Joint Ventures

JOINT VENTURES
Contents
(A) Publishers Note
(B) Commentary
(1) JOINT VENTURES IN GENERAL
A: INTRODUCTION
1 Definition of joint venture
Re!sons for est!"#is$in% ! joint venture
& T$e tr!ns'n!tion!# enter(rise !n) t$e joint venture
* E+ono,i+ !n) #e%!# (ro"#e,s
-: T.E COR/ORATE JOINT VENTURE
0 A)v!nt!%es of t$e +or(or!te joint venture
1 Re%u#!tion of re#!tions "et2een (!rties
3 Dire+tors
341 Conf#i+t of interests
34 S$!)o2 )ire+tors
5 Tr!nsfer of s$!res
6 7!rr!nties
18 T!9 issues !n) o"#i%!tions un)er t$e Co,(!nies A+ts
C: /ARTNERS.I/
11 :or,!tion of (!rtners$i(
1 Conse;uen+es of +onstitutin% ! joint venture !s ! (!rtners$i(
1& Aut$orit< of (!rties to !+t on "e$!#f of t$e venture
1* /!rtners 2it$ #i,ite) #i!"i#it<
10 /ro(ert< issues
11 :i)u+i!r< )uties of (!rtners
13 Ter,in!tion of (!rtners$i( joint venture
15 Dis!)v!nt!%es of (!rtners$i( joint ventures
D: CONSORTIU= AGREE=ENTS
16 N!ture of t$e +onsortiu, !%ree,ent
8 T$e use of t$e +onsortiu, !s ! "usiness ,e)iu,
1 Co,,on (rovisions in ! +onsortiu, !%ree,ent
Consortiu, or (!rtners$i(
& /ro(ert< issues
E: EURO/EAN ECONO=IC INTEREST GROU/INGS
* N!ture of Euro(e!n E+ono,i+ Interest Grou(in%s
() T.E /ARTNERS.I/ JOINT VENTURE
A: /O7ERS> DUTIES AND LIA-ILITIES O: /ARTNERS
1: JOINT AND SEVERAL LIA-ILIT? O: /ARTNERS
0 Intro)u+tion
1 Li!"i#it< for +ontr!+ts
3 Li!"i#it< of est!te for )e+e!se) (!rtner
5 Tort !n) ,is!((#i+!tion of ,one< !n) (ro(ert<
: AUT.ORIT? O: /ARTNERS
6 I,(#ie) !n) !((!rent !ut$orit<
&8 A+tu!# !ut$orit<
&1 /o2er of (!rti+i(!nt to "in) t$e fir,
& S#ee(in% or )or,!nt (!rti+i(!nt
&41 Li!"i#it< of s#ee(in% or )or,!nt (!rti+i(!nt
&4 T$e ru#e in Watteau v Fenwick
&& Inferre) (!rtners$i(s
&: DUTIES O: /ARTNERS
&* Goo) f!it$
&0 /erson!# "enefit> se+ret (rofits
&1 Conf#i+t of interest> +o,(etition
-: ACCOUNTING RE@UIRE=ENTS
1: ACCOUNTING RE@UIRE=ENTS UNDER T.E /ARTNERS.I/ ACT
&3 Ren)erin% of !++ounts
&5 =!int!inin% !++ounts
&6 Ins(e+tion of (!rtners$i( !++ounts
: ACCOUNTING RE@UIRE=ENTS UNDER T.E /ARTNERS.I/ ACCOUNTS
REGULATIONS
*8 T$e /!rtners$i( A++ounts Re%u#!tions 166&
*1 Contents of !++ounts
* Li,ite) +o,(!n< (!rtners$i(s
*& /en!# s!n+tion
** /u"#i+!tion of !++ounts
*0 Conso#i)!te) !++ounts e9e,(tion
C: INSOLVENC? AND /ARTNERS.I/ JOINT VENTURES
1: :OR=S O: INSOLVENC?
*1 Intro)u+tion
: 7INDING U/ AN INSOLVENT /ARTNERS.I/ AS AN UNREGISTERED
CO=/AN?
(!) Intro)u+tion
*3 Le%is#!tion
(") 7in)in% u( inso#vent (!rtners$i(s 2it$out +on+urrent (etitions
*5 Groun)s for 2in)in% u(
*6 /etitions "< +re)itors !n) ot$er (!rties
08 /etitions "< joint venture (!rtner
01 /resent!tion of (etition
(+) 7in)in% u( or)er !%!inst inso#vent (!rtners$i( 2it$ +on+urrent (etitions
0 Intro)u+tion
0& Groun) for +on+urrent (etitions
0* Su"je+ts of +on+urrent (etitions
0*41 Cor(or!te (!rtner
0*4 In)ivi)u!# (!rtners
00 /!rtner (resentin% (etition
&: /ARTNERSA /ETITION TO 7IND U/ T.E /ARTNERS.I/
01 Joint (etition "< !## (!rtners to 2in) u( t$e (!rtners$i(
*: /ETITION :OR -ANBRU/TC? OR 7INDING U/ ORDER
03 /etition for "!nCru(t+<
0: /OSITION O: /ARTNERS ON A 7INDING U/
05 A((#i+!"#e ru#es
06 C!(!+it< of (!rtners
18 Li!"i#it< of +ontri"utor< (!rtner
11 A),inistr!tion or)ers !n) vo#unt!r< !rr!n%e,ents
D: RESTRAINT O: TRADE
1 Restr!int of tr!)e +#!uses
1& E9(u#sion or )e(!rture of (!rtner
1* Enfor+e!"i#it< of restr!int of tr!)e +#!uses
10 T$e +ourtsA !((ro!+$ to restr!int of tr!)e +#!uses
1041 :!+tors +onsi)ere) "< t$e +ourts
104 Re!son!"#eness of t$e +#!use
104& C!se #!2 on re!son!"#eness
104* Geo%r!($i+!# restri+tion
11 Dur!tion of +#!use
(&) JOINT VENTURE DOCU=ENTATION
A: COR/ORATE JOINT VENTURES
1: BE? DOCU=ENTS
13 O"je+tives of joint venture )o+u,ent!tion
: T.E S.ARE.OLDERSA AGREE=ENT
15 Intro)u+tion
16 T!i#orin% t$e +o,(!n<
38 Dire+tors !n) "o!r) ,eetin%s
3841 -o!r) re(resent!tion
384 A((oint,ent of )ire+tors: !rti+#es of !sso+i!tion
384& A((oint,ent of )ire+tors: s$!re$o#)ersA !%ree,ent
384* -o!r) ,eetin%s
3840 Re)u+in% ! (!rt<As "o!r) re(resent!tion
31 -usiness of t$e +o,(!n<
3 :in!n+e for t$e +o,(!n<
3& S(e+ifi+ o"#i%!tions of t$e (!rties
3* Con)u+t of t$e joint venture
3*41 =inorit< (rote+tion
3*4 Coven!nts "< t$e +o,(!n<
30 A++ountin% ,!tters
31 Divi)en) (o#i+<
33 /ro,otion of t$e +o,(!n<As "usiness
35 Confi)enti!#it<
36 T!9 ,!tters
58 S$!re tr!nsfers
5841 Restri+tions on s$!re tr!nsfers
584 /re'e,(tion ri%$ts
584& O(tions
584* V!#u!tion of s$!res
51 De!)#o+C reso#ution
5141 Re!sons for )e!)#o+C
514 De!)#o+C (rovisions
514& De!)#o+C in ! t2o'(!rt< venture
514* De!)#o+C in ! ,u#ti'(!rt< joint venture
5 Deter,in!tion of )is(utes "< !n e9(ert
5& Dis(ute reso#ution in %ener!#
5* Ter,in!tion of t$e joint venture
-: CONSORTIU= AND SI=ILAR AGREE=ENTS
1: INTRODUCTION
50 T$e +onsortiu, !%ree,ent
51 :!+tors !ffe+tin% t$e use of +onsorti!
5141 Euro(e!n #e%!# s<ste,s
514 Co,(#e9it< !n) )ur!tion
514& :in!n+i!# +onsi)er!tions
: -ID AND JOINT VENTURE AGREE=ENTS
53 Intro)u+tion
&: T.E -ID AGREE=ENT
55 Be< re;uire,ents
56 Ter,in!tion of "i) !%ree,ent
68 Non'+o,(etition
61 Confi)enti!#it<
*: T.E JOINT VENTURE AGREE=ENT
6 Intro)u+tion
6& Contri"ution of t$e (!rties
6* Su((ortin% !%ree,ents
60 Res(onsi"i#ities to t$ir) (!rties
61 A,en),ents to t$e t$ir) (!rt< +ontr!+t
63 =!n!%e,ent
65 /roje+t ,!n!%e,ent
66 Li!"i#it< un)er t$e t$ir) (!rt< +ontr!+t
188C#!i,s !%!inst t$e t$ir) (!rt<
181Ri%$t to "rin% (ro+ee)in%s
18Confi)enti!#it<
18&T!9!tion
18*Tr!nsfer!"i#it< of (!rti+i(!tion
180Dis(ute reso#ution !n) )e!)#o+C
181Ter,in!tion
(*) CO=/AN? LA7 AS/ECTS
A: INTRODUCTION
183C$!r!+teristi+s of t$e ;u!si'(!rtners$i(
185T$e ;u!si'(!rtners$i( re#!tions$i(
-: T.E JUST AND E@UITA-LE /RINCI/LE
186A((#i+!tion of (!rtners$i( #!2
118T$e just !n) e;uit!"#e (rin+i(#e in t$e .ouse of Lor)s: Ebrahimi v Westbourne Galleries Ltd
111Defi+ien+ies of t$e just !n) e;uit!"#e %roun)
C: UN:AIRL? /REJUDICIAL CONDUCT
11Re,e)ies un)er t$e Co,(!nies A+ts
1141 Co,(!nies A+t 16*5 Se+tion 18
114 Co,(!nies A+t 1650 Se+tion *06
11&A((#i+!tion of Co,(!nies A+t 1650 Se+tion *06 "< t$e +ourts
11&41 T$e Ebrahimi (rin+i(#e
11&4 Est!"#is$in% t$e s+o(e of t$e +o,(!n<As !rti+#es
11&4& Test of unf!ir (reju)i+e
11&4* T$e D+o,(!n<As !ff!irsA
11&40 A D,e,"er of ! +o,(!n<A
11*Est!"#is$in% t$e e9(e+t!tions of ,inorit< s$!re$o#)ers
110Groun)s for ! (etition un)er t$e Co,(!nies A+t 1650 Se+tion *06
11041 Intro)u+tion
1104 =is,!n!%e,ent of t$e +o,(!n<
1104& :!i#ure to (!< )ivi)en)s
1104* Di#ution of s$!re$o#)in%
111T$e +on)u+t of t$e (etitioner
113-re!C)o2n of t$e ;u!si'(!rtners$i( re#!tions$i(
115Re,e)ies un)er t$e Co,(!nies A+t 1650 Se+tion *11
116Interi, or)ers
D: S.ARE.OLDERSA AGREE=ENTS
18T$e use of s$!re$o#)ersA !%ree,ents
11Effe+ts of s$!re$o#)ersA !%ree,ents
1Effe+t of ! +o,(!n<As (ro,ise to ! t$ir) (!rt<
1&Contro##in% t$e +o,(!n<As (o2ers
1&41 S(e+i!# reso#utions
1&4 Re,ov!# of )ire+tors
E: /RE'E=/TION /ROVISIONS AND O::ERS TO /URC.ASE
1*Intro)u+tion
10/re'e,(tion (rovisions
1041 S$!re$o#)er 2$o +e!ses to "e ! )ire+tor to se## s$!res to ,!jorit<
104 =e,"er to offer s$!res to ot$er s$!re$o#)ers
11Offers to (ur+$!se s$!res in t$e !"sen+e of (re'e,(tion (rovisions
1141 Offers to (ur+$!se (etitionerAs s$!res !t f!ir v!#ue
114 Offers to "u< out (etitioner on ! (ro'r!t! "!sis
13Effe+t of !n offer
(0) CO=/AN? LA7 ISSUES
A: EVOLUTION O: ENGLIS. CO=/AN? LA7
16S+o(e of En%#is$ +o,(!n< #!2
-: USING T.E CO=/AN? STRUCTURE :OR A JOINT VENTURE
1: INTRODUCTION
1&8Conse;uen+es of usin% t$e +o,(!n< stru+ture
: A//OINT=ENT AND RE=OVAL O: DIRECTORS
1&1T$e "o!r) of )ire+tors
1&Dis,iss!# of )ire+tors
1&&/reventin% t$e re,ov!# of )ire+tors
1&&41 Constitution!# )o+u,ents
1&&4 T$e use of ! Bushell v Faith +#!use
1&&4& Cre!tion of )ifferent +#!sses of s$!res
&: :IDUCIAR? DUTIES O: DIRECTORS
1&*Intro)u+tion
1&0Dire+torsA fi)u+i!r< res(onsi"i#ities
1&1=o)if<in% t$e )ire+torsA )uties
1&3Enfor+e,ent of fi)u+i!r< )uties
1&5Li!"i#it< of !((ointin% venturer !s ! s$!)o2 )ire+tor
*: DUTIES -ET7EEN S.ARE.OLDERS
1&6L!+C of )uties "et2een s$!re$o#)ers
1*8:r!u) on t$e ,inorit<
C: T.E VALUATION O: S.ARES
1: INTRODUCTION
1*1S$!re v!#u!tion
: VOLUNTAR? SALES
(!) Intro)u+tion
1*T$e ,!rCet
(") V!#u!tion "< t$e +ourts
1*&=!in +onsi)er!tions
1**/ro'r!t! v!#u!tion
1*0C!(it!#ise) (rofits
1*1Dis(os!# of !ssets
1*3In+re,ents or )is+ounts
1*5/re'e,(tion (rovisions
1*6V!#u!tion (rovisions
&: VALUATION O: S.ARES /URSUANT TO AN ORDER UNDER T.E CO=/ANIES
ACT 1650 SECTION *11
108Gui)e#ines
101In+entives to ,inorit< o((ression
10Dis+ountin% ,inorit< $o#)in%s
10&E9+#usive +ontri"utions
10*T$e +on)u+t of t$e (etitioner
100T$e )!te of v!#u!tion
101Co,(ens!tion for #oss of use of t$e (etitionerAs invest,ent
103:in!n+e
105S+o(e of or)er
(1) JOINT VENTURES AND UB CO=/ETITION LA7
106T$e Co,(etition -i##
(3) JOINT VENTURES AND EC CO=/ETITION LA7
A: CONCENTRATIVE JOINT VENTURES
1: INTRODUCTION
1Co'o(er!tive !n) +on+entr!tive joint ventures
Con+entr!tion
: EC COUNCIL REGULATION *81*E56 ON =ERGER CONTROL
&T$e !)v!nt!%es of +onsi)er!tion un)er Re%u#!tion *81*E56
*DCo,,unit< )i,ensionA re;uire,ent
0T$e test for +o,(!ti"i#it<
1S(ee)
3N!ture of )e+isions un)er Re%u#!tion *81*E56
5E9+#usive juris)i+tion of Re%u#!tion *81*E56
6=u#ti(#e fi#in%s for +#e!r!n+e
&8Dis!)v!nt!%es of +onsi)er!tion un)er Re%u#!tion *81*E56
&: EC CO==ISSION NOTICE ON CONCENTRATIVE AND CO'O/ERATIVE JOINT
VENTURES
(!) Intro)u+tion
&1Distin%uis$in% +o'o(er!tive !n) +on+entr!tive joint ventures
(") Joint +ontro#
&T$e +on+e(t of joint +ontro#
&&Joint +ontro# !n) veto ri%$ts
(+) Stru+tur!# +$!n%es of un)ert!Cin%s
&*N!ture of fu##'fun+tion joint ventures
&0Constituent e#e,ents of ! fu##'fun+tion joint venture
&1Resour+es of ! fu##'fun+tion joint venture
&3S!#es )e(en)en+e !n) t$e fu##'fun+tion joint venture
&5T$e joint venture !n) joint s!#es !%en+< +ontr!ste)
&6T$e tr!)in% +o,(!n< !s ! fu##'fun+tion joint venture
*8T$e +on+e(t of Don ! #!stin% "!sisA
()) Co'o(er!tive !s(e+ts
*1Co'or)in!tion !n) +on+entr!tive joint ventures
*Co'or)in!tion of "e$!viour in (ro)u+t !n) %eo%r!($i+ ,!rCets
*41 /ro)u+t ,!rCet
*4 Geo%r!($i+ ,!rCet
(e) Refor, of EC Coun+i# Re%u#!tion *81*E56
*&A,en),ents
**A)v!nt!%es of ne2 s<ste,
*0I,(!+t of refor,s
-: CO'O/ERATIVE JOINT VENTURES
1: INTRODUCTION
*1EC Tre!t< Arti+#e 50
: -LOCB EFE=/TIONS
(!) T<(es of "#o+C e9e,(tions
*3-#o+C e9e,(tions for +o'o(er!tive joint ventures
(") Rese!r+$ !n) )eve#o(,ent
*5Re%u#!tion *15E50 on rese!r+$ !n) )eve#o(,ent !%ree,ents
*6/er,issi"#e restri+tions
08Inte##e+tu!# (ro(ert< ri%$ts
01T$e "#!+C #ist
0T$e o((osition (ro+e)ure
0&Co,,ission (o#i+< on rese!r+$ !n) )eve#o(,ent joint ventures
(+) S(e+i!#is!tion !%ree,ents
0*Re%u#!tion *13E50 on s(e+i!#is!tion !%ree,ents
00Li,it!tions on !((#i+!tion of Re%u#!tion *13E50
&: EC CO==ISSION NOTICE ON CO'O/ERATIVE JOINT VENTURES
01Co,,ission Noti+e on +o'o(er!tion !%ree,ents
03Co,,ission Noti+e on +o'o(er!tive joint ventures
05Co,(etition "et2een (!rent +o,(!nies
06Co,(etition "et2een (!rent +o,(!nies !n) t$e joint venture
18Effe+ts of t$e joint venture on t$ir) (!rties
11Assess,ent of t$e effe+t of t$e restri+tions of +o,(etition
1Joint venture net2orCs
1&Joint ventures "et2een non'+o,(etitors
1*Joint ventures "et2een +o,(etitors
1*41 Intro)u+tion
1*4 Rese!r+$ !n) )eve#o(,ent joint ventures
1*4& S!#es !n) (ur+$!sin% joint ventures
1*4* =!nuf!+turin% joint ventures
10Joint ventures !n) in)ivi)u!# e9e,(tion
11An+i##!r< restri+tions
1141 A))ition!# !%ree,ents
114 Deter,inin% !n+i##!r< restri+tions
C: BE? EC CASES AND DECISIONS ON JOINT VENTURES
1: EC CO==ISSION CASES ON EFE=/TIONS AND RESTRICTIONS
13Re Odin Developments Ltd
15BP/ello!!
16Ford/"olkswa!en
38#creenport/EB$%Eurosport
31Beecham/Parke%Davis
3&arbon Gas 'echnolo!ie
3&#OPELE(/Lan!en
3*"W/()*
: =ERGER TASB :ORCE DECISIONS RELATING TO T.E NATURE O: JOINT
VENTURES
30As+ert!inin% t$e n!ture of ! joint venture
31Resour+es of t$e joint venture
33In)e(en)ent )istri"ution
35V!#ue !))e) "< joint venture
36Co,(etition "et2een t$e (!rties
(5) SU//ORTING DOCU=ENTATION
A: INTRODUCTION
58Su"si)i!r< ri%$ts !n) o"#i%!tions
51Su"si)i!r< !%ree,ents !n) su((ortin% )o+u,ents
-: T.E AC@UISITION AGREE=ENT
5Intro)u+tion
5&Non'en+u,"r!n+e +#!use
5*Assets in+#u)e) in s!#e !%ree,ent
50/re,ises
51E;ui(,ent #e!sin% !n) $ire (ur+$!se !%ree,ents
53In)e,nities re#!tin% to +re)itors of !+;uire) "usiness
55Goo)2i##
56A((ortion,ent of +onsi)er!tion
687!rr!nties
C: E=/LO?EE AGREE=ENTS AND /ROVISIONS
61E,(#o<ees of t$e ven)or "usiness
6Asso+i!te) e,(#o<ers
6&Se+on),ent !%ree,ents
6&41 =o"i#it< +#!uses
6&4 Vi+!rious #i!"i#it<
D: RESTRICTIVE COVENANTS
6*Intro)u+tion
60Le%!# effe+t of restri+tive +oven!nts in ! +or(or!te joint venture
E: LOANS AND GUARANTEES
61Lo!ns
63Gu!r!ntees
:: =ANAGE=ENT AND SERVICE AGREE=ENTS
65=!n!%e,ent !%ree,ents
6541 Ro#e of ,!n!%in% (!rti+i(!nt
654 Su((ort servi+es
66Servi+e !%ree,ents
&88Se+on),ent of (ersonne# to t$e joint venture
G: SU//L? AND DISTRI-UTION AGREE=ENTS
&81Su((#< !%ree,ents
&8Distri"ution !%ree,ents
.: LICENCES AND ASSIGN=ENTS O: INTELLECTUAL /RO/ERT? RIG.TS
1: INTRODUCTION
&8&Inte##e+tu!# (ro(ert< ri%$ts
: TRADE =ARBS
&8*Re%istr!tion of tr!)e,!rCs
&80Assi%n,ent of tr!)e ,!rCs
&81Li+ensin% of tr!)e ,!rCs
&8141 A#tern!tive to !ssi%n,ent
&814 Gener!# or #i,ite) #i+en+es
&814& Su"'#i+en+es
&814* E9+#usive !n) non'e9+#usive #i+en+es
&83Re%istr!tion of )e!#in%s in tr!)e ,!rCs
&: /ATENTS
&85/!tents !s (erson!# (ro(ert<
&86Assi%n,ent of (!tents
&18Dur!tion
*: CO/?RIG.T
&11T$e n!ture of +o(<ri%$t
&1Li+en+es of +o(<ri%$t 2orC
&1&Desi%n ri%$ts
0: TEC.NICAL ASSISTANCE AGREE=ENTS
&1*S$o2'$o2 !%ree,ents
&10Bno2'$o2 !%ree,ents
&11As(e+ts of Cno2'$o2 !%ree,ents
&1141 Confi)enti!#it<
&114 Non'+o,(etition +#!uses
&114& Co,(etition #!2 !s(e+ts
&114* Ne2 inte##e+tu!# (ro(ert< ri%$ts
1: EC LA7 AND INTELLECTUAL /RO/ERT? RIG.TS
(!) Intro)u+tion
&13Co,(etition issues
(") S(e+i!#is!tion !%ree,ents
&15E9e,(tions for s(e+i!#is!tion !%ree,ents
(+) Rese!r+$ !n) )eve#o(,ent !%ree,ents
&16E9e,(tions for rese!r+$ !n) )eve#o(,ent !%ree,ents
()) Te+$no#o%< tr!nsfer !%ree,ents
&8N!ture of te+$no#o%< tr!nsfer !%ree,ents
&1E9e,(t (rovisions
&-#!+C'#ist (rovisions
&&E9+#usion of (!tent or Cno2'$o2 (oo#s
&*Re%u#!tion *8E61 !n) !%ree,ents "et2een joint venture !n) (!rent
&0Conne+te) un)ert!Cin%s
&17it$)r!2!# of "enefit of re%u#!tion
6) TAF ISSUES AND T.E JOINT VENTURE
A: INTRODUCTION
&3/ro,inen+e of t!9 issues
-: T.E CONSORTIU=
&5Intro)u+tion
&6Avoi)in% t$e i,(#i+!tion of (!rtners$i(
&641 -usiness in +o,,on
&64 Se(!r!te (rofit !++ru!#
&64& Se(!r!te "usinesses
&64* Se(!r!te +ontr!+tu!# #i!"i#it<
&640 S$!rin% of %ross returns
&&8Joint o(er!tion
&&1Su"'+ontr!+ts
&&Dire+t t!9!tion of (!rti+i(!nts
&&&Resi)en+< issues
&&*Contri"ution of !ssets
&&0VAT
&&1Ter,in!tion
C: T.E COR/ORATE JOINT VENTURE
1: TRANS:ERS O: ASSETS AND STOCB IN TRADE
&&3C$!r%e!"#e %!ins on !sset tr!nsfers
&&5Re#iefs for +$!r%e!"#e %!ins on !sset tr!nsfers
&&6A##o2!"#e #osses
&*8Ro##over re#ief
&*841 A((#i+!tion of ro##over re#ief
&*84 Ro##over re#ief !n) +o,(!n< %rou(s
&*1@u!#if<in% ,er%er e9e,(tion
&*Tr!nsfers of sto+C in tr!)e
&*41 C$!r%es to +or(or!tion t!9
&*4 V!#u!tion of sto+C in tr!)e
&*4& Tr!nsfer (ri+in%
&*4* Dis(os!# !t ,!rCet v!#ue
&*40 V!#ue of +onsi)er!tion
&*&C!(it!# !##o2!n+es
&**Tr!nsfers of inte##e+tu!# (ro(ert<
&*0Tr!nsfer of unuse) tr!)in% #osses
&*1St!,( )ut<
&*3VAT
: CONSORTIU= AND GROU/ RELIE:
&*5Consortiu, re#ief
&*541 Loss re#ief
&*54 Conne+te) (ersons
&*54& Av!i#!"i#it< of +onsortiu, re#ief
&*6Grou( re#ief
&08Grou( !n) +onsortiu, re#ief +o,(!re)
&01Anti'!voi)!n+e (rovisions
&0141 Intro)u+tion
&014 A"use of %rou( or +onsortiu, re#ief
&014& Effe+t of s$!re o(tions
&014* Arr!n%e,ents for joint venture +o,(!n< to "e su"si)i!r< of t$ir) (!rt<
&0140 In#!n) Revenue +on+ession
&: CA/ITAL GAINS GROU/S
&0N!ture of +!(it!# %!ins %rou(s
*: DIVIDENDS AND /RO:IT DISTRI-UTION
&0&Grou( in+o,e
&0*Distri"ution of (rofits
0: TER=INATION O: COR/ORATE JOINT VENTURE
&00Tr!nsfer of !ssets
&01Dis(os!# of s$!res in joint venture +o,(!n<
&03/re'ter,in!tion )ivi)en)s
&0341 V!#ue s$iftin%
&034 T!9!tion of C$!r%e!"#e G!ins A+t 166
&034& C!(it!# %!ins %rou(s !n) v!#ue s$iftin%
D: COR/ORATE /ARTNERS.I/S
&05Intro)u+tion
&06:or,!tion of +or(or!te (!rtners$i( joint ventureGt$e +ontri"ution of !ssets
&18Cor(or!tion t!9 on in+o,e
&11C!(it!# !##o2!n+es
&1Inte##e+tu!# (ro(ert<
&1&St!,( )ut<
&1*VAT re%istr!tion
&10Tr!)in% (rofits !n) #osses
&11C!(it!# %!ins !n) #osses
&13Dis(os!# of !ssets
&15C$!n%e in (rofit s$!rin% r!tios
&16Ter,in!tion of +or(or!te (!rtners$i( joint ventures
(18) TAFATION O: INTERNATIONAL JOINT VENTURES
A: INTRODUCTION
&38In2!r) !n) out2!r) joint ventures
&31C$oi+e of #o+!tion
&3141 Be< +onsi)er!tions
&314 T!9 effi+ient s+$e,es
-: IN7ARD JOINT VENTURES
1: JOINT VENTURE CO=/AN? RESIDENT IN T.E UNITED BINGDO=
(!) Distri"utions in %ener!# !n) t!9 +re)its
&3T!9!tion of joint venture +o,(!n< resi)ent in t$e Unite) Bin%)o,
&3&Distri"ution of (rofits
&3*T!9 +re)its !n) t$e overse!s (!rti+i(!nt
&30Non';u!#if<in% )istri"utions
&31C#!i,in% net t!9 +re)its
&33/ro(ose) EC )ire+tive on tr!)in% #osses
&35:orei%n in+o,e )ivi)en)s
&36T!9!tion of forei%n in+o,e )ivi)en)s
&58EC Co,,ission /!rentESu"si)i!r< Dire+tive
&51C!(it!# %!ins
&5Conse;uen+es of )e"t fin!n+in%
(") Interest (!<,ents
&5&Interest (!<,ents !s )istri"ution
&5*T$in +!(it!#is!tion
&50A((#<in% t$e +on+e(t of t$in +!(it!#is!tion
&51T$in +!(it!#is!tion !n) (!<,ents to overse!s enter(rises
&53Re!son!"#eness of interest (!<,ents
&5341 Be< f!+tors
&534 Assessin% 2$et$er interest +onstitutes ! )istri"ution
&55Diffi+u#ties of t$in +!(it!#is!tion (rovisions
(+) Tr!nsfer (ri+in%
&56Tr!nsfer (ri+in% #e%is#!tion
: JOINT VENTURE CO=/AN? AS INVEST=ENT OR .OLDING CO=/AN?
&68Interest !n) +$!r%es on in+o,e
&6841 Re#ief for interest
&684 Re#ief for +$!r%es on in+o,e
&: JOINT VENTURE /ARTNERS.I/ 7IT. OVERSEAS COR/ORATE /ARTNERS
&61Tre!t,ent of overse!s (!rtners
&6Tr!)in% in or 2it$ t$e Unite) Bin%)o,
&6&Dou"#e t!9 tre!ties
&6*T!9!tion of "r!n+$ or !%en+<
&60T!9 !)v!nt!%es of o(er!tin% ! "r!n+$ offi+e or !%en+<
&61Re(!tri!tion of (rofits
&63:in!n+in% t$e (!rtners$i( joint venture
&65Tr!nsfer (ri+in%
C: OUT7ARD JOINT VENTURES
1: OVERSEAS COR/ORATE JOINT VENTURE
&66T!9!tion of (rofits
*88T$in +!(it!#is!tion
*81Divi)en)s
*8Dou"#e t!9 tre!t<
*8&T!9 (#!nnin%
*8*C!(it!# %!ins
*80A)v!n+e +or(or!tion t!9
*81O(er!tin% t$rou%$ ! forei%n inter,e)i!te $o#)in% +o,(!n<
*8141 A)v!nt!%es
*814 =i9er +o,(!nies
*83C!(it!# %!ins on ter,in!tion of overse!s venture
*85Tr!nsfer (ri+in%
*86Non'resi)ent D+#oseA +o,(!niesG!nti'!voi)!n+e (rovisions
*18Dou"#e t!9!tion (rovisions
*11Contro##e) forei%n +o,(!nies
*1141 Definition of +ontro#
*114 E9e,(tions fro, re%u#!tions for +ontro##e) forei%n +o,(!nies
: T.E COR/ORATE /ARTNERS.I/
*1T!9 i,(#i+!tions for Unite) Bin%)o,'"!se) +or(or!te (!rtner
*1&Dou"#e t!9!tion
*1&41 Dou"#e t!9 tre!t< !((#i+!"#e
*1&4 No )ou"#e t!9 tre!t< !v!i#!"#e
*1*Inte##e+tu!# (ro(ert<
*10A)v!nt!%es of +on)u+tin% forei%n enter(rises t$rou%$ ! +or(or!te (!rtners$i( joint venture
D: T.E CONSORTIU=
*11Intern!tion!# fis+!# +onse;uen+es of t$e +onsortiu,
(C) Forms and precedents
1 +oint venture compan,-checklist o. issues .or consideration
)!reement .or establishment and operation o. a /oint venture compan,-minorit, protection0 but no
special class ri!hts in articles
& )!reement relatin! to the establishment and operation o. a compan, as a /oint venture compan,-
minorit, protection0 with special class ri!hts in articles o. association attached
* )rticles o. association .or compan, with two or more shareholders 1which is not a 2deadlock3 45/45
compan,6 includin! class ri!hts
0 )!reement relatin! to the establishment and operation o. a /oint venture compan,-two principal
shareholders onl, who are deadlocked0 and no minorit, protection or special class ri!hts0 articles o.
association attached
1 *otice o. e7traordinar, !eneral meetin!0 te7t o. special resolution and consent to short notice .or
anne7ation to shareholders a!reements where an e7istin! compan, is bein! used as the /oint venture
vehicle
3 #imple .orm o. articles o. association suitable .or companies used as /oint venture vehicles where
there are no special class ri!hts
5 Resolution in writin! appointin! or removin! directors
6 Outline co%operation a!reement between two venturers to per.orm a speci.ic contract .or a third
part,
18 )!reement between two prospective /oint venturers to ne!otiate with or submit a tender /ointl, to a
third part, .or a speci.ic contract and to enter into a /oint venture a!reement i. the, are success.ul
11 )!reement between two co%venturers to co%operate in the desi!n and development o. a product
1 )!reement .or the provision o. mana!erial support or other services to a /oint venture compan, b,
one o. the /oint venturers
1& European Economic 8nterest Groupin! a!reement desi!ned to compl, with &ouncil Re!ulation
9:;</=4
1* )!reement .or the provision o. technical assistance or collaboration to a /oint venture compan, b,
one o. the /oint venturers
10 )!reement .or secondment o. emplo,ees to a /oint venture compan, b, one o. the /oint venturers
11 )!reement .or the establishment and operation o. a /oint venture compan,-9 principal
shareholders onl,0 with class ri!hts and 2deadlock3 articles o. association
13 #pecial resolution alterin! the share capital o. an e7istin! compan, to be used as a /oint venture
compan,
15 )rticles o. association .or a 2deadlock3 45/45 compan, with two shareholders includin! class ri!hts
16 Letter .rom emplo,in! compan, to emplo,ee bein! seconded
8 Recitals .or a shareholders3 a!reement where the /oint venture compan, is not ,et .ormed
1 &onstitution and share subscription clause .or a shareholders3 a!reement where the /oint venture
compan, is not ,et .ormed
&lause .or a shareholders3 a!reement providin! .or the makin! o. speci.ic loans to the compan,
& &lause .or a shareholders3 a!reement providin! .or the subscription o. loan stock o. the compan,
* &lause .or a shareholders a!reement providin! .or the !ivin! o. !uarantees b, the parties .or
borrowin!s o. the compan, .rom third parties
0 Loan stock instrument
1 &lause providin! .or a shareholders3 a!reement to be conditional
3 'ermination provisions .or a limited li.e /oint venture a!reement
5 Provision .or articles o. association restrictin! share trans.ers e7cept to certain cate!ories o.
permitted trans.eree
6 #imple ri!ht o. veto enshrined as a class ri!ht in articles o. association
&8 )rticle providin! .or appointment o. alternate director b, holders o. a ma/orit, o. shares o. an,
particular class
&1 )rticle !ivin! power .or ordinar, shareholders to appoint additional directors
& )rticle entrenchin! minorit, protection ri!hts
&& Deadlock resolution clause .or a shareholders3 a!reement
&* )lternative termination clause .or a shareholders3 a!reement
&0 )rticle providin! .or deemed service o. notice where one or more shareholders have re!istered
addresses outside the $nited in!dom
&1 &lause .or a shareholders3 a!reement providin! .or deadlock resolution on minor issues
&3 &lause .or a shareholders3 a!reement providin! .or the sale o. the shares o. an out!oin!
shareholder b, various alternative methods0 .ailin! which li>uidation ensues
&5 )rticle re>uirin! o..ers .or control to be e7tended to all shareholders and0 .or shareholders to be
bound to accept such an o..er i. a certain percenta!e o. the do so
&6 &lause .or a shareholders3 a!reement providin! .or a 'e7as shoot out
&641 Dual part, /oint venture-ri!ht to bu, out the other3s shares
&64 (ultipart, /oint venture-ri!ht to bu, the out!oin! part,3s shares
&64& (ultipart, /oint venture-ri!ht to bu, the shares o. all other parties
*8 &all option clause .or a shareholders3 a!reement
*1 Put option .or a shareholders3 a!reement
* )rbitration clause .or a shareholders3 a!reement without an alternative dispute resolution or
conciliation provision
*& )rbitration clause .or a shareholders3 a!reement with an alternative dispute resolution or
conciliation provision
(A) Publishers Note
JOINT VENTURES
T$e tit#e JOINT VENTURES is +on+erne) 2it$ t$e Ce< !s(e+ts of t$e #!2 re#!tin% to )ifferent t<(es of joint ventures4
7$i#st t$e tit#e e,($!sises +or(or!te joint ventures it !#so +onsi)ers (!rtners$i( joint ventures !n) +onsorti!4 T$e 2i)e
r!n%e of (re+e)ents in+#u)es ! v!riet< of !%ree,ents for t$e for,!tion> o(er!tion !n) ter,in!tion of joint ventures>
!rti+#es of !sso+i!tion !n) !n+i##!r< !%ree,ents 2it$ t$ir) (!rties !n) e,(#o<ees4 /re+e)ents for t$e ,ost i,(ort!nt
joint venture )o+u,ents: t$e s$!re$o#)ersA> !n) (!rtners$i( !%ree,ents> !re +o,(#e,ente) "< )et!i#e) +o,,ent!r< on
t$eir o"je+tives !n) (rovisions4
7it$ res(e+t to +or(or!te joint ventures> t$e tit#e !))resses t$e (ro"#e,s 2$i+$ +!n !rise "et2een (!rties !n) +onsi)ers
issues su+$ !s t$e "!#!n+e of (o2er !n) t$e reso#ution of )is(utes "et2een (!rti+i(!nts> in+#u)in% )e!)#o+C (rovisions4
Ot$er !s(e+ts of +o,(!n< #!2 !n) (r!+ti+e 2$i+$ !re )is+usse) in+#u)e ;u!si'(!rtners$i(s> )ire+tors !n) s$!re
v!#u!tion4
As ! joint venture enter(rise 2i## often $!ve ! si%nifi+!nt i,(!+t u(on "ot$ n!tion!# !n) intern!tion!# ,!rCets it is
ne+ess!r< to e9(#ore t$e +o,(#e9 issues of Unite) Bin%)o, !n) Euro(e!n Co,,unit< +o,(etition #!24 Re!)ers 2i##
"e !2!re t$!t !t t$e ti,e of (u"#i+!tion> Nove,"er 1665> Unite) Bin%)o, +o,(etition #!2 is in ! st!te of f#u94
Su"st!nti!# refor, is (ro(ose) in t$e Co,(etition -i## 2$i+$ is "efore /!r#i!,ent4 T$e -i## $!s "een )e#!<e) !n)
si%nifi+!nt !,en),ents to it !re "ein% )e"!te)4 In vie2 of t$e e9(e+te) +$!n%es t$is tit#e in+#u)es ! "rief su,,!r< of
t$e e9(e+te) refor,sH ! )et!i#e) !n!#<sis of t$e Co,(etition A+t 2i## fo##o2 in t$e #oose#e!f servi+e u()!te 2$en it
+o,es into for+e4 Euro(e!n Co,,unit< +o,(etition #!2 is fu##< )is+usse) in t$is tit#e4
T$e t!9 !s(e+ts of )o,esti+ !n) intern!tion!# joint ventures !re !#so +onsi)ere) in )et!i#4
(B) Commentary
(1) JOINT VENTURES IN GENERAL
A: INTRODUCTION
1 Definition of joint enture
T$e joint venture> ! "usiness ,e)iu, of %ro2in% i,(ort!n+e> is ,ost fre;uent#< use) "< +o,(!nies seeCin% to
un)ert!Ce ne2 enter(rises !n) (roje+ts4 T$e +on+e(t of t$e joint venture re,!ins> $o2ever> in)istin+t in En%#is$
+o,,er+i!# #!2 !n) t$ere is no +o,(re$ensive or s!tisf!+tor< )efinition of ! joint venture> eit$er "< virtue of +!se #!2
or st!tute
1
4 V!rious non'st!tutor< )efinitions ,!<> $o2ever> "e !)o(te)4 7$ere (!rties to t$e venture !re re#!tive#<
e;u!# !s re%!r)s t$eir invo#ve,ent in t$e enter(rise (irres(e+tive of t$eir e+ono,i+ (o2er) !n) t$e venture $!s "een set
u( for ! +o,,on !n) re#!te) (ur(ose> t$e enter(rise ,!< "e )es+ri"e) !s ! D$oriIont!# joint ventureA4 In ! Dverti+!# joint
ventureA

