Partnership - Deed of Adherence
A Deed of Adherence allows for a new partner to be added to a partnership which is governed by the Partnership Agreement. It works by binding the new partner into the original partnership agreement, such that he undertakes to perform the same obligations as the original partners, and has the same entitlements, all with effect from the date of the Deed. The original partners give him an indemnity against any losses arising before he joined the partnership.
The addition of a new partner will change the percentage share of profits and losses for all partners. This adjustment is handled by adding a new Schedule which sets out the partners' (both original and new) capital contribution, profit share and monthly drawings.
The Deed has to be executed by ALL the partners in the partnership, together with the joining partner. The Deed should be dated on the date that the new partner joins the partnership.