Professional Documents
Culture Documents
Companies Joint Venture Agreement Template
Companies Joint Venture Agreement Template
This Agreement of Joint venture company is entered into and effective as of the
__21st day of MONTH , 20XX, by and between:
And
Preamble:
The firm name under which the company shall conduct its business is "xxxx-
yyyy" (Partnership), with a capital of xxxx million USD.
The sole object for which this Joint Venture is established and the sole
business of the Joint Venture is to negotiate for and conclude a contract for
the execution of the Works and to carry out such Works to finality, all in
accordance with the terms of this agreement as well as future agreement with
client related to the project “ICT Design & Construction of the ICT systems for
the proposed new xxxx Building / Project.
1
1) Article 3: PROFITS AND LOSSES
The profits and losses of the Joint Venture shall be borne by both parties In
the proportions 50 % and 50 % respectively (hereinafter referred to as "the
Specified Proportions").
Article 4: Capital:
a- The company capital shall be USD 1 million (divided into 100 equal
shares of USD 10,000 each, distributed between both partners as follows:
xxx - 50 % , yyy – 50 %
Article 6: Period:
Award of the Contract by the xxxx / Ministry of xxxx for the construction of
the Works to an outside party or parties,
or
In the case of contract award, at the time the contract is terminated and all
rights and obligations of the parties in connection with such contract and in
connection with this Agreement have ceased, but in no case before the
conclusion of any maintenance period in the contract and the cancellation
and/or refund of all guarantees and bonds. The Joint Venture existence shall
also be deemed to continue insofar as the Joint Venture is responsible for
latent defects under this or future contracts with client.
The company shall keep records of income and expenses and others, in
accordance with the law.
2
Article 8: Increase in Capital:
Each share in the capital shall entitle its owner to hold a similar share in the
profit, redeem its nominal value, share the company assets upon dissolution
and sell or deposit shares as security, hold preference shares and increase
the company capital, or have any other right under the law or the Agreement
herein.
a- The share holder shall enjoy the share rights and assume the ensuing
obligations.
b- Company funds shall not be confiscated to honour financial obligations
of one of the partners.
The company shall maintain - at its head office – a register including the
following:
1- Partners’ names, addresses and nationalities.
2- Number of shares held by each partner and amounts paid.
3- Date of registration of each partner and date and method of dissociation.
4- Each concerned partner may have access to the register during official
working hours.
3
The company’s fiscal year starts on 1st January and concludes on 31 st
December of each year, except for the first fiscal year, which starts on the
day the partners sign the company agreement.
Article 14:
Article 15:
Either party shall have the right to request the other to have this Agreement
authenticated by a Notary Public.
The First Party shall, at a written request by the Second Party, commit to
register the company at the Ministry of Commerce. The First Party shall also
commit to take all legal measures for the transfer operation at the Ministry of
Commerce and other government and non-government bodies.
Any dispute, any controversy or claim arising under, out of or relating to this
Agreement shall be settled amicably, failing which the dispute will be
referred for settlement to the competent courts in xxxx country in
accordance with xxxx country Companies law.
4
Both partners may jointly cancel this Agreement before the expiry date - for
any legal reason – as stipulated herein.
Article 20:
This agreement is made in duplicate, each party taking one (1) copy, as of
the day and year written below.
…………………………………………………
….
AS WITNESS:
1. …………………………………. 2. ……………………………… …
…………………………………………………
….
AS WITNESS:
1. …………………………………. 2. ……………………………… …