Partnership Agreement

Description

• A Partnership Agreement is a legally binding document that defines the terms and conditions of a partnership between two or more parties. It outlines the roles, responsibilities, profit-sharing arrangements, and dispute resolution mechanisms to ensure smooth collaboration and protect the interests of all partners.

GOV Department

• Suruhanjaya Syarikat Malaysia (SSM) / Companies Commission of Malaysia

License Name (Malay)

• Perjanjian Perkongsian

Details

• Specifies the roles and contributions of each partner, including capital, labor, or expertise.
• Defines profit-sharing ratios, management responsibilities, and decision-making processes.
• Includes provisions for the addition or withdrawal of partners.
• Covers dispute resolution, termination clauses, and confidentiality agreements.
• Ensures compliance with the Partnership Act 1961 and other relevant laws.

Important Rules

• The agreement must clearly define each partner’s obligations and rights.
• Profit-sharing and liability arrangements must be mutually agreed upon.
• Decisions on major business matters should follow the processes outlined in the agreement.
• Any changes to the agreement require unanimous consent from all partners.
• Partners must comply with applicable laws, such as tax regulations and reporting requirements.

Compound & Punishment

• Failure to formalize a partnership agreement may result in:
  • Disputes over roles, responsibilities, or profit-sharing.
  • Legal action or dissolution of the partnership in case of conflicts.
• Breach of the agreement can lead to:
  • Financial penalties or claims for damages.
  • Loss of rights to partnership profits or assets.