Potential Issues of Concern to Musical Partnerships:

1.  Group Name - The ownership of the group name must be agreed and what happens to the name if the band splits up or if various members leave. 

2.  Partnership Property - The band members need to agree what they consider to be partnership property, so for example a new guitar is bought for the guitarist, does that become the guitarist's personal property or is it a joint partnership asset which he has to return to the band if he leaves.

3.  Sharing of Profits, Losses and Expenses - Remember that the presumption will be that all profits, losses and expenses are to be shared equally.  If this is not the intention of the band members, any agreement should state very clearly how profits and losses are to be distributed.

4.  Drawings (Salary) - If the band is in a position to pay each band member a salary then this should be specifically agreed in writing in the agreement.

5.  New and Departing Members - It is usually when there are changes in the membership of a band that disputes arise.  A good partnership agreement will set out clearly what the liabilities of a departing member will be and what right they have to future income (if any).

6.  Voting - Partnership agreement should set out decisions within the band are to be determined.  Partnership law assumes that each partner will be given one vote and that a group decision should be reached by a majority vote.

7.  Expulsion - It is important for a partnership agreement to state exactly upon what basis band members can be expelled from the group.  Many musicians would be surprised to realise that the Partnership Act provides that a partner may not be expelled, the only way to resolve this is for the partnership to split. Fame and fortune can turn your mates into monsters in a matter of weeks, and so you may consider it important that your partnership agreement allows for expulsion.

8.  Royalties - In addition to a provision setting out how profits and losses should be distributed, it is advisable to include a provision setting out how publishing royalties are to be divided amongst the band.  Again without an express provision clarifying this, all band members will share publishing royalties equally.

9.  Dispute Resolution - Last but not least, a good partnership agreement should include a provision setting out how disputes within the band are to be resolved.