Are there any informed accounting or reporting problems for the parties to the joint venture regarding their participation in the joint venture? The term „joint venture” is not a clear legal concept in South Africa, but it is generally used in trade. Since the concept of a joint venture has no technical and legal significance, it is sometimes used incoherently, referring to a cooperation agreement between two parties until a joint enterprise agreement involving a legal entity. Purely contractual joint ventures (such as cooperation or co-ownership agreements) are also common in South Africa. These agreements must be carefully documented so as not to be seen as a partnership. Partnerships are generally unregulated and agreement between the parties would remain ineffective. What are the main considerations of your responsibility in structuring the joint venture services delivery by the joint venture parties? What are the competitive considerations for the creation and operation of the joint venture? Is authorization required? It depends on the nature of the joint venture. The position under the current South African Companies Act is different from that which has always prevailed in South Africa. Previously, it was possible for the shareholders of a joint venture to enter into a shareholder contract and to provide that the shareholders` pact prevailed in the event of a conflict between the shareholders` pact and the company`s statutes. Under the current South African Companies Act, that is no longer possible. The South African Companies Act provides that a shareholders` pact must be consistent with the „Companies Act” and the incorporation of the company (of its statutes), and any provision of such a shareholders` pact inconsistent with the company`s law or constitution memorandum is null and void in terms of inconsistency. As a result, the parties to the joint venture have added more provisions to the foundation agreement to eliminate any inconsistencies and the risk of such a provision being nullified. Well, the collaboration of agreements allows you to have greater flexibility in the organization of the duties and duties of the parties.
The entities of the joint venture free the parties from their personal responsibility by creating their own legal entity. However, it is a larger financial commitment and, therefore, it is only really practical for parties who can do business over a period of time. Are there any pilots in your jurisdiction who determine the structure of a joint venture? Deadlock`s rules depend on the extent of the interests of the joint venture partners. If their interests in participation are the same, it is customary for a stalemate to lead to the liquidation of the company. This is sometimes preceded by a kind of mediation, usually a referral to high-ranking members of the board of directors of the parties to the joint venture (for example. B of the president). There has been no recent change in corporate, corporate or foreign exchange control rules that would affect joint ventures in South Africa. These legal areas are fairly regulated. There are no specific trends regarding joint ventures in South Africa, but we have seen some reluctance to use partnership companies without their own legal personality, although they remain popular in some sectors.