Joint Ventures & Co-Ownership Agreements
Relationships can be complicated so when it comes to business it’s best to get the right advice at the beginning.
What are they?
If you are setting up (or purchasing) a business with another person, whether they are a family member or ‘unrelated’, then it is strongly advised that you consider entering into a Shareholders Agreement, Partnership Agreement or Joint Venture Agreement (“Co-Ownership Agreements”). These agreements set out the rules around the governance and conduct of the co-owners of your business venture. There are different advantages to the different types of agreement and it is near impossible to find a ‘one size fits all’ option.
When looking at entering into such an agreement, knowing what is important to you and the success of your business is paramount. You and your business partner/s need to consider the types of things you want to cover. That’s where our Commercial Law team will be able to discuss your needs and make recommendations that suit all parties.
When should I enter into a co-ownership agreement?
The best time to enter into a Co-Ownership Agreement is at the beginning of your relationship with your fellow co-owners. However, you can enter into a Co-Ownership Agreement at any stage in the life-time of your business and, if you haven’t already done so, it is strongly recommended that you discuss this with your fellow co-owners. It’s best to get it sorted before you need to rely on it!
The most important thing to remember is that a Co-Ownership Agreement is flexible and can cover any issues that you consider appropriate and necessary.
What should I include?
The types of issues that you should consider covering in your Co-Ownership Agreement are:
- Roles & responsibilities.
- Budgets & business planning.
- Decision making & control.
- Non-competition & restraint of trade.
- Dispute resolution.