Retirement

In the event of a partner retiring, Sunnyside day care should agree to a retirement package and how the business will continue to be run. Sunnyside day care will decide that the share of the business from the retiring partner will be distributed evenly between the remaining partners.

If not, you will have to state how the share will be divided. The retirement package may include a cash pay out of, say, their share of the value of the assets and will be paid out in monthly instalments over a period of, say, 18 months. Sunnyside day care will also specify the minimum time for a partner to hand in their notice of retirement.

A partner may retire when a written notice of at least two months has been sent to the business address prior to their intended retirement date. The ownership of the business will be passed onto the remaining partner at the date of retirement. The retiring partner will receive a share of the business assets, not including goodwill, and will be calculated by their ownership in the business. This asset figure will be taken from the previous years accounts that have been drawn by the business accountant. This share will be paid in a cash settlement to the retiring partner in instalments of 25 percent at three months, six months, nine months and twelve months

Account Period

This will state the amount of money that each partner can draw from the business (wages and benefits) each week and the time at which this figure will be reviewed, say, at the end of every financial year. Sunnyside Day Care Center may also add a solution if this figure cannot be paid out by the business, say, each partner will have a share of what the business funds can afford. Sunnyside Day Care Center will also state a limit as to the amount of expenses each partner can draw from the business that are classed as direct costs such as transport fees (petrol, etc) or accommodation (for business meetings in other areas, etc). This figure may also be up for review periodically. Each partner can draw a maximum of 5000bdt per week covering wages and benefits. If this amount cannot be met by the business, it will be reduced to the amount that can be met by the business funds. If any partner decides to keep any of their drawings in the business, they will be entitled to interest that will be payable in relation to the current interest of the business bank account. Each partner can draw a maximum of 3000bdt per week for expenses covering motor fuel for business related purposes only. These figures are subject to change with the consent of all partners.

Probation for Withdraw

If your partnership ceases to trade, then you need to determine how the business will be split between all partners. This will be a split of the money after all remaining stock, assets and equipment have been sold. Sunnyside Day Care Center may decide that the split will be dependent of the ownership of the business (as stated in section 7) and therefore the partner(s) with more ownership will receive a higher payout. Usually, all proceeds are split evenly especially if the ownership is divided this way.

Financial statement