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An Operating Agreement sets out the internal rules and management structure of an Irish limited liability company. It spells out how the company will handle key decisions, share profits, and manage ownership changes among its members. Think of it as your company's internal playbook - it governs everything from voting rights to how disputes get resolved.

While not legally required under Irish company law, having one protects business owners by clearly defining roles and responsibilities. It helps prevent misunderstandings between members and provides a framework for running daily operations. Most Irish businesses create one when forming their company and update it as their needs change.

Create an Operating Agreement when starting your Irish limited liability company, especially if you have multiple business partners. This document becomes essential before making major decisions, taking on new investors, or expanding operations - it prevents confusion and costly disputes by clearly defining everyone's rights and responsibilities upfront.

Use it to establish clear protocols for situations like profit distribution, management changes, or partner buyouts. Small businesses particularly benefit from having one in place before facing their first internal disagreement or when seeking external funding, as investors often require this level of organizational structure.

• Business Operating Agreement: Standard version for most Irish companies, covering basic management structure and member rights
• Real Estate Operating Agreement: Specialized for property investment companies, including provisions for asset management and property distributions
• Limited Liability Company Agreement: Comprehensive version with detailed governance structures for larger organizations
• Operating Management Agreement: Focuses on day-to-day management responsibilities and operational control
• Addendum To Operating Agreement: Modifies existing agreements to accommodate business changes or new members

• Company Members/Partners: Sign and follow the Operating Agreement, with rights and obligations defined for their ownership stake and voting powers
• Company Directors: Execute the agreement's management provisions and ensure compliance with stated procedures
• Business Solicitors: Draft and review the agreement to ensure it meets Irish legal requirements and protects all parties' interests
• Company Secretary: Maintains the agreement and ensures corporate governance alignment
• Investment Partners: Review the agreement before investing to understand company structure and decision-making processes
• Business Advisors: Help structure the agreement to match business goals and operational needs

• Basic Company Details: Gather your CRO number, registered address, and trading name
• Ownership Structure: List all members with their ownership percentages and capital contributions
• Management Rules: Define voting rights, meeting procedures, and decision-making thresholds
• Financial Arrangements: Document profit-sharing formulas and distribution schedules
• Exit Procedures: Plan procedures for member departures, sales, or company dissolution
• Digital Template: Use our platform to generate a customised Operating Agreement that includes all mandatory elements under Irish law
• Internal Review: Have all members review the draft to ensure it reflects agreed terms

• Company Identity: Full legal name, registered address, and CRO number as registered in Ireland
• Membership Details: Names, ownership percentages, and capital contributions of all members
• Management Structure: Voting rights, meeting procedures, and decision-making thresholds
• Financial Provisions: Profit distribution methods, capital calls, and accounting procedures
• Transfer Rights: Rules for selling or transferring membership interests
• Dispute Resolution: Procedures for handling internal conflicts under Irish law
• Amendment Process: Methods for modifying the agreement with member approval
• Dissolution Terms: Procedures for winding up the company and distributing assets

An Operating Agreement differs significantly from a Business Acquisition Agreement. While both are crucial business documents in Ireland, they serve distinct purposes and are used at different stages of business operations.

• Timing and Duration: Operating Agreements govern ongoing internal company operations, while Business Acquisition Agreements are one-time transaction documents for buying or selling a business
• Primary Focus: Operating Agreements detail day-to-day management and member relationships, whereas Acquisition Agreements outline purchase terms, asset transfers, and warranties
• Parties Involved: Operating Agreements bind company members internally, while Acquisition Agreements involve external buyers and sellers
• Legal Requirements: Operating Agreements can be modified as the business evolves, but Acquisition Agreements are typically fixed once executed
• Scope of Use: Operating Agreements continue throughout the company's life, while Acquisition Agreements conclude after the sale transaction