LPC Notes BLP Procedure Plans (High Distinction) 2023 BPP, ULaw2023 update Notes on BLP Procedure plans for the LPC at BPP University. While original prepared for BPP University students, some of my friendshave used these notes to prepare for their e

LPC Notes BLP Procedure Plans (High Distinction) 2023 BPP, ULaw2023 update Notes on BLP Procedure plans for the LPC at BPP University. While original prepared for BPP University students, some of my friendshave used these notes to prepare for their exams at Ulaw and City University and achieved a distinction. These notes only contain procedure plans, if you are interested in BLP revision notes, I have separate notes for that. Why to waste money on notes that simply replicate the materials you receive in class? These Revision notes have been restructured and optimised for exams. I have spent months simplifying the material to make sure that they are easy to understand using a structured step-by-step guide andclear table formats. These notes are as concise as they can possibly be to make studying for exams quicker while summarising all SGS course content so you don't have to when you are already pressed for time. You will also find these notes extremely helpful when you begin your term -you can use them as a guide so you know which points to focus on before you even begin. WS1 - PARTNERSHIPS AND OTHER BUSINESS MEDIA PARTNERSHIPS: What is a partnership? s.1(1) Partnership Act 1890Partnership =persons carrying on business with a view toprofit. –May form a partnership irrespective of contrary intention.A partnership is formed once the definition is satisfied, not when a decision to form a partnership is made. Existence of partnerships: s.1(1) PA 1890No formality is needed to establish a partnership so a partnership can be formed without the specific intent of the parties to form one. s.2(3) PA 1890Profit sharing is prima facie evidence of a partnership. The partners will carry on business in common: This means that they wil share responsibility for the business and all decisions that affect it. No separate legal identity: The partnership is unable to own property or enter into contracts. nstead, it is the individua partners who wil sue, own property jointly, and enter into contracts jointly. f partnership goes insovent, creditors can enforce debt against the partners personally. How to avoid entering into a partnership? -Avoid merging your business -If the business is a Joint Venture:Al members wil retain legal and beneficial ownership of their assets. Exclude the JV being a partnership in the JV contract. -nstead of sharing profit, share gross returns -Make sure you regulate your venture with a written agreement Characteristics of a partnership: s.2 PA 1890Badges of a partnership: -Profit sharing -Mutual decision-making powers -Right of al partners to examine accounts and veto the introduction of new partners Sharing responsibility of oss of business Key considerations: Tax transparency -Alows for a high degree of confidentiaity -Min 2 peopleneeded PA 1890does not distinguish between actual and egal persons, so a company could be a partner. Care needed: If no Partnership Agreement, PA 1890 default provisions (aso known as fall-back provisions) will apply. Default provisions are disadvantageous and must set up a Partnership Agreement. -Very easy to create unintentionally -Unimited joint liability s.5 PA 1890Each partner is an agent of the firm and will bind the firm and other partners by contracting with third parties. -s.6 PA 1890The firm will be bound by the actions of anyone authorised to act on the firm’s behalf. -s.30 PA 1890All partners share a fiduciary relationship and have a duty not to compete with the firm by carrying out a similar business without the permission of the other partners Advantages: -it costs nothing to create a partnership. -May start as partnership before converting to limited company Many partnerships are professional partnerships such as lawyers, accountants, surveyors and architects. -Cheaper administrative costs as no need to file profits -Tax transparency taxes flow through to the partners Formalities required for partnerships: Formalities: 1.Requirements on naming the partnership 2.No limitation on size 3.s.1203 CA 2006Partnership may include a statement on stationery listing all partners. 4.Partners must pay income tax, VAT and NI 5.Must notify HMRC of the partners’ identty Partners’ responsibilities: Utmost good faith–s.28-30 PA 1980: Partners must divulge to one another all reevant info connected with the business and their relationship. they must be prepared to share with their fellow partners any profit or benefit they receive that is connected with or derived from the partnership, the business or its property without the consent of the other partners; and they must be prepared to share with their felow partners any profits they make from carrying on a competing business without the consent of the other partners. Responsibilities implied by the act –s.24(1)-(2) PA 1980: The responsibility for bearing a share of any oss made by the business. The obligation as a firm to indemnify felow partners against bearing more than their share of any liability or expense connected with the business. BLP –Al chapters –Revison notes Page 1of 58