Very good question, we have recently been through this and realised as
we finalise the accounts that we never clarified what the "borne by
the partnership" phrase actually means. Now trying to sort it out
after the event.
fortunately all very amiable folks!
Cheers Geoff
2009/9/4 Michael Leuty <[log in to unmask]>:
> Dear All,
>
> There have been some changes in our partnership recently, and there is
> to be a sale of shares in the practice premises. A retiring partner is
> selling her entire share, remaining partners are selling part of their
> share, and these shares are to be bought by two incoming partners.
>
> We will incur valuation and legal fees during the process, and I
> should be grateful for your opinion on the fairest way of dividing up
> liability for these fees between the partners. I can see three
> possible options.
>
> 1. Divide the fees in the partnership ratios. That would mean that the
> retiring partner would not pay anything.
> 2. Divide the fees equally between all the partners. That would mean
> that the retiring partner selling her entire share would pay the same
> amount as the partner who is only selling a 2% share in the property.
> 3. Divide the fees so that they are proportionate to the share being
> bought or sold (divided by the total percentage being bought and
> sold).
>
> Three looks the fairest to me. Does that sound reasonable, or is there
> a better way?
>
> (The partnership agreement simply says that the cost will be borne "by
> the partnership".)
>
> Mike
>
> --
> Michael Leuty
> Nottingham, UK
>
--
Please avoid sending me Word or PowerPoint attachments unless by prior
arrangement.
See http://www.gnu.org/philosophy/no-word-attachments.html
|