Solicitors here advise on and document joint venture arrangements. What is a joint venture? “Joint venture” is a term without any precise legal definition but it may be described as an arrangement between 2 or more parties who pool their resources and collaborate in carrying on a business activity with a view to mutual profit. The parties may also agree to share the risks involved but the degree to which they will do so will vary depending upon the particular structure for the venture which they have chosen.
The term “joint venture” is most commonly applied to an arrangement whereby 2 or more corporate bodies each provide capital, assets or other resources to a joint venture limited liability company in exchange for shares in that company, with a view to its carrying on a business commonly involving expertise provided by each of them. This type of joint venture is generally referred to as a corporate joint venture but there are other possible types of structure. The main documents involved in a corporate joint venture are a shareholders’ agreement and the articles of association of the joint company.