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How can corporate governance issues impact cross border transactions?

It appears that there might be some significant differences in how our potential U.S. JV partner handles voting rights and shareholder issues.  Could these differences negatively impact our potential arrangement?  What other potential issues should we be looking for?

  • SPC Advisors, LLC
    March 06, 2018

    Having worked on platforms with venture partners from different jurisdictions, it takes time and people who understand how each system works, to find a way to bridge differences. There is no one answer to any particular pairing.

  • Seyfarth Shaw LLP Real Estate Group
    March 06, 2018

    Governance is a critical component of any joint venture. This includes the governance structure of the JV itself as well as the internal governance structure of the other partner. The governance structure of the JV will address who must approve certain actions, changes in governance upon certain events, the method of dispute resolution, rights to records and other information, liquidation, buy-out etc.. The internal governance of the partner matters so that you will have reasonable certainty concerning the persons you will be dealing with and their scope of authority.