If a company is ran or started up by several parties, it is of the utmost importance that the mutual rights and obligations are properly laid down. We have advised on many disputes between shareholders and see, in particular, that in well-intentioned partnerships between shareholders that lead to a successful enterprise, the chances of problems are high. It goes without saying that we draw up the JV contracts and that we can advise you on what should or could be included in them to prevent these problems.
Drafting the agreement is often not the most difficult part of the matter. Getting all stakeholders on the same wavelength is. This is certainly the case if the parties in a joint venture are partly investors and partly managing directors. Different views on the term for return on investment and on how the operation should be managed can lead to tensions. We also make regulations in case parties can no longer see eye to eye.