t$e (!rties !re en%!%e) in )ifferent st!%es of t$e enter(rise in t$eir ,!in or (rin+i(!# "usinesses4 7$en t$e
joint venture +onstitutes !n entire#< ne2 enter(rise for !## of t$e (!rti+i(!nts> it ,!< "e )efine) !s ! +on%#o,er!te joint
venture4 A joint venture ,!< t!Ce one of t$ree for,s: ! +or(or!te joint venture> !n unin+or(or!te) joint venture t$rou%$
t$e ,e)iu, of t$e (!rtners$i(> or ! +onsortiu,4
!"#1$
1
St!tute $!s on o++!sion ,!)e (!ssin% referen+e to t$e +on+e(t of t$e joint venture4 -< t$e Co,(!nies A+t 1650 S+$ *A (!r! 16
!s inserte) "< t$e Co,(!nies A+t 1656 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES) ! joint venture is )es+ri"e) !s !n
un)ert!Cin% joint#< ,!n!%e) "< !n un)ert!Cin% in+#u)e) in t$e +onso#i)!tion 2it$ one or ,ore ot$er un)ert!Cin%s not in+#u)e)
in t$e +onso#i)!tion4
T$e A++ountin% St!n)!r)s -o!r)> in +onne+tion 2it$ DInteri, St!te,ent Conso#i)!te) A++ountsA> )efines ! joint venture !s
!n un)ert!Cin% "< 2$i+$ t$e (!rti+i(!nts e9(e+t to !+$ieve so,e +o,,on (ur(ose or "enefit !n) 2$i+$ is +ontro##e) joint#< "<
t2o or ,ore venturers4 Joint +ontro# 2it$in t$e !"ove +onte9t is furt$er )efine) !s t$e +ontr!+tu!##< !%ree) s$!rin% of +ontro#4
T$e +on+e(ts of $oriIont!# !n) verti+!# joint ventures !re %ener!##< re#ev!nt to issues of +o,(etition #!2: see /!r!%r!($s 106
J1811K> 1 J1101K et se; (ost4 :or t$e (ur(ose of t$is se+tion> ! joint venture ,!< "e re%!r)e) !s ! +o,,er+i!# !rr!n%e,ent or
tr!ns!+tion "et2een t2o or ,ore e+ono,i+ enter(rises 2$i+$ nevert$e#ess ret!in t$eir #e%!# or +or(or!te e9isten+e4 See !#so
-e##!,< !n) C$i#) &ommon (arket Law o. &ompetition (*t$ E)n> 166&) +$ 114
!"#%$
% &easons for establishin' a joint enture
/!rties ,!< est!"#is$ ! joint venture "e+!use t$e< #!+C t$e re;uire) sCi##s> te+$ni+!# e9(ertise !n)Eor resour+es for !
+o,(#e9 venture
1
4 A joint venture ,!< "e use) to:
41 s$!re t$e su"st!nti!# fin!n+i!# risC in t$e o(er!tion of t$e (ro(ose) venture 2$i+$ (!rties !re un2i##in% or
un!"#e to sust!in on t$eir o2nH
4 !+$ieve e+ono,ies of s+!#e in t$e ,!nuf!+ture of (ro)u+ts> or in t$e (rovision of servi+esH
4& s$!re rese!r+$ !n) )eve#o(,ent +ostsH
4* se+ure +ost'effe+tive !++ess to ne2 ,!rCets for (ro)u+ts or servi+esH
40 )eve#o( !n) e9(#oit inte##e+tu!# (ro(ert< ri%$ts
H
41 !##evi!te t$e (ro"#e,s of e9+ess +!(!+it<> )e(resse) ,!rCets or effe+tive +o,(etition
&
H
43 en!"#e enter(rises to 2i)en t$e s($ere of t$eir +o,,er+i!# !+tivities to fie#)s in 2$i+$ t$e< $!ve (revious#< $!)
no e9(erien+eH !n)
45 +ounter +u#tur!# or even 9eno($o"i+ "!rriers to t$e su++essfu# o(er!tion "< forei%n +o,(!nies or "usinesses in !
n!tion!# ,!rCet 2it$out t$e invo#ve,ent of ! n!tion!# "usiness or "o)< in tr!ns'n!tion!# (roje+ts
*
4
T$e joint venture ,!< "e e,(#o<e) !s !n !#tern!tive str!te%< to t$e ,er%er 2it$ ! +o,(etin% "usiness or t$e
!+;uisition of !n enter(rise 2it$ t$e te+$no#o%<> $u,!n sCi##s or resour+es 2$i+$ t$e !+;uirin% "usiness #!+Cs4 A joint
venture "et2een su+$ enter(rises ,!< (rove !n effe+tive ,e!ns "< 2$i+$ t$e )esire) +o,,er+i!# !n) "usiness en)s
+!n "e se+ure) !t ! fr!+tion of t$e +ost of eit$er ,er%er 2it$> or !+;uisition of> +o,(etin% or +o,(#e,ent!r<
"usinesses4 T$e joint venture ,!< !#so "e use) !n !#tern!tive to !n outri%$t fr!n+$ise or #i+ensin% !%ree,ent4
!"#($
1
Su+$ +o,(#e9ities 2i## fre;uent#< !rise 2$en t$e (!rties !re seeCin% to for, t$rou%$ t$eir joint venture !n enter(rise of tr!ns'
%#o"!# (ro(ortions 2$i+$ 2i## $!ve ! si%nifi+!nt i,(!+t u(on t$e re#ev!nt ,!rCet4
E% ! joint venture ,!< "e !((ro(ri!te 2$ere ! (!rt< $!s inte##e+tu!# (ro(ert< ri%$ts "ut #!+Cs t$e resour+es to e9(#oit t$e,> or>
+onverse#<> )oes not (ossess t$e ri%$ts "ut $!s t$e resour+es !n) sCi##s to e9(#oit t$e,4
&
Issues of +o,(etition #!2 ,!< 2e## !rise: see /!r!%r!($s 106 J1811K> 1 J1101K et se; (ost4
*
T$is is ! serious (ro"#e, 2$ere t$e (ro(ose) enter(rise is ! (rofession!# un)ert!Cin% invo#vin% enter(rises or (r!+ti+es su+$ !s
!r+$ite+ts or !++ount!nts> 2$ere #o+!# +usto, !n) (r!+ti+e ,!< ren)er o(er!tion in t$e re#ev!nt +ountr< )iffi+u#t for ! forei%n
(r!+ti+e4
!"#)$
( *he trans+national enterprise and the joint enture
T$e joint venture is ! ,ost effe+tive ve$i+#e for effe+tin% tr!ns!+tions> or un)ert!Cin% +o'o(er!tive enter(rises "et2een
"usinesses !n) ot$er "o)ies
1
on ! tr!ns'n!tion!# "!sis4 T$e joint venture ,!< en!"#e ! su++essfu# "usiness enter(rise>
su+$ !s ! ,u#tin!tion!# +o,(!n<> to enter into ne2 ,!rCets> not just in ter,s of (!rti+u#!r t<(es of (ro)u+ts or servi+es>
"ut !#so in %eo%r!($i+!# !n) n!tion!# ter,s4
1
E% tr!ns'n!tion!# joint ventures 2$i+$ !re un)ert!Cen (rin+i(!##< in ! n!tion st!te> 2$ere ! +on)ition of t$e un)ert!Cin% of t$e
venture in t$e re#ev!nt +ountr< ,!< "e t$e effe+tive (!rti+i(!tion of ! %overn,ent "o)< or ! #o+!# enter(rise !s ! (!rt< to t$e
joint venture4
!"#,$
) -conomic and le'al problems
A (!rt< to ! joint venture inevit!"#< surren)ers t$e tot!# +ontro# 2$i+$ it 2ou#) ot$er2ise enjo< if it $!) en%!%e) in t$e
re#ev!nt venture or enter(rise in)e(en)ent#<4 T$e +o,(!r!tive #!+C of o(er!tion!# f#e9i"i#it< !n) +o,,er+i!#
in)e(en)en+e 2$i+$ is ! fe!ture of t$e joint venture ,!< %ive rise to tensions "et2een t$e +onstituent (!rties4
Diffi+u#ties t$!t ,!< !rise in t$e o(er!tion of ! joint venture in+#u)e restri+tion of +o,(etition4 T$e (ro"#e,s of
restri+tion or (reventin% t$e (!rties to t$e venture fro, +o,(etin% 2it$ t$e venture ,ust "e !))resse) !t t$e for,!tion
of t$e enter(rise4 Issues of +onfi)enti!#it< or t$e o2ners$i( of (ro(ert<> su+$ !s inte##e+tu!# (ro(ert< %ener!te) "< t$e
venture> !#so nee) to "e !))resse) in t$e re#ev!nt )o+u,ents +re!tin% t$e venture in or)er to ensure t$!t t$e !i,s !n)
o"je+tives of t$e enter(rise !re !+$ieve)> 2$i#e (rote+tin% t$e in)ivi)u!# interests of t$e (!rti+i(!nts4 T$e joint venture
,ust t$erefore (ossess ! stru+ture 2$i+$ %ives effe+t to t$e +o,,er+i!# intentions of t$e (!rties> 2$i#e (rote+tin% !s f!r
!s (ossi"#e t$e inte%rit< of t$e (!rties !s nor,!##< in)e(en)ent "usiness enter(rises4 T$e joint venture ,ust> !s !
"usiness ,e)iu,> !#so %ive fu## re+o%nition to revenue issues> !n) t$e #e%!# (ro"#e,s t$!t ,!< !rise fro, t$e o(er!tion
of t$e joint enter(rise in )ifferent +o,,er+i!# environ,ents
1
4
1
E% issues of +o,(etition #!2: see /!r!%r!($s 106 J1811K> 1 J1101K et se; (ost4 !n) t$e +on+e(ts of t$e +on+entr!tive !n) +o'
o(er!tive joint venture4 As to ot$er re#ev!nt issues see :or, 1 J1081K (ost4
!"#.$
-: T.E COR/ORATE JOINT VENTURE
, Adanta'es of the corporate joint enture
7$ere En%#is$ #!2 !((#ies> t$e +or(or!te joint venture ,!< "e effe+te) t$rou%$ t$e ,e)iu, of ! +o,(!n< re%istere)
un)er t$e Co,(!nies A+t 16504 T$e (riv!te #i,ite) #i!"i#it< +o,(!n< is t$e ,ost +o,,on ve$i+#e for t$e +re!tion of
t$e +or(or!te joint venture> !n) is ,ost suit!"#e 2$ere t$e inten)e) venture is si%nifi+!nt eit$er in ter,s of t$e
resour+es to "e +o,,itte) to t$e enter(rise "< t$e (!rties> t$e nu,"er of (!rties in t$e venture> or t$e #iCe#< )ur!tion of
t$e enter(rise4 T$ere !re sever!# !)v!nt!%es in !)o(tin% t$e En%#is$ +o,(!n< !s t$e ,e)iu, for t$e o(er!tion of ! joint
venture4 T$e En%#is$ +o,(!n< is ! fu##< )eve#o(e) #e%!# entit<> 2it$ ! +o,(re$ensive +o)e of st!tute !n) +!se #!2
%overnin% its o(er!tion> to%et$er 2it$ !n est!"#is$e) "o)< of !++e(te) +o,,er+i!# (r!+ti+e4 /er$!(s t$e (rin+i(!#
re!son for +$oosin% ! +or(or!te joint venture is t$e f!+t t$!t t$e +o,(!n< +!n "e re%istere) 2it$ #i,ite) #i!"i#it<> t$us
(rote+tin% t$e (!rti+i(!nts in t$e joint venture !s s$!re$o#)ers> fro, #i!"i#it< for t$e +o,(!n<As #osses !n) t$erefore t$e
#i!"i#ities t$!t ,!< !rise )urin% t$e o(er!tion of t$e joint venture
1
4 In !))ition> t$e +or(or!te joint venture is ! f#e9i"#e
,e)iu,> 2it$ t$e !"i#it< to r!ise +!(it!# t$rou%$ v!rious for,s of s$!re issue4 T$e !"i#it< of t$e +o,(!n< to se+ure #o!n
+!(it!# "< ! f#o!tin% +$!r%e is ! +onsi)er!"#e !)v!nt!%e over ot$er for,s of "usiness stru+ture su+$ !s t$e (!rtners$i(4
T$ere is no restri+tion on t$e nu,"er of +o,(!nies t$!t +!n "e use) in t$e o(er!tion of ! joint venture
4
1
E9+e(t in r!re inst!n+es: see /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies (1661) +$s !n) 4
T$e #i,ite) #i!"i#it< of t$e (!rti+i(!nts in ! +or(or!te joint venture ,!< in +ert!in inst!n+es "e+o,e ! s$!)o2 or fi+tion>
2$en t$e (!rties su((ort ! #ess t$!n +re)it2ort$< +or(or!te joint venture t$rou%$ t$e nee) to %u!r!ntee t$e +o,(!n<As
in)e"te)ness or "orro2in%s4
:or e9!,(#e> ,!n< tr!ns'n!tion!# joint ventures o(er!te t$rou%$ t$e ,e+$!nis, of ! +or(or!te %rou(> 2it$ $o#)in% !n)
su"si)i!r< +o,(!nies4 T$e (!rti+i(!nts in t$is for, of +or(or!te joint venture ,!< $o#) )ifferent interests in t$e res(e+tive
+o,(!nies4
!"#/$
. &e'ulation of relations bet0een parties
T$e ,e,or!n)u, !n) !rti+#es of !sso+i!tion> to%et$er 2it$ ! s$!re$o#)ersA or joint venture !%ree,ent re%u#!te !n)
)eter,ine t$e re#!tions$i( !n) ri%$ts of t$e (!rti+i(!nts in t$e +or(or!te joint venture4
An< +o,(!n< 2$i+$ +onstitutes t$e ve$i+#e for t$e +or(or!te venture +!n itse#f "e ! (!rt< to !n<
s$!re$o#)ersA or joint venture !%ree,ent
1
4 Nevert$e#ess> t$e )ire+tors of t$e +o,(!n< !re su"je+t to t$e Co,(!nies
A+ts4 :urt$er,ore> t$e ri%$ts !n) o"#i%!tions of t$e (!rti+i(!ntEs$!re$o#)ers to t$e +or(or!te joint venture !re %overne)
"< t$e Co,(!nies A+ts> !s 2e## !s t$e +or(or!te )o+u,ents> in (!rti+u#!r !n< s$!re$o#)ersA or joint venture !%ree,ent4
T$e #!tter )o+u,ent is ! v!#u!"#e ,e!ns "< 2$i+$ t$e ri%$ts of ! ,inorit< (!rti+i(!nt !s ! s$!re$o#)er in t$e +or(or!te
joint venture ,!< "e (rote+te)> inter !#i!> fro, o((ressive or fr!u)u#ent +on)u+t on t$e (!rt of t$e ,!jorit< investor
s$!re$o#)er(s)
4
1
See Russell v *orthern Bank Development &orpn J166K & A## ER 111> J166K 1 7LR 0554
See uma!ai Gmi &o Ltd v ?enecon Pte Ltd J1660K SLR 63 2$i+$ +onsi)ere) 2$et$er s$!re tr!ns!+tions !n) !#ter!tion to t$e
+o,(!n<As n!,e !n) (ur(ose 2it$out ! joint venture (!rtnerAs Cno2#e)%e 2ere !+ts of o((ression un)er t$e Co,(!nies A+t
1650 s 11 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See !#so :or,s J101&K> & J1031K (ost4
!"#"$
/ Directors
/11 Conflict of interests
Dire+tors of ! joint venture +o,(!n< ,!< fin) t$!t ! +onf#i+t of interest !rises "et2een t$e joint venture !n) t$e
res(e+tive interests of t$e s$!re$o#)ers4 It is usu!# in t$e +!se of ! +or(or!te joint venture for t$e )ire+tors to "e
!((ointe) "< t$e s$!re$o#)ers in t$e venture> in !++or)!n+e 2it$ t$eir res(e+tive interests in t$e enter(rise4 It is
+o,,on (r!+ti+e for e!+$ s$!re$o#)er to t$e joint venture to no,in!te !n e;u!# nu,"er of )ire+tors to t$e "o!r) of t$e
joint venture +o,(!n<4 A#t$ou%$ t$e !rti+#es of !sso+i!tion of t$e joint venture +o,(!n< ,!< (rovi)e for re#!9in% t$e
+o,,on #!2 !n) e;uit!"#e ru#es (ro$i"itin% ! )ire+tor fro, $!vin% interests 2$i+$ +onf#i+t 2it$ t$e interests of t$e
+o,(!n< of 2$i+$ $e is ! )ire+tor> !n< )ire+tor of ! +or(or!te joint venture ,ust ensure t$!t $e is !+tin% in t$e "est
interests of t$!t +or(or!tion !n) t$erefore t$e joint venture !s ! 2$o#e4 In so !+tin%> t$e )ire+tor ,!<> $o2ever> !+t to
t$e )etri,ent of t$e s$!re$o#)er 2$o !((ointe) $i,
1
4
1
As to )ire+torsA )uties see /!r!%r!($ 1&* J188K et se; !n) :or, +#!use &41 J1013K (ost4 See !#so /ri,e !n) S+!n#!n 'he Law
o. Private Limited &ompanies (1661) +$ 34
!"#2$
/1% 3hado0 directors
/!rties in ! +or(or!te joint venture ,ust ensure t$!t t$e< )o not> t$rou%$ interferen+e 2it$ t$e +o,(!n< )ire+torsA
e9er+ise of t$eir (o2ers !n) )uties> +o,e to "e re%!r)e) !s s$!)o2 )ire+tors of t$e +o,(!n<
1
4 A s$!)o2 )ire+tor ,!<
"e $e#) +ri,in!##< #i!"#e !s ! +o,(!n< )ire+tor for offen+es un)er t$e Co,(!nies A+ts or t$e Inso#ven+< A+t 16514
:urt$er,ore> in t$e event of ! 2in)in%'u( of t$e +o,(!n< on t$e %roun) of inso#ven+<> s$!)o2 )ire+tors ,!< "e $e#)
#i!"#e to +ontri"ute to t$e !ssets of t$e +o,(!n<
4 7$ere t$ere !re t2o s$!re$o#)ers in t$e +or(or!te joint venture> 2it$
e!+$ (!rt< $o#)in% 08L of t$e s$!res> t$e +ourts !re un#iCe#< to $o#) t$!t !n< sin%#e s$!re$o#)er is ! s$!)o2 )ire+tor
&
4

