PROPRIETORS AGREEMENT [INSTRUCTIONS REQUIRED FROM BUSINESS OR ADVISER]Proprietors Agreement • October 27th, 2015
3A. PROFIT DISTRIBUTION POLICY Item 15The purpose of this Item is to allow you to specify what differential Salaries, Bonuses and other Remuneration will be payable to the Proprietors and deducted from the Profit of the Business before its Net Profit is determined.Please let me know if you wish to insert any Policy. Silent PartnerThis Item is particularly important if there is a Silent Partner.A Silent Partner is still entitled to share in the Net Profit of the Business, notwithstanding that they might not: Work in the Business; or Receive a salary.On the other hand, the other Proprietors do.Any salary and other remuneration payable to them effectively reduces the Net Profit of the Business (which is distributed proportionately).Thus, it is desirable that there be agreement on how salaries, bonuses, incentives and other remuneration is calculated. 3B. MINUMUM PERFORMANCE CRITERIA Item 19The purpose of this Item is to allow you to specify the minimum performance criteria for each
PROPRIETORS AGREEMENTProprietors Agreement • July 22nd, 2022
3A. PROFIT DISTRIBUTION POLICY Item 15The purpose of this Item is to allow you to specify what differential Salaries, Bonuses and other Remuneration will be payable to the Proprietors and deducted from the Profit of the Business before its Net Profit is determined.Please let me know if you wish to insert any Policy. Silent Partner or Non-Executive ShareholderThis Item is particularly important if there is a Silent Partner or Non-Executive Shareholder.A Silent Partner or Non-Executive Shareholder is still entitled to share in the Net Profit of the Business, notwithstanding that they might not:• Work in the Business; or• Receive a salary.On the other hand, the other Proprietors do.Any salary and other remuneration payable to them effectively reduces the Net Profit of the Business (which is distributed proportionately).Thus, it is desirable that there be agreement on how salaries, bonuses, incentives and other remuneration is calculated. 3B. MINIMUM PERFORMANCE CRITERIA Item 19The pur
