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Do you have any further info on what legally the agent can do, and to what extent it must disclose to various business parties (e.g., banks, clients, finance companies) that it is acting in its capacity as agent only?
The law of agency has been developed over hundreds of years and can get quite complicated. Unfortunately, at this stage, we don't have a short summary of how the law of agency works. Generally, if anyone needs advice in this regard, they will need to speak to their solicitor.
However, we can say that our Partnership of Trusts agreement (with agent) specifies that an appointed agent has pretty much full powers in relation to any business it conducts on behalf of its principals, and that it is not obliged to disclose to anyone that it is acting as agent. Of course, the partnership agreement only regulates the relationship between the partnership and the agent, but other parties - especially banks - may require that such a relationship be disclosed to them.
Can I order a partnership of two discretionary trusts with the same company acting as trustee of the trusts and of the agent?
You can have the same company act as trustee of a trust and as the agent of the partnership, although this may present problems if, for example, the partners start fighting or the partners and the agent enter into a dispute (at the least, a separate agreement outlining the steps for disupte resolution should be entered into).
Also, we could be wrong, but we've never heard of a company being in partnership with itself (albeit in two different capacities - i.e., as trustee of two separate trusts)
Although this structure might save a bit of money, we can't really recommend it.
What's the definition of an Agent of a Partnership?
There's no definition as such - the agent is the person/company appointed by the partners to have the role of agent under the agreement. The agent, once appointed, then has a number of powers and responsibilities under the agreement (all of clause 4 is dedicated to the relationship between the partners and the agent (2-and-a-half pages), plus there are other references in the agreement). Basically, the agent can run the partnership business as if it were the sole owner, but it answers to the partners.
Refer to our online guide for more details:
http://ntaacorporate.com.au/products/partnerships