Su+$ !n inferen+e or fin)in% is ,ore #iCe#< to "e ,!)e in res(e+t of ! ,!jorit< s$!re$o#)er in t$e joint venture
+o,(!n<4
1
See t$e Co,(!nies A+t 1650 s 3*1 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 As to t$e n!ture of !n) #e%!# o"#i%!tions
i,(ose) u(on s$!)o2 )ire+tors see /!r!%r!($ 1&5 J18*K (ost4
See t$e Inso#ven+< A+t 1651 ss 1&> 1* (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
&
Ie in ! so'+!##e) )e!)#o+C +o,(!n<4
!"1#$
" *ransfer of shares
A +or(or!te joint venture 2$ere En%#is$ #!2 !((#ies> re,!ins to !## intents !n) (ur(oses ! +o,(!n< re%istere) un)er t$e
Co,(!nies A+ts> !n) (rovision s$ou#) "e ,!)e in t$e +o,(!n<As !rti+#es> !n)> 2$ere it e9ists> t$e s$!re$o#)ersA or joint
venture !%ree,ent> for t$e tr!nsfer or issue of s$!res in t$e joint venture +o,(!n<4 T$ese !re ne+ess!r< re;uire,ents
for ! +or(or!te joint venture> !s t$e< (er,it t$e (!rti+i(!nts to 2it$)r!2 fro, t$e enter(rise 2it$out t$e nee) to
ter,in!te t$e venture> !n) 2it$out ne+ess!ri#< !ffe+tin% t$e "usiness4 Su+$ (rovisions !#so f!+i#it!te t$e entr< of ne2
(!rti+i(!nts in t$e joint venture4
!"11$
2 4arranties
T$e +or(or!te joint venture ,!< "e effe+te) "< t$e (!rti+i(!nts tr!nsferrin% entire "usinesses or !ssets to t$e +o,(!n<
for,e) for t$e (ur(ose> for 2$i+$ t$e< re+eive s$!res in t$e +o,(!n<4 7$ere t$e +or(or!te ve$i+#e for t$e joint venture
is !n e9istin% +o,(!n<> ! (!rti+i(!nt ,!< su"s+ri"e for s$!res or tr!nsfer !ssets to t$!t +o,(!n< in e9+$!n%e for s$!res4
In su+$ +ir+u,st!n+es t$e (!rti+i(!nts s$ou#) o"t!in 2!rr!nties !n) in)e,nities in re#!tion to t$e enter(rise t$!t is
!+;uire) or in res(e+t of t$e s$!res !##otte)
1
4 Su+$ ! (r!+ti+e 2i##> inter !#i!> )eter,ine t$e v!#ue of t$e !ssets !s+ri"e)
to t$e joint venture> !n) s!fe%u!r) t$e (!rti+i(!nts !%!inst unCno2n #i!"i#ities4
1
As to 2!rr!nties see /!r!%r!($ 68 J1*K (ost4
!"1%$
1# *a5 issues and obli'ations under the Companies Acts
A +o,(!n< use) !s ! ve$i+#e for ! joint venture un)er En%#is$ #!2 is #i!"#e to +or(or!tion t!9 on its (rofits !n) %!ins
1
4
T$e o"#i%!tions i,(ose) u(on +o,(!nies "< t$e Co,(!nies A+ts> for e9!,(#e to fi#e !++ounts> ,!< "e re%!r)e) !s !
s,!## (ri+e to (!< for t$e !)v!nt!%es of +on)u+tin% ! joint venture t$rou%$ t$e ,e)iu, of ! +o,(!n<
4
1
As to !s(e+ts of revenue #!2 !s t$e< !((#< to +or(or!te joint ventures see /!r!%r!($ &&3 J1&1K et se; (ost4
See $o2ever> t$e (osition 2it$ re%!r) to (riv!te #i,ite) +o,(!nies4

!"1($
C: /ARTNERS.I/
11 Formation of partnership
1
T$e (!rties to ! joint venture ,!<> !s !n !#tern!tive to in+or(or!tion> seeC to initi!te t$eir enter(rise t$rou%$ !
(!rtners$i(> %overne) eit$er un)er t$e /!rtners$i( A+t 1568 or t$e Li,ite) /!rtners$i(s A+t 16834 7$et$er t$e
enter(rise is to "e re%!r)e) !s ! (!rtners$i( is ! ,i9e) ;uestion of f!+t !n) #!2> irres(e+tive of 2$et$er or not t$e
(!rties inten) or st!te t$!t it is ! (!rtners$i(4 Un)er t$e /!rtners$i( A+t 1568> (!rtners$i( is t$e Dre#!tion 2$i+$ su"sists
"et2een (ersons +!rr<in% on ! "usiness in +o,,on 2it$ ! vie2 of (rofitA
4 So,e (rovisions of t$e /!rtners$i( A+t

!((#< to t$e joint venture irres(e+tive of !n< +ontr!r< intent in t$e )o+u,ent or )o+u,ents 2$i+$ initi!te) t$e joint
venture4 T$e (!rties !re t$erefore su"je+t to t$e st!tutor< o"#i%!tions (res+ri"e) un)er t$e A+t> to t$e e9tent t$!t su+$
o"#i%!tions +!nnot "e overri))en "< +ontr!+tu!# !rr!n%e,ent "et2een t$e (!rties4 T$ere is ! nee) to ensure t$!t (!rties
)o not +onstitute t$eir joint venture !s ! (!rtners$i( un#ess t$!t is t$eir s(e+ifi+ intention4
1
A )et!i#e) +onsi)er!tion of (!rtners$i( #!2 is outsi)e t$e s+o(e of t$is tit#e !n) is )e!#t 2it$ in vo# &8 (1661 Reissue)
/ARTNERS.I/4
As to t$e for, !n) fun+tions of t$e (!rtners$i( !s ! "usiness ,e)iu, see /!r!%r!($ 0 J5&1K et se; (ost4 See !#so /ri,e
!n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
/!rtners$i( A+t 1568 ss 1> (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/): see vo# &8 (1661 Reissue) /ARTNERS.I/
/!r!%r!($s 1 J1KM*40 J1&K4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
!"1)$
1% Conse6uences of constitutin' a joint enture as a partnership
7$ere t$e joint venture is +re!te) !s ! (!rtners$i(> or is to "e re%!r)e) !s ! (!rtners$i( "< virtue of t$e !((#i+!tion of
t$e /!rtners$i( A+t 1568> e!+$ (!rti+i(!nt is )ee,e) to "e t$e !%ent of t$e ot$er (!rti+i(!nt(s)4 Irres(e+tive of !n< ter,
or (rovision in t$e joint venture !%ree,ent> e!+$ (!rti+i(!nt in ! (!rtners$i( joint venture "in)s t$e enter(rise !n) !##
t$e (!rti+i(!nts in res(e+t of !n< !+t or tr!ns!+tion +!rrie) out "< !n< (!rti+i(!nt in t$e or)in!r< or usu!# +ourse of t$e
enter(rise "usiness
1
4 T$is re,!ins t$e +!se> un#ess t$e t$ir) (!rt< is !2!re of !n< restri+tion on ! (!rti+i(!ntAs !ut$orit<
to "in) t$e joint venture in res(e+t of !n< !+t or tr!ns!+tion 2$i+$ is +ont!ine) in t$e joint venture !%ree,ent4 T$e
(!rti+i(!nts in ! (!rtners$i( joint venture !re joint#< #i!"#e to t$e fu## e9tent of t$eir !ssets for t$e )e"ts !n) o"#i%!tions
of t$e joint venture> !n) si,i#!r#< #i!"#e joint#< !n) sever!##< for t$e tortious !+ts !n) o,issions of !n< of t$e
(!rti+i(!nts in t$e joint venture 2$i+$ t!Ce (#!+e 2it$in t$e +onte9t of t$e enter(rise
4
1
See t$e /!rtners$i( A+t 1568 s 0 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
I"i) s 64
!"1,$
1( Authority of parties to act on behalf of the enture
It is ne+ess!r<> in vie2 of t$e !"ove> for t$e joint venture !%ree,ent to )eter,ine t$e e9tent of t$e !ut$orit< of t$e
(!rti+i(!nts> !n) ot$ers 2$o ,!< "e invo#ve) in t$e ,!n!%e,ent of t$e enter(rise> for e9!,(#e> senior ,!n!%e,ent> to
"in) or +o,,it t$e joint venture to tr!ns!+tions 2it$ t$ir) (!rties4 As !n !)jun+t to t$e !"ove> t$e joint venture
!%ree,ent s$ou#) ,!Ce (rovision for ! (!rti+i(!nt to in)e,nif< t$e ot$er (!rties to ! (!rtners$i( joint venture if $e or it
in+urs #i!"i#ities 2$i+$ "in) t$e enter(rise> !n) 2$i+$ t$e joint venture !%ree,ent )i) not !ut$orise4
!"1.$
1) Partners 0ith limited liability
T$e un#i,ite) #i!"i#it< of (!rtners un)er ! (!rtners$i( %overne) "< t$e /!rtners$i( A+t 1568
1
is ! )istin+t +o,,er+i!#
)is!)v!nt!%e4 It is (ossi"#e un)er t$e Li,ite) /!rtners$i(s A+t 1683
for ! (!rtners$i( joint venture to "e for,e) 2$ere

!t #e!st so,e of t$e (!rti+i(!nts ,!< $!ve #i,ite) #i!"i#it<4 T$e )is!)v!nt!%e of t$e #i,ite) (!rtners$i( !s ! +o,,er+i!#
ve$i+#e is t$!t !t #e!st one (!rtner (! %ener!# (!rtner) ,ust "e su"je+t to un#i,ite) #i!"i#it<
&
4 :urt$er,ore> if !n< (!rtner
2$o enjo<s #i,ite) #i!"i#it< (!rti+i(!tes in t$e ,!n!%e,ent of t$e (!rtners$i( joint enter(rise $e #oses t$e (rote+tion of
#i,ite) #i!"i#it<> !n) "e+o,es ! %ener!# (!rtner4 T$is %ener!##< ren)ers t$e #i,ite) (!rtners$i( !n unsuit!"#e ve$i+#e for
! joint venture
*
4 T$e #i,ite) (!rtners$i( ,!<> $o2ever> "e use) !s t$e stru+ture for ! joint venture 2$ere t$e ,!jor or
,!jorit< of t$e (!rti+i(!nts in t$e venture )o not seeC !n !+tive ro#e in t$e ,!n!%e,ent of t$e enter(rise> "ut inten) to
re,!in (!ssive investors4
1
See t$e /!rtners$i( A+t 1568 ss 6M1 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
See t$e Li,ite) /!rtners$i(s A+t 1683 ss *M1 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
&
An< (!rtner 2$o is su"je+t to un#i,ite) #i!"i#it< +ou#) "e ! +or(or!tion re%istere) 2it$ #i,ite) #i!"i#it< un)er t$e Co,(!nies
A+ts> t$us (rote+tin% t$e effe+tive (!rti+i(!tors in t$e joint venture in t$e %uise of s$!re$o#)ers4
*
T$e (osition ,!< "e )ifferent in t$e +!se of joint ventures for,e) un)er +ert!in forei%n juris)i+tions> e% un)er Ger,!n #!2>
2$ere t$e #i,ite) (!rtners$i( is ! fre;uent#< use) "usiness ,e)iu,4
!"1/$
1, Property issues
A (!rtners$i( joint venture ,ust )eter,ine 2$i+$ !ssets use) in !n) "< t$e enter(rise !re to "e re%!r)e) !s t$e !ssets of
t$e (!rtners$i( !n) t$erefore of t$e joint venture>

!s o((ose) to !ssets 2$i+$ !re o2ne) e9+#usive#< "< ! (!rti+i(!nt to
t$e enter(rise "ut 2$i+$ !re use) in t$e enter(rise> or !re !#so use) in ot$er enter(rises of t$e (!rti+i(!nt4 As ! %ener!#
(rin+i(#e> !## !ssets +ontri"ute) "< t$e (!rti+i(!nts in t$e enter(rise> to%et$er 2it$ !ssets !+;uire) in t$e +ourse of t$e
"usiness> 2i## "e re%!r)e) !s (!rtners$i( (ro(ert<4 T$ese !ssets ,ust "e $e#) in !++or)!n+e 2it$ t$e /!rtners$i( A+t
1568 !n) t$e joint ventureE(!rtners$i( !%ree,ent4 T$e !ssets of ! (!rtners$i( joint venture 2i## "e $e#) on trust for s!#e
for t$e (!rti+i(!nts in s$!res !%ree) "et2een t$e (!rti+i(!nts4 T$ese !ssets 2i## "e use) on t$e vo#unt!r< or invo#unt!r<
ter,in!tion of t$e joint venture in s!tisf!+tion of t$e )e"ts !n) #i!"i#ities of t$e joint venture4
!"1"$
1. Fiduciary duties of partners
As in t$e +!se of ! +or(or!te joint venture> 2$ere t$e )ire+tors !re un)er st!tutor< o"#i%!tions !n) o2e fi)u+i!r< )uties
to t$e +o,(!n<> t$e (!rti+i(!nts in ! (!rtners$i( joint venture o2e e;uiv!#ent )uties to one !not$er4 T$ese )uties> 2$i+$
!re i,(ose) u(on (!rtners "< +!se #!2 !n) "< t$e /!rtners$i( A+t 1568> !re +onne+te) 2it$ t$e runnin% of t$e
(!rtners$i( !n) t$erefore t$e joint venture "usiness
1
4
1
/!rtners$i( A+t 1568 ss 5M&8> &M&* (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/): see vo# &8 (1661 Reissue)
/ARTNERS.I/ /!r!%r!($ 11 J31K et se;4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660)4
!"12$
1/ *ermination of partnership joint enture
A joint venture 2$i+$ is +re!te) !s ! (!rtners$i(> if En%#is$ #!2 !((#ies> is !#so su"je+t to t$e (rovisions of t$e
/!rtners$i( A+t 1568 re#!tin% to t$e )isso#ution of (!rtners$i(s
1
4 :urt$er,ore> if t$e joint venture is +o,,er+i!##<
unsu++essfu#> !n) is ter,in!te) on t$e %roun)s of inso#ven+<> t$en t$e (!rti+i(!nts in t$e venture !re su"je+t to t$e
Inso#vent /!rtners$i(s Or)er 166*
4
1
See t$e /!rtners$i( A+t 1568 ss 5M&8> &M&* (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
Ie t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !s !,en)e)4

