A joint venture can take many forms – including partnerships, companies and trusts – but, whatever the form, a joint venture agreement is required to address such issues as:
- funding – immediate and future
- parties – will individuals stand behind corporate entities?
- decision making – what decisions require simple majority or unanimous approval
- retirement, illness and death provisions
- termination/default events – e.g. ceasing to work in the business, insolvency
- buy/sell options – on what terms?
It is our experience that the preparation of an appropriate joint venture agreement at the commencement of the venture will force participants to address such issues in a calm and non-adversarial environment. Such action will often avoid crippling uncertainty and expensive litigation at a later date.
Our focus is on using our experience to encourage the parties to address practical commercial issues in a pragmatic manner in addition to advising on the appropriate legal structure.