A joint venture is when two or more parties collaborate in a project or business endeavor. Normally when these parties work together, they still would continue to run their own individual businesses. This type of technical or financial collaboration is either in the form of projects or alliances with other companies. In some cases, joint ventures would compromise two or more individuals, shareholders or companies could be a non-resident, would come together to form a public or limited company. But how is capital arranged and profit divided? By creating a joint venture shareholders agreement or simply a joint venture agreement. You need a solid and valid document to ensure that the terms of the joint venture between shareholders are clearly defined to protect the interest of the parties involved and to avoid any disputes. To learn more about this, let us discuss this further below. And if you need to prepare a joint venture agreement, we’ve got a list of comprehensive joint venture agreement samples that are available for download on this page.

10+ Joint Venture Shareholders Agreement Samples

1. Joint Venture Shareholders Agreement Template

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2. Joint Venture Shareholders Agreement Checklist

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3. Sample Joint Venture Shareholders Agreement

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Size: 15 KB

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4. Joint Venture Shareholders Conflicting Roles Agreement

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5. Printable Joint Venture Shareholders Agreement

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6. Joint Venture Shareholders Procedurally Agreement

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7. Editable Joint Venture Shareholders Agreement

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8. Joint Venture Company Shareholders Agreement

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9. Basic Joint Venture Shareholders Agreement

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10. Joint Venture No Majority Shareholders Agreement

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11. Formal Joint Venture Shareholders Agreement

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What Is a Joint Venture Shareholders Agreement?

Simply put, a joint venture shareholders agreement is a valid and legal document that outlines important details relevant to the collaboration of the shareholders associated with the project or business. When setting up a joint venture each participant must decide whether to set up a so-called incorporated or unincorporated joint venture. In an incorporated joint venture, there is a need to set up a separate corporate entity to run the business, whereas in an unincorporated joint venture each member is responsible for the debts and liabilities of the joint venture.

Joint ventures can exist in many ways such as partnerships, joint working agreements, or companies. They can collaborate on one project or continue doing business.

How To Create a Joint Venture Shareholders Agreement?

A joint venture would normally be characterized by the following:

  • the right of mutual control or management of the business
  • contribution by the shareholders or partners’ money, skill, knowledge, property, and other important assets needed to run the business.
  • the right to share the property

A joint venture agreement sets out each participant’s rights and obligations towards others.  To create this document, you must be able to incorporate the following important elements into the agreement.

I. Purpose and Interest

Explain in detail the existence of the joint venture in the agreement, and why each shareholder is interested in this particular collaboration.

II. Cost

Engaging in a joint venture would mean shelling out capital, so the cost must be stated in the agreement.

III. Operations and Management

Explain in detail the management and operational aspects of the joint venture. Indicate the roles and responsibilities of the parties involved. And how decisions are made, will there be any voting? How many percent is needed in order for the decision to push through? All these and other relevant details must be stated and explained.

IV. Profit Sharing

If the partnership would generate revenue, then included in the agreement is how to equally distribute the profit among its members.

V. Duration

As mentioned, joint ventures may be created due to a project and if so, you will need to indicate the duration or term of such collaboration.

VI. Termination

Explain how or what circumstances would lead to the termination of the joint venture. Also, you will need to include the terms and conditions if ever that happens.

FAQs

What Is a Profit Share Agreement?

A profit share agreement has some similar clauses as to a joint venture agreement, but this agreement purely outlines how parties apportion the revenue of a product or service.

Why Is It Important to Have a Joint Venture Agreement?

No matter how much you may trust your business partners, it is still important that any arrangements are made in writing. This can serve as a reference in case any disputes may arise in the future.

What Is a Sharedholders Agreement?

These are private arrangements between the shareholders in a company.

A joint venture shareholders agreement can set a solid foundation for a clear and positive business relationship between its members. This is why it is very important to have this on hand. Don’t forget to check out our free templates to make it easier for you to prepare one.

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