Case study on Joint Venture
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Transcript of Case study on Joint Venture
How to handle the case of joint venture
A joint venture company, 2 companies involved, one is bigger than others
Dc needs to secure is that FC is not going to exit dc from the project, DC have to mae
sure this happen! FC have not to become independent from the project
FC can"t lose control on the agreement bcs of the cost of its technologies
Chose # $%&'()
* +overnance the mediator chairs the board meeting, the chairman is not
managing the country* Di-erence between chairing the meeting and managing the country, exception
in France $.D hybrid of C/% and Chairman, but in 2001 France adopts the
di-erence between C/% and chairman! / '//D (% )/( (H/ D&FF/3/'C/
4/(//' C/% A'D CHA&35A', the chairman have to give a resume monthly of
how the enterprise performs* (he importance of the council, have a neutral member and parity of
components in the council* Deadloc situation any organ who do not wor, For example e6uality of votes
78 deadloc situation, or e6uality of shares7 deadloc%ne party may purches the shares of others9 art 1: in this case the FC can buy
the all the shares of DC* (he article 1: is not acceptable for DC, for DC a situation of deadloc should not
;nish in a situation of a unilateral decision where FC will buy its shares and be
independent7 this shall be avoided* (o solve this situation, the clause could be drafted, one party may o-er to the
other to purchase its shares to a certain price9 FC would never put the wrong
proposal