When changes are made to the partnership, either by a new member joining or a member retiring, it is crucial that this is managed legally and effectively. Otherwise, partnerships could be automatically dissolved and agreements become unenforceable.
A Deed of Retirement is used in respect of an outgoing partner. Despite its name, it can also be used when a partner dies or is expelled from the partnership. It covers a range of important aspects such as any liabilities, confirmation of key dates, the transfer of property, restrictive covenants, notices and payments.
A Deed of Adherence is used when a new partner joins an existing partnership. These documents are often more straightforward, confirming that the incoming partner agrees to be bound by all of the terms in the existing partnership agreement. Additional provisions can be added to cover any capital being invested into the partnership, as well as how profit and losses should be adjusted and the number of sessions to be worked.
If your partnership is changing and you need an experienced team to support these changes, then contact GA Solicitors’ experienced healthcare team today.