Share Agreement

The share agreement is a long term document, thus it tends not to be specific about monetary amounts or dates or specific people. This detail which may often change year by year is contained in an annual appendix

A typical share agreement will include clauses to cover the following aspects of sharing and boat ownership :

Definition of the boat

Owners details – names, address, phone and email

Definition of the shares owned by each owner

Statement that the ownership does not constitute a partnership

Annual maintenance budget

Annual Capital budget

Group manager and his duties

Banking arrangements

Maintenance – the process of how this will be achieved

Allocation of time to the owners

Insurance and damage

Who may act as skipper

How a share may be sold, given or bequeathed

How money may be spent

Maintenance fund

Default and removal of a defauliting owner

Arbitration

Mooring location

Rules relating to taking and leaving the boat

Breakdown of the yacht in the season

How the agreement can be varied

Signatures