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Multi Member Operating Agreement for Singapore

Multi Member Operating Agreement Template for Singapore

A Multi Member Operating Agreement under Singapore law is a comprehensive legal document that establishes the structure, governance, and operational framework for a limited liability company with multiple owners. It complies with Singapore's Limited Liability Partnerships Act 2005 and related legislation, defining members' rights, responsibilities, capital contributions, profit sharing, and decision-making processes. This agreement serves as the fouNDAtional document governing the relationship between members and the company's operations.

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What is a Multi Member Operating Agreement?

The Multi Member Operating Agreement is essential for businesses establishing a limited liability company with multiple owners in Singapore. It provides the legal framework for company governance, outlines capital contributions and profit-sharing arrangements, and establishes procedures for decision-making and dispute resolution. This document is crucial for protecting members' interests and ensuring compliance with Singapore's corporate laws. It should be prepared at the company's formation and updated as membership or operational requirements change.

What sections should be included in a Multi Member Operating Agreement?

1. Parties: Identification and details of all members of the LLC

2. Background: Context and purpose of forming the LLC

3. Definitions: Key terms used tHRoughout the agreement

4. Company Formation: Details of company structure and initial capitalization

5. Capital Contributions: Initial and ongoing capital requirements

6. Membership Interests: Allocation of ownership and voting rights

7. Management Structure: Governance and decision-making processes

8. Distributions: Profit sharing and distribution policies

9. Transfer of Interests: Rules for transferring ownership interests

10. Dissolution: Process for winding up the company

What sections are optional to include in a Multi Member Operating Agreement?

1. Non-Compete Provisions: Restrictions on competitive activities by members to protect business interests

2. Intellectual Property Rights: Provisions governing IP ownership and usage rights when company owns or develops IP

3. Tag-Along Rights: Minority member protection mechanisms in sale scenarios

4. Drag-Along Rights: Majority member rights in sale scenarios to facilitate potential future sales

What schedules should be included in a Multi Member Operating Agreement?

1. Schedule A - Initial Capital Contributions: Detailed breakdown of members' initial investments

2. Schedule B - Membership Interests: Detailed allocation of ownership percentages

3. Schedule C - Company Property: List of company assets and property

4. Appendix 1 - Management Structure Chart: Visual representation of governance structure

5. Appendix 2 - Voting Procedures: Detailed voting processes and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Operating Agreement

Cost

Free to use

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