The laws of Joint ventures all around the world or in all states and among all businesses isn’t exactly the same, but these are the basics you should know and that you will need to keep in mind when getting in to a joint venture agreement.
A joint venture agreement form has 12 articles in it. First know that you will be following the laws of the state it falls under, just like all other legal things go. Article 1 is basically the definitions of who is in the venture, definition of profits and losses, tax, regulations etc. Article 2 is about the formation of the venture, the name it will fall under and the principal place of the business. Article 3 is all about ‘why’, the purpose of the joint venture. Article 5 is about the percentage of participation, so in case of losses, liabilities, bonds etc, who does what, how involved will who be, how are things taken care of and those sort of things. Article 6 is about the policies, the representatives etc.
Next half of the articles, continuing with article 7, the delegation of authority. This is basically who does what etc. Article 8 is about the bank accounts side, article 9 is the accounting and auditing, article 10 deals with resolution of disputes and the rest is any extras you need to add. All these things need to be agreed on and clear to both parties in order to avoid legal action against each other and big big problem.
When we talk about International Joint Ventures then these are the things that need to be taken in to consideration and you must be very clear on all decisions.
1 Dispute resolution agreements
2 Applicable law
3 Force Majeure
4 Holding shares
5 Transfer of shares
6 Board of Directors
7 General meeting
8 CEO/MD
9 Management Committee
10 Important decisions with consent of partners
11 Dividend policy
12 Funding
13 Access.
14 Change of control
15 Non-Compete
16 Confidentiality
17 Indemnity
18 Assignment.
19 Break of deadlock
20 Termination
When things are clear to both parties, then it’s all left to team work.
Here's to your success
Rivers Corbett
MyInternetBiz.ca
"Award Winning Entrepreneur and Joint Venture Specialist, Rivers Corbett offers an exclusive and exciting opportunity to a limited number of entrepreneurs who are looking to steer clear of the typical ''Get Rich Quick'' hype and build a solid business of * lasting *significance. Click on MyInternetBiz.ca for more information on this great offer
MeetRivers (.com)
- Rivers Corbett
- Canada
- Rivers Corbett, MBA is an award winning entrepreneur, speaker, and author of "13 Fears of Entrepreneurs" He has received numerous business honors including Entrepreneur of the Year, Canada's Hottest Start-ups List and Canada's Fastest Growing Companies list through Profit magazine and most recently recognized as one of Canada's 10 Mentor RockStars.. Rivers is presently a member of Startup Canada's National Advisory Council, founding entrepreneur of StartUP Fredericton & the "Entrepreneur in Residence" at the University of New Brunswick. His real joy and expertise is being a StartUP Advisor and "zagging while everyone else zigs"...like his two newest businesses ventures the Relish Gourmet Burgers restaurant chain and TheRockStar StartUP for StartUP entrepreneurs. Oh... he is also the leader of a team of over 25 chefs through his other company The Chef Group. Not bad for a guy who hates to cook. Always looking for a new idea to help businesses' succeed...this is his newest marketing discovery for StartUPs The Lyoness Advantage. "Rivers is a 21st century entrepreneur, he's the one to watch" - Jim Gilbert: Canada's Huggable Car Dealer!
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