The 50-50 Partnership Agreement is a crucial legal document used when two parties wish to establish an equal partnership business venture in Malta. This document is essential for partnerships where both parties intend to have equal rights, responsibilities, and profit-sharing arrangements. The agreement must comply with Maltese legislation, particularly the Companies Act (Chapter 386) and the Civil Code, and should be used when forming new partnerships or formalizing existing business relationships. It contains detailed provisions for capital contributions, management structure, profit distribution, dispute resolution, and partnership dissolution. The document serves as the founding agreement that governs the entire business relationship and provides legal protection for both partners.
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1. Parties: Identification and details of both partners entering into the 50-50 partnership
2. Background: Context of the partnership formation and brief description of the business purpose
3. Definitions: Definitions of key terms used throughout the agreement
4. Partnership Formation: Declaration of partnership formation, effective date, and business name
5. Capital Contributions: Details of initial and any agreed future capital contributions from each partner
6. Profit and Loss Sharing: Equal (50-50) distribution of profits and losses between partners
7. Management and Control: Decision-making processes and day-to-day management responsibilities
8. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial management
9. Partner Duties and Obligations: Specific responsibilities and commitments of each partner
10. Non-Competition and Confidentiality: Restrictions on competing activities and handling of confidential information
11. Duration and Termination: Term of partnership and conditions for termination
12. Death or Incapacity: Procedures in case of death or incapacity of either partner
13. Dispute Resolution: Process for resolving disagreements between partners
14. Governing Law: Confirmation of Maltese law as governing law and jurisdiction
15. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability
1. Intellectual Property: Required when the partnership involves creation or use of intellectual property
2. Employment of Partners: Needed when partners will be employed by the partnership
3. Insurance: Details of required insurance coverage when business activities require specific insurance
4. Property and Assets: Required when partnership owns or leases significant assets
5. Third Party Relationships: Needed when partnership has significant vendor or customer relationships
6. Data Protection: Required when partnership handles personal data subject to GDPR
7. Environmental Compliance: Needed for businesses with environmental impact or obligations
1. Schedule A - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contributions
2. Schedule B - Business Plan: Initial business plan and strategic objectives
3. Schedule C - Partner Contact Details: Complete contact information for both partners
4. Schedule D - Partnership Assets: Inventory of partnership assets and their agreed values
5. Schedule E - Operational Procedures: Detailed procedures for day-to-day operations
6. Appendix 1 - Banking Arrangements: Details of partnership bank accounts and authorized signatories
7. Appendix 2 - Accounting Policies: Agreed accounting principles and procedures
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