You may be surprised to find out that even without signing an agreement, when a band is formed, there is a presumption in law that a partnership has been formed. This is due to the Partnership Act of 1870. When several people are carrying on in business together with the same purpose, it is presumed that a partnership has been created. Partnership Law Partnership laws can have serious and far reaching effects on the internal administration of a band – and yet many bands do not even realize they are in a legal partnership.
This will include such things as:
The partnership ends if one partner leaves
This can be quite serious for a successful band. If one partner leaves, the partnership must come to an end and all of the assets and liabilities of the partnership shared out equally.
The assets of the band might include the name of the band. As a founder member of the band you may think the name belongs to you but without an express partnership agreement to the contrary, if the band splits up, all members of the band would be equally entitled to the use of the name.
The band members of Bucks Fizz have been fighting over the name of the band for many years for exactly this reason.
Another asset could be the future royalty income of the band. If it is not your intention to share all income equally, you should consider instructing a solicitor to draft a partnership agreement, which sets out how the income and liabilities of the band are to be shared and what happens if the band splits up or one member leaves.
If you do not like the idea of a partnership, there are other options available to you.
|
|
|
|
|
|
|
|
|
|
