Why is a JVA made for you? A strategic link with others can lead to commercial efficiency and support. However, before moving forward with a joint enterprise agreement, make sure that you and your business partner are on the same page. Implementing a JVA can ensure the safety of your investment and future activity. “The long delay of the 3 km transfer should be completed soon. We will therefore see less impact of roadworks on our business. A new site is being developed and this should strengthen our capacity to create a joint venture that we should create during regional expansion,” he said. The main advantage of creating an entity or partnership for the continuation of the business is that it easily separates the activities of the joint venture from the independent activities of the parties to the cooperation agreement. A partnership allows two or more people to share ownership of a single company. This structure allows for shared responsibilities and increases the ability to raise funds. However, each partner is jointly responsible for the actions of other partners. As a general rule, there is no limited liability in a partnership, which means that each partner`s personal fortune is a fair game to pay off the company`s debts.
This is the most compelling reason to set up a JVC. When the joint venture is contracted, the parties generally agree to work as the promoter of the joint venture without creating a separate entity. This structure is most used during the experimental or study phase to determine the viability of the proposed project before the costs of creating a GUC are incurred. In such cases, a cooperation agreement is generally drawn up and implemented; Parties must be particularly careful to clearly define their rights and obligations with respect to the joint venture, as this is their only avenue of protection. It is also important to ensure that the parties do not accidentally enter into a partnership through their activities if that is not what they intend to do. A clause in the cooperation agreement that does not create a partnership is persuasive, but inconclusive. VANCOUVER, British Columbia, July 31, 2018 (GLOBE NEWSWIRE) — CROP Infrastructure Corp. (CSE:CROP) (OTCMKTS:CRXPF) (“CROP” or “company”) announces that it has entered into a joint venture agreement under which the company holds a 49% interest in a zero-cost lease agreement.