Deed of Adherence to Basic Partnership Agreement

Deed of Adherence to Basic Partnership Agreement allows a new partner to be added to a partnership that is governed by Basic Partnership Agreement Template.

It is drafted as a deed (rather than a simple agreement) to avoid issues that may arise where there is no consideration moving from one or more of the original partners.

What does Deed of Adherence to Basic Partnership Agreement do?

It binds the new partner into the existing partnership agreement so that the new partner undertakes the same obligations as the original partners and has the same entitlements, with effect from the date of the deed. The original partners also give the new partner an indemnity against losses arising before the new partner joined the partnership.

What does Deed of Adherence to Basic Partnership Agreement cover?

It covers matters including:

• adding a new partner to an existing partnership governed by the Basic Partnership Agreement Template
• the new partner’s undertakings to comply with the existing agreement
• an indemnity for the new partner in respect of losses arising before they joined
• updated partners’ capital contributions, profit share and monthly drawings (set out in a new schedule)

When should you use Deed of Adherence to Basic Partnership Agreement?

Use it when a partnership operating under the Basic Partnership Agreement Template is admitting a new partner and you want the new partner to be bound into the existing terms from the date they join.

How Deed of Adherence to Basic Partnership Agreement is set out

The deed is designed to be executed by all existing partners and the joining partner. It is intended to be dated on the date the new partner joins the partnership.

❗ HMRC must be notified of any partnership changes.

What else you may need

If your partnership was formed under Long Form Partnership Agreement (previously titled “Partnership Agreement”), refer to Deed of Adherence to Partnership Agreement. That deed can also be used where the partnership was set up using a third party partnership agreement (rather than a Simply-Docs agreement).

Separate templates are available for other arrangements, including a Deed of Adherence to a Shareholders’ Agreement.

Deed of Adherence to Basic Partnership Agreement is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.