!"%#$
1" Disadanta'es of partnership joint entures
T$e (!rtners$i( joint venture is su"je+t to sever!# +onsi)er!"#e +o,,er+i!# )is!)v!nt!%es !s +o,(!re) to t$e +or(or!te
joint venture4 T$ese )is!)v!nt!%es ,!< "e su,,!rise) !s fo##o2s:
1541 /!rties in ! (!rtners$i( joint venture +onstitute) un)er t$e /!rtners$i( A+t 1568 !re su"je+t to un#i,ite) #i!"i#it<
for its )e"ts !n) o"#i%!tions4 7$i#st t$e (!rties ,!< seeC to !voi) t$e +onse;uen+es of un#i,ite) #i!"i#it< "<
usin% #i,ite) #i!"i#it< +o,(!nies !s t$e (!rties !n) (!rtners in t$e joint venture
1
it ,!< "e !r%ue) t$!t !
(!rtners$i( is ! "usiness ,e)iu, t$!t 2orCs ,ost effe+tive#< 2$ere t$e (!rties !re n!tur!# (ersons4
154 A (!rtners$i( un)er En%#is$ #!2> un#iCe ! +o,(!n< re%istere) un)er t$e Co,(!nies A+ts> +!nnot %r!nt !
f#o!tin% +$!r%e over its "usiness !ssets !s se+urit< for #o!ns4
154& A (!rtners$i( is !n unin+or(or!te) enter(rise !n) t$erefore $!s no #e%!# e9isten+e in)e(en)ent of its ,e,"ers
4
A++or)in%#<> t$e !ssets of t$e joint venture enter(rise +!nnot "e veste) in !n entit< 2it$ ! (otenti!##< un#i,ite)
#ife> "ut ,ust in su+$ +!ses "e veste) eit$er in t$e (!rti+i(!nt (!rtners joint#< or in trustees4 A +$!n%e in t$e
+onstituent (!rties of t$e (!rtners$i( joint venture (rovi)es (ro"#e,s 2it$ re%!r) to t$e te+$ni+!# or %ener!#
)isso#ution of t$e (!rtners$i(
&
4
!"%1$
As ! +onse;uen+e of t$ese )is!)v!nt!%es> t$e (!rtners$i( is not +o,,on#< en+ountere) !s t$e ,e)iu, for !
joint venture> e9+e(t 2$ere t$e (!rti+i(!nts !re +o,(!nies4 T$ere ,!< "e situ!tions 2$ere for t!9> or +o,,er+i!#
re!sons> !n) "e+!use of t$e n!ture !n) )ur!tion of t$e (roje+t> t$e (!rtners$i( ,!< "e +$osen !s t$e ,e)iu, for ! joint
venture4 T$is ,!< "e (!rti+u#!r#< !((ro(ri!te 2$ere t$e (!rti+i(!nts seeC )ire+t interests in t$e !ssets of t$e joint
venture> !n) in !n< +ontr!+ts or tr!ns!+tions entere) into "< t$e joint venture 2it$ t$ir) (!rties4 In su+$ +ir+u,st!n+es
t$e risC of un#i,ite) #i!"i#it< for t$e )e"ts !n) #i!"i#ities of t$e enter(rise ,!< "e ! (ri+e 2$i+$ t$e (!rties !re (re(!re)
to (!<4
1
7$ere t$e (!rti+i(!nt is !#re!)< ! +o,(!n<> t$e +o,(!n< ,!< for, ! su"si)i!r< for t$is (ur(ose4
T$is is ! ,!jor )is!)v!nt!%e of t$e (!rtners$i( !s ! ve$i+#e for ! joint venture enter(rise !s o((ose) (ossi"#< to ! sin%#e (roje+t
joint venture of #i,ite) )ur!tion4 .o2ever> t$e (!rtners$i( ,!< "e ! suit!"#e ,e)iu, for ! (ro(ert< joint venture4
&
:or ! )efinition of t$ese ter,s see vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($ 1*1 J136K4 See !#so /ri,e !n) S+!n#!n 'he
Law o. Partnership (1660) +$ 14
!"%%$
D: CONSORTIU= AGREE=ENTS
12 Nature of the consortium a'reement
T$e si,(#est stru+ture for ! joint venture is "!se) u(on +ontr!+t4 T$is for, of joint venture> 2$i+$ ,!< "e )es+ri"e) !s
! +onsortiu, or +o'o(er!tion !%ree,ent> is !n !rr!n%e,ent 2$ere"< t$e (!rties to t$e joint venture !%ree to for, t$eir
!sso+i!tion so#e#< !s in)e(en)ent +ontr!+tors> !s o((ose) to "ein% (!rtners un)er t$e /!rtners$i( A+t 1568> or
s$!re$o#)ers in ! +o,(!n< re%istere) un)er t$e Co,(!nies A+ts4 T$e +onsortiu, !%ree,ent s$ou#) )efine t$e ri%$ts
!n) )uties of t$e (!rties !n) seeC to )eter,ine t$e ri%$ts !n) )uties "et2een t$e (!rties to t$e joint venture !n) t$ir)
(!rties 2$o ,!< )e!# 2it$ t$e +onsortiu,
1
4
1
:or !%ree,ents "et2een joint venturers see :or,s 18 J13&1K> 11 J13&5K (ost4
!"%($
%# *he use of the consortium as a business medium
T$e +onsortiu, is ,ost fre;uent#< use) to !voi) t$e (er,!nen+e !n) re%u#!tion of ! +or(or!te joint venture> or t$e
inter)e(en)en+e> )uties !n) o"#i%!tions i,(ose) u(on (!rtners> !n) t$e (ro"#e,s of joint !n) sever!# #i!"i#it< 2$i+$
!re fe!tures of t$e (!rtners$i( joint venture4 T$e +onsortiu, ,!< nevert$e#ess (rovi)e t$e (!rties 2it$ suffi+ient )ire+t
interest in t$e !ssets !n) revenue of t$e venture to ,!Ce it ! suit!"#e ve$i+#e for ! joint enter(rise4 It is fre;uent#< t$e
"!sis of joint ventures for (ro(ert< )eve#o(,ent !n) is ! +o,,on ve$i+#e for (!rties seeCin% to ten)er on ! joint "!sis
for su"st!nti!# +onstru+tion +ontr!+ts> or for +o##!"or!tive enter(rises re#!tin% to t$e e9(#oit!tion of inte##e+tu!# (ro(ert<
ri%$ts
1
4 T$e +onsortiu, ,!< "e ! suit!"#e ,e)iu, for ! "usiness enter(rise 2$i+$ is eit$er of s$ort )ur!tion or +onsists
of ! sin%#e un)ert!Cin% or venture4
1
If t$e ten)er is su++essfu# t$e venture ,!< t$en "e in+or(or!te): see /!r!%r!($ 53 J6&*K et se; !n) :or, 18 J13&1K (ost4
!"%)$
%1 Common proisions in a consortium a'reement
A +onsortiu, !%ree,ent s$ou#) set out t$e s+o(e !n) )ur!tion of t$e joint venture> )efine t$e o"#i%!tions of t$e
in)ivi)u!# (!rties !n) )evise t$e ,!+$iner< for fin!n+in% t$e venture4 It s$ou#) !#so (rovi)e ! ,e+$!nis, for
)eter,inin% t$e s$!rin% of t$e (rofits or t$e "e!rin% of !n< #osses 2$i+$ ,!< resu#t fro, t$e runnin% of t$e enter(rise
1
4
-e+!use t$e (!rti+i(!nts in ! +onsortiu, !re not (!rtners in t$e #e%!# sense of t$e ter,> t$e< )o not o2e !n<
st!tutor< )ut< inter se !n) !re not su"je+t to !n< joint res(onsi"i#it< for t$e #i!"i#ities !n) o"#i%!tions of t$e joint
venture4 /!rties in t$e joint venture !re not #i!"#e for t$e !+ts or o,issions of e!+$ ot$er4 Nevert$e#ess> ! (!rt< in !
+onsortiu, joint venture is e9(ose) to +#!i,s (2$i+$ ,!< "e un#i,ite)) "< t$ir) (!rties !n) #i!"i#ities in+urre) "< t$e
joint venture4 Des(ite t$e #!+C of ! (!rtners$i( ne9us "et2een t$e (!rti+i(!nts in t$e joint venture> t$e< ,!< "e $e#)
#i!"#e in res(e+t of su+$ +#!i,s !n) #i!"i#ities on t$e "!sis t$!t ! (!rt< $!s e9(ress#< !ssu,e) res(onsi"i#it<> or is
vi+!rious#< #i!"#e un)er t$e joint venture !rr!n%e,ents
4
T$e (rin+i(!# ,e+$!nis, "< 2$i+$ ! (!rti+i(!nt ,!< "e $e#) #i!"#e for t$e !+ts !n) o,issions of $is +o'
(!rti+i(!nts is t$rou%$ t$e )o+trine of !%en+<4 A++or)in%#<> ! +onsortiu, !%ree,ent s$ou#) )efine t$e e9tent to 2$i+$
!n in)ivi)u!# (!rt< in t$e +onsortiu, 2i## "e res(onsi"#e for t$e !+ts !n) o,issions of t$e ot$er (!rties4 It s$ou#) !#so
(res+ri"e t$!t> e9+e(t 2$ere ot$er2ise (rovi)e) s(e+ifi+!##< in t$e !%ree,ent> e!+$ (!rti+i(!nt !+ts !s (rin+i(!# !n) $!s
no !ut$orit< to "in) t$e ot$er (!rti+i(!nt(s)
&
4 In)e,nities s$ou#) "e (rovi)e) for (!rti+i(!nts 2$o !re "oun) "< t$e !+ts
of t$eir +o'(!rti+i(!nts in "re!+$ of !n< e9(ress or i,(#ie) !ut$orit< (res+ri"e) in t$e !%ree,ent4 7$ere (roje+ts !re
un)ert!Cen "< !## t$e (!rti+i(!nts in ! +onsortiu,> t$eir #i!"i#it< for !n< tr!ns!+tion or +ontr!+t 2i## "e joint4 7$ere !n
in)ivi)u!# (!rti+i(!nt to ! +onsortiu, !ssu,es so#e res(onsi"i#it< for ! #i!"i#it< un)ert!Cen on "e$!#f of t$e venture> t$e
!%ree,ent s$ou#) +ont!in in)e,nities to (rote+t t$e (!rti+u#!r (!rti+i(!nt
*
4
!"%,$
1
T$is #!tter !s(e+t of !n< +onsortiu, !%ree,ent is i,(ort!nt "e+!use> if t$e +onsortiu, is !n unin+or(or!te) !sso+i!tion "ut not !
(!rtners$i(> t$e (rovisions in t$e /!rtners$i( A+t 1568 2$i+$ (res+ri"e ! +o)e for su+$ ,!tters )o not !((#<4
As to t$e #i!"i#ities of (!rti+i(!nts in ! +onsortiu, see /!r!%r!($ 60 J6*K (ost4

&
As to t$e effe+tiveness of !n< su+$ (rovision see /!r!%r!($ (ost4 See !#so :or, 11 +#!use 5 J13*5K (ost4
*
:or in)e,nities see :or, 11 +#!use 1& J130K et se; (ost4
!"%.$
%% Consortium or partnership
=!n< +onsortiu, !%ree,ents (rovi)e t$!t t$e !%ree,ent )oes not +onstitute ! (!rtners$i( nor !re t$e (!rti+i(!nts
(!rtners un)er t$e /!rtners$i( A+t 15684 T$is (rovision> t$ou%$ in)i+!tive of t$e intentions of t$e (!rti+i(!nts> +!n
never "e re%!r)e) !s +on+#usive4 If t$e +onsortiu, $!s t$e !ttri"utes of ! (!rtners$i( !s (res+ri"e) "< t$e /!rtners$i(
A+t 1568 !n) "< +!se #!2> it 2i## "e so re%!r)e)4 :urt$er,ore> if 2it$ re%!r) to ! t$ir) (!rt<> t$e +onsortiu, !((e!rs to
$!ve t$e !ttri"utes of ! (!rtners$i(> or !n< (!rti+i(!nt so +on)u+ts t$e,se#ves or itse#f 2it$ t$e +onniv!n+e of t$e +o'
(!rti+i(!nts so !s to #e!) t$e t$ir) (!rt< to "e#ieve t$!t $e or it is )e!#in% 2it$ ! (!rtners$i(> t$en t$e +onsortiu, 2i## "e
tre!te) 2it$ res(e+t to t$!t t$ir) (!rt< !s if it 2ere ! (!rtners$i(4
!"%/$
%( Property issues
A +onsortiu, !%ree,ent s$ou#) ,!Ce (!rti+u#!r (rovision 2it$ re%!r) to t$e (ro(ert< use) "< t$e joint venture4 T$e
!%ree,ent s$ou#) )eter,ine 2$i+$ !ssets !re to re,!in t$e e9+#usive (ro(ert< of e!+$ of t$e (!rti+i(!nts !n) 2$i+$
!ssets !re to "e t$e joint (ro(ert< of t$e (!rti+i(!nts in t$e venture4
!"%"$
E: EURO/EAN ECONO=IC INTEREST GROU/INGS
%) Nature of -uropean -conomic 7nterest 8roupin's
7$ere t$e (!rties to ! (ro(ose) joint venture !re su"je+t to> or !re resi)ent or )o,i+i#e) in st!tes 2$i+$ !re ,e,"ers of
t$e Euro(e!n Union> t$e (!rties ,!< for, t$e joint venture !s ! Euro(e!n E+ono,i+ Interest Grou(in% (EEIG)4 T$is
entit< 2!s "rou%$t into effe+t !s re%!r)s t$e Unite) Bin%)o, "< t$e Euro(e!n E+ono,i+ Interest Grou(in%s
Re%u#!tions
1
4 An EEIG +!n "e +re!te) !n) o(er!te) 2it$ #itt#e for,!#it<> "ut nevert$e#ess it is veste) 2it$ in)e(en)ent
#e%!# (erson!#it<4 It is> $o2ever> ! r!t$er unsuit!"#e ve$i+#e for ,ost for,s of joint venture4 An EEIG ,ust $!ve
,e,"ers 2$o !re resi)ent> )o,i+i#e) or "!se) in !t #e!st t2o +ountries 2it$in eit$er t$e Euro(e!n Union or t$e
Euro(e!n E+ono,i+ Are!4 :urt$er,ore> inter !#i!> t$e re!#isin% of ! (rofit on t$e enter(rise ,ust not "e ! (ri,e (ur(ose
of t$e EEIG4 It is t$erefore ! for, or ve$i+#e (rin+i(!##< restri+te) to +ross "or)er ventures or !##i!n+es invo#vin%
(rofession!# !sso+i!tions su+$ !s !++ount!nts or #!2<ers> or tr!)e !sso+i!tions
4
1
Ie T$e Euro(e!n E+ono,i+ Interest Grou(in% Re%u#!tions 1656E1&54
:or !n EEIG !%ree,ent see :or, 1& J1331K (ost4 As to EEIGAs %ener!##< see vo# 6 CO=/ANIES /!r!%r!($ 10 J15*K et se;4
See !#so /ri,e> G!#e N S+!n#!n 'he Law and Practice o. +oint "entures (1663) +$ 14
!"%2$9!"(,$
() T.E /ARTNERS.I/ JOINT VENTURE
A: /O7ERS> DUTIES AND LIA-ILITIES O: /ARTNERS
1: JOINT AND SEVERAL LIA-ILIT? O: /ARTNERS
%, 7ntroduction
A joint venture ,!< "e stru+ture) t$rou%$ t$e ,e+$!nis, of ! (!rtners$i( 2$i+$ is %overne) "< t$e /!rtners$i( A+t
1568
1
4 T$is $!s +onse;uen+es "ot$ for t$ir) (!rties )e!#in% 2it$ t$e (!rti+i(!nts of t$e joint venture> !n) for t$e
(!rti+i(!nts inter se4
1
As to (!rtners$i( %ener!##< see vo# &8 (1661 Reissue) /ARTNERS.I/4
!"(.$
%. :iability for contracts
A (!rti+i(!nt in ! (!rtners$i( joint venture 2$o in+urs ! +ontr!+tu!# o"#i%!tion on "e$!#f of t$e enter(rise "in)s !## t$e
ot$er (!rti+i(!nts !s $is or its +o'(!rtners4 T$e (!rti+i(!nt 2$o +on)u+te) t$e !%ree,ent> #iCe $is or its +o'(!rti+i(!nts>
is #i!"#e on#< !s ! ,e,"er of t$e (!rtners$i( joint venture !n) t$erefore joint#<4 In su+$ +!ses t$ere is no in)ivi)u!#
se(!r!te res(onsi"i#it<
1
4 If ! (!rti+i(!nt in ! (!rtners$i( joint venture is to !voi) se(!r!te #i!"i#it< on !n< +ontr!+ts $e or
it ne%oti!te) on "e$!#f of t$e joint venture> t$!t (!rt< ,ust ensure t$!t $e or it $!s not +on+#u)e) t$e !%ree,ent 2it$ t$e
t$ir) (!rt< "< fr!,in% t$e +ontr!+t so !s to "in) "ot$ $i,se#f or itse#f in)ivi)u!##< !n) t$e (!rtners$i( joint#<
4 7$ere
t$e (!rtnersE(!rti+i(!nts in t$e joint venture !re joint#< #i!"#e on ! +ontr!+t or tr!ns!+tion to 2$i+$ t$e joint venture is !
(!rt<> e!+$ (!rtnerE(!rti+i(!nt is #i!"#e in res(e+t of !n< +#!i, in its entiret<> !n) t$e re#e!se of !n< one
(!rtnerE(!rti+i(!nt fro, t$e o"#i%!tion is t$e re#e!se of t$e, !##
&
4 .o2ever> it s$ou#) "e note) t$!t t$ere is no restri+tion
on su"se;uent (ro+ee)in%s !%!inst ! (!rtner in res(e+t of ! joint #i!"i#it< 2$ere $is +o'(!rtners $!ve (revious#< "een
)efen)!nts in (ro+ee)in%s re#!tin% to t$!t #i!"i#it<> !n) to 2$i+$ t$!t (!rtner 2!s not joine) !s ! +o')efen)!nt
*
4
1
See Re (anle, (15*) & =ont D N De G 034
See @i!!ins v #enior (15*1) 5 = !n) 7 5&*4

&
See t$e /!rtners$i( A+t 1568 s 6 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4 See !#so endall v @amilton (1536) * A((
C!s 08*4
*
Civi# Li!"i#it< (Contri"ution) A+t 1635 s &4
!"(/$
%/ :iability of estate of deceased partner
-< t$e /!rtners$i( A+t 1568 Se+tion 6
1
> t$e joint !n) sever!# #i!"i#it< of t$e est!te of ! )e+e!se) (!rtnerAs est!te is
(reserve) for )e"ts !n) o"#i%!tions of t$e (!rtners$i( in+urre) 2$i#e $e 2!s ! (!rtner4 T$e se+tion is !((#i+!"#e to
(!rtners$i( joint ventures !n) +#e!r#< !((#ies on#< to in)ivi)u!# !n) not +or(or!te (!rtners4
1
/!rtners$i( A+t 1568 s 6 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
!"("$
%" *ort and misapplication of money and property
Un)er t$e /!rtners$i( A+t 1568 ever< (!rtner to ! (!rtners$i( joint venture is #i!"#e joint#< 2it$ $is or its +o'(!rtners>
!n) !#so sever!##<> for ever<t$in% for 2$i+$ t$e (!rtners$i( joint venture "e+o,es #i!"#e in res(e+t of t$e #i!"i#it< of t$e
fir, for 2ron%s
1
!n) for ,is!((#i+!tion of ,one< or (ro(ert< re+eive) for or in t$e +usto)< of t$e fir,
4 Conse;uent#<>
#i!"i#it< "ot$ in tort !n) in res(e+t of ,is!((#i+!tion of ,one< or (ro(ert< is joint !n) sever!#4
1
See t$e /!rtners$i( A+t 1568 s 18 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
I"i) s 114
!"(2$
: AUT.ORIT? O: /ARTNERS
%2 7mplied and apparent authority
E!+$ (!rti+i(!nt in ! (!rtners$i( joint venture is #i!"#e !s ! (rin+i(!# for t$e !+ts of $is or its +o' (!rtnersE(!rti+i(!nts
2$o !re in #!2 $is or its !%ents4 E!+$ (!rti+i(!nt $!s !n i,(#ie) !ut$orit< fro, $is +o'(!rtners to "in) t$e, in res(e+t
of !## +ontr!+ts entere) into in t$e or)in!r< +ourse of t$e joint venture enter(rise or "usiness> irres(e+tive of !n<
(rovision in t$e (!rtners$i(Ejoint venture !%ree,ent 2$i+$ ,!< (res+ri"e #i,its to t$e !ut$orit< of ! (!rti+i(!nt in t$e
venture to "in) t$e enter(rise !n) its ,e,"ers4 T$ir) (!rties )e!#in% 2it$ ! (!rtners$i( joint venture 2it$out noti+e of
!n< su+$ restri+tions $!ve no +on+ern 2it$ t$ese sti(u#!tions4 T$e< $!ve ! ri%$t> in t$e !"sen+e of !+tu!# noti+e to t$e
+ontr!r<> to !ssu,e t$!t ever< (!rti+i(!nt in ! (!rtners$i( joint venture $!s t$e !ut$orit< to "in) $is +o'(!rti+i(!nt(s)
!n) t$e joint venture enter(rise in res(e+t of +ontr!+ts ,!)e !++or)in% to t$e or)in!r< us!%es of t$e "usiness +!rrie) on
"< t$e joint venture4 T$is for, of !ut$orit< ,!< "e )efine) !s !((!rent !ut$orit<4
!")#$
(# Actual authority
T$e (!rtners$i(Ejoint venture !%ree,ent ,!< (res+ri"e t$e !ut$orit< of t$e (!rti+i(!nts to "in) t$e (!rtners$i( joint
venture in res(e+t of !n< tr!ns!+tions or +ontr!+ts ,!)e 2it$ t$ir) (!rties4 Su+$ !ut$orit< ,!< "e )es+ri"e) !s !+tu!#
!ut$orit<4 /!rtners !#so $!ve !n i,(#ie) or !((!rent !ut$orit< to "in) t$eir +o'(!rtners4 T$ese !s(e+ts of !ut$orit< !re
re#ev!nt to t$ir) (!rties4
!")1$
(1 Po0er of participant to bind the firm
-< t$e /!rtners$i( A+t 1568 Se+tion 0
1
> ! t$ir) (!rt< 2i## "e !"#e to $o#) t$e (!rti+i(!nts in ! (!rtners$i( joint venture
joint#< #i!"#e for !n< !+tivities of ! joint venture (!rti+i(!nt invo#vin% t$e t$ir) (!rt< if t$e fo##o2in% +on)itions !re
s!tisfie):
&141 t$e !+tivities ,ust re#!te to t$e "usiness of t$e joint enter(riseH
&14 t$e !+tivities ,ust "e su+$ !s 2ou#) "e usu!# for t$e +!rr<in% on of t$e joint venture "usiness in t$e usu!# 2!<H
!n)
&14& t$e !+tivities of t$e (!rti+i(!nt ,ust "e )one "< t$!t (!rt< !s ! (!rtner in t$e joint venture> !n) not !s !n
in)ivi)u!# "usiness entit<> !n) t$is ,ust "e un)erstoo) "< t$e t$ir) (!rt<4
If t$e !"ove re;uire,ents !re not ,et in t$eir entiret<> t$e re#ev!nt !+tivities 2i## not "e re%!r)e) !s $!vin% "een )one
"< t$e (!rti+i(!nt in ! (!rtners$i( joint venture in $is +!(!+it< !s (!rtner> !n) on "e$!#f of !n) in t$e usu!# +ourse of t$e
"usiness of t$e joint venture4 A++or)in%#<> in t$e !"sen+e of e9(ress !ut$orit<> or t$e su"se;uent r!tifi+!tion of t$e ot$er
+o'(!rti+i(!nts in t$eir +!(!+it< !s (!rtners> t$e re#ev!nt !+tivit< 2i## not "in) t$e (!rtners$i( joint venture
4 7$ere>
$o2ever> t$e !"ove re;uire,ents !re s!tisfie)> t$e joint venture !n) its ,e,"ers 2i## "e "oun)> even t$ou%$ t$e
!+tivities of t$e in)ivi)u!# (!rti+i(!nt +onstitute ! fr!u) on $is or its +o'(!rti+i(!nt(s)> un#ess t$e t$ir) (!rt< is (riv< to
t$e fr!u)
&
4
1
&rellin v Brook (15*0) 1* = N 7 114

&
Br,ant0 Powis and Br,ant Ltd v Auebec Bank J156&K AC 1384
!")%$
(% 3leepin' or dormant participant
(%11 :iability of sleepin' or dormant participant
A s#ee(in% or )or,!nt (!rtnerE(!rti+i(!nt in ! (!rtners$i( joint venture t!Ces no (!rt in t$e runnin% of t$e "usiness of
t$e enter(rise4 :re;uent#<> su+$ ! (!rt< $!s (rovi)e) "usiness +!(it!#4 An< !+tive (!rtnerE(!rti+i(!nt 2$o +!rries out !n<
!+tivit< on "e$!#f of t$e joint venture 2it$in t$e ter,s of !n< !+tu!# !ut$orit< s(e+ifie) in t$e (!rtners$i( joint venture
!%ree,ent 2i## !#so "in) t$e s#ee(in% or )or,!nt (!rtnerE(!rti+i(!nt4
!")($
(%1% *he rule in Watteau v Fenwick
It $!s !#2!<s "een un+ert!in 2$et$er ! s#ee(in% or )or,!nt (!rtner> !n) t$erefore ! s#ee(in% or )or,!nt
(!rtnerE(!rti+i(!nt in ! (!rtners$i( joint venture> 2i## "e "oun) "< !n< !+tion +!rrie) out "< !n !+tive (!rti+i(!nt 2$i+$
is 2it$in t$e s+o(e of t$e !((!rent !ut$orit< of t$e (!rtnerE(!rti+i(!nt4 In t$e +!se of Watteau v Fenwick
1
> 7i##s J
e9(resse) t$e o(inion t$!t> in t$e +!se of ! )or,!nt or s#ee(in% (!rtner> !n< #i,it!tion of !ut$orit< "et2een ! )or,!nt
!n) !+tive (!rtner 2ou#) "e ineffe+tive to (rote+t t$e s#ee(in% (!rtner fro, "ein% "oun) "< !+tions 2it$in t$e or)in!r<
!ut$orit< of t$e !+tive (!rtner4 T$is (rin+i(#e 2ou#) "e !((#i+!"#e in t$e +!se of (!rtners$i( joint ventures4 It is
(rovi)e)> $o2ever> "< t$e /!rtners$i( A+t 1568 Se+tion 0
> t$!t t$e !+tivit< of ! (!rtner "in)s t$e ot$er (!rtner(s)>

un#ess t$e (erson 2it$ 2$o, t$e !+tive (!rtner is )e!#in% )oes not Cno2 or "e#ieve t$!t ! (!rti+u#!r (!rtner is in f!+t !
(!rtner4 In su+$ +!ses> t$!t (!rtner is not "oun) "< t$e !+tions of t$e !+tive (!rtner> !t #e!st !s re%!r)s t$e t$ir) (!rt<4
T$is is )iffi+u#t to re+on+i#e 2it$ Watteau v Fenwick> 2$i+$ 2!s )e+i)e) !fter t$e en!+t,ent of t$e /!rtners$i( A+t
1568> t$ou%$ it ,!< "e su%%este) t$!t Se+tion 0 )oes not e9(ress#< ,!Ce (rovision for ! s#ee(in% (!rtner4
1
Watteau v Fenwick J156&K 1 @- &*1 !t &*64

!"))$
(( 7nferred partnerships
T$e joint !n) sever!# #i!"i#it< of t$e (!rti+i(!nts in ! (!rtners$i( joint venture> !n) t$e !"i#it< of e!+$ (!rti+i(!nt to
"in) $is or its +o'(!rti+i(!nts t$rou%$ t$e )o+trine of !%en+<> is ! fe!ture of !## (!rtners$i(s4 A joint venture ,!< "e
+onstitute) !s !n unin+or(or!te) !sso+i!tion> "ut !s ! "usiness enter(rise 2$i+$ is not ! (!rtners$i(4 Su+$ ! joint
venture is Cno2n !s ! +onsortiu,4 Nevert$e#ess> un)er t$e )o+trine of $o#)in% out> ! +onsortiu, ,!< "e re%!r)e) !s !
(!rtners$i( !t #e!st !s re%!r)s t$ir) (!rties4 7$ere ! (!rti+i(!nt in ! +onsortiu, ne%oti!tes ! +ontr!+t 2it$ ! t$ir) (!rt<>
t$e #!tter +!n re%!r) t$e joint venture !s ! (!rtners$i( if t$e (!rti+i(!nt !((e!rs to t$e t$ir) (!rt< to "e +on)u+tin%
ne%oti!tions in t$e %uise of ! (!rtner !n) on "e$!#f of t$e joint venture> !n) if t$e +o'(!rti+i(!nts $!ve +on)u+te)
t$e,se#ves so !s to +#o!C t$e (!rti+i(!nt 2it$ t$e !((!rent !ut$orit< of ! (!rtner4 In su+$ +!ses !## t$e (!rti+i(!nts in t$e
joint venture 2i## "e joint#< #i!"#e on !n< +ontr!+t so ne%oti!te)> !n) to t$e fu## e9tent of t$eir !ssets4
!"),$
&: DUTIES O: /ARTNERS
() 8ood faith
/!rtners st!n) in ! fi)u+i!r< re#!tions$i( 2it$ one !not$er4 A++or)in%#<> ! (!rtner ,ust )is(#!< t$e ut,ost %oo) f!it$
to2!r)s $is or its +o'(!rtners in res(e+t of !## (!rtners$i( )e!#in%s> tr!ns!+tions> or ,!tters
1
4
1
Law v Law J1680K 1 C$ 1*84 As to t$e n!ture of fi)u+i!r< )uties see vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($s *& J01K>
11 J31K4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 54
!").$
(, Personal benefit; secret profits
Un)er t$e /!rtners$i( A+t
1
1568 ever< (!rtner is o"#i%e) not to )erive ! (erson!# "enefit !t t$e e9(ense of $is or its +o'
(!rtners4 A (!rtner t$erefore ,ust not )erive ! se+ret (rofit fro, +on)u+tin% t$e "usiness of t$e (!rtners$i( !n)
t$erefore ! (!rtners$i( joint venture
4
1
Bentle, v &raven (150&) 15 -e!v 304

