Joint venture


In business life, it is quite common that people or businesses that hardly know one another set up a joint business venture where there is a risk that after some time certain co-owners give priority to interests other than those of the joint venture or do not want to fulfil their obligations undertaken before or do not wish to fulfil them in full. The syndicated contract, which is still not specified in the Civil Code, was designed to eliminate this problem. Under a syndicated contract, the parties undertake various obligations in connection with the management of the business, the exercise of ownership rights, the extent of dividend and investments, the replacement of senior executives, etc. Companies can be managed in a more sophisticated manner through a so-called "unit trust" than by means of a syndicated contract, where the actual owners have a particular beneficiary position expressed in units in the trust deed instead of a direct stake, which can even be transferred under certain conditions.