Changing the management?
A common division of partners is to reflect the partners' capital contributions rather than an even share. For example, if you put down 25% of the capital, you may have only 25% of a say in the management of the partnership. Is this okay?
Yes! You can AGREE to do this rather than the default rule.
What does an ordinary business matter require regarding a vote from the partners?
MAJORITY vote.
*REMEMBER this is a default rule and CAN be changed!
What is the default rule regarding the management and control of a partnership?
Every partner has EQUAL rights in the management and control of the partnership.
Declaring a distribution is an example of a(n) ______
ORDINARY business matter.
Access to records MUST be...
provided to the partners and their AGENTS.
*This a MANDATORY partnership rule and it CANNOT be changed.
Regarding the default rule of the management and control of the partnership, it CAN be _____ by agreement!
CHANGED!
*You do not have to follow the default rule and allow each partner equal rights in the management and control of the partnership.
Amending a partnership agreement is an example of a(n) ______ business matter.
EXTRAordinary business matter.
Default Rule: Every partner has _____ rights in the management and control of the partnership.
Equal rights!
Extraordinary business matters require _____ the partner's vote.
ALL of the partners.
*REMEMBER this is a DEFAULT rule and it CAN be changed.