!")/$
(. Conflict of interest; competition
A (!rtner in ! (!rtners$i( joint venture ,ust not (#!+e $i,se#f or itse#f in ! (osition 2$ere $is or its interests +onf#i+t
2it$ t$ose of t$e +o'(!rtners !n) t$e (!rtners$i( joint venture
1
4 A++or)in%#<> ! (!rtner in ! (!rtners$i( joint venture
,!< not en%!%e in ! "usiness 2$i+$ is in +o,(etition 2it$ t$!t of t$e joint venture> 2it$out t$e fu##< infor,e) +onsent
of $is +o'(!rtners> ot$er2ise t$e re#ev!nt (!rtner ,ust !++ount to $is or its +o'(!rtners for !n< (rofits )erive) fro, t$e
+o,(etitive "usiness4 .o2ever> ! (!rtner is not un)er !n o"#i%!tion to )evote !## of $is or its ti,e to t$e (!rtners$i( !n)
t$erefore ! (!rtners$i( joint venture> un#ess (rovision is so ,!)e in t$e (!rtners$i(Ejoint venture !%ree,ent4
1
See t$e /!rtners$i( A+t 1568 s &8 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4 Note t$e (ro"#e,s 2$en t$e (!rtner is !
#i,ite) #i!"i#it< +o,(!n<> !+tin% t$rou%$ its )ire+tors> 2$o o2e fi)u+i!r< )uties to t$e +o,(!n< "ut not to t$e (!rtners$i( joint
venture4 :or t$e e;uiv!#ent (rovisions set out in ! +or(or!te joint venture !%ree,ent see :or, 0 +#!use 6 J11&6K (ost4
!")"$
-: ACCOUNTING RE@UIRE=ENTS
1: ACCOUNTING RE@UIRE=ENTS UNDER T.E /ARTNERS.I/ ACT
(/ &enderin' of accounts
Un)er t$e /!rtners$i( A+t 1568
1
(!rtners> in+#u)in% (!rtners to ! joint venture> !re "oun) to ren)er true !++ounts !n)
fu## infor,!tion of !## t$in%s !ffe+tin% t$e (!rtners$i( joint venture to !n< +o'(!rtnerE(!rti+i(!nt or $is or its #e%!#
re(resent!tives4 A (!rtner is t$erefore un)er ! )ut< of t$e ut,ost %oo) f!it$ to ,!Ce $onest !n) fu## )is+#osure of !##
,!tters re#ev!nt to t$e joint venture "usiness to $is or its +o'(!rtners or t$eir re(resent!tives4
1
!")2$
(" <aintainin' accounts
In %ener!#> t$ere is no )ire+t !n) !"so#ute #e%!# re;uire,ent for ! (!rtners$i( joint venture to Cee( !++ounts
1
4 7$ere>
$o2ever> !## t$e (!rtners to su+$ ! venture !re #i,ite) #i!"i#it< +o,(!nies> t$ere is su+$ !n o"#i%!tion u(on t$e venture
to Cee( !++ounts
4 T$e #e%!# re;uire,ent for !n< ot$er for, of (!rtners$i( joint venture to Cee( !++ounts )oes not
!rise> "ut t$ere is !n i,(#i+it (resu,(tion of t$e nee) for ! (!rtners$i( to Cee( !++ounts 2$i+$ is )erive) fro, %ener!#
(!rtners$i( #!2> !n) fro, (rovisions of t$e /!rtners$i( A+t 15684
/!rtners$i( #!2 (resu,es t$!t !++ur!te "ooCs of !++ounts in res(e+t of t$e (!rtners$i( "usiness 2i## "e Ce(t
&
>
!n) 2i## "e !v!i#!"#e for ins(e+tion "< !n< of t$e (!rtners4 In t$is res(e+t> ! (!rtners$i( joint venture )iffers in no 2!<
fro, !n< ot$er for, of (!rtners$i(4 T$e (!rtners$i( joint venture s$ou#) t$erefore> !s ! ,!tter of %oo) +o,,er+i!#
(r!+ti+e> ,!int!in )et!i#e) "ooCs re#!tin% to t$e ventureAs fin!n+i!# )e!#in%s fro, 2$i+$ !++ounts +!n "e )r!2n !t
re%u#!r interv!#s4
T$e /!rtners$i( A+t 1568 ren)ers t$e Cee(in% of fin!n+i!# re+or)s ! )esir!"#e (r!+ti+e4 =e,"ers of !
(!rtners$i( !re o"#i%e) to Dren)er true !++ounts !n) fu## infor,!tion of !## t$in%s !ffe+tin% t$e (!rtners$i(A
*
4 T$e ri%$t
for ! (!rtner to $!ve (ro(er !++ounts Ce(t of t$e (!rtners$i( "usiness is ! fun)!,ent!# in+i)ent of (!rtners$i( 2$i+$
2i## "e u($e#) !n) su((orte) "< t$e +ourts
0
4 A## (ersons !re re;uire) to Cee( re+or)s for t!9 (ur(oses
1
4
1
Ie t$!t t$e f!i#ure to Cee( !++ounts 2i## ren)er t$e (!rtners$i( #i!"#e to (en!# or ot$er s!n+tions4
See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E1584

&
See t$e /!rtners$i( A+t 1568 s * (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
*
I"i) s 54
0
See 're!o v @unt J1561K AC 3 !t 14
1
See t$e T!9es =!n!%e,ent A+t 1638 s 1- !s inserte) "< t$e :in!n+e A+t 166* S+$ 16 (!r! & !n) t$e V!#ue A))e) T!9 A+t
166* S+$ 11 (!r! 14
!",#$
(2 7nspection of partnership accounts
Un)er t$e /!rtners$i( A+t 1568
1
> !n) su"je+t to +ontr!r< !%ree,ent e9(ress or i,(#ie)> t$e (!rtners$i( "ooCs !re to "e
Ce(t> D!t t$e (#!+e of "usiness of t$e (!rtners$i( or t$e (rin+i(!# (#!+e if t$ere is ,ore t$!n oneA4 A## (!rtners $!ve t$e
ri%$t of !++ess !n) t$e ri%$t to ins(e+t !n) +o(< su+$ !++ounts !s !n< (!rtner t$inCs fit4 Un#ess t$e ri%$t of ins(e+tion is
s(e+ifi+!##< #i,ite) "< t$e !%ree,ent of t$e (!rtners> su+$ ins(e+tion ,!< t!Ce (#!+e t$rou%$ !n !%ent of ! (!rtner4 T$e
use of !n !%ent ,ust "e re!son!"#e in t$e (!rti+u#!r +ir+u,st!n+es> !n) t$e !%ent se#e+te) ,ust "e ! (!rt< to 2$o, t$e
ot$er ,e,"ers of t$e (!rtners$i( +!n r!ise no re!son!"#e o"je+tion
4 Ins(e+tion of !n< "ooCs of t$e (!rtners$i( joint

venture ,!< on#< "e use) "< ! (!rtner to o"t!in infor,!tion #e%iti,!te#< re;uire) "< t$!t (!rt< !s ! (!rtner4 An<
infor,!tion o"t!ine) ,!< not "e use) "< t$e (!rtner for !n< ot$er (ur(oses
&
4
Sin+e t$e ri%$t of ins(e+tion of (!rtners$i( "ooCs is su"je+t to +ontr!r< !%ree,ent of t$e (!rtners> ! (!rtner>
in+#u)in% ! (!rtner in ! (!rtners$i( joint venture> ,!< !%ree to re#< on st!te,ents (re(!re) "< $is or its +o'(!rtners
re#!tin% to t$e fin!n+i!# (osition of t$e (!rtners$i( joint venture> t$ere"< %ivin% u( t$e ri%$t to ins(e+t t$e "ooCs of t$e
enter(rise u(on 2$i+$ t$e st!te,ents !re "!se)
*
4
1
/!rtners$i( A+t 1568 s *(6) (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
See Dodd v )mal!amated (arine Workers3 $nion J16*K 1 C$ 111H Dadswell v +acobs (1553) &* C$ D 354
&
See Bevan v Webb J1681K C$ 064 T$is is ! (!rti+u#!r#< sensitive ,!tter in t$e +!se of ! (!rtners$i( joint venture4
*
See 'urne, v Ba,le, (151*) * De GJ N S, &&4
!",1$
: ACCOUNTING RE@UIRE=ENTS UNDER T.E /ARTNERS.I/ ACCOUNTS REGULATIONS
)# *he Partnership Accounts &e'ulations 122(
T$e Cee(in% of (!rtners$i( !++ounts is +o,(u#sor< in +ert!in +ir+u,st!n+es set out in t$e /!rtners$i(s !n) Un#i,ite)
Co,(!nies (A++ounts) Re%u#!tions 166&
1
4 T$e Re%u#!tions !((#<> inter !#i!> to (!rtners$i(s> in+#u)in% (!rtners$i( joint
ventures> 2$et$er #i,ite) (!rtners$i(s or %ener!# (!rtners$i(s> in 2$i+$ !## t$e ,e,"ers 2$o "e!r un#i,ite) #i!"i#it<
for t$e #i!"i#ities of t$e (!rtners$i( !re #i,ite) #i!"i#it< +o,(!nies4 T$e (rin+i(!# r!tion!#e "e$in) t$ese Re%u#!tions !re
t$!t t$e #i!"i#it< of t$e (!rtners is in re!#it< #i,ite)> !n) no (!rtner re,!ins 2$ose #i!"i#it< in #!2 is un#i,ite)4 It ,ust
"e note) t$!t t$e Re%u#!tions !#so !((#< 2$ere !## t$e (!rtners !re un#i,ite) +o,(!nies> or ! S+ottis$ fir,> e!+$ of
2$ose ,e,"ers is ! #i,ite) +o,(!n<
4 T$e (!rtners$i(s su"je+t to t$ese Re%u#!tions !re referre) to !s ;u!#if<in%

(!rtners$i(s4
1
See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E1584 See !#so EC Coun+i# Dire+tives 35E118 !n)
5&E&*6 !s !,en)e) "< EC Coun+i# Dire+tive 68E1804
See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E158 re% &(1)4
!",%$
)1 Contents of accounts
T$e ,e,"ers of ! ;u!#if<in% (!rtners$i(> 2$i+$ in+#u)es t$e ,e,"ers of ! ;u!#if<in% (!rtners$i( joint venture> !re
o"#i%e) !t t$e en) of t$e fin!n+i!# <e!r of t$e (!rtners$i( to (re(!re !nnu!# !++ounts !n) +!use to "e (re(!re) !n
!u)itorsA re(ort in res(e+t of t$!t <e!r> in ! for, (res+ri"e) "< t$e Co,(!nies A+t 1650
1
4 Su+$ !++ounts ,ust "e
(re(!re) "< ! ;u!#if<in% (!rtners$i(> in+#u)in% ! joint venture (!rtners$i(> 2it$in 18 ,ont$s fro, t$e en) of t$e
re#ev!nt fin!n+i!# <e!r
4 A (!rtners$i( f!i#in% to +o,(#< 2it$ t$is re;uire,ent 2i## f!+e +ri,in!# s!n+tions 2$i#e e!+$
(!rtner> in+#u)in% !n< )ire+tor of ! +or(or!te (!rtner of ! ;u!#if<in% (!rtners$i(> 2$o )oes not ,eet it 2i## "e su"je+t to
! fine on su,,!r< +onvi+tion
&
4
!",($
1
Co,(!nies A+t 1650 /!rt VII (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES) su"je+t to )et!i#e) ,o)ifi+!tions set out in t$e
/!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E158 re% *(1)> (&)> S+$e)u#e4
See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166& re% *()4 T$e< ,ust !#so st!te t$!t t$e< !re ,!)e
un)er t$e Re%u#!tions4
&
It is ! )efen+e> $o2ever> for ! (!rtner or )ire+tor of ! +or(or!te (!rtner to est!"#is$ t$!t !## re!son!"#e ste(s 2ere t!Cen to se+ure
+o,(#i!n+e 2it$ t$e re;uire,ents4
!",)$
)% :imited company partnerships
A s(e+i!# o"#i%!tion is i,(ose) on ! #i,ite) +o,(!n< 2$i+$ is ! (!rtner in ! ;u!#if<in% (!rtners$i( 2it$ re%!r) to
(!rtners$i( !++ounts4 Su+$ ! (!rtner> !t t$e en) of !n< fin!n+i!# <e!r of t$e (!rtners$i(> ,ust !((en) to t$e +o(< of its
o2n !++ounts> 2$i+$ is ne9t )e#ivere) to t$e Re%istr!r of Co,(!nies> ! +o(< of t$e (!rtners$i( !++ounts (re(!re) for
t$!t fin!n+i!# <e!r
1
4

:urt$er,ore> !n< su+$ #i,ite) +o,(!n< ,ust su((#< to !n< (erson> on re;uest> t$e n!,e of e!+$
,e,"er 2$i+$ is to )e#iver> or 2$o $!s )e#ivere)> ! +o(< of t$e #!test (!rtners$i( !++ounts to t$e Re%istr!r4 In !))ition>
t$e #i,ite) +o,(!n< ,ust !#so> on re;uest> su((#< t$e n!,e of e!+$ ,e,"er of t$e ;u!#if<in% (!rtners$i( in+or(or!te)
in ! ,e,"er st!te of t$e Euro(e!n Co,,unit<> ot$er t$!n in t$e Unite) Bin%)o,> 2$i+$ is to or 2$i+$ $!s (u"#is$e)
t$e #!test !++ounts of t$e (!rtners$i(
4
An< +o,(!n< 2$i+$ is ! ,e,"er of ! ;u!#if<in% (!rtners$i( joint venture ,ust +o,(#< 2it$ )is+#osure
re;uire,ents in t$e notes of t$eir !++ounts
&
4
1
See t$e Co,(!nies A+t 1650 s * (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See !#so t$e /!rtners$i(s !n) Un#i,ite)
Co,(!nies (A++ounts) Re%u#!tions 166&E158 re% 0(1)4
See EC Coun+i# Dire+tives 35E118 !n) 5&E&*6 on +o,(!n< !++ounts !s !,en)e) "< EC Coun+i# Dire+tive 68E1804
&
See t$e Co,(!nies A+t 1650 S+$ 0 (!r!s 1> 6A> 8> 5A !s inserte) "< t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts)
Re%u#!tions 166& re% 114
!",,$
)( Penal sanction
A +ri,in!# offen+e is +o,,itte) 2$ere !n< !++ounts )e#ivere) to t$e Re%istr!r of Co,(!nies> or ,!)e !v!i#!"#e for
ins(e+tion> )o not +o,(#< 2it$ t$e (rovisions of t$e Re%u#!tions +on+ernin% (!rtners$i( !++ounts
1
4 T$e (!rtners of !
;u!#if<in% (!rtners$i(> !n) t$e )ire+tors of +or(or!te (!rtners !re> in su+$ +!ses> #i!"#e on su,,!r< +onvi+tion to !
fine
4 :urt$er,ore> if ! ,e,"er of ! ;u!#if<in% (!rtners$i(> in+#u)in% ! ,e,"er of ! ;u!#if<in% (!rtners$i( joint

venture> f!i#s to +o,(#< 2it$ t$e re;uire,ents !s to )e#iver< to t$e Re%istr!r or ,!Cin% t$e !++ounts !v!i#!"#e for
ins(e+tion> t$!t ,e,"er !n) !n< )ire+tor of t$!t ,e,"er> is %ui#t< of ! su,,!r< offen+e !n) #i!"#e to ! fine
&
4 It is !
)efen+e for ! (!rt< +$!r%e) 2it$ su+$ !n offen+e to est!"#is$ t$!t !## re!son!"#e ste(s 2ere t!Cen to se+ure +o,(#i!n+e
2it$ t$e re#ev!nt re;uire,ents
*
4
1
/!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E158 re% 5(1)4
I"i) re% 5()4

&
I"i) re% 5(&)4
*
I"i) re% 5(*)4
!",.$
)) Publication of accounts
An o"#i%!tion is i,(ose) on !## ;u!#if<in% (!rtners$i(s> in+#u)in% ;u!#if<in% (!rtners$i( joint ventures> to (u"#is$ t$eir
!++ounts "< ,!Cin% t$e, !v!i#!"#e !t t$eir $e!) offi+e4 T$is o"#i%!tion !((#ies 2$ere t$e ;u!#if<in% (!rtners$i(As $e!)
offi+e is in t$e Unite) Bin%)o, !n) e!+$ of its ,e,"ers f!##s into one of t2o +!te%ories4 T$e first +!te%or< is t$!t of
un)ert!Cin%s +o,(!r!"#e to ! #i,ite) +o,(!n< 2$i+$ !re in+or(or!te) in ! +ountr< or territor< outsi)e t$e Unite)
Bin%)o,4 T$e se+on) is t$!t of un)ert!Cin%s +o,(!r!"#e to !n un#i,ite) +o,(!n< or (!rtners$i( 2$i+$ is in+or(or!te)
or for,e) un)er t$e #!2 of su+$ ! +ountr< or territor<> and e!+$ of 2$ose ,e,"ers !re un)ert!Cin%s 2it$in t$e first
+!te%or<
1
4
T$ese (rovisions +#e!r#< !((#< to ! ;u!#if<in% (!rtners$i( joint venture 2$i+$ is not ! )o,esti+ (!rtners$i(>
"ut 2$i+$ is +o,(ose) of forei%n entities> !n) 2$ose $e!) offi+e is situ!te) in t$e Unite) Bin%)o,4 Su+$ !n enter(rise
2i## $!ve no ,e,"er o"#i%e) to fi#e +o(ies of t$e !nnu!# !++ounts 2it$ t$e Re%istr!r of Co,(!nies in !++or)!n+e 2it$
t$e o"#i%!tions )is+usse) !"ove4 Sin+e t$e !++ounts 2i## not "e (u"#i+ise) in t$!t 2!<> t$e !"ove (rovisions re;uire
(u"#i+!tion "< ,!Cin% t$e !++ounts !v!i#!"#e for ins(e+tion !t t$e $e!) offi+e of t$e (!rtners$i(4 7$ere> $o2ever> one
or ,ore of t$e forei%n ,e,"ers of t$e (!rtners$i( !re o"#i%e) to (u"#is$ t$e !++ounts of t$e enter(rise un)er t$e #!2 of
!not$er ,e,"er st!te of t$e Euro(e!n Co,,unit<> t$e (!rtners$i( is e9e,(te) fro, (u"#i+!tion !t its $e!) offi+e
4
1
See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E158 re% 1(1)4
I"i) re% 1()4

!",/$
), Consolidated accounts e5emption
An e9e,(tion fro, t$e re;uire,ents in t$e Re%u#!tions on (!rtners$i( !++ounts
1
is +re!te) 2$ere t$e ;u!#if<in%
(!rtners$i( joint venture !++ounts !re )e!#t 2it$ in +onso#i)!te) %rou( !++ounts4 T$e ,e,"ers of su+$ !n enter(rise !re
e9e,(t fro, t$e o"#i%!tions to (ro)u+e !n) (u"#i+ise t$e (!rtners$i( !++ounts if t$e (!rtners$i( is )e!#t 2it$ on !
+onso#i)!te) "!sis in %rou( !++ounts (re(!re) "< either:
*041 ! ,e,"er of t$e (!rtners$i( 2$i+$ is est!"#is$e) un)er t$e #!2 of ! ,e,"er st!te of t$e Euro(e!n Co,,unit<H
or
*04 ! (!rent un)ert!Cin% of su+$ ! ,e,"er 2$i+$ is !#so so est!"#is$e)
4 :or t$e e9e,(tion to !((#<> $o2ever> t$e

%rou( !++ounts ,ust "e (re(!re) !n) !u)ite) un)er t$e #!2 of t$e ,e,"er st!te +on+erne) in !++or)!n+e 2it$
t$e (rovisions of t$e sevent$ Dire+tive on +onso#i)!te) !++ounts
&
> 2$i+$ re;uires t$e ,et$o) of fu## or
(ro(ortion!# +onso#i)!tion on t$e e;uit< ,et$o) of !++ountin%
*
4
!","$
1
/!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E1584
I"i) re% 3(1)4

&
EC Coun+i# Dire+tive 5&E&*6 on +onso#i)!te) !++ounts !s !,en)e) "< EC Coun+i# Dire+tive 68E1804
*
/!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166& re% 3()4 T$e notes to t$e !++ounts ,ust !#so )is+#ose t$!t
!)v!nt!%e $!s "een t!Cen of t$e e9e,(tion4 7$ere !)v!nt!%e is t!Cen of t$e e9e,(tion> !n< ,e,"er of t$e ;u!#if<in% joint
venture (!rtners$i( 2$i+$ is ! #i,ite) +o,(!n< ,ust )is+#ose on re;uest t$e n!,e of !t #e!st one ,e,"er or (!rent un)ert!Cin%
in 2$ose %rou( !++ounts t$e (!rtners$i( $!s "een or is to "e )e!#t 2it$ on ! +onso#i)!te) "!sis: i"i) re% 3(&)4
!",2$
C: INSOLVENC? AND /ARTNERS.I/ JOINT VENTURES
1: :OR=S O: INSOLVENC?
). 7ntroduction
A joint venture (!rtners$i( ,!<> !s !n< ot$er (!rtners$i(> "e 2oun) u( on t$e %roun)s t$!t it is inso#vent4 T$ere !re
v!rious for,s of inso#ven+< to 2$i+$ (!rtners !n) (!rtners$i(s ,!< "e su"je+t4 T$e joint venture ,!< "e 2oun) u( !s
!n unre%istere) +o,(!n< 2it$ or 2it$out +on+urrent (etitions for "!nCru(t+< !%!inst t$e (!rtners4 It is !#so (ossi"#e to
su",it ! (etition for ! "!nCru(t+< or 2in)in% u( or)er !%!inst !n in)ivi)u!# (!rtner 2it$ no !tte,(t "ein% ,!)e to
2in) u( t$e (!rtners$i(4
!".#$
: 7INDING U/ AN INSOLVENT /ARTNERS.I/ AS AN UNREGISTERED CO=/AN?
(!) Intro)u+tion
)/ :e'islation
7$ere !n inso#vent joint venture (!rtners$i( is 2oun) u( !s !n unre%istere) +o,(!n<> it is su"je+t to t$e #e%is#!tion
%overnin% +o,(!n< inso#ven+<4 T$e Inso#ven+< A+t 1651
1
> 2$i+$ %overns t$e 2in)in% u( of !n unre%istere) +o,(!n<
!((#ies to !## (!rtners$i(s su"je+t to t$e /!rtners$i( A+t 1568
4 T$ere !re t2o (rin+i(!# (ro+e)ures for 2in)in% u( !

