Document background
The Equity Partnership Agreement is a fundamental document used when establishing or restructuring a partnership business in Hong Kong. It is essential for any business where two or more parties wish to formalize their relationship as equity partners, sharing both ownership and profits of the enterprise. The agreement must comply with Hong Kong's Partnership Ordinance (Cap. 38) and related regulations, while addressing practical business needs such as capital contributions, profit sharing, management rights, and exit provisions. This document is particularly crucial for professional services firms, investment ventures, and businesses seeking to establish clear governance structures and partner relationships. It serves as the constitutional document of the partnership, defining everything from day-to-day operations to strategic decision-making processes, while providing mechanisms for dispute resolution and partnership evolution.
