Corporate Law

Joint ventures

Joint ventures are arrangements joining two or more parties together for the purpose of executing a particular business project. This can be a short or long term arrangement, for a one off project or a strategic collaboration.  

The arrangement can include joint venture companies, strategic alliances, limited or unlimited partnerships and collaboration or co-operation agreements. Our experience has shown that to be successful these arrangements must be based on mutual trust with all concerned being mindful of the commercial objectives of the other.

The main bulk of the arrangement should be captured in a shareholders' or joint venture agreement. This sets out the terms of the legal relationship between the shareholders or the joint venturers and where relevant the company, on matters which are not adequately dealt with by company law. 

A typical agreement will cover:

  • principles of business conduct
  • minority protection
  • stakeholder protections
  • voting or veto rights on key business decisions
  • an agreed business plan
  • finance obligations
  • guarantee obligations
  • profit sharing
  • non-compete covenants
  • exit plan
  • for project based joint ventures – what happens at the end of the project
  • dispute resolution arrangements

We can advise on what to include and why, and produce the documentation you require. If you need assistance setting up your joint venture - including guidance on structure, protection for a minority, methods of funding or other commercial or legal issues - we can help.
 

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