Silent Partner Agreement South Africa

Building a silent weld can help any partner and the company succeed in the years to come. Some partners may be silent associates (a person who contributes financially but is not involved in the management of the partnership, although the name of the silent partner is published), anonymous partners (someone who contributes financially but does not participate in the management and whose name is not published), sponsors (contributes financially but are only responsible for partnership fees to the extent of their contributions). Another provision that should be covered in the silent partner agreement is what happens when more resources are needed from the silent company or the complementary partner. For example, if the company needs to acquire more assets or fund more research and development projects. For example, a partner who owns 20 percent of the business may claim 20 percent of the profits or losses. The agreement should also contain the exact date on which the partner made its contribution and a detailed description explaining the reason for the partner`s contribution. . . .

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