Types of Partners
1. General Partners -Unlimited active and liability in participation in partnership activities.
2. Limited partners - Limited liability in the management of partnerships does not participate.
3. Sleeping partners - has no active role, yet, such a partner will have donated to the capital of the partnership business and will so share in the profits while at a lower proportion in mainly cases.
A partnership deed constitutes a legal contract with the partners. The articles of partnerships must enclose eleven clauses.
a) Capital contribution
b) Profit sharing ratio
c) Nature of business
d) Powers of each partner.
e) The provision for proper accounts and their audit.
f) Rates of interest on both capital and drawings
g) Grounds of dissolution.
h) Expulsion procedures.
i) Determination of amount payable to outgoing partners.
j) Determination of Goodwill
k) The arbitration clause.