreement is especially valuable for new partnerships, joint ventures, or business restructuring where equal ownership and control are desired. The 50/50 Operating Agreement typically includes detailed provisions for deadlock resolution, given the equal voting rights of partners, and incorporates specific requirements from relevant provincial Partnership Acts and the Canada Business Corporations Act.
