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Joint venture company insolvency


Joint venture company insolvency: if your limited company is part of a joint venture and becomes insolvent, your only liability is to the shares that you deposit into the joint venture company. If you should guarantee the joint venture business, then you may be liable for the debt it incurs. The rules are different if you are a partnership and also part of a joint venture company, as your liability will depend on the way your business has been structured.

Joint venture company due diligence: when you establish a joint venture business you will need to ensure that your partner has the legal right to conduct business, and you will do this by completing a thorough due diligence check. The due diligence is necessary to minimise the risk of legal trouble in the future and maintain security within your joint venture company.