(5) Joint venture dissolution

Some Sino Foreign joint ventures will end in divorce.

Whether amicable or not, proper management of the split is essential to ensure a shareholder’s short or long term interests and entitlements are not eroded. Importantly, shareholders should ensure the manner and execution of this divorce does not affect the overall long term strategy of the parent companies.

Whilst a joint venture agreement should stipulate terms of dissolution, proper and clear communication during execution of this is key for value retention.

DaLu is well-versed in taking on the delegation of helping companies exercise their rights in a dissolution of a joint venture. Our consultants will utilize their cross cultural skill-sets and corporate experience to project-manage such a divorce if companies feel our assistance is required.