Joint Venture Agreements South Africa

What are The Deadlock provisions that are usually included in joint enterprise agreements in your jurisdiction? Apart from practical considerations and rules on the exchange of information, there are no general issues, particularly with respect to disputes between joint ventures related to the disclosure of evidence. While one option for companies is to create securitization vehicles (joint ventures created in life), non-corporatist enterprise agreements (VVUs) are a (simpler) alternative because of their limited administrative obligations, the less cumbersome resolution process and their inclusion and adoption in the provisions of some (most) public tenders and B-BBEE codes. If the joint venture is a partnership, the partners are jointly responsible for the company`s debts. If a partner pays more than his interest in the corporation, he may be entitled to the balance of the claim under the common law against the other partner. What are the main types of joint ventures in your jurisdiction? Is the “joint venture” recognized as a stand-alone legal concept? How are joint ventures generally funded in your jurisdiction? Are there specific requirements for funding and security measures? There are no general restrictions on the ability of joint venture participants to bring assets to the joint venture. If the joint venture is a joint venture, the contributions will be in the form of share subscriptions. The consideration of shares may be money, property, work or any other business promise or agreement. Are there any informed accounting or reporting problems for the parties to the joint venture regarding their participation in the joint venture? If the joint venture is a company, shareholders are generally not liable beyond what is expressly provided for in the shareholders` agreement or the foundation agreement. A joint venture operating in South Africa is not limited to the regulatory law provided for by its joint venture agreement. Similarly, the method of dispute resolution chosen by a party is not limited.

The Party should ensure that it chooses dispute resolution mechanisms that are appropriate for different types of disputes. For example, a deadlock dispute may be better resolved by the establishment of experts (where such a mechanism is recognized under the chosen existing legislation) than by litigation.