JVs may or may not be integrated into the legal personality. A registered business venture is a company in which two companies come together and create a new joint venture. For example, A Sdn Bhd works with B Sdn Bhd to create AB-JV Sdn Bhd. AB-JV Sdn Bhd becomes an autonomous legal entity in law, and ab-JV Sdn Bhd is claimed in the same way as any other Sdn Bhd. The popularity of joint ventures has increased in recent years, with parties having a number of advantages available to a joint venture, including risk and cost sharing, access to new markets and strategic conflicts against competition. While joint ventures seem tempting, it is important to understand the different structures, conditions and conditions that apply to a joint venture. A joint enterprise agreement is a final agreement by which the joint venture is formed between the parties to the proposed joint venture. A joint enterprise agreement should set out the contributions, expectations, obligations, rights and obligations of all parties involved in the proposed joint venture. In addition, the joint venture agreement must be fully developed and define the obligations of all parties involved. One of the key elements of joint enterprise agreements is the mechanism for distributing profits and liabilities between the parties to the joint venture. The agreement should also be structured in a precise manner to take into account the intention of the parties to minimize the risk of disputes arising from or related to the joint enterprise agreement. There is never a guarantee of success in the economy and, in some cases, one or more parties to a joint venture may find that their business objectives and interests have changed from the original objectives and scope of the joint venture.
Parties should consider including exit strategies in the joint enterprise agreement. Exit strategy provisions generally help parties to a joint venture to terminate the joint venture in a predictable and amicable manner. Common exit strategies include liquidation, put and call and the right to refuse in the event of a registered joint venture. The inclusion of an exit strategy helps parties not to be forced to remain at an impasse. Parties to a joint venture generally consider their assets to contribute to the joint venture in order to help the joint venture achieve its objective. In addition, most joint ventures involve the development of a product by the joint venture, which can have value for each party to the joint venture. A detailed and precise clause defining the respective ownership of this intellectual property is essential to protect the rights of all parties to the joint venture. This concept also applies to the extent to which parties can use any intellectual property outside the joint venture. However, the main drawbacks of a joint venture without its own legal personality are that, in the case of the participating companies, the companies concerned create a new company (i.e. a joint venture) for the purposes of joint ventures. This form of joint venture is not popular in the oil industry and is usually introduced at an advanced stage of the business. A common error when an unpaid party initiates a CIPAA procedure against a non-corporatist joint venture is either: (a) the designation of the non-corporatist joint venture.
The result is implementation challenges. B. Designation of a party in the joint venture without mention of the others.