The Co-Owner Business Contract is essential when two or more parties decide to jointly own and operate a business in Singapore. This agreement should be established at the business's formation or when new co-owners join. It addresses crucial aspects including ownership structure, capital investments, profit distribution, management rights, and exit strategies. The contract must comply with Singapore's legal framework, particularly the Companies Act and Partnership Act, and should be drafted with consideration of specific business needs and circumstances.
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1. Parties: Identification and details of all co-owners
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Business Structure: Legal form of the business and ownership percentages
5. Capital Contributions: Initial and ongoing financial commitments of each party
6. Management Rights: Decision-making authority and voting rights
7. Profit and Loss Distribution: How profits and losses will be shared
8. Term and Termination: Duration of agreement and conditions for termination
1. Non-Compete Provisions: Restrictions on competitive activities - used when protecting business interests from competition by co-owners
2. Intellectual Property Rights: Ownership and use of IP - included when the business involves significant IP assets
3. Employee Management: Hiring and management of staff - relevant when the business will have employees
4. Insurance Requirements: Required insurance coverage - included when specific insurance needs exist
1. Schedule 1: Capital Contributions: Detailed breakdown of initial and planned capital contributions
2. Schedule 2: Business Plan: Initial business plan and strategic objectives
3. Schedule 3: Asset Register: List of business assets and their ownership
4. Schedule 4: Management Procedures: Detailed procedures for business management and decision-making
5. Appendix A: Shareholders' Information: Detailed information about each co-owner
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