My business partner and I have formed a partnership, we are in the process of drafting our partnership agreement.
One of the points that he wants on there is:
If one of the partners leaves they get to take half of the profit share with them when they do.
I disagree with this, because I feel all funds are property of the business and if they decide to leave, they can raise capital by selling their share.
it allows you to pull out of the partnership at anytime as your both held responsible for profits and gains of your share. And in case of and additional agreement isnt reached is how it would be treated in court.
What are your thoughts?