The lovely folk at the Law Society have put together a comprehensive document, nick-named the SME-nup, to ensure that partnerships with friends and family are based on more than just a handshake. The document follows research by O2 that found 68 per cent of partnerships are based on oral contracts only. Not surprisingly, it is family partnerships that are most likely to forego the legal process. Andrew Holroyd, President of the Law Society, says: “People don’t go into business together expecting to fall out. It’s all too easy for them to fail to take the correct legal precautions or seek sound advice before launch. "Such a large number of small businesses operating without any kind of protection is alarming and some kind of partnership agreement is crucial.” If you are one such company, take a look at the checklist. It’s actually pretty useful. [asset1]
Remember, don’t let personal relationships cloud your commercial judgement. Or, as Don Corleone would say: “It’s not personal, Sonny. It’s strictly business.” Picture source
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.