Case study on Joint Venture

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How to handle the case of joint venture A joint venture company, 2 companies involved, one i s 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 media tor chairs the board meeting, the chairman is not managing the country * Di-er ence betwee n chairing the meetin g and man aging the c ountr y, exc eption in France $.D hybrid of C/% and Chairman, but in 2001 F rance 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 i mportance of the c ouncil, have a neutral member and pa rit y of components in the council * Deadloc s ituati on a ny o rgan who do n ot wor, For ex ample e6ualit y 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 arti cle 1: i s not acce ptable fo r DC, fo r DC a sit uat ion of dead loc should not ;nish in a situation of a unilateral decision where FC will buy its shares and be independent7 this shall be avoided * ( o solv e this situa tion, the cl ause c ould b e draf ted, o ne par ty may o-er t o the other to purchase its shares to a certain price9 FC would never put the wrong proposal

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