QUESTION

How do you protect yourself in a joint venture so the other company doesn''t sell the business in the future, leaving you on the outside?

Asked on Aug 07th, 2012 on Business Law - Florida
More details to this question:
a JV is established with a co-branded name and content development. How do you protect yourself from a potential sale as the business grows?
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1 ANSWER

Business Transactions Attorney serving Los Angeles, CA at Doland & Fraade
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If you are a joint venturer, it is hard to believe that anyone would buy a business without speaking to all of the owners. Even if the business was sold, if the proceeds were not shared according to ownership there would be a right to recover in a lawsuit under many legal theories such as breach of fiduciary duty, and probably fraud/concealment and conversion. A joint venture agreement in writing can have great benefit in addressing this and numerous other issues.
Answered on Aug 08th, 2012 at 11:04 AM

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