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Dentons - Joint Ventures

They can be contacted at info lalive. Many factories are built through joint ventures. Help for small firms Joint venture model contracts provide the international business community with models for two forms of joint venture agreements. Two options A joint venture may be about the joint performance of a single-activity contract, or about the organization of long-term cooperation between parties.

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These are applicable to different situations: Incorporated joint venture contract. This is a model to create one or more joint venture companies, which are legal entities established to carry out a common activity. In this case, the joint venture agreement helps to prepare the creation of a company in a specific country.

Legal aspects of joint ventures in Eastern Europe

In addition to the joint venture agreement, the cooperation of the parties requires further legal instruments, usually articles of incorporation of the company, by-laws and a shareholders' agreement. Contractual joint venture contract. This model regulates cooperation between parties. A legal entity is not created, but a collaborative group exists.

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Only one legal instrument is usually necessary: the contractual joint venture agreement. However, due to the history of the past 40 years the long-term prospects for stability and free markets remain unclear.

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  7. The desire of many multinationals based in the United States and elsewhere to invest immediately in this region creates a need to deal with several risk management issues. For the first time since the introduction of its economic plan in the s, the Soviet Union in passed a joint venture law allowing foreign equity holdings.

    In addition, the East German government has indicated that it may allow majority foreign stakes in joint venturesan exception to a previously planned 49 percent foreign investment ceiling. The Czechoslovak joint venture law is more restrictive than the Polish or Hungarian statutes.

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    Hungary's laws are the most liberal and have thus attracted the most investment. Removing the bloc from joint ventures in Eastern Europe.

    The spirit with which Western governments and business interests have sought to expand involvement in the East European market has been well documented. However, there has been relatively little attention paid to the extremely important internal changes which have come about within the foreign-trade policies of the Eastern European coun- tries and which have served to accommodate the growth of trade with the West. This dramatic increase in direct foreign investment in the form of joint ventures results primarily from the passage of enabling legislation in a number of the East European states, legislation which has facilitated and attracted business invest- ment from the West.

    Thus, it is opportune to examine and review the policy reforms and amendments which have been enacted in Eastern Europe and the Western responses thereto.