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Joint Venture

Joint Venture


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Published by _Rahul_Sayal_6078

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Published by: _Rahul_Sayal_6078 on Apr 08, 2010
Copyright:Attribution Non-commercial


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Selection of a good local partner is the key to the success of any joint venture. Once a partner
is selected generally a Memorandum of Understanding or a Letter of Intent is signed by the
parties highlighting the basis of the future joint venture agreement.

A Memorandum of Understanding and a Joint Venture Agreement must be signed after
consulting lawyers well versed in international laws and multi-jurisdictional laws and

Before signing the joint venture agreement, the terms should be thoroughly discussed and
negotiated to avoid any misunderstanding at a later stage. Negotiations require an
understanding of the cultural and legal background of the parties.

Before signing a Joint Venture Agreement the following must be properly addressed:

•Dispute resolution agreements

•Applicable law.

•Force Majeure

•Holding shares

•Transfer of shares

•Board of Directors

•General meeting.


•Management Committee

•Important decisions with consent of partners

•Dividend policy



•Change of control






•Break of deadlock


The Joint Venture agreement should be subject to obtaining all necessary governmental
approvals and licenses within specified period.

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