Joint Venture Agreement

In many cases, foreign party joins in the financial participation with the Indian party. In such cases, a Company is incorporated. The foreign party make take minority ownership, fifty –fifty ownership, majority ownership etc. The Agreement should provide for the following:

  • Capital Structure of the Company.
  • Management of the joint venture company.
  • Decision of financial policy of the Company .
  • Change of Partnership Arrangement .
  • Other Provisions.

Checklist:

  • Check whether the parties have decided to incorporate a Company to initiate joint venture and if that be so, check whether capital structure of the Company to be incorporated has been provided.
  • Check whether provision [providing the No. of directors to be nominated by each party on the Board of Directors of the Joint Venture Company has been given.
  • Check whether the clauses providing about the decision of financial policy of the Company has been incorporated.
  • Check whether the provision about change of partnership arrangement in the Company has been incorporated.
  • Check whether proper stamp duty has been paid on the Agreement .