60 40 Partnership Agreement for New Zealand

60 40 Partnership Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes and regulates a partnership with a 60/40 ownership and profit-sharing structure. This document outlines the rights, responsibilities, and obligations of both the majority and minority partners, including capital contributions, management rights, decision-making processes, and profit distribution mechanisms. It incorporates specific provisions aligned with New Zealand's Partnership Law Act 2019 and relevant commercial legislation, providing a robust framework for managing the unequal partnership arrangement while protecting both parties' interests.

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What is a 60 40 Partnership Agreement?

This 60/40 Partnership Agreement is designed for use in New Zealand when two parties wish to establish a formal business partnership with an unequal ownership structure. The document is particularly relevant when one partner contributes more capital, expertise, or resources and therefore warrants a larger controlling interest (60%) while still maintaining a significant stake (40%) for the other partner. It complies with New Zealand's Partnership Law Act 2019 and related commercial legislation, making it suitable for various business ventures where partners want to clearly define their unequal partnership structure while maintaining legal compliance. The agreement includes essential provisions for capital contributions, profit sharing, management rights, dispute resolution, and exit strategies, tailored to reflect the 60/40 ownership split while protecting both partners' interests.

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

1. Parties: Identification and details of the partners entering into the agreement

2. Background: Context of the partnership formation and brief description of the business purpose

3. Definitions: Key terms used throughout the agreement and their meanings

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 Distribution: 60/40 profit-sharing arrangement and loss allocation

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

8. Partners' Duties and Obligations: Responsibilities and commitments of each partner

9. Banking and Financial Records: Financial management procedures and record-keeping requirements

10. Addition and Withdrawal of Partners: Processes for changes in partnership composition

11. Dispute Resolution: Procedures for resolving disagreements between partners

12. Term and Termination: Duration of partnership and conditions for termination

13. General Provisions: Standard legal clauses including governing law, notices, and amendments

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

1. Non-Competition and Confidentiality: Restrictions on competing activities and protection of confidential information

2. Intellectual Property Rights: Ownership and management of IP created during the partnership

3. Insurance Requirements: Specific insurance policies partners must maintain

4. Employee Management: Procedures for hiring, managing, and terminating employees

5. Death or Incapacity: Procedures in case of death or incapacity of a partner

6. Business Premises: Arrangements regarding business location and property

7. External Investment: Rules for seeking and accepting external investment

8. International Operations: Provisions for international business activities

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

1. Schedule 1: Capital Contributions: Detailed breakdown of initial and agreed future capital contributions

2. Schedule 2: Business Plan: Initial business plan and strategic objectives

3. Schedule 3: Partner Contact Details: Complete contact information for all partners

4. Schedule 4: Asset Register: List of partnership assets and their agreed values

5. Schedule 5: Designated Roles: Specific roles and responsibilities of each partner

6. Appendix A: Partnership Policies: Key operational policies and procedures

7. Appendix B: Required Insurances: List of required insurance policies and coverage levels

8. Appendix C: Financial Procedures: Detailed financial management and reporting procedures

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

New Zealand

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Retail

Manufacturing

Technology

Hospitality

Construction

Real Estate

Healthcare

Creative Industries

Consulting

Agriculture

Education

Financial Services

Relevant Teams

Legal

Finance

Executive Leadership

Operations

Commercial

Risk and Compliance

Business Development

Administration

Corporate Governance

Relevant Roles

Business Owner

Managing Director

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Commercial Director

Business Development Manager

Partnership Manager

Operations Director

Company Secretary

Financial Controller

Risk Manager

Compliance Officer

Business Advisor

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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