(!rtners$i( !s !n unre%istere) +o,(!n<: t$e (!rtners$i( ,!< "e 2oun) u( 2it$ or 2it$out +on+urrent "!nCru(t+<
(etitions !%!inst t$e (!rtners4
1
Inso#ven+< A+t 1651 ss 8M6 (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
-< virtue of t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !s !,en)e)4 T$e 166* Or)er ,o)ifies t$e Inso#ven+< A+t 1651 ss 8M
6 so t$!t it !((#ies to (!rtners !n) (!rtners$i(s4 T$ese ,o)ifie) (rovisions !re re(ro)u+e) in S+$e)u#es to t$e 166* Or)er4
!".1$
(") 7in)in% u( inso#vent (!rtners$i(s 2it$out +on+urrent (etitions
)" 8rounds for 0indin' up
T$e %roun)s for 2in)in% u( ! joint venture (!rtners$i( 2it$out ! +on+urrent "!nCru(t+< (etition !%!inst t$e (!rtners
!re !s fo##o2s:
*541 2$ere t$e (!rtners$i( is )isso#ve)> or $!s +e!se) to +!rr< on t$e "usiness for 2$i+$ t$e joint venture 2!s
for,e)> or is +!rr<in% on t$!t "usiness on#< for t$e (ur(ose of 2in)in% u( its !ff!irsH !n)
*54 2$ere t$e joint venture (!rtners$i( is un!"#e to (!< its )e"ts4
!".%$
Un)er t$e Inso#ven+< A+t 1651 ! (!rtners$i( is un!"#e to (!< its )e"ts in t$e fo##o2in% +ir+u,st!n+es
1
:
*54& if ! +re)itor "< !ssi%n,ent or ot$er2ise $!s serve) ! 2ritten )e,!n) in t$e (res+ri"e) for, on t$e (!rtners$i(
for ! su, 2$i+$ e9+ee)s O308 to 2$i+$ t$e (!rtners$i( is in)e"te) to $i, or it> !n) t$e su, $!s neit$er "een
(!i)> se+ure) nor +o,(oun)e) 2it$in t$ree 2eeCsH
*54* if (ro+ee)in%s $!ve "een institute) !%!inst ! (!rtner for ! )e"t or )e,!n) )ue to> or +#!i,e) to "e )ue fro,> t$e
(!rtners$i(> or fro, t$e (!rtner in $is or its +!(!+it< !s (!rtner> !n) noti+e in 2ritin% of su+$ (ro+ee)in%s $!s
"een serve) on t$e (!rtners$i(> !n) t$e (!rtners$i( $!s not 2it$in t$ree 2eeCs (!i)> se+ure) or +o,(oun)e) t$e
)e"t or )e,!n)> or $!) t$e (ro+ee)in%s st!<e) or s!tisf!+tori#< in)e,nifie) t$e )efen)!nt (!rtner !%!inst t$e
!+tions or (ro+ee)in%sH
*540 if !n< e9e+ution or (ro+ess issue) in res(e+t of !n< ju)%,ent o"t!ine) eit$er !%!inst t$e (!rtners$i( or !n<
(!rtner in t$eir +!(!+it< !s (!rtner is returne) uns!tisfie)H
*541 if it +!n "e (rove) to t$e s!tisf!+tion of t$e +ourt t$!t t$e (!rtners$i( is un!"#e to (!< its )e"ts !s !n) 2$en t$e<
f!## )ueH
*543 if it +!n "e (rove) to t$e s!tisf!+tion of t$e +ourt t$!t t$e #i!"i#ities of t$e (!rtners$i(> 2$et$er su+$ #i!"i#ities
!re !+tu!#> +ontin%ent or (ros(e+tive> e9+ee) t$e v!#ue of t$e (!rtners$i( !ssetsH
*545 on t$e Djust !n) e;uit!"#e %roun)A> 2$ere t$e +ourt is of t$e o(inion t$!t it is just !n) e;uit!"#e t$!t t$e
(!rtners$i( joint venture "e 2oun) u(4
1
See t$e Inso#ven+< A+t 1651 ss M* !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 3 S+$ & !s !,en)e) (*
.!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
!".($
)2 Petitions by creditors and other parties
T$e (rin+i(!# (!rties 2$o ,!< (resent ! (etition !%!inst ! (!rtners$i( joint venture un)er !n< of t$e !"ove %roun)s !re
t$e +re)itors of t$e (!rtners$i(4 A +re)itor> 2it$in t$is +onte9t> in+#u)es +ontin%ent (ros(e+tive +re)itors or +re)itors "<
!ssi%n,ent4 In !))ition> t$e fo##o2in% (!rties ,!< !#so (resent ! (etition !%!inst !n inso#vent joint venture (!rtners$i(:
*641 t$e #i;ui)!tor or !),inistr!tor of ! (resent or for,er +or(or!te (!rtner of t$e joint venture (!rtners$i(H
*64 t$e !),inistr!tor of t$e joint venture (!rtners$i(H
*64& t$e su(ervisor of ! vo#unt!r< !rr!n%e,ent !((rove) un)er t$e Inso#ven+< A+t 1651 /t I in re#!tion to !
+or(or!te (!rtner> or un)er t$e 1651 A+t /t VIII in re#!tion to !n in)ivi)u!# (!rtnerH
*64* in t$e +!se of !n in)ivi)u!# (!rtner> t$e trustee of ! (resent or for,er (!rtnerAs est!teH
*640 t$e Se+ret!r< of St!teH
*641 t$e -!nC of En%#!n)H !n)
*643 t$e Se+urities !n) Invest,ent -o!r)
1
4
1
Inso#ven+< A+t 1651 s 1A(1) !s inserte) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 3> S+$ & !s !,en)e) (* .!#s"ur<As
St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
!".)$
,# Petitions by joint enture partner
A (!rtner to !n inso#vent joint venture (!rtners$i( ,!< (resent ! (etition to 2in) u( t$e enter(rise un)er t$e !"ove
(rovisions> "ut on#< 2$ere t$e (!rtners$i( +onsists of not #ess t$!n ei%$t (!rtners
1
4 A (!rtner ,!< !#so (resent ! (etition
2it$ #e!ve of t$e +ourt fo##o2in% servi+e on t$e (!rtners$i( of ! 2ritten )e,!n) in res(e+t of ! joint )e"t e9+ee)in%
O308 2$i+$ $!s "een (!i) "< t$e (etitionin% (!rtner fro, non (!rtners$i( !ssets4 :urt$er,ore> t$e (!rtner in su+$ +!ses
,ust $!ve o"t!ine) ! ju)%,ent> )e+ree> or or)er of !n< +ourt !%!inst t$e (!rtners$i( for rei,"urse,ent of t$e !,ount
of t$e joint )e"t4 In !))ition> t$e (!rtner ,ust $!ve t!Cen !## re!son!"#e ste(s(ot$er t$!n inso#ven+< (ro+ee)in%s) to
enfor+e !n< su+$ ju)%,ent> or)er> or )e+ree
4
1
See t$e Inso#ven+< A+t 1651 s 1A(1) !s inserte) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$ & (* .!#s"ur<As St!tutes
(*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
Inso#ven+< A+t 1651 s 1A(1) !s inserte) (see note 1 !"ove)4

!".,$
,1 Presentation of petition
T$e 2in)in% u( of ! joint venture (!rtners$i( !s !n unre%istere) +o,(!n< is )ee,e) to +o,,en+e on t$e (resent!tion
of t$e (etition
1
4 T$e si%nifi+!n+e of t$is (rovision is t$!t fro, t$!t ,o,ent no )is(osition of t$e joint venture
(!rtners$i( !ssets or ! +$!n%e in t$e ,e,"ers$i( of t$e joint venture (!rtners$i( is to $!ve !n< #e%!# effe+t un#ess
!((rove) "< t$e +ourt
4 T$e ,!Cin% of ! 2in)in% u( or)er !%!inst !n inso#vent joint venture (!rtners$i( (revents eit$er
t$e +ontinu!n+e or +o,,en+e,ent of !n< (ro+ee)in%s for )e"t !%!inst t$e (!rtners$i( or (!rtners 2it$out #e!ve of t$e
+ourt> in+#u)in% e9(ress (ro$i"ition on !n< for, of e9e+ution !%!inst t$e !ssets of t$e (!rtners$i(
&
4
T$ere is !n i,(ort!nt (roviso 2it$ re%!r) to t$e o(er!tion of t$e !"ove (rovisions: !n inso#vent joint venture
(!rtners$i( ,!< not "e 2oun) u( un)er t$ose (rovisions if t$e "usiness of t$e joint venture $!s not "een +!rrie) on in
En%#!n) !n) 7!#es !t !n< ti,e 2it$in t$ree <e!rs "efore t$e )!< on 2$i+$ t$e 2in)in% u( (etition is (resente)
*
4
1
See t$e Inso#ven+< A+t 1651 s 16() (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
I"i) s 134
&
I"i) ss 15> 1&8()> 54
*
I"i) s 1() !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$ &4
!"..$
(+) 7in)in% u( or)er !%!inst inso#vent (!rtners$i( 2it$ +on+urrent (etitions
,% 7ntroduction
A joint venture (!rtners$i( ,!< "e 2oun) u( !s !n unre%istere) +o,(!n< 2it$ +on+urrent "!nCru(t+< (etitions !%!inst
! ,e,"er or ,e,"ers of t$e (!rtners$i(> in+#u)in% for,er ,e,"ers of t$e joint venture (!rtners$i(
1
4 7$ere ! +re)itor
(etitions for t$e 2in)in% u( of !n inso#vent joint venture (!rtners$i( 2$i#e seeCin% ! +on+urrent "!nCru(t+< (etition> !
,ini,u, of one (!rtner nee)s to "e t$e su"je+t of su+$ ! +on+urrent (etition
4
T$e +ourt $!s juris)i+tion in res(e+t of su+$ !n inso#ven+< (ro+e)ure on#< if t$e joint venture (!rtners$i( $!s
+!rrie) on its enter(rise in En%#!n) !n) 7!#es 2it$in ! (erio) of t$ree <e!rs of t$e (resent!tion of t$e (etition
&
4
1
See t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rts 5> 18> S+$s &> *> 1 2$i+$ !((#< 2it$ ,o)ifi+!tions t$e Inso#ven+< A+t 1651
ss 8M6 on t$e 2in)in% u( of unre%istere) +o,(!nies to t$e 2in)in% u( of inso#vent (!rtners$i(s4
See t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 5(1)4

&
See t$e Inso#ven+< A+t 1651 s 113(&) !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$s *> 1 (* .!#s"ur<As
!"./$
,( 8round for concurrent petitions
T$e so#e %roun) u(on 2$i+$ !n inso#vent joint venture (!rtners$i( ,!< "e 2oun) u( 2it$ ! (resent!tion of !
+on+urrent (etition or (etitions for "!nCru(t+< is t$!t t$e (!rtners$i( is un!"#e to (!< its )e"ts
1
4 T$is %roun) ,!< "e
est!"#is$e) in ! nu,"er of situ!tions
4 T$e )e"t 2i##> $o2ever> "e )ee,e) to "e un(!i) 2$en ! +re)itor> "< !ssi%n,ent
or ot$er2ise> $!s serve) ! 2ritten )e,!n) on t$e (!rtners$i( !n) on one or ,ore of t$e (!rtners in res(e+t of ! su,
o2e) to t$e (etitioner 2$i+$ e9+ee)s O308> !n) t$!t su, $!s not "een (!i)> se+ure) or +o,(oun)e) to t$e re!son!"#e
s!tisf!+tion of t$e +re)itor 2it$in t$ree 2eeCs of t$e )!te on 2$i+$ t$e )e,!n) or #!st )e,!n) 2!s serve)
&
4
1
See t$e Inso#ven+< A+t 1651 s 1(5) !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$s *> 14
As to t$e +ir+u,st!n+es in 2$i+$ ! (!rtners$i( is un!"#e to (!< its )e"ts see /!r!%r!($ *5 J51K !nte4
&
See t$e Inso#ven+< A+t 1651 s (1) !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$ *4
!"."$
,) 3ubjects of concurrent petitions
,)11 Corporate partner
A +or(or!te (!rtner in !n inso#vent joint venture (!rtners$i( ,!< "e t$e su"je+t of ! +on+urrent (etition to 2in) u( t$e
(!rtners$i( !s !n unre%istere) +o,(!n<4 T$e so#e %roun) for t$e (resent!tion of t$e +on+urrent (etition is t$!t t$e
+or(or!te (!rtner is un!"#e to (!< t$e (!rtners$i( )e"ts
1
4 A +or(or!te (!rtner 2i## "e )ee,e) un!"#e to (!< su+$ )e"ts
in t$e fo##o2in% +ir+u,st!n+es:
0*4141 if ! +re)itor "< !ssi%n,ent or ot$er2ise to 2$o, t$e joint venture (!rtners$i( is in)e"te) in ! su, e9+ee)in%
O308 t$en )ue> for 2$i+$ ! +or(or!te (!rtner or for,er +or(or!te (!rtner of t$e (!rtners$i( is #i!"#eH !n)
0*414 t$e +re)itor $!s serve) ! 2ritten )e,!n) re;uirin% t$e joint venture (!rtners$i( !n) !n< +or(or!te (!rtner !s
note) !"ove to (!< t$e su, )ueH !n)
0*414& t$e joint venture (!rtners$i( or +or(or!te (!rtner $!ve for t$ree 2eeCs !fter t$e servi+e of t$e )e,!n)s> or #!st
)e,!n) if t$e< $!ve "een serve) !t )ifferent ti,es> ne%#e+te) to (!<> se+ure or +o,(oun) t$e su, to t$e
s!tisf!+tion of t$e +re)itor
4
A )e,!n) ,!< "e serve) "< #e!vin% it !t ! (#!+e or (rin+i(!# (#!+e of "usiness of t$e joint venture (!rtners$i(> or "<
)e#iver< to !n offi+er of t$e (!rtners$i(> or "< )e#iver< in !++or)!n+e 2it$ +ourt )ire+tions
&
4
1
See t$e Inso#ven+< A+t 1651 s 1 !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$ * (* .!#s"ur<As St!tutes (*t$
E)n) -ANBRU/TC? AND INSOLVENC?)4
See t$e Inso#ven+< A+t 1651 s 1&(1) !s !,en)e) (see note 1 !"ove)4
&
Or "< )e#iver< to t$e +or(or!te (!rtnerAs re%istere) offi+e: Inso#ven+< A+t 1651 s 1&() !s !,en)e) (see note 1 !"ove)4
!".2$
,)1% 7ndiidual partners
A +on+urrent (etition for "!nCru(t+< ,!< "e (resente) !%!inst !n in)ivi)u!# (!rtner or for,er (!rtner of ! joint venture
(!rtners$i( "< ! +re)itor of t$e enter(rise4 Su+$ ! (etition ,!< "e (resente) 2$ere t$e re#ev!nt )e"t is in e9+ess of
O308> !n) t$e re#ev!nt (!rtner is un!"#e to (!< t$e (!rtners$i( )e"t
1
4 T$e (!rtner 2i## "e re%!r)e) !s "ein% un!"#e to
(!< t$e )e"t if t$e )e"t re,!ins un(!i)> se+ure) or +o,(oun)e) )es(ite t$e servin% of ! 2ritten )e,!n)
4
1
See t$e Inso#ven+< A+t 1651 s 13 (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
I"i) s 154
!"/#$
,, Partner presentin' petition
A (!rtner of ! joint venture (!rtners$i( ,!< (resent ! 2in)in% u( (etition !%!inst t$e (!rtners$i(> to%et$er 2it$
+on+urrent (etitions !%!inst t$e +o'(!rtner(s)> on t$e %roun) t$!t t$e (!rtners$i( is un!"#e to (!< its )e"ts
1
4 Con+urrent
(etitions ,ust "e (resente) "< t$e (etitionin% (!rtner !%!inst t$e (!rtners$i(> !n) !## t$e (!rtners> in+#u)in% t$e
(etitioner (!rtner4 A## t$e (!rties ,ust "e 2i##in% (!rti+i(!nts in t$is (ro+e)ure
!n) e!+$ (!rtner 2i## "e su"je+t to t$e

restri+tion on t$e ri%$t to )is(ose of $is or its !ssets !s (rovi)e) "< t$e Inso#ven+< A+t 1651
&
4 T$e +ourt $!s ! )is+retion
!s to 2$et$er or not to ,!Ce ! 2in)in% u( or)erH it ,!< ,!Ce si,i#!r or)ers in res(e+t of t$e joint venture (!rtners$i(
!n) !n< +or(or!te (!rtner4 It is not +o,(e##e) to ,!Ce ! +onse;uenti!# or)er !%!inst !n in)ivi)u!# (!rtner4
If> !fter 5 )!<s fo##o2in% t$e ,!Cin% of ! 2in)in% u( or)er !%!inst t$e joint venture (!rtners$i(> no
e;uiv!#ent or)ers !re ,!)e !%!inst t$e (!rtners> t$en t$e (ro+ee)in%s !%!inst t$e (!rtners$i( !re to (ro+ee) !s !
2in)in% u( of !n inso#vent (!rtners$i( 2it$out +on+urrent (etitions
*
4
An inso#vent joint venture (!rtners$i( ,!< not "e 2oun) u( un)er t$ese (rovisions if t$e "usiness of t$e joint
venture $!s not "een +!rrie) on in En%#!n) !n) 7!#es !t !n< ti,e 2it$in t$ree <e!rs "efore t$e )!< on 2$i+$ t$e
2in)in% u( (etition is (resente)
0
4
!"/1$
1
As to t$e +onse;uen+es of t$e (resent!tion of ! 2in)in% u( (etition see /!r!%r!($ 01 J511K !nte4
See t$e Inso#ven+< A+t 1651 s 1*() !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 18> S+$ 1 (* .!#s"ur<As
&
Inso#ven+< A+t 1651 s 5* !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166* !rt 11> S+$ 34
*
See t$e Inso#ven+< A+t 1651 s 10A(*) !s !,en)e) (see note !"ove)4 See !#so Re (arr 1a bankrupt6 J1668K C$ 33&> J1668K
A## ER 558> CA4
0
See t$e Inso#ven+< A+t 1651 s 1() !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166* S+$ &4
!"/%$
&: /ARTNERSA /ETITION TO 7IND U/ T.E /ARTNERS.I/
,. =oint petition by all partners to 0ind up the partnership
A## of t$e (!rtners in ! joint venture ,!< (resent ! joint )e"torAs (etition !%!inst t$e (!rtners$i(> "ut t$e #!tter is not
2oun) u( !s !n unre%istere) +o,(!n<4 Nevert$e#ess> t$e Inso#ven+< A+t 1651 !((#ies to su+$ ! (ro+e)ure4 A## t$e
(!rtners 2$o ,ust "e in)ivi)u!#s !n) 2$o ,ust not "e #i,ite) (!rtners ,ust +on+ur 2it$ su+$ !n !+tion
1
4 T$e so#e
%roun) for t$e (resent!tion of su+$ ! (etition is t$!t t$e (!rtners$i( is un!"#e to (!< its )e"ts
4 T$e juris)i+tion ru#es for

t$e ,!Cin% of su+$ !n or)er "< t$e +ourts !re t$e s!,e !s t$ose !((#<in% 2$ere ! +ourt ,!Ces !n or)er 2in)in% u( !
(!rtners$i( !s !n unre%istere) +o,(!n< on ! ,e,"erAs (etition 2it$out +on+urrent (etitions
&
4
1
See t$e Inso#ven+< A+t 1651 s 1* !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 11> S+$ 3 (* .!#s"ur<As
See t$e Inso#ven+< A+t 1651 s 3(1) !s !,en)e) (see note 1 !"ove)4
&
T$ere is !n i,(ort!nt (roviso 2it$ re%!r) to t$e o(er!tion of t$e !"ove (rovisions: !n inso#vent joint venture (!rtners$i( ,!<
not "e 2oun) u( un)er t$ese (rovisions if t$e "usiness of t$e joint venture $!s not "een +!rrie) on in En%#!n) !n) 7!#es !t !n<
ti,e 2it$in t$ree <e!rs "efore t$e )!< on 2$i+$ t$e 2in)in% u( (etition is (resente)4
!"/($
*: /ETITION :OR -ANBRU/TC? OR 7INDING U/ ORDER
,/ Petition for ban>ruptcy
T$ere ,!< "e ! (etition for "!nCru(t+< or ! 2in)in% u( or)er ,!< "e sou%$t !%!inst one or ,ore (!rtners 2it$ no
!tte,(t "ein% ,!)e to 2in) u( t$e (!rtners$i(4 Un)er t$is (ro+e)ure> t$e joint venture (!rtners$i(> or !t #e!st so,e of
its ,e,"ers> ,!< "e su"je+t to t$e inso#ven+< #e%is#!tion4 7$ere ! (!rtners$i( )e"t re,!ins un(!i)> ! +re)itor $!s !n
o(tion to (resent ! (etition for "!nCru(t+< or ! 2in)in% u( or)er !%!inst one> "ut not ne+ess!ri#< !## of> t$e (!rtners ("e
t$e< in)ivi)u!#s or +or(or!tions)> 2it$out seeCin% to $!ve t$e (!rtners$i( 2oun) u( !s !n unre%istere) +o,(!n<4 T$is
(ro+e)ure is %overne) "< t$e (rovisions of t$e Inso#ven+< A+t 1651
1
!n) ,!< "e use) "< one (!rtner !%!inst !not$er
(!rtner to t$e joint venture> )e(en)ent on t$e for,er !+tin% !s ! +re)itor of t$e (!rtners$i(4
T$e Inso#vent /!rtners$i(s Or)er 166*
,!< !((#< to t$is inso#ven+< (ro+e)ure4 7$ere ! "!nCru(t+< (etition

$!s "een (resente) to t$e +ourt !%!inst !n< (erson> in+#u)in% ! (!rtner of t$e joint venture (!rtners$i(> !n) t$e +ourt is
,!)e !2!re t$!t t$e su"je+t of t$e (etition is ! ,e,"er of !n inso#vent (!rtners$i(> it ,!< !((#< t$e (rovisions of t$e
166* Or)er to t$ose (ro+ee)in%s4 T$e +ourt ,!< ,!Ce !n< or)er un)er t$e !,"it of t$e 166* Or)er 2it$ !n< ne+ess!r<
,o)ifi+!tions
&
4
1
Su"je+t to t$e (ossi"#e !((#i+!tion of t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 1*() t$e 166* Or)er is in!((#i+!"#e to
su+$ ! (ro+e)ure4
Inso#vent /!rtners$i(s Or)er 166* !rt 1*()4

&
See t$e Inso#ven+< A+t 1651 s &8&(A)M(C) !s inserte) "< t$e Inso#vent /!rtners$i(s Or)er 166* !rt 1*() (* .!#s"ur<As
!"/)$
0: /OSITION O: /ARTNERS ON A 7INDING U/
," Applicable rules
T$e inso#ven+< (ro+e)ures 2$i+$ %overn !n) !((#< to ! joint venture (!rtners$i( )iffer in no 2!< fro, t$e inso#ven+<
(ro+e)ures !n) ru#es !((#i+!"#e to !## (!rtners$i(s
1
4 So,e of t$e s!#ient ru#es 2$i+$ !re (!rti+u#!r#< (ertinent to joint
venture (!rtners$i(s !re su,,!rise) "e#o24
1
See vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($ 131 J&K et se;4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership
(1660) +$ 1&4
!"/,$
,2 Capacity of partners
7$ere ! joint venture (!rtners$i( is 2oun) u( !s !n unre%istere) +o,(!n<> e!+$ of t$e (!rtners 2i## "e re%!r)e) in t2o
+!(!+ities:
0641 !s ! +ontri"utor<> ie ! (erson #i!"#e to +ontri"ute to t$e !ssets of t$e joint venture (!rtners$i( in t$e event of !
2in)in% u(
1
H !n)
064 !s !n offi+er of t$e joint venture (!rtners$i(
4
It is su%%este) t$!t ! for,er (!rtner +!n "e re%!r)e) !s ! +ontri"utor< for t$e !"ove (ur(oses
&
4
1
See t$e Inso#ven+< A+t 1651 s 1 (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
I"i) "ut see !#so i"i) s 1(3) !s !,en)e) "< t$e Inso#vent /!rtners$i(s Or)er 166*E*1 S+$ *4
&
See t$e Inso#vent /!rtners$i(s Or)er 166* !rt 11> S+$ 54
!"/.$
.# :iability of contributory partner
T$e #i!"i#it< of ! (!rtner +ontri"utor< is un#i,ite)> !#t$ou%$ t$ere ,!< "e !)just,ents vis'P'vis !n< +ontri"ution ,!)e
"< $i, !s "et2een t$e v!rious ,e,"ers of t$e (!rtners$i(4 T$ese !)just,ents ,!< "e ,!)e in or)er to ensure t$!t !n<
+ontri"ution to t$e !ssets of t$e joint venture (!rtners$i( in ! 2in)in% u( "< t$!t (!rtner ref#e+ts t$e ter,s of t$e joint
ventureE(!rtners$i( !%ree,ent> !n) t$e !%ree) r!tio for s$!rin% t$e enter(riseAs (rofits !n) #osses "et2een its
,e,"ers
1
4 :or,er (!rtners of t$e joint venture (!rtners$i( ,!< "e $e#) #i!"#e !s +ontri"utories in res(e+t of )e"ts
in+urre) "< t$e (!rtners$i( 2$i#st t$e< 2ere (!rtners
4
1
Inso#ven+< A+t 1651 s 1(1)> () (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
/!rtners in ! joint venture (!rtners$i( !re> in t$e +!se of ! 2in)in% u( of t$e (!rtners$i( !s !n unre%istere) +o,(!n<> su"je+t to
t$e Co,(!n< Dire+tors Dis;u!#ifi+!tion A+t 16514 See t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 11> S+$ 54
!"//$
.1 Administration orders and oluntary arran'ements
Joint venture (!rtners$i(s ,!< "e t$e su"je+t of !n !),inistr!tion or)er
1
4 It is !#so (ossi"#e for su+$ !n enter(rise to
enter into ! vo#unt!r< !rr!n%e,ent 2it$ its +re)itors
4
1
See t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 1> S+$ 4
I"i) !rt *> S+$ 14

