Partnership or LLP Retirement
Where a partner or member wishes to retire from an existing partnership or LLP, the terms of such retirement are almost always governed by the provisions of the partnership or LLP agreement and will usually require the retiree to give the partnership or LLP formal notice of their intention to retire. The form this formal notice should take can vary and may be prescribed by the agreement. However, it is vital for both the retiree and the ongoing partnership/LLP vehicle that the retirement is documented in the correct manner so as to prevent any misunderstanding or potential future conflict.
In order to assist with this process, we have drafted two brand new retirement letters which specify the partner/member’s intention to retire, state the date the retirement is due to take effect as well as the terms of the retirement, particularly how the retiree will be re-paid any sums due to him/her and the restrictions that he/she will abide by following retirement. We have also drafted two brand new acknowledgements of retirement, which allow the partnership/LLP to acknowledge the retiree’s departure and confirm the terms on which they will depart.
Our brand new package of documents assumes that the remaining partners/members will continue to run the partnership/LLP following the retirement and have all been drafted on the basis of the terms within our Long Partnership and LLP Agreements respectively.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.