What is difference between shareholders agreement and joint ventureareement ?
CS Smriti Sharma
(ACS, B Samrish & Co.)
(880 Points)
Replied 02 August 2011
Hi,
Normally the joint venture agreement is entered into before a new company is formed or before the investment in the existing company is made. Shareholders agreement, by the very name indicates, is an agreement between different shareholders of the existing company. That means that the parties to the agreement are already shareholders of the said company. Further in most of the cases, the shareholders agreements are related to financial participation and related issues whereas joint venture agreements may contain something more than that like technical know-how, supply of materials etc.
Thanks & Regards :
Smriti Sharma
B. Samrish & Co.
Company Secretaries
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