60 40 Partnership Agreement for Nigeria

60 40 Partnership Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes a partnership with a 60-40 ownership split between two or more parties. The document outlines the terms and conditions of the partnership, including capital contributions, profit and loss sharing, management rights, decision-making processes, and exit provisions. It complies with Nigerian Partnership Act requirements and includes specific provisions for protecting both majority and minority partners' interests while ensuring smooth business operations under Nigerian jurisdiction.

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What is a 60 40 Partnership Agreement?

The 60-40 Partnership Agreement is a crucial legal document used in Nigerian business contexts when establishing partnerships with a clear majority-minority ownership structure. This agreement type is particularly relevant when one partner contributes more capital, expertise, or resources and therefore warrants a controlling interest (60%), while still providing significant rights and protections to the minority partner (40%). The document ensures compliance with Nigerian partnership laws, including the Partnership Act of 1890 and the Companies and Allied Matters Act (CAMA) 2020. It's commonly used in various business scenarios, from professional services to manufacturing ventures, and includes comprehensive provisions for profit sharing, management control, dispute resolution, and exit strategies. The agreement is especially popular in situations involving local-foreign partnerships or when experienced business operators partner with capital investors.

What sections should be included in a 60 40 Partnership Agreement?

1. Parties: Identification and details of the partners entering into the 60-40 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 Structure: Details of the 60-40 ownership split and partnership type

5. Capital Contributions: Initial and ongoing capital contributions from each partner

6. Profit and Loss Sharing: Specific arrangements for the 60-40 profit and loss distribution

7. Management and Decision Making: Partnership management structure and voting rights

8. Partner Duties and Responsibilities: Specific roles and obligations of each partner

9. Banking and Financial Matters: Financial management procedures and banking arrangements

10. Records and Accounts: Requirements for maintaining partnership records and accounts

11. Partner Meetings: Procedures for regular and special partner meetings

12. Transfer of Partnership Interest: Rules regarding the transfer of partnership shares

13. Exit Provisions: Procedures for partner withdrawal, retirement, or death

14. Dispute Resolution: Process for resolving disagreements between partners

15. Termination: Conditions and procedures for partnership termination

16. Governing Law: Specification of Nigerian law as governing law

What sections are optional to include in a 60 40 Partnership Agreement?

1. Non-Competition: Restrictions on partners engaging in competing businesses

2. Intellectual Property Rights: For partnerships involving IP assets or creative work

3. Insurance: Requirements for business insurance coverage

4. Employee Management: For partnerships that will have employees

5. International Operations: For partnerships planning to operate internationally

6. Technology and Data Protection: For partnerships handling sensitive data or technology

7. Environmental Compliance: For partnerships in industries with environmental impact

8. Force Majeure: Provisions for unforeseen circumstances affecting the partnership

What schedules should be included in a 60 40 Partnership Agreement?

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

2. Schedule 2: Profit Sharing Mechanism: Detailed calculation method for the 60-40 profit distribution

3. Schedule 3: Partner Information: Detailed information about each partner including contact details

4. Schedule 4: Business Plan: Initial business plan and strategic objectives

5. Schedule 5: Asset Register: List of partnership assets and their ownership status

6. Appendix A: Banking Arrangements: Details of partnership bank accounts and authorized signatories

7. Appendix B: Accounting Policies: Specific accounting policies and procedures to be followed

8. Appendix C: Management Structure: Detailed organizational structure and reporting lines

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Retail and Commerce

Manufacturing

Technology and IT

Real Estate

Agriculture

Oil and Gas

Construction

Healthcare

Education

Financial Services

Hospitality

Consulting

Import/Export

Transportation and Logistics

Relevant Teams

Legal

Finance

Corporate Affairs

Compliance

Risk Management

Business Development

Strategy

Operations

Investment

Corporate Governance

Relevant Roles

Business Owner

Managing Partner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Business Development Manager

Investment Manager

Company Director

Corporate Lawyer

Financial Controller

Operations Manager

Partnership Manager

Risk Manager

Compliance Officer

Strategy Director

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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