!"/"$
D: RESTRAINT O: TRADE
.% &estraint of trade clauses
A (!rtners$i( joint venture )urin% its su"sisten+e ,!< 2is$ to ensure t$!t its ,e,"ers )o not +o,(ete 2it$ t$e
enter(rise in t$eir res(e+tive in)e(en)ent +!(!+ities4 T$e (!rtners$i(Ejoint venture !%ree,ent s$ou#)> in su+$
+ir+u,st!n+es> (rovi)e t$!t t$e (!rtners s$!## )evote t$e,se#ves e9+#usive#< to t$e !ff!irs of t$e joint venture
(!rtners$i(
1
4
1
In t$e +!se of ! +or(or!te (!rtner t$ere ,!< "e )iffi+u#ties in enfor+in% !n< su+$ (rovision4 :or e;uiv!#ent (rovisions in res(e+t
of ! joint venture +o,(!n< see :or, +#!uses 64 J103K> 64& J105K (ost4
!"/2$
.( -5pulsion or departure of partner
T$e issue of +o,(etition 2it$ t$e joint venture "e+o,es si%nifi+!nt 2$ere one of t$e (!rtners #e!ves or is e9(e##e) fro,
t$e joint venture (!rtners$i(4 Irres(e+tive of 2$et$er su+$ ! (!rtner is ! +or(or!tion or ! n!tur!# (erson> t$e re,!inin%
,e,"ers of t$e joint venture s$ou#) seeC to ensure t$!t su+$ ! (!rt< neit$er enti+es !2!< t$e +#ients or +usto,ers of t$e
enter(rise> nor +o,(etes 2it$ t$e venture
1
4 T$e (!rtners$i(Ejoint venture !%ree,ent s$ou#) t$erefore seeC to (rote+t t$e
%oo)2i## of t$e enter(rise !n) (ro$i"it or restri+t ! for,er (!rtner in t$e venture fro, +!rr<in% on ! "usiness in
+o,(etition 2it$ t$e "usiness of t$e venture4 /rovision in t$e !%ree,ent s$ou#) !#so "e ,!)e to (revent !n e9'(!rtner
fro, enti+in% +#ients> +usto,ers !n) even e,(#o<ees fro, t$e enter(rise4
1
In t$is re%!r) ! (!rtners$i( joint venture ,!< "e ! ,ore effe+tive ,e)iu, t$!n ! +or(or!te joint venture> 2$ere t$e (!rti+i(!nts
!s s$!re$o#)ers )o not o2e )uties eit$er inter se or to t$e +o,(!n<4 Nevert$e#ess> t$e re+ent +!se of Dawna,0 Da, B &o Ltd v de
Braconier d3)lphen J1663K IRLR **> CA $!s +!st )ou"t u(on t$is !9io,: for ! )is+ussion of t$is +!se see /!r!%r!($ 60 J1*5K
et se; (ost4
!""#$
.) -nforceability of restraint of trade clauses
A +#!use in ! (!rtners$i(Ejoint venture !%ree,ent 2$i+$ seeCs to restri+t t$e "usiness !+tivities of ! for,er (!rtner in
!n< of t$e senses note) !"ove ,ust )o so for ! #i,ite) ti,e !n)Eor 2it$in ! #i,ite) %eo%r!($i+!# !re!4 T$ou%$ su+$
+#!uses ,!< "e re%!r)e) !s ! (riv!te !rr!n%e,ent "et2een t$e (!rties> t$e +ourts $!ve sou%$t> (rin+i(!##< on t$e %roun)
of (u"#i+ (o#i+<> to )e+#!re t$!t t$e< !re (ri,! f!+ie to "e re%!r)e) !s unre!son!"#e !n) in restr!int of tr!)e4 T$e
)r!ftin% of Drestr!int of tr!)eA +#!uses in !n< (!rtners$i(Ejoint venture !%ree,ent ,ust t$erefore "e #i,ite) in ti,e
!n)Eor %eo%r!($i+!# !re! if it is to "e effe+tive !n) enfor+e!"#e4
!""1$
., *he courts approach to restraint of trade clauses
.,11 Factors considered by the courts
T$e +ourts> in )eter,inin% 2$et$er ! restr!int of tr!)e +#!use in ! (!rtners$i(Ejoint venture !%ree,ent is to "e re%!r)e)
(ri,! f!+ie !s re!son!"#e !n) t$erefore v!#i) !n) enfor+e!"#e 2i## +onsi)er +ert!in f!+tors re#ev!nt to t$e +#!use4 A
restr!int of tr!)e +#!use in ! (!rtners$i(Ejoint venture !%ree,ent ,ust first "e +onstrue) "< t$e +ourts 2it$in t$e +onte9t
of t$e #e%iti,!te "usiness interests t$!t t$e re,!inin% ,e,"ers of t$e (!rtners$i( joint venture seeC to (rote+t "< t$e
+#!use4 Su+$ #e%iti,!te "usiness interests 2i## v!r<> )e(en)ent on t$e +ir+u,st!n+es of t$e (!rti+u#!r joint venture4
/ertinent f!+tors 2i## "e t$e siIe of t$e joint venture> t$e n!ture of t$e enter(rise +!rrie) on "< t$e joint venture> !n) t$e
(osition of t$e for,er ,e,"er in t$e joint venture4 In !))ition> t$e +ourts 2i## $!ve re%!r) to t$e siIe !n) i,(ort!n+e of
t$e joint venture 2it$in t$e re#ev!nt s($ere of "usiness !+tivit< +!rrie) on "< t$e joint venture in )eter,inin% 2$et$er !
restr!int of tr!)e +#!use $!s "een )r!fte) 2it$ t$e (rote+tion of t$e #e%iti,!te "usiness interests of t$e joint venture in
,in)
1
4
1
Brid!e v Deacons J165*K AC 380> /C4
!""%$
.,1% &easonableness of the clause
If t$e +ourt> in +onstruin% ! restr!int of tr!)e +#!use in ! joint ventureE(!rtners$i( !%ree,ent> is s!tisfie) t$!t t$e +#!use
seeCs on#< to (rote+t t$e #e%iti,!te interests of t$e joint venture> t$en it 2i## +onstrue t$e +#!use to )eter,ine 2$et$er it
is (ri,! f!+ie re!son!"#e4 If t$e +#!use (rovi)es !)e;u!te#< for t$e (rote+tion of t$e #e%iti,!te "usiness interests of t$e
joint venture> t$en it is (ri,! f!+ie re!son!"#e !n) s$ou#) "e enfor+e!"#e !%!inst !n< for,er (!rtner4 If t$e +ourt
+onstrues t$e +#!use !s $!vin% "een )r!fte) in 2i)er ter,s t$!n is ne+ess!r< for t$e (rote+tion of t$e #e%iti,!te interests
of t$e joint venture> t$en su+$ ! +#!use 2i## "e re%!r)e) !s "ein% !n unre!son!"#e restr!int of tr!)e !n) stru+C )o2n !n)
ren)ere) unenfor+e!"#e4
!""($
.,1( Case la0 on reasonableness
T$e +!se #!2 in t$is !re! 2$i+$ $!s +onsi)ere) t$e ;uestion of re!son!"#eness $!s s$o2n #itt#e +onsisten+< of !((ro!+$>
!n) $!s (rin+i(!##< "een +on+erne) 2it$ s,!## (rofession!# (!rtners$i( (r!+ti+es4 Nevert$e#ess> it is su",itte) t$!t
%ener!# %ui)!n+e +!n "e %#e!ne) fro, t$ese !ut$orities 2$i+$ +!n "e !((#ie) to restr!int of tr!)e +#!uses +ont!ine) in
(!rtners$i(Ejoint venture !%ree,ents in )eter,inin% 2$et$er ! %iven +#!use is re!son!"#e4
!"")$
.,1) 8eo'raphical restriction
T$e +!se #!2 $!s )eter,ine) t$!t ! +#!use in !n< su+$ !%ree,ent ,ust "e #i,ite) in ter,s of ti,e !n)Eor %eo%r!($i+!#
!re!4 In )eter,inin% t$e %eo%r!($i+!# !re! in 2$i+$ t$e (ro$i"ition or restri+tion i,(ose) on ! for,er (!rtner to ! joint
venture ,!< "e re%!r)e) !s effe+tive !n) v!#i)> t$e +ourts 2i## $!ve re+ourse to t$e nu,"er !n) n!ture of t$e +usto,ers
or +#ients in t$!t !re!
1
4 A +#!use ,!< "e stru+C )o2n if "< )e#i,itin% ! %eo%r!($i+!# !re! in 2$i+$ t$e for,er (!rtner
,!< not seeC to )e!# 2it$ t$e joint ventureAs +usto,ers or +#ients> it 2ou#) in effe+t (ro$i"it or restri+t $i, fro,
en%!%in% in !n< +o,(etin% "usiness or tr!)in%> or )e!#in% 2it$ ! si%nifi+!nt nu,"er of t$e +usto,ers for t$e %oo)s or
servi+es in t$e re#ev!nt ,!rCet in 2$i+$ t$e joint venture is en%!%e)
4
1
T$is 2i## !#so "e t$e +!se 2it$ re%!r) to +o,(etin% "usiness> t$ou%$ su+$ ! restri+tion 2i## "e ,ore !((#i+!"#e to for,er (!rtners
2$o !re in)ivi)u!#s !n) 2$o ,!<> "< virtue of t$e !((#i+!tion of ! restr!int of tr!)e +#!use> "e effe+tive#< (revente) fro,
+!rr<in% on t$eir #ive#i$oo)4
Dallas (c(illan B #inclair v #impson (1656) SLT *0*4

!"",$
.. Duration of clause
A restr!int of tr!)e +#!use in ! (!rtners$i(Ejoint venture !%ree,ent s$ou#) not seeC to (ro$i"it or restri+t t$e !+tivities of
! for,er (!rtner for too %re!t ! (erio) of ti,e> ot$er2ise t$e +#!use 2i## "e ren)ere) unenfor+e!"#e on t$e %roun)s t$!t
it is !n unre!son!"#e restr!int of tr!)e
1
4 In &larke v *ewland
! restr!int of tr!)e +#!use in res(e+t of ! ,e)i+!# (r!+ti+e

(!rtners$i( 2!s $e#) to "e enfor+e!"#e t$ou%$ it 2!s to (ro$i"it t$e for,er (!rtner fro, en%!%in% in (rofession!#
(r!+ti+e in ! (res+ri"e) !re! on #e!vin% t$e (!rtners$i( for ! (erio) of t$ree <e!rs4 .o2ever> t$e %ener!# ru#e 2ou#)
!((e!r to "e t$!t ! +#!use 2$i+$ seeCs to (ro$i"it or restri+t ! for,er (!rtner fro, en%!%in% in +ert!in +o,,er+i!#
!+tivities in +o,(etition 2it$ t$e (!rtners$i( for !n< (erio) %re!ter t$!n t2o <e!rs fro, #e!vin% ! (!rtners$i( 2i## "e
unenfor+e!"#e
&
4 T$ere 2ou#) !((e!r to "e no re!son 2$< t$is restri+tion on t$e ,!9i,u, #en%t$ of ti,e for 2$i+$ !
restr!int of tr!)e +#!use +!n "e enfor+e) "< ! (!rtners$i( s$ou#) not !#so "e !((#ie) to restr!int of tr!)e +#!uses
+ont!ine) in (!rtners$i(Ejoint venture !%ree,ents4 It 2ou#) t$erefore "e %oo) (r!+ti+e to restri+t t$e )ur!tion of su+$
+#!uses to ! ,!9i,u, (erio) of t2o <e!rs
*
4
1
T$is is in !++or)!n+e 2it$ t$e )e+ision of t$e .ouse of Lor)s in Brid!e v Deacons J165*K AC 380> /C4
&larke v *ewland J1661K 1 A## ER &63> CA4

&
See 'a,lor #tuart B &o v 'imoth, &ro.t (5 A(ri# 1663> unre(orte)) C$ D )is+usse) in T$e L!2<er> & Se(te,"er 1663 ( &4 See
!#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 04
*
As to restr!int of tr!)e +#!uses see vo# &8 (1661 Reissue) /ARTNERS.I/ :or,s +#!use 0 J**0K> 5& T$ir) S+$e)u#e (!r! 5
J1*8K> 55 +#!use &1 J5*K> 68 +#!use 5 J68*K4
!"".$9!"2,$
(&) JOINT VENTURE DOCU=ENTATION
A: COR/ORATE JOINT VENTURES
1: BE? DOCU=ENTS
./ ?bjecties of joint enture documentation
T$e )o+u,ent!tion use) for ! +or(or!te joint venture is re;uire) to ,eet t2o ,!in o"je+tives: it s$ou#) (ro)u+e !
"usiness stru+ture for ! #on%'ter, "usiness (roje+t "et2een t2o or ,ore (!rti+i(!nts !n) )efine !n) +ontro# t$e ri%$ts
!n) o"#i%!tions of t$e venturers in res(e+t of Ce< ,!tters4 T$e re;uire) "usiness stru+ture is !+$ieve) "< in+#u)in%
!)e;u!te o"je+ts in t$e +o,(!n<As +onstitution 2$i+$ !##o2 it to un)ert!Ce t$e (ro(ose) !+tivities4 7it$ re%!r) to t$e
ri%$ts !n) o"#i%!tions re#!tin% to Ce< ,!tters> t$e )o+u,ent!tion s$ou#) ensure t$!t t$ese !re not su"je+t to t$e ,!jorit<
votin% (ro+e)ures of t$e +o,(!n< !n) t$!t t$e #eve# of +o,,it,ent "< e!+$ venturer is +#e!r#< )efine)4 T$is re;uires
!)e;u!te (rovision in t$e !rti+#es !n) ,e,or!n)u, of !sso+i!tion !n) ! s$!re$o#)ersA !%ree,ent 2$i+$ sets out in
)et!i# t$e venturersA ri%$ts !n) o"#i%!tions
1
4
T$e +entr!# )o+u,ent!tion of t$e +or(or!te joint venture 2i## +onsist of t$e s$!re$o#)ersA !%ree,ent !n) t$e
,e,or!n)u, !n) !rti+#es
4 T$e s$!re$o#)ersA !%ree,ent +!n "e seen !s t$e ,ore fun)!,ent!# )o+u,ent !s it sets out
in )et!i# t$e !%ree,ents> +o,,it,ents !n) e9(e+t!tions of t$e (!rties> often in+#u)es t$e for, of +onstitution!#
)o+u,ents !s !n !((en)i9> !n) re#!tes )ire+t#< to t$e re,e)ies for !%%rieve) (!rties 2$i+$ $!ve evo#ve) in t$e +ourts
&
4
T$ere is no st!n)!r) for, for ! s$!re$o#)ersA !%ree,entH e!+$ is (re(!re) to ,eet t$e !+tu!# nee)s of ! (!rti+u#!r
venture !n) t$e in)ivi)u!# "usinesses 2$i+$ 2i## (!rti+i(!te in it4
1
T$e stru+ture of ! +or(or!te joint venture +!n t$us "e seen !s ! ver< s(e+ifi+ !((#i+!tion of t$ose stru+tures ,ore %ener!##<
)eve#o(e) "< t$e #!2 of (riv!te +o,(!nies ,ost +o,,on#< referre) to !s ;u!si'(!rtners$i(4 As to ;u!si (!rtners$i(s %ener!##<
see /!r!%r!($ 183 J611K (ostH see !#so /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies (1661) +$ 154
T$e for,!tion of ! +or(or!te joint venture is ! +o,(#e9 ,!tter !n) t$e use of ! +$e+C#ist $e#(s to ensure t$!t !## !((ro(ri!te
,!tters $!ve "een +onsi)ere) !n) )e!#t 2it$4 :or su+$ ! +$e+C#ist see :or, 1 J1081K (ost4
&
As to t$e reso#ution of su+$ )is(utes "< t$e +ourts see /!r!%r!($ 186 J61&K et se; (ost4
!"2.$
: T.E S.ARE.OLDERSA AGREE=ENT
." 7ntroduction
A t<(i+!# joint venture s$!re$o#)ersA !%ree,ent> $!vin% i)entifie) t$e (!rties> re+ites )et!i#s of t$e +o,(!n< for,e) to
+!rr< on t$e venture> its s$!re$o#)in%> !n) t$e "usiness to "e +!rrie) on "< t$e +o,(!n<4 It st!tes t$!t t$e "usiness is !
joint venture for 2$i+$ t$e +o,(!n< is ! ve$i+#e !n) t$!t> on t$is "!sis> t$e (!rti+i(!nts $!ve !%ree) to su"s+ri"e for t$e
s$!res of t$e +o,(!n< !n) to re%u#!te t$eir ri%$ts in re#!tion to it !++or)in% to its ter,s4 It is (ossi"#e for t$e
s$!re$o#)ersA !%ree,ent to "e ,!)e +on)ition!# on t$e o++urren+e of +ert!in events
1
4
An e9istin% +o,(!n< is often> "ut not inv!ri!"#<> use) !s t$e joint venture ve$i+#e4 It is often ne+ess!r< to
for, ! +o,(!n< to "e t$e joint venture ve$i+#e: t$e re+it!#s s$ou#) "e to t$e effe+t t$!t t$e (!rties (ro(ose to (ro,ote
!n) for, ! (riv!te #i,ite) +o,(!n< for t$e s(e+ifie) (ur(ose of t$e joint venture> !n) t$!t> !++or)in%#<> t$e (!rties !re
enterin% into t$e !%ree,ent to un)ert!Ce to for, t$e +o,(!n<> su"s+ri"e for s$!res in it on in+or(or!tion !n) re%u#!te
t$eir ri%$ts in re#!tion to it in !++or)!n+e 2it$ t$e ter,s of t$e !%ree,ent
4
1
See :or, 1 J168K (ost4
See :or,s 8 J1533K> 1 J1535K (ost4

!"2/$
.2 *ailorin' the company
T$e first o"#i%!tion !risin% un)er ! t<(i+!# joint venture s$!re$o#)ersA !%ree,ent is for ! s(e+ifie) (!rti+i(!nt to (ro+ure
!n e9tr!or)in!r< %ener!# ,eetin% to "e +onvene) !t 2$i+$ ! s(e+i!# reso#ution effe+tin% t$e ne+ess!r< !#ter!tions to t$e
o"je+ts !n) +onstitution!# )o+u,ents for o(er!tion of t$e joint venture in t$e !%ree) ,!nner is (!sse)
1
4 T$us> t$e first
o"#i%!tion i,(ose) "< ! t<(i+!# joint venture !%ree,ent is to "rin% !"out t$e ne+ess!r< +onstitution!# +$!n%e to t$e
+o,(!n<> t$e joint venture ve$i+#e> for t$e venture to "e un)ert!Cen in t$e !%ree) ,!nner4 T$is +onsi)er!tion !#so
un)er(ins t$e se+on) t<(i+!# (rovision4 A## (!rti+i(!nts !re #iCe#< to 2is$ to !((oint )ire+tors to ensure t$eir effe+tive
re(resent!tion in ,!n!%e,ent )e+isions !n) t$e re;uisite #eve# of ,!n!%e,ent e9(ertise !n) e9(erien+e4 :or
!),inistr!tive re!sons> t$e joint venture +o,(!n< ,!< 2e## "e for,e) 2it$ ! ,ore sCe#et!# )ire+tor!te suffi+ient to
en!"#e its initi!# for,!tion> "ut not to ,!n!%e its +o,,er+i!# o(er!tions4 Conse;uent#<> ! t<(i+!# !%ree,ent usu!##<
(rovi)es for t$e !((oint,ent of n!,e) in)ivi)u!#s !s )ire+tors
"< reso#ution i,,e)i!te#< !fter t$e ne+ess!r<

+onstitution!# !,en),ents $!ve "een se+ure)4 /!rti+i(!nts !re o"#i%e) to su"s+ri"e t$e +!(it!# ne+ess!r< for t$e joint
venture "< t!Cin% u( t$e !v!i#!"#e s$!re$o#)in% in !%ree) (ro(ortions4 In !))ition> t$e re%istere) offi+e of t$e +o,(!n<>
its se+ret!r<> !n) t$e +o,(!n<As !++ountin% referen+e
&
(erio) ,ust "e +$!n%e) to t$ose 2$i+$ !re to "e t$e "!sis of t$e
+o,(!n<As !+tive o(er!tions4
If t$e +o,(!n< 2$i+$ is to "e t$e +or(or!te ve$i+#e for t$e joint venture )oes not e9ist 2$en t$e s$!re$o#)ersA
!%ree,ent is entere) into> t$e (!rties !%ree to (ro+ure t$e in+or(or!tion of t$e +o,(!n< un)er ! s(e+ifie) n!,e
*

s(e+if<in% t$e !ut$orise) s$!re +!(it!# !n) its )ivision4 T$e ,e,or!n)u, !n) !rti+#es of !sso+i!tion> in !%ree) for,s>
!re usu!##< !nne9e) to t$e !%ree,ent4 T$e (!rties t$en !%ree to un)ert!Ce t$e ne+ess!r< !#ter!tions to t$e sCe#et!#
+o,(!n<> su"s+ri"e t$e ne+ess!r< +!(it!#> !((oint t$e s(e+ifie) "!nCers !n) !u)itors of t$e +o,(!n<> !n) !((oint !n<
ne+ess!r< !))ition!# or su"stitute )ire+tors4
7$ere one or ,ore s$!re$o#)ers $!ve re%istere) !))resses outsi)e t$e Unite) Bin%)o,> !n !rti+#e s$ou#) "e
in+#u)e) for )ee,e) servi+e of noti+es
0
4
!"2"$
1
See :or,s 1 J1111K> 13 J15*0K (ost4
See e% :or, 5 J1153K (ost4

