Terminating and exiting a corporate joint venture—fundamentals


Published by a UUÂãÁÄÖ±²¥ Corporate expert
Practice notes

Terminating and exiting a corporate joint venture—fundamentals


Published by a UUÂãÁÄÖ±²¥ Corporate expert

Practice notes
imgtext

Embarking on a joint venture (JV) relationship usually involves considerable planning and effort on the part of the JV parties who have decided to partner together for mutual gain (usually by sharing costs, resources and experience). When entering into a JV, the parties may already have views as to the circumstances leading to, and the timing of, termination of the JV. However, even where the parties have no explicit intentions at the outset as to the circumstances and timing for termination of the JV, consideration should be given to the events which could lead to its termination. The joint venture agreement/shareholders' agreement (jva) will often set out, at the outset, procedures for termination of the JV and the circumstances in which a JV party can exit the JV. Termination of the JVA is distinct from liquidation of the joint venture company (JVC). Careful consideration should be given to the implications of ending or exiting a JV.

Termination of a JV may take a number of forms and involve a number of transactions. Typically, termination of the JV comprises:

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Costs definition
What does Costs mean?

Money ordered to be paid by one party to another in respect of the costs incurred in the course of litigation, in bringing or defending a claim.

Read more

Popular documents

Funding a corporate joint venture

Funding a corporate joint ventureFunding optionsWhen setting up a joint venture (JV), the parties will need to consider how the JV is to be funded, both initially and throughout the course of the joint venture. Although this note highlights the main funding issues faced by corporate JVs, the general

The joint venture agreement

The joint venture agreementPrincipal documentsThe principal documents required for a corporate joint venture are:•the articles of association (articles) of the joint venture company (JVC), and•the joint venture agreement (JVA) (sometimes called a ‘shareholders’ agreement’—a shareholders' agreement

Setting up a joint venture—choice of structure

Setting up a joint venture—choice of structureChoosing the joint venture vehicleA joint venture is not recognised under English law as a distinct legal concept. It is essentially a commercial arrangement between two or more parties who agree to pool their resources for the purpose of accomplishing

Heads of terms—corporate joint venture

Heads of terms—corporate joint ventureDate: [insert date]Subject to contract1Introduction1.1These heads of terms set out the principal terms and conditions upon, and subject to, which [insert name of first shareholder] (Party A) and [insert name of second shareholder] (Party B) are proposing to