Joint venture arrangements
This can be a short or long term arrangement for a one off project or a strategic collaboration. A joint venture arrangement can include joint venture companies, strategic alliances, limited or unlimited partnerships. It can feature collaboration and/or co-operation agreements with each of the parties to the joint venture bringing a different "asset" to the party. 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 help setting up your joint venture including guidance on structure, protection for a minority, methods of funding or other commercial or legal issues, together with the documentation required, let us help.