Joint ventures remain popular as vehicles for collaboration and expansion. If you need solicitors for legal advice on the advantages and disadvantages, legal, commercial, or tax, or a joint venture agreement drafted or reviewed.
Joint venture agreement
There are a variety of possibilities for you to consider. The structure most appropriate for any particular joint venture agreement will be dependent upon the parties, their respective objectives, and roles. If you need you can also hire joint ventures & partnership solicitors in Brisbane online.
Image Source: Google
The most typical joint venture structures are:
- Special Purpose Vehicle – a company specially created for the joint venture agreement. Often known as a special purpose vehicle (“SPV”) company and the most common structure. We find SPVs can work well for commercial transactions involving commercial property;
- Partnership or limited liability partnership (LLP); or
- Collaboration agreement – which generally does not involve the creation of a new vehicle.
Joint venture companies
If you are using a special purpose vehicle for the joint venture you need to consider the equity structure. The equity structure should cater for:
- Management during the life of the joint venture; and
- Disbanding once the purpose behind the joint venture has been served.
Joint Venture Agreement plus shareholder agreement?
If a new company is set up for the joint venture, it will be important to have a shareholder agreement as well as joint venture agreement.