The Equity Partnership Agreement serves as the foundational document for professional partnerships operating under English and Welsh law. It is essential when establishing new partnerships or admitting new equity partners to existing structures. The agreement comprehensively covers crucial aspects including capital contributions, profit sharing, decision-making processes, and exit provisions. This document is particularly important for professional service firms where partners share both ownership and management responsibilities, ensuring clear understanding of rights, obligations, and governance structures.

1. Parties: Identification and details of all equity partners

2. Background: Context of the partnership formation and key objectives

3. Definitions: Key terms used throughout the agreement including those derived from Partnership Act 1890

4. Partnership Structure: Legal form, name, business purpose and place of business

5. Capital Contributions: Initial and ongoing capital requirements and procedures

6. Profit Sharing: Distribution of profits, losses and drawings arrangements

7. Management: Decision-making processes, voting rights and management structure

8. Partner Duties: Obligations, responsibilities and restrictions on partners

9. New Partners: Process for admitting new equity partners

10. Retirement and Exit: Provisions for voluntary retirement and exit mechanisms

11. Expulsion: Grounds and process for mandatory retirement or expulsion

12. Death and Incapacity: Procedures following death or permanent incapacity of a partner

13. Partnership Property: Ownership and use of partnership assets and property

14. Duration and Termination: Term of partnership and dissolution procedures

15. General Provisions: Standard boilerplate clauses including governing law