“Let’s agree to disagree” – goes a common saying, when two negotiating parties are unable to agree on the other’s point of view. The parties may however continue with other regular discussions or business.
In certain cases like a joint venture (JV), a stalemate or lack of consensus may have severe repercussions if either party is not willing to look beyond one or more disagreements.
JV agreements and shareholder agreements include provisions for joint decision making by the JV partners/ shareholders in order to grow and build the business of the JV. The JV partners also contribute differently to the growth of the business, i.e. while one JV partner may have the technical know-how and intellectual property required for the business, the other JV partner may have the skill set and knowledge required for the growth of the local target market. The JV partners therefore intend to make the most out of the JV so that they will together achieve the benefit of a successful venture.
Please click here to read the full article by Raj Ramachandran, published in BW Legal.
Raj specializes in Corporate Commercial, Banking & Finance and Cross Border Investments & Acquisitions.