The joint enterprise agreement should define the conditions under which the joint venture is terminated and the joint venture dissolved. In general, the reasons for termination and liquidation are: if the joint enterprise agreement authorizes optional future contributions, the specific cases in which such contributions are eligible should be defined, including the date on which such contributions may be made and the amounts authorized. These optional contributions are all means that go beyond the mandatory contributions that the executive member or the board of directors of the joint venture considers prudent to support the activity of the joint venture. 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. A joint venture could include two companies from different disciplines, working together to develop a new product or offer a new service. Or a company wishing to enter a new geographic market could form a joint venture with a company established in the country or region or with an established presence.
For example, BMW Group and Brilliance China Automotive Holdings Ltd. have created a joint venture called BMW Brilliance Automotive Ltd. to produce and sell BMW vehicles in China. A joint venture itself is not an autonomous legal entity and is not recognized as such by the regulatory authorities. Joint ventures are managed by private or legal entities. Some of the questions asked in a shareholder pact are: A joint venture is a cooperation agreement between two or more companies, often with the aim of launching a new business. Each entity participates in the assets of the joint venture and agrees on the distribution of revenues and expenses. A joint venture is not required to register with a state or the federal government. This is repeated as part of the shareholders` pact regarding the number of directors that each founder can appoint to the board of directors; Whether the board of directors or the founders; the simple majority decision (50%-1) of those present or of a majority of 51% or 75% for all directors present (their substitutes/alternates); Making company funds available The level of debt The share of profit that can be declared as a dividend; Etc. What is important is also what will happen if the business is dissolved, if one of the partners dies or if the business is sold. The parties wish to create a joint venture between them in order to cooperate in [JOINT VENTURE DESCRIPTION], if all parties fully trust each other, a joint venture could theoretically be created by a simple handshake. But all companies that opt for a joint venture would be wise to outline the terms of the company in a signed contract, created with the assistance of a lawyer.