Accounting Partnership Agreement Template for Malaysia

The Accounting Partnership Agreement is a crucial legal document used when establishing or restructuring an accounting practice in Malaysia. It serves as the foundational document governing the relationship between partners in an accounting firm, ensuring compliance with both the Partnership Act 1961 and the Accountants Act 1967. This agreement is essential for accounting professionals who wish to practice together, covering crucial aspects such as capital contributions, profit sharing, management rights, professional obligations, and exit provisions. It must incorporate specific requirements for Malaysian accounting practices, including compliance with Malaysian Institute of Accountants regulations and professional standards. The document is particularly important for new partnership formations, admission of new partners, or updating existing partnership arrangements to reflect current legal and professional requirements.

1. Parties: Identification of all partners entering the agreement, including their full names, professional qualifications, and addresses

2. Background: Context of the partnership formation, including any existing practice being continued or new practice being established

3. Definitions: Definitions of key terms used throughout the agreement

4. Partnership Name and Business: Specification of the firm name and nature of business to be conducted

5. Commencement and Term: Start date of the partnership and whether it's for a fixed term or continuing

6. Capital Contributions: Details of initial and ongoing capital contributions by each partner

7. Profit and Loss Sharing: Formula and methodology for distributing profits and losses among partners

8. Management and Decision Making: Partnership governance structure, voting rights, and decision-making processes

9. Partners' Duties and Obligations: Specific responsibilities, commitments, and professional obligations of partners

10. Professional Standards: Compliance requirements with Malaysian Institute of Accountants standards and regulations

11. Banking and Financial Matters: Banking arrangements, financial controls, and accounting procedures

12. Admission of New Partners: Process and conditions for admitting new partners to the firm

13. Retirement and Exit: Procedures for partner retirement, resignation, or removal

14. Dissolution: Circumstances and procedures for partnership dissolution

15. Dispute Resolution: Procedures for resolving disputes between partners

16. Governing Law: Specification of Malaysian law as governing law and jurisdiction