Apr 08

Board Resolution For Termination Of Joint Venture Agreement

However, in the case of strategic alliances, it may be in the interest of the joint venture company to avoid an exit option for the partners of the joint venture as a deadlock regulation and instead regulate at the level of the management of the partners of the joint venture. In this regard, it was well said that “an ounce of mediation is a pound of arbitration and a ton is worth litigation!” This module examines the various options for resolving disputes and what to do in the event of termination. The most interesting thing about this clause is that each shareholder should carefully evaluate the price to be indicated in the offer, since a high offer price would have the effect of charging the shareholder a higher premium to buy the other shareholder, while a low offer price may result in the exclusion or involuntary exit of the shareholder at a lower price. With respect to cross-border joint ventures, the foreign partner is expected to offer fair value above the estimated fair value established by Indian foreign exchange law, and the Indian partner will have a cap on the purchase price and will likely not be able to offer a higher offer than the foreign partner, and the Texas Shoot-out therefore generally works against the Indian shareholder. It is important that a joint venture is not able to prevent decisions by deliberately absent from meetings and that frustrated decision-making of (failure) is made: if neither party is able to purchase the other, voluntary liquidation of the business may be considered a final corrective measure. This is a very radical measure, which should not be implemented without full and complete reflection, and it is ensured that once a shareholder has made certain assets (such as forms, tools) and intellectual property available to the joint venture, the same is returned to the shareholder. In addition, it may not be ideal if contracts are made primarily with the government or if, on the other hand, the joint venture is financially sound. The structure and management of a 50/50 joint venture will generally strengthen Deadlock`s position, z.B.: Deadlock can occur on both the board of directors and at the shareholder level. As a general rule, joint venture agreements provide that a deadlock has occurred when the board of directors or shareholders are unable, if necessary, to make a decision on a reserve matter.