How long will the joint venture last? Some joint ventures are intended to have unlimited terms. Others may be limited to the duration of a specific project. Still others may expire or change by operation of law, as when a concession right requiring local ownership expires. When a joint venture […]
The Closer – M&A, Securities & Corporate Counsel
New Reporting Requirements for Tax-Exempt Social Welfare Organizations
The Protecting Americans From Tax Hikes Act of 2015 (PATH Act) imposes new reporting requirements for social welfare and community benefit organizations formed under Section 501(c)(4) of the Internal Revenue Code. The new requirements, found in Section 506 of the Internal Revenue Code, also impose penalties for failure to comply. […]
Captive Insurance Companies Proliferate Among Bank Holding Companies
This article also appeared online on BankDirector.com. Banking is the business of managing risk. Be it credit risk, interest rate risk or technological risk, bankers are trying to control a highly leveraged earnings engine while avoiding risks that can result in sudden reversals of fortune. Yet many of the biggest […]
Executing Successful Joint Ventures (Part 3): Frequently Asked Questions
How do the joint venture partners get compensated? Joint venture partners may realize compensation from a variety of contracts, such as: allocations of profits/losses under a joint venture agreement; royalties from license agreements; fees under management and technical assistance agreements; salaries under executive compensation agreements; or sales proceeds under distribution, […]
Executing Successful Joint Ventures (Part 2): Frequently Asked Questions
How do you structure your cross-border joint venture? Although a flexible approach is needed when structuring a joint venture in order to properly negotiate and accommodate the diverse interests of the parties, there are certain required key conceptual elements of all joint ventures. The rights and obligations of the parties […]