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What should partners do in order to agree on profit sharing and their individual obligations?

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posted Mar 10, 2016 by Akriti Sharma

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1 Answer

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Best answer

Profit sharing is based on the percentage stake of the shareholders. So in the shareholding agreement, it should be clearly specified, who gets what. There are also shareholders who owns preference shares, they get a predefined amount as dividend. The common shareholders are given second priority after preference shareholders.

answer Mar 11, 2016 by Shekhar Yadav
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