Joint venture

Querist : Anonymous (Querist) 20 May 2011 This query is : Resolved
'A' company is ready to invest 100% for one project for power generation & B company is ready to facillitate them for local commitments. Now A & B jointly wants to enter into an agreement. As the B company is not at all investing but want some profit, can they form an Joint Venture Company having 0% stake of B in the JVC and a separate share holders agreement to share profits? or which mode is the best way?

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M/s. Y-not legal services (Expert) 20 May 2011
Its depends upon them M.O.U. If A accept mean B can be as working partner.. I mean without investment can share the profit. If their m.o.u is leagal one mean law will not stop them..

Advocate. Arunagiri (Expert) 20 May 2011
B need not be a investing partner. He can be given share in profits in the project or any other consideration as per the JV agreement.

The profit to be given to B will treated as expenditure, it has nothing to do with the profits / dividends payable to the share holders.

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