We understand the importance for a joint venture and shareholder agreements
Joint ventures are between different companies, while shareholder agreements are between several members of the same company.
Such agreements are an arrangement where two companies develop a new contractual working relationship to their mutual benefit – hence joint ventures. It normally involves a sharing of resources, which could include capital, personnel, physical equipment, facilities or intellectual property such as patents.
All that’s needed to form a joint venture is a clear legal agreement setting out how the joint venture will work and how you will share any income. The agreement should spell out the details of the purpose, how the two (or more) parties share in profits and losses, and how the parties share in making decisions about the joint venture.
Shareholder Agreements are an essential and integral document for any shareholder relationship which allows them to regulate their relationship with each other, the company and its directors, especially as shareholders do not have any duties or obligations to a company or its business under law. Such an agreement will set out the rules and regulations upon which the shareholders, the company and its directors are bound by. All parties will have a better understanding of their rights and obligations. Some of these will be governance requirements on how they must conduct themselves in the running of the business. Others will be restrictions on what they can or cannot do without the appropriate approval levels.
Even if a business is already established, it is not too late to put the necessary protocols in place, to ensure that shareholders are protected in the future. Businesses can look to enter into suitable shareholder agreements and articles of association at any time. However, once in place it is crucial that as businesses develop that such matters are assessed regularly to ensure that they remain suitable.
Joint Ventures and Shareholder Agreements | What we do
At MannBenham we provide transparent and clear advice to make sure our clients understand the complete process. We provide a solid platform to begin developing a solution along with an indication of the costs involved before undertaking any piece of work.
- Help you create a joint venture, setting out the terms and conditions in a written agreement. As a result this agreement will help prevent any misunderstandings in the future once the venture is up and running.
- Ensure that any agreement will cover all aspects surrounding the formation of the joint venture, and the legal rights and obligations between the parties.
- Liaise with you on all aspects of the agreement from scope through to execution, duties, contribution and remuneration.
- Provide you with all the independent legal expert advice that you need before you make any final decisions, whether you are entering into a two-way joint venture or even a multi-party agreement.
Talk to us today
If you need to talk to someone about a Joint Venture or Shareholder Agreement, then take the first step and email firstname.lastname@example.org or call us on 01624 639350 to arrange your free initial consultation with us today at our office, over the telephone or via video call.