by Audit Analyst | Dec 14, 2025 | Joint Venture
Strategic Decision and Mutual Consent The conversion of a JV into a merger begins with a strategic decision made jointly by all partners. Board meetings are held to discuss the commercial rationale and legal feasibility of merging the JV with one of the partner...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Regulatory Framework for Foreign Contributions Foreign contributions in a JV are primarily governed by the Foreign Exchange Management Act (FEMA), 1999, and the Foreign Direct Investment (FDI) Policy issued by the Government of India. In certain sectors, foreign...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Eligibility to Open a Bank Account A JV formed as a company, LLP, or registered partnership is recognized as a separate legal entity. Such entities are fully eligible to open current accounts with banks in India. Unregistered or purely contractual JVs (consortia) may...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Strategic Leadership and Decision-Making The lead partner plays a central role in guiding the strategic direction of the JV. They often take the initiative in setting goals, developing the business plan, and aligning the JV’s mission. Major decisions regarding...
by Audit Analyst | Dec 13, 2025 | Joint Venture
Reserved Matters and Veto Rights Specific decisions are categorized as “reserved matters” requiring consent from all partners, including minority shareholders. These include major actions like altering share capital, changing the business scope, approving budgets, or...
