Silent Partner Agreement South Africa

Under South African law, partnerships are not considered legal entities such as. B a business. Some partners may be silent partners (someone who participates financially but is not involved in the management of the partnership, although the silent partner`s name is published), anonymous partners (someone who is financially involved but not in the administration and whose name is not made public), sponsors (contributes financially to management, but is only responsible for partnership fees corresponding to his financial contributions). There are certain situations in which you can ask someone to sign a tacit partnership agreement, including when: a silent partnership contract allows a silent partner to share the profits or losses of a business without completing the day-to-day tasks to execute it. It gives you the opportunity to go into business without moving to a top position. Your choice is to be a silent partner or a member of a group of silent partners. In your role as a silent partner, you support the financing of the partnership through your financial investment. Silent partners do not have much responsibility in the partnership beyond funding, while the general partners manage the day`s activity. The typical aspects that we would like to take into account when developing the partnership are: the nature of the activity; The address from which the transactions are carried out; The date of creation and the estimated duration of the partnership; Each partner`s contributions; agreements to imput profits and losses; agreements on partner subscriptions and interest payable on these amounts; Determine whether partners earn interest on capital and interest rate Agreements on whether partners working in partnership earn salaries or subscriptions. Litigation procedures End partnership procedures. There is no need to conclude the partnership agreement in writing, but it is clearly in the interest of partners and other partnership-related individuals or institutions that agreements should be recorded in a written document. Therefore, no specific code of conduct is imposed or regulated for partnerships and partners must agree among themselves on what their relationship entails, who is responsible for what responsibility and the financial consequences they will have between them. You can create your own custom tacit partnership agreement with Rocket Lawyer.

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