In today’s world, many projects are too large for any one company to undertake as it may involve huge financial commitments - this is especially true in the infrastructure area. Market access is another reason for the international proliferation of joint ventures. Conducting research is another area where the risks need to be shared. Joint ventures must yield benefits for both partners, but more importantly they should offer the parties an option to implement their vision for the future and exploit unforeseen opportunities.
Joint Venture is a common form of doing business in India. Most foreign direct investments are made in a Joint Venture business. A Joint Venture as the term suggests, is a business agreement in which two or more partners agree to contribute and co-operate towards investments in running a business with an intention of achieving the commercial objective. Joint Ventures may be equity based or contractual. It could involve entirely new business or expand already existing business
Under the Indian Law a Joint Venture is governed primarily by the Indian Contract Act. However as a Joint Venture involves several aspects other corporate laws are also applicable.
All businesses with more than one shareholder should have a Shareholders’ Agreement in place – setting out the rules by which the ownership of a company is held and the powers of shareholders. This legally binding document is a powerful tool for the resolve disputes and for managing change in all stages of a business’s life.
We represent and advise shareholders from organisations of all sizes – helping to define their legal relationship with each other and the framework within which their business venture is to operate.
To avoid cross border future disputes, we can build into the an Agreement a mechanism to cope with any future relationship breakdown between the parties or future sale of the business.
Our lawyers can provides services includes drafting as well as advising on: