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Partnership Dissolution Agreement
"I need a Partnership Dissolution Agreement for my Saudi-registered consulting firm, where three partners have agreed to amicably dissolve the partnership by March 2025, with one partner being a UK resident who will continue serving existing clients independently."
1. Parties: Identification of all partners and their legal details, including national ID/commercial registration numbers
2. Background: Brief history of the partnership, reason for dissolution, and reference to the original partnership agreement
3. Definitions: Key terms used throughout the agreement, including specific Arabic legal terms where applicable
4. Dissolution Declaration: Formal statement of partnership dissolution and effective date
5. Settlement of Partnership Affairs: Process for winding up business operations and settling outstanding matters
6. Distribution of Assets: Agreed methodology and process for distributing partnership assets
7. Settlement of Liabilities: Handling of partnership debts, obligations, and outstanding liabilities
8. Financial Settlements: Final accounting, including capital accounts and profit/loss distribution
9. Employee Matters: Handling of employment contracts and related obligations
10. Confidentiality: Ongoing obligations regarding partnership confidential information
11. Non-Competition: Any post-dissolution competition restrictions on partners
12. Dispute Resolution: Mechanism for resolving any disputes arising from the dissolution process
13. Governing Law: Confirmation of Saudi law application and Sharia compliance
14. Execution: Signature blocks and attestation requirements
1. Intellectual Property Rights: Distribution and future use of partnership IP assets, used when the partnership owns significant IP
2. Ongoing Litigation: Handling of pending legal matters and allocation of responsibilities, included if there are active legal cases
3. Property Leases: Transfer or termination of property leases, needed if partnership holds lease agreements
4. Insurance Matters: Handling of insurance policies and claims, relevant if significant insurance matters exist
5. Government Licenses: Transfer or cancellation of licenses and permits, needed if partnership holds special permits
6. Customer Contracts: Treatment of ongoing customer relationships and contracts, used when significant customer contracts exist
7. Post-Dissolution Cooperation: Framework for partner cooperation after dissolution, useful for complex dissolutions
8. Tax Indemnities: Specific tax-related obligations and protections, included if significant tax implications exist
1. Schedule 1 - Asset Register: Detailed list of all partnership assets and their agreed values
2. Schedule 2 - Liability Register: Comprehensive list of all partnership liabilities
3. Schedule 3 - Distribution Plan: Detailed breakdown of how assets and liabilities will be distributed
4. Schedule 4 - Employee List: List of employees and their status post-dissolution
5. Schedule 5 - Outstanding Contracts: List of ongoing contracts and their proposed treatment
6. Schedule 6 - Required Notices: List of all required notifications to authorities and third parties
7. Schedule 7 - Settlement Calculations: Detailed financial calculations for final settlements
8. Appendix A - Power of Attorney: If required for completing dissolution processes
9. Appendix B - Government Forms: Required regulatory forms for dissolution
Authors
Professional Services
Real Estate
Construction
Trading
Manufacturing
Technology
Healthcare
Retail
Consulting
Engineering
Food & Beverage
Agriculture
Education
Transportation & Logistics
Legal
Finance
Compliance
Corporate Governance
Human Resources
Operations
Tax
Audit
Risk Management
Corporate Secretariat
Managing Partner
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Business Owner
Company Secretary
Finance Director
Compliance Officer
Managing Director
Partner Relations Manager
Operations Director
HR Director
Tax Manager
Audit Manager
Corporate Governance Officer
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