Partnership Agreement "Death or Incapacity of a Partner"
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Partnership Agreement "Death or Incapacity of a Partner" How would "Incapacity of a Partner" actually work when invoked? One of our members questioned how that situation would apply and play out. Does anyone have any insight? Questions we had.. 1) who determines? it may be difficult for partnership to determine that state and whether temporary or permanent. suppose they are in a coma, dementia... is it ok to accept request from spouse ...children (suppose spouse is deceased and there are 3 children). suppose there are no immediate family members. 2) do you need this term "Incapacity of a Partner" included? if they are incapacitated, wouldn't you rely on a financial power of attorney? Understood not all people have one. Is the intent to keep this general to allow for related situations at partnership's discretion? Thank you, Tim Dear Tim, I am not a lawyer, but I would think "incapacity" would mean incapacity to meet the club's requirements of members. In the sample partnership agreement:Sample Partnership Agreement paragraph 14 discusses requirements for the partners participation and also the inclusion of operating procedures: Sample Operating Procedures which also discuss the duties required of club members. I think it would be up to the club to determine if the member was not meeting these requirements or was "incapacitated", not the members family. This wording has been around a long time and I've never heard of it causing an issue within a club. But, if your club has a big concern about it, we'd recommend you discuss it with a lawyer.
Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Wed, Apr 16, 2014 at 12:23 PM, Timothy W Howard <timwhoward@yahoo.com> wrote: How would "Incapacity of a Partner" actually work when |
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