UHY Hacker Young | Chartered Accountants

Joint venture agreements

15 February 2016

In this blog I would like to advocate the importance of joint venture agreements and/or comprehensive shareholders agreement detailing specifics on how events between parties should be handled.

I have found that having a mechanism for resolving any unforeseen events can be invaluable when such an incident occurs. However, as an adviser, I understand that the possibility of a dispute is the last thing on a client’s mind when undertaking a new venture. It is ultimately akin to that of a divorce.

As an adviser I must look at the “what ifs” and promote that a relatively small investment at the beginning of a venture (detailing how such “what ifs” are to be resolved) can be worth its weight in gold in years to come…In other words fix the roof while its sunny.

I am therefore advising clients that they converse with legal representatives for further advice.

An agreement can address:

  • Dispute resolution;
  • share valuations;
  • set criteria for sale in the future;
  • illness;
  • death in service;
  • dividend policies; and
  • salary policies.

Please note; the above is not a comprehensive list as each venture is different.

If you are in the midst of a new venture and would like to discuss your specific circumstances, please get in touch with myself or a member of our team.