jennywales
Group Performer
Joined: 22 Apr 2006
Posts: 10230
Location: Wales
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 Posted: Sat Aug 19, 2006 5:21 pm Post subject: RACING PARTNERSHIPS - THE TECHNICALITIES |
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I read the BHB Guidance on co-ownership. One of the things that slightly worried me was that the numbers they gave for co-ownership groups was 2-20, and we are already above 20 in terms of numbers of shares taken up.
So I emailed the BHB. Apparently Weatherbys will accept up to 20 named owners in the registration of the partnership, but there don't have to be only 20 members - there can be as many as you like, as long as at least 2 are named as owners in the registration. The rest of the partnership is covered by a partnership agreement stating the partnership members' rights and responsibilities.
I bet this is how Elite operated - and I bet the named owners were the Elite management, which explains how they were able to realise profits from the sale of Elite horses without sharing the profit among the members.
Our partnership agreement will, however, specify equal rights in most things for all members of the partnership, regardless of how many shares an individual holds. I have discussed this on another thread, and the only difference between shareholders would be if there is a big profit from prizes or sale of the horse (unlikely), in which case it would be distributed according to the number of shares held (ie the registered owners wouldn't be able to hang on to it!)
Hope this is OK as a basis, we can discuss at York (if enough of you are able to come!)
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