Small business shareholders or guarantors can appoint or remove a company director by members at any time, providing such actions do not more…
Joint Venture Agreements
Sometimes a business opportunity crops up which is too good to miss, yet you don’t feel you can do it justice by yourself.
In such situations, you might consider a joint venture with another business person or company.
Our commercial solicitors can draft, review and refine joint venture agreements so that you can embark on a shared project safe in the knowledge that your interests are protected and both parties’ responsibilities are clearly defined.
Joint ventures are by their nature often complicated, so it’s important to consider how they will be structured, overseen and run as early as possible.
All of these considerations can be laid out in a joint venture agreement between the businesses or individuals who are partnering together.
How does a joint venture work?
Joint ventures have many advantages – they bring together the skills and experience of separate businesses to deliver projects that neither could manage on their own.
Before you can start a joint venture, you need to decide the way you will structure it.
Depending on your needs and the requirements of the venture, you might consider any of the following:
- A limited company
- A limited liability partnership (LLP)
- A partnership
- A contractual collaboration between the parties
There are advantages and drawbacks to each of these structures.
A business accountant can help you get a company or LLP set up, while a solicitor specialising in commercial law can advise you on the agreement you need to secure the relationship between you and your joint venture partners.
How to draft a joint venture agreement
Once you’ve decided the structure of your joint venture, you need a joint venture agreement which covers business arrangements, such as:
- the length of time the joint venture will last for
- division of shares and profits from the joint enterprise
- governance of the joint business, including decision-making powers
- ownership of and rights to use the intellectual property each party brings to the venture or created by the venture
- how the joint venture may be brought to an end smoothly when the time is right
Why get a joint venture agreement?
A joint venture agreement is a type of commercial contract which needs to be tailored to your particular circumstances.
It’s highly recommended that you seek advice from a solicitor specialising in commercial law before drafting an agreement, or signing a contract presented to you by a business partner.