Louis Mangione

Innovations in Education, Inc.

Joint Venture Agreement Things To Consider

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1. Know your partner. It`s obvious. Go beyond the obvious. Do as much research as possible to understand the corporate culture of the party you are going to work with. Don`t assume that the people you spoke to with your potential partner have the same values and visions as the organization that represents them. Has the organization ever made joint ventures? What were the results? Can you talk to someone from your former partners? There are more risks than expected financial results. Your reputation may be affected by your partner`s actions, including those that are not directly related to the joint venture itself. Your business, your partner`s business and your markets change over time. A joint venture can adapt to the new situation, but sooner or later most partnership agreements end.

If your joint venture has been created for a particular project, it will end naturally when the project is completed. It is also interesting to note that, in most years, bespoke statutes are also adopted at the time of entry into the joint venture. In particular, the articles are likely to cover the share rights of each class of shares (if there are more than one), the rights and restrictions of transmission, along and the rights to take and mark, as well as certain administrative provisions. From financing to termination, here`s what you need to respect when setting up a joint venture agreement. 8. Keep good grades. Who keeps the financial, operational and other statements? What records are kept and where are they kept? Who has access? What registrations are required in the regulations on the joint venture`s website and in each partner`s country? How are records protected? It is easy to underestimate the importance of answers to these and other similar questions. The benefits of good registration are of course known, but in the case of joint ventures, there is an additional benefit: if a key person attached by one of the parties to the joint venture leaves his employer, it will be more difficult for the person to replace the person to “question the history of the company” of the joint venture. The recordings must speak for themselves. One approach could be to store all records in an Internet-accessible cloud, regardless of the computer network of one of the parties. Access can be controlled by assigned usernames and passwords, and permissions can be granted for the addition, deletion and editing of documents.

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