What Does Joint Venture Agreement Mean

In Ukraine, most joint ventures are operated in the form of a limited liability company[22] because there is no legal form as a joint venture. The protection of the rights of foreign investors is guaranteed by Ukraine`s « Foreign Investment » Law. In Ukraine, the joint venture can be created without legal training and under the cooperation agreement[23] (Dogovir pro spilnu diyalnist); Ukr. Under the Ukrainian Civil Code, the certification body may be made up of two or more parties; The rights and obligations of the parties are governed by the agreement. The cooperation agreement is widespread in Ukraine, particularly in the area of oil and gas extraction. Regardless of the legal structure used for the joint venture, the most important document will be the Joint Enterprise Agreement, which defines all the rights and obligations of the partners. The objectives of the joint venture, the first contributions of the partners, the day-to-day activities, the right to profits and the responsibility for the losses suffered by the joint venture are outlined in this document. It is important to design it carefully to avoid litigation along the way. The AJE law exists between a Chinese partner and a foreign company. It is available in both Chinese (official) and English (with the same validity) limited liability. Before China`s accession to the WTO – and thus the WFOe – the EJVs dominated. In EJV mode, partners share profits, losses and risks in proportion to their respective contributions to the company`s share capital.

These degenerate in the same proportion as the increase in social capital. We talked about that earlier, although there is an important question to be considered as to what any joint venture will bring to the joint venture. They will document it clearly in the joint enterprise agreement and in other documents. It is important to manage your expectations and those of the other joint venture by talking in depth about what you will bring and your goals and expectations for the project. A joint venture can take many forms. Depending on the broadest definition, it may be a strategic agreement between two or more companies that pool resources to cooperate on a project or ongoing basis. Joint ventures are a useful way to work with other companies and combine different disciplines for targeted or general business purposes.