Dual partnership (vof)
A dual partnership (VOF in Dutch) is a form of cooperation between two or more persons who intend to run a business under a joint name. Investments, insurances and the payment of VAT are jointly settled.
Who is involved?
The ultimate power to take decisions rests with the partners of the dual partnership. A dual partnership can take persons into employment and/or employ contracted parties, volunteers and trainees who work for the dual partnership.
Who disposes of the capital?
Agreements on competences, contribution of capital and the division of profits can be made in a solicitor’s office.
Who is liable?
Like the partnership, the dual partnership is a legal form without being a person at law. This means that in the last resort the partners are also liable with their private capital for the debts of the business. But the private creditors of one partner cannot lay claim to the capital of the dual partnership, nor to the private capital of the other partners. That is thus different from the partnership.
Vof in the theatre world
In the theatre world the dual partnership is commonest among décor designers etc. A number of designers present themselves under a joint name, produce joint publicity, jointly rent a workspace and arrange profitsharing.