EQUITY PARTNERSHIPS

These are usually used when more than one party wishes to carry out a business venture or scheme in partnership.

The parties may have equal sharing in the venture or one party may be providing the capital and the other the day to day management of the operations but no capital.  This is commonly used in the farming arena to encourage more persons on to the land without putting in a lot of money.

Usually it is structured as a company having various levels of ownership.

Usually the parties will enter into a shareholders’ agreement that will detail what each party’s roles are within the venture, their remuneration, and policy on dividends etc.