The meaning of a Joint Venture ( JV)
There is no meaning in English law for a JV. While their importance has become more important as business has evolved we cannot turn to one single definition and claim that this fits easily in the JV hole.This means that where two entities which to do business together the form and type of JV will differ and much will depend on the advantages and disadvantages of a particular operation. In particular whether the JV will tick all the technical, legal, accounting, and operational and commercial requirements of both parties.
The following are usual vehicles for the venture. 1) A limited liability company. 2) A partnership. 3) A Limited Liabilit partnership and 4) finally a relationship based on a contract. What vehicle to choose will be dependant on the commercial objectives. We do suggest you meet the other parties prior to instructing Lawyers and work out a plan.
Michael Coyle is a Solicitor Advocate and can be contacted at firstname.lastname@example.org. For more information on joint ventures or shareholder agreements you can email him at email@example.comÂ .