&
:or t$e si%nifi+!n+e of t$e !++ountin% (erio) see t$e Co,(!nies A+t 1650 ss &M0 (5 .!#s"ur<As St!tutes (*t$ E)n)
CO=/ANIES) !n) /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies (1661) ( &5 et se;4
*
Or su+$ ot$er n!,e !s t$e (!rties !%ree !n) t$e Re%istr!r of Co,(!nies (er,its4
0
See :or, &0 J161*K (ost4
!"22$
/# Directors and board meetin's
/#11 Board representation
Re(resent!tion on t$e "o!r) of )ire+tors of t$e +o,(!n< is (!rti+u#!r#< i,(ort!nt to t$e (!rti+i(!nts "e+!use t$is
se+ures t$eir (!rti+i(!tion in its ,!n!%e,ent4 T$e +o,(osition of t$e "o!r) is #iCe#< to "e +$!n%e) fro, ti,e to ti,e>
!n) e!+$ (!rti+i(!nt 2i## 2is$ to ensure t$!t su"se;uent +$!n%es )o not )i#ute or e#i,in!te its in)ivi)u!# re(resent!tion4
T$e s$!re$o#)ersA !%ree,ent t$erefore +onfers je!#ous#< %u!r)e) ri%$ts on t$e (!rti+i(!nts in re#!tion to t$e
+o,(osition of t$e "o!r) of )ire+tors4 Re(resent!tion on t$e "o!r) of )ire+tors ,!< "e +ontro##e) eit$er t$rou%$ t$e
+onstitution!# stru+ture of t$e +o,(!n<
1
or "< (rovisions in t$e s$!re$o#)ersA !%ree,ent4
1
:or ! si,(#e for, of !rti+#es of !sso+i!tion 2$ere t$ere !re no s(e+i!# +#!ss ri%$ts see :or, 3 J1115K (ost4
!2##$
/#1% Appointment of directors@ articles of association
Effe+tin% +ontro# over re(resent!tion on t$e "o!r) of )ire+tors t$rou%$ t$e +onstitution!# stru+ture of t$e +o,(!n<
invo#ves )ivi)in% t$e s$!re +!(it!# into or)in!r< s$!res of )ifferent +#!sses> (one for e!+$ (!rt<)> so t$!t t$e ri%$t to
!((oint )ire+tors +!n "e ens$rine) !s +#!ss ri%$ts of e!+$ se(!r!te +#!ss
1
4 T$is ent!i#s su"st!nti!# !,en),ent to t$e
!rti+#es of !sso+i!tion
> 2$i+$ t$e (!rties ,!< 2is$ to !voi) if !n e9istin% +o,(!n< is "ein% use) !s t$e +or(or!te
ve$i+#e4 7$ere se(!r!te +#!ss ri%$ts !re t$e instru,ent of (rote+tion 2it$ re%!r) to t$e (!rti+i(!ntsA (!rti+i(!tion in t$e
!ff!irs of t$e "o!r) of )ire+tors> "< virtue of t$eir (o2ers of !((oint,ent> t$e (!rties 2i## !%ree in t$e s$!re$o#)ersA
!%ree,ent t$!t e!+$ 2i## su"s+ri"e to t$e !((ro(ri!te nu,"er of s$!res in t$e +#!ss !##o+!te) to it !n) e!+$ 2!ives (re'
e,(tion ri%$ts 2$i+$ it ,i%$t $!ve to su"s+ri"e to t$e s$!res of t$e +#!sses !##o+!te) to t$e ot$ers4
T$e !rti+#es of t$e +o,(!n< 2i## t<(i+!##< (rovi)e t$!t:
38441 t$e $o#)ers of s$!res of t$e v!rious +#!sses s$!## not "e e#i%i"#e to vote on !n< reso#ution for t$e re,ov!# fro,
offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er t$e s$!res of !not$er +#!ssH !n)
3844 s$!re$o#)er reso#utions ,!< on#< "e v!#i)#< (!sse) if t$e vote of !t #e!st one s$!re$o#)er fro, e!+$ +#!ss of
s$!res is o"t!ine)
&
4
T$e< ,!< !#so (rovi)e for t$e !((oint,ent of !#tern!te )ire+tors "< $o#)ers of ! ,!jorit< of s$!res of !n< (!rti+u#!r
+#!ss
*
4
!2#1$
1
7$ere su+$ +ontro# is not to "e e9er+ise) "< t$e +re!tion of +#!ss ri%$ts t$e !rti+#es ,!< +ont!in ! (o2er for or)in!r<
s$!re$o#)ers to !((oint !))ition!# )ire+tors: see :or, &1 J1683K (ost4
:or !n e9!,(#e of !rti+#es of !sso+i!tion for ! +o,(!n< 2it$ t2o or ,ore s$!re$o#)ers (2$i+$ is not ! t2o e;u!# (!rti+i(!nt
+o,(!n<) see :or, * J1183K (ost4
&
A (!rt<As +ontro# +!n "e ero)e) if just one of t$e s$!re$o#)ers of t$e +#!ss is )et!+$e) fro, !##e%i!n+e> e% if ! (!rt<As s$!res of !
(!rti+u#!r +#!ss !re $e#) "< its no,inee )ire+tors one of 2$o, !"!n)one) its !##e%i!n+e !n) (!rti+i(!te) in ! vote "efore "ein%
re(#!+e) "< $is !((ointor> ! reso#ution +ou#) "e (!sse)4 T$is +!n "e !voi)e) "< in+#u)in% ! ri%$t of veto !s ! +#!ss ri%$t in t$e
!rti+#es of !sso+i!tion e% "< (rovi)in% t$!t ! s$!re$o#)ersA reso#ution +!nnot "e v!#i)#< (!sse) un#ess t$e $o#)er or $o#)ers or !
,!jorit< in no,in!# v!#ue of t$e issue) s$!re +!(it!# of e!+$ +#!ss of s$!res in t$e +o,(!n< votes in its f!vour: see :or, &
J1685K (ost4
*
See :or, &8 J1681K (ost4
!2#%$
/#1( Appointment of directors@ shareholders a'reement
7$ere in)ivi)u!# +ontro# of t$e (!rti+i(!nts is to "e e9er+ise) (ure#< t$rou%$ t$e s$!re$o#)ersA !%ree,ent> t$e
!%ree,ent usu!##< (rovi)es t$!t t$e (!rties !%ree to (ro+ure ! ,ini,u, nu,"er of )ire+tors for t$e +o,(!n< !s #on% !s
t$e s$!re$o#)ersA !%ree,ent re,!ins in for+eH t$is is usu!##< for !s #on% !s t$e joint venture +ontinues4 E9+e(t !s
ot$er2ise !%ree)> e!+$ (!rti+i(!nt is entit#e) to !((oint ! +ert!in nu,"er of )ire+tors !s #on% !s it +ontinues !s !
s$!re$o#)er in t$e +o,(!n<> !n) to re,ove !n< )ire+tor so !((ointe)4 Noti+e of su+$ !((oint,ents !n) re,ov!#s of
)ire+tors ,ust t<(i+!##< "e %iven> not ,ere#< to t$e +o,(!n< vi! ! +o,(#ete) for, of s$!re$o#)ersA reso#ution> "ut !#so
to t$e ot$er (!rti+i(!nts> t$us e,($!sisin% t$e (!rtners$i('t<(e n!ture of ! joint venture
1
4
1
T$e ot$er (!rti+i(!nts !re o"#i%e) to si%n t$e +o,(#ete) for, of s$!re$o#)ersA reso#ution> t$ere"< %ivin% t$eir for,!#
+on+urren+e to t$e +$!n%e4 T$is ,eets t$e ,e+$!ni+!# re;uire,ents of En%#is$ +o,(!n< #!2> re% 0& of T!"#e A> 2$i+$ is
in+or(or!te) into t$e !rti+#es of !sso+i!tion !n) entit#es t$e s$!re$o#)ers of t$e +o,(!n< to (!ss reso#utions in 2ritin% si%ne) "<
!## s$!re$o#)ers4 -e+!use s$!res of e!+$ (!rt< !re not )ivi)e) into )ifferent +#!sses for t$e (ur(ose of !((oint,ent !n) rene2!#
"< in)ivi)u!# s$!re$o#)ers of t$eir +$osen )ire+tors> su+$ !+tions re;uire t$e si%n!ture of !## s$!re$o#)ers4
!2#($
/#1) Board meetin's
T$e !rti+#es of !sso+i!tion !re usu!##< !,en)e) to !##o2 !## t$e )ire+tors in)ivi)u!##< to (!rti+i(!te fu##< in t$e
)e+isions of t$e +o,(!n< so t$!t it o(er!tes #iCe ! (!rtners$i(4 C$!n%es in+#u)e t$e re,ov!# of t$e +$!ir,!nAs +!stin%
vote !n) t$e re;uire,ent for noti+e to ! )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o,> un#ess !n !#tern!tive $!s "een
!((ointe)4 Usu!##< t$e ;uoru, is fi9e) so !s to re;uire t$e !tten)!n+e of )ire+tors !((ointe) "< !## t$e (!rti+i(!nts4 A
)ire+tor is e,(o2ere) to vote on !n issue in 2$i+$ $e> or $is !((ointin% (!rti+i(!nt $!s !n interest> (rovi)e) $e
)is+#oses t$!t interest in !)v!n+e> !n)> +onse;uent#<> $e +!n "e t!Cen into !++ount in )eter,inin% 2$et$er ! ;uoru, is
est!"#is$e)
1
4
1
See :or,s * +#!use 18 J1111K> 3 +#!use 13 J1151K (ost4
!2#)$
/#1, &educin' a participants board representation
A joint venturer +!n !+$ieve !n inter,e)i!te (osition "et2een fu## (!rti+i(!tion !n) tot!# 2it$)r!2!# "< %ivin% u( t$e
"enefi+i!# o2ners$i( of ! (ortion of t$e s$!res t$!t it is +o,,itte) to $!ve4 A t<(i+!# (rovision to ,eet t$is situ!tion
!##o2s for ! ste((e) re)u+tion in t$e nu,"er of )ire+tors t$e (!rti+i(!nt +!n !((oint (ro(ortion!# to t$e re)u+tion of its
"enefi+i!# s$!re$o#)in%4 T$is ,!< t$en "e fo##o2e) "< ! +#!use
1
2$i+$ +re!tes ! +ontr!+tu!# o"#i%!tion on t$e (!rt of
t$e (!rt< to re,ove !n !((ro(ri!te nu,"er of $is no,inees !++or)in% to t$e +onstitution!# (rovisions of t$e +o,(!n<4
Su+$ )ire+tors !re to "e tre!te) !s if t$e< $!) "een re,ove) "< t$!t (!rt< t$us +#!rif<in% t$eir e#i%i"i#it< for
re!((oint,ent if t$e (!rt< su"se;uent#< i,(roves its "enefi+i!# s$!re$o#)in%4
1
See :or, +#!use &41 J1016K (ost4
!2#,$
/1 Business of the company
As 2it$ ! (!rtners$i(> t$e (!rti+i(!nts in ! t<(i+!# joint venture enter it on t$e un)erst!n)in% t$!t ! "usiness of ! +ert!in
n!ture> !n) on#< t$!t "usiness> 2i## "e +!rrie) on "< t$e (!rties4 It is t$erefore i,(ort!nt to t$e, to ensure t$!t t$e
+o,(!n<As o(er!tions "e +onfine) to t$is "usiness4 A++or)in%#<> ! +#!use to t$is effe+t is usu!##< in+or(or!te) in t$e
!%ree,ent to%et$er 2it$ ! (rovision t$!t t$e "usiness ,!< "e +!rrie) on "< t$e +o,(!n< itse#f> or t$rou%$ its "r!n+$es
or su"si)i!r< +o,(!nies (ro"!"#< 2it$in ! )efine) %eo%r!($i+!# !re!
1
4
1
See e% :or, +#!use * J108K (ost4
!2#.$
/% Finance for the company
T$e s$!re$o#)ersA !%ree,ent usu!##< s(e+ifies $o2 t$e +o,(!n< 2i## "e fin!n+e)> for e9!,(#e> t$rou%$ (!rti+i(!ntsA
+!s$ su"s+ri(tions for t$eir s$!res> or #o!ns fro, t$e (!rti+i(!nts or t$e +o,(!n<As "!nCers4 T$ere ,!< !#so "e
+o,,it,ents fro, t$e (!rti+i(!nts to %u!r!ntee "!nC or ot$er #o!ns fro, t$ir) (!rties to ! s(e+ifie) ,!9i,u, of
"orro2in%> t$us su((ortin% t$e +re)it r!tin% of t$e +o,(!n< 2it$ t$e +o,"ine) +re)it2ort$iness of t$e (!rti+i(!nts
1
4
7$ere t$e (!rties !re to !)v!n+e t$e +!(it!# of t$e joint venture +o,(!n< in t$e for, of #o!ns to t$e
+o,(!n<> t$e (rovision in t$e s$!re$o#)ersA !%ree,ent is #iCe#< to "e si,(#e> "ein% ,ere#< !n !%ree,ent "et2een t$e
(!rties to (rovi)e #o!ns of s(e+ifie) !,ounts to t$e +o,(!n< !s soon !s it $!s "een est!"#is$e) on ! tr!)in% "!sis
4 An
!#tern!tive is ! (rovision re;uirin% t$e (!rti+i(!nts to t!Ce u( #o!n sto+C of t$e +o,(!n<
&
4 If t$ere is no o"#i%!tion on
t$e (!rties t$e,se#ves to (rovi)e t$e #o!ns> t$e +#!use "e+o,es ,ore +o,(#e94 A t<(i+!# +#!use ,i%$t (rovi)e t$!t e!+$
(!rt< s$!## use !## re!son!"#e en)e!vours
*
to (ro+ure t$!t t$e +o,(!n<As nee)s !re s!tisfie) "< "orro2in%s fro, "!nCs
!n) ot$er si,i#!r sour+es on t$e ,ost f!vour!"#e ter,s4 T$e +#!use usu!##< s(e+ifies 2$et$er t$e (!rties !re to offer
%u!r!ntees of t$e "orro2in%s> !n) if so> on 2$!t ter,s4
!2#/$
1
T$is is ! usefu# )evi+e if t$e (!rti+i(!nts in)ivi)u!# !v!i#!"#e +!(it!# +!n "e (ut to ,ore (rofit!"#e i,,e)i!te use t$!n
!((#i+!tion to t$e joint venture: see :or, * J1550K (ost4
See :or, J1551K (ost4

&
See :or, * J1550K (ost4 :or ! #o!n sto+C instru,ent see :or, 0 J1555K (ost4
*
T$e D"est en)e!voursA o"#i%!tion +!n "e su((orte)> if t$e (!rties so +$oose> to +over t$e events of fun)s "ein% !v!i#!"#e fro,
t$ir) (!rties on (r!+ti+!"#e ter,s to s!tisf< t$e +o,(!n<As 2orCin% +!(it!# re;uire,ents> or of !)e;u!te #o!n fun)in% "ein%
o"t!ine) "ut su"se;uent#< 2it$)r!2n> "< re;uirin% e!+$ (!rt<> !t t$e re;uest of t$e +o,(!n< fro, ti,e to ti,e> to #en) ,one<
itse#f to t$e +o,(!n< u( to ! ,!9i,u, su,4 If one of t$e (!rties t$e,se#ves ,!Ces ! #o!n to t$e +o,(!n< t$ere 2i## "e
(rovisions )e!#in% 2it$ re(!<,ent !n) t$e interest> if !n<> (!<!"#e in res(e+t of t$e #o!n4
!2#"$
/( 3pecific obli'ations of the parties
In !))ition to fin!n+e> venturers often (rovi)e !ssets su+$ !s (re,ises> (#!nt !n) e;ui(,ent> Cno2'$o2 !n) inte##e+tu!#
(ro(ert< or (ersonne#4 T$e s$!re$o#)ersA !%ree,ent ,!< (rovi)e for s(e+ifi+ +o,,it,ents of (!rties to (rovi)e t$e
in)ivi)u!# !ssets "< tr!nsfer or #i+en+e4 T$ese +#!uses ref#e+t t$e nee)s of t$e venture> t$e in)ivi)u!# resour+es of e!+$
(!rti+i(!nt to servi+e s(e+ifi+ nee)s !n) e!+$ (!rti+i(!ntAs over!## +o,,it,ent in re#!tion to t$e )ivision of t$e
!nti+i(!te) returns4
!2#2$
/) Conduct of the joint enture
/)11 <inority protection
7$i#e fro, t$e (oint of vie2 of #e%!# !n!#<sis t$e +or(or!te joint venture )oes not +onstitute ! (!rtners$i(> fro, t$e
(oint of vie2 of t$e (r!+ti+!#ities of t$e nee)s of t$e (!rties t$e re#!tions$i( is ver< ,u+$ of ! (!rtners$i( t<(e4 Un)er
(!rtners$i( #!2> +ert!in fun)!,ent!# )e+isions +!n on#< "e t!Cen "< t$e (!rtners un!ni,ous#< "e+!use t$e< re#!te to t$e
essenti!# (!rtners$i( stru+ture !n) t$e risCs 2$i+$ !re %ener!te) "< it
1
4 Si,i#!r issues !n) nee)s !rise in re#!tion to joint
ventures4 T$is %ives rise to !n issue of +onsi)er!"#e i,(ort!n+e in sett#in% t$e for, of t$e +or(or!te joint venture4
Un)er t$e %ener!# +o,(!n< #!2 !ffe+tin% (riv!te #i,ite) +o,(!nies> ! ,!jorit< s$!re$o#)er is> in res(e+t of
,ost issues> !"#e to vote t$rou%$ !n< +$!n%es $e 2!nts4 If t$ere is ! joint venture of on#< t2o (!rti+i(!nts 2it$ e;u!#
s$!re$o#)in%s> !((ointin% !n e;u!# nu,"er of )ire+tors> !n) 2it$ t$e +$!ir,!n of t$e "o!r) $!vin% no +!stin% vote> t$is
is not t$e +!se4 .o2ever> !s ,!n< joint ventures invo#ve ,ore t$!n t2o (!rti+i(!nts or> une;u!# (!rti+i(!tion>
+onsi)er!tion $!s to "e %iven to t$e issue of 2$et$er %ener!# +o,(!n< #!2 (rovisions s$ou#) "e !##o2e) to o(er!te> or
2$et$er +ert!in (o2ers s$ou#) "e ,!)e o(er!"#e on#< "< t$e (!rti+i(!ntsA un!ni,ous +onsent so !s to (rote+t ,inorit<
ri%$ts4
T$e e,"o)i,ent in t$e !%ree,ent of ,inorit< (rote+tion> eit$er "< its fun)!,ent!# e;u!#it< of stru+ture or "<
t$e +re!tion of "!si+ ri%$ts re;uirin% un!ni,it<> +!n #e!) to )e!)#o+C if t$e (!rties +!nnot !%ree> t$ere"< (!r!#<sin% t$e
)eve#o(,ent of t$e joint venture !n) (ossi"#< +u#,in!tin% in its f!i#ure4 It ,!< t$erefore "e !((ro(ri!te to in+#u)e !
D)e!)#o+C +#!useA in t$e !%ree,ent to (revent su+$ )iffi+u#ties> !#t$ou%$ su+$ +#!uses !re not free fro, )iffi+u#ties !n)
%ive rise to t$eir o2n issues
4 Conse;uent#<> it is ne+ess!r< to +onsi)er 2$et$er ! ,inorit< (rote+tion +#!use %overnin%

t$e +on)u+t of t$e "usiness of t$e joint venture is nee)e) for t$e (!rti+u#!r venture !n) 2$et$er t$ere is nee) for !
)e!)#o+C (rovision4
!21#$
7$ere it is fe#t t$!t ,inorit< (rote+tion is nee)e) for t$e (!rti+u#!r venture> t$e s$!re$o#)ersA !%ree,ent
s$ou#) (rovi)e t$!t (!rti+i(!nts !%ree t$!t !s #on% !s t$e !%ree,ent re,!ins in for+e +ert!in ,!tters 2i## o++ur on#<
2it$ t$e +onsent of !## t$e (!rti+i(!nts4 =!tters 2$i+$ !re #iCe#< to re;uire un!ni,ous +onsent in+#u)e +$!n%es in t$e
%ener!# n!ture of t$e "usiness of t$e +o,(!n< !n) its su"si)i!ries> its !ut$orise) or issue) s$!re or #o!n +!(it!#> its
,e,or!n)u, or !rti+#es of !sso+i!tion or +#!ss ri%$ts4 T$e (resentin% of ! (etition or (!ssin% of ! reso#ution for t$e
2in)in% u( of t$e +o,(!n< (un#ess it is inso#vent) or +re!tin% ! ne2 e;uit< interest in t$e +o,(!n< ,!< !#so re;uire
un!ni,ous +onsent
&
4
7$ere ,inorit< (rote+tion is se+ure) "< t$e use of e,"e))e) +#!ss ri%$ts> it is +o,,on to (rovi)e t$!t
+ert!in ,!tters +onstitute ! v!ri!tion of t$e ri%$ts !tt!+$e) res(e+tive#< to e!+$ +#!ss of s$!re in or)er to entren+$ t$e
,inorit< (rote+tion ri%$ts in t$e +o,(!n<As +onstitution4 T$ese in+#u)e t$e (!ssin% of reso#utions to !#ter t$e
,e,or!n)u, or !rti+#es of !sso+i!tion of t$e +o,(!n< or for t$e 2in)in% u( of t$e +o,(!n< (un#ess it is inso#vent)>
!n< ne2 issue of De;uit< se+uritiesA
*
or !n< +$!n%e
0
in t$e !ut$orise) or issue) s$!re +!(it!# of t$e +o,(!n< !t t$e
!)o(tion of t$e !rti+#es
1
4 T<(i+!##<> )e!#in%s 2it$ t$ir) (!rties !re (rote+te) "< ! (rovision t$!t no (erson )e!#in% 2it$
t$e +o,(!n< or !n< of its su"si)i!ries s$!##> "< re!son of t$ese (rovisions> "e +on+erne) to see or en;uire 2$et$er t$e
re;uisite +#!ss +onsents to su+$ !+tion $!ve "een o"t!ine)4 No su+$ !+tion s$!## "e inv!#i) or ineffe+tu!# un#ess !n<
t$ir) (!rt< $!) !t t$e ti,e of su+$ !+tion> !+tu!# Cno2#e)%e or noti+e t$!t !n< ne+ess!r< +#!ss +onsent $!) not "een
v!#i)#< o"t!ine)4
!211$
1
See /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) ( 116 et se;4
As to )e!)#o+C (rovisions see /!r!%r!($ 51 J6&K (ost4

&
See :or, +#!use 3 J10K4 Ot$er restri+tions ,!< "e !))e)> if !((ro(ri!te4 Re;uirin% un!ni,ous )e+isions "< t$e (!rties in
,!tters su+$ !s t$e !++ounts> "usiness (#!ns or )ivi)en) (o#i+< in+re!ses t$e effe+tive ri%$t of veto of ,inorit< (!rties 2$o ,!<>
"< not !%reein%> "e%in to )i+t!te (o#i+< )e+isions "< frustr!tin% t$e 2is$es of t$e ,!jorit<4
*
See t$e Co,(!nies A+t 1650 s 6* (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
0
T$is ,!< "e "< 2!< of in+re!se> re)u+tion> +onso#i)!tion> )ivision> su"')ivision or issue or ot$er2ise4
1
:or ! si,(#e ri%$t of veto ens$rine) !s ! +#!ss ri%$t in t$e !rti+#es: see :or, 6 J1680K (ost4
!21%$
/)1% Coenants by the company
T$e "usiness of t$e joint venture> !n) t$e in)ivi)u!# ri%$ts of t$e venturers to (!rti+i(!te in t$e venture t$rou%$ t$e
+o,(!n< on t$e ori%in!# ter,s !re (rote+te) !n) (reserve) in t$e +!se of ! joint venture !s t$e< !re 2it$ ! (!rtners$i(4
.o2ever> t$ese !rr!n%e,ents> so t<(i+!# of (!rtners$i(> nee) reinfor+e,ent in t$e +!se of ! +or(or!te joint venture
"e+!use its !rr!n%e,ents !re not ,ere#< "i(!rtite !,on%st t$e (!rtners !n) venturers> "ut tri(!rtite "et2een t$e (!rtners
!n) venturers inter se> !n) "et2een t$ose (!rti+i(!nts !n) t$e +o,(!n< itse#f4 T$ere ,!< "e no e;uiv!#ent of t$ese
!rr!n%e,ents in ! (!rtners$i(4 A++or)in%#<> 2it$in t$e s$!re$o#)ersA !%ree,ent> if t$e +o,(!n< is in e9isten+e> furt$er
+oven!nts 2i## "e %iven "< t$e +o,(!n< itse#f to t$e (!rti+i(!nts4 Su+$ +oven!nts ,!< re#!te to t$e fin!n+i!#
,!n!%e,ent of t$e +o,(!n<4 :or e9!,(#e> t$e +o,(!n< ,!< +oven!nt not to !+;uire su"si)i!ries> )is(ose of its
"usiness un)ert!Cin% or !ssets> "orro2 in e9+ess of ! s(e+ifie) !,ount> ,!Ce #o!ns or !)v!n+es> %ive !n< %u!r!ntee
"on) or in)e,nit< to se+ure t$e #i!"i#ities or o"#i%!tions of !n< (erson or +re!te ! ,ort%!%e> +$!r%e> or ot$er se+urit<
over its !ssets4 T$e +o,(!n< ,!< !#so +oven!nt not to un)ert!Ce ite,(s) of +!(it!# e9(en)iture invo#vin% ! fi9e)
!%%re%!te #i!"i#it<> )e+#!re or (!< ! )ivi)en)> !,en) t$e !%ree) "usiness (#!n> +$!n%e t$e !u)itor or !++ountin%
(rin+i(#es or (r!+ti+es> or intro)u+e ! s$!re o(tion> (rofit s$!rin% or "onus s+$e,e
1
4
1
See :or, +#!use 3 J10&K (ost4
!21($
/, Accountin' matters
It is ne+ess!r< t$!t (ro(er !++ounts of t$e "usiness !+tivities of t$e joint venture "e Ce(t !n) ,!)e !v!i#!"#e to t$e
(!rti+i(!nts4 T$is is !#so ! re;uire,ent for ! (!rtners$i( in res(e+t of its "usiness !n) t$e s$!re$o#)ersA !%ree,ent 2i##
+ont!in re#ev!nt +#!uses 2$i+$ !re ver< si,i#!r to t$ose in ! 2e##')r!2n (!rtners$i( !%ree,ent4 T<(i+!##<> t$e (!rties
!%ree to (ro+ure t$!t t$e +o,(!n< ,!int!ins !++ur!te !n) +o,(#ete !++ountin% !n) ot$er fin!n+i!# re+or)s> (re(!res
!n) )istri"utes to t$e (!rties (erio)i+ ,!n!%e,ent !++ounts> !n) t$!t e!+$ (!rt< !n) its res(e+tive !ut$orise)
re(resent!tives $!ve !++ess to e9!,ine t$e +o,(!n<As "ooCs !n) re+or)s
1
4
T$e (!rti+i(!nts in t$e joint venture 2i## usu!##< $!ve +#e!r e9(e+t!tions of !n) (#!ns for t$e )eve#o(,ent of
t$e joint venture4 T$ese s$ou#) nor,!##< "e in+or(or!te) into !n !nnu!# +o,(re$ensive "usiness (#!n 2$i+$ in+#u)es !n
esti,!te of +!(it!# re;uire,ents> +!s$f#o2> (rofit !n) #oss !n) !n o(er!tin% "u)%et4 Often> t$is (ro+e)ure 2i## "e
for,!#ise) 2it$in t$e s$!re$o#)ersA !%ree,ent> 2it$ !n e9(ress (rovision t$!t t$e "usiness (#!n "e (re(!re) !n)
!((rove) "< t$e "o!r) of )ire+tors "efore t$e st!rt of e!+$ fin!n+i!# <e!r4
1
See :or, +#!use 5 J101K (ost4
!21)$
/. Diidend policy
T$e )ivi)en) (o#i+< of t$e +o,(!n< 2i## "e of %re!t i,(ort!n+e to t$e (!rti+i(!nts> 2$o 2i## "e !n9ious to se+ure t$e
,!9i,u, return on t$eir invest,ent in t$e venture +o,,ensur!te 2it$ t$e (ro(er vi!"i#it< of t$e +o,(!n< !s t$e
instru,ent "< 2$i+$ t$e venture is e9e+ute)4 A++or)in%#<> it is usu!# to in+#u)e ! +#!use )efinin% t$e (o#i+< of t$e
+o,(!n< in re#!tion to )ivi)en) (!<,ents in t$e s$!re$o#)ersA !%ree,ent4 A t<(i+!# +#!use 2ou#) "e t$!t> su"je+t to
+ir+u,st!n+es (rev!i#in% !t t$e re#ev!nt ti,e> in+#u)in% in (!rti+u#!r t$e 2orCin% +!(it!# re;uire,ents of t$e +o,(!n<>
it is t$e intention of t$e (!rties t$!t t$e +o,(!n< 2i## )istri"ute "< 2!< of )ivi)en) in res(e+t of e!+$ fin!n+i!# <e!r
eit$er not #ess t$!n ! )efine) (er+ent!%e of t$e (ost't!9 (rofits of t$e +o,(!n< for t$!t fin!n+i!# <e!r> or !## of its (rofits
!s !re t$en !v!i#!"#e for )istri"ution (rovi)e) t$!t t$is 2i## not +ontr!vene t$e Co,(!nies A+t 16504
!21,$
// Promotion of the companys business
In !))ition to ensurin% t$!t t$e joint venture is fin!n+i!##< 2e##',!n!%e)> t$e (!rties s$ou#) !+tive#< (ro,ote t$e
interests of t$e joint venture +o,(!n<4 As in ! (!rtners$i(> t$ere is t$e risC t$!t ! (!rti+i(!nt 2i## (ro,ote $is o2n
interests to t$e )etri,ent of t$e +o,(!n< !n) t$e joint venture4 In ! (!rtners$i( t$e situ!tion is +ontro##e) "< t$e ter,s
of t$e (!rtners$i( !%ree,ent !n) t$e fi)u+i!r< res(onsi"i#ities i,(ose) "< +ourts of e;uit< u(on (!rtners "e+!use of t$e
!%en+< re#!tions$i( 2$i+$ e!+$ (!rtner o2es to t$e fir,4 In t$e +!se of joint ventures it is "< no ,e!ns +ert!in 2$et$er
e!+$ venturer o2es $is +o'venturers e;uiv!#ent fi)u+i!r< res(onsi"i#ities
1
4 It is t$erefore ne+ess!r< for t$e s$!re$o#)ersA
!%ree,ent to )e!# 2it$ t$is issue> usu!##< "< 2!< of t$ree +oven!nts
4 E!+$ (!rt< +oven!nts> first> to use its "est

en)e!vours to (ro,ote !n) )eve#o( t$e "usiness of t$e +o,(!n< !n)> se+on)> to refr!in fro, +o,(etin% ()ire+t#< or
in)ire+t#<) 2it$ t$e +o,(!n< or its su"si)i!ries )urin% t$e #ife of t$e !%ree,ent> !n) for ! s(e+ifie) (erio) t$ere!fter4
T$e t$ir) +oven!nt (ro$i"its so#i+it!tion of +usto,ers or (ersons or +o,(!nies )e!#in% 2it$ t$e +o,(!n< or its
su"si)i!ries4
1
As to fi)u+i!r< )uties "et2een s$!re$o#)ers see /!r!%r!($ 1&6 J181K et se; (ost4
See :or, +#!use 6 J105K (ost4

!21.$
/" Confidentiality
T$ere is +onsi)er!"#e un+ert!int< !s to t$e e9tent of )uties of +onfi)enti!#it< 2$i+$ ,!< !rise "et2een t$e (!rti+i(!nts>
!n) "et2een t$e, !n) t$e +o,(!n<> "e+!use t$e< $!ve entere) into ! joint venture re#!tions$i(4 T$e ne%oti!tion of> !n)
entr< into t$e joint venture !%ree,ent !re #iCe#< to ent!i# +onsi)er!"#e )is+#osure of sensitive infor,!tion "et2een t$e
(!rties !n) !)e;u!te (rote+tion fro, )is+#osure is t$erefore re;uire)4 In t$e initi!# )is+ussions !n) ne%oti!tions t$e
(osition is "est )e!#t 2it$ "< ! ne%oti!tion fr!,e2orC !%ree,ent +ont!inin% ! +#e!r +onfi)enti!#it< +#!use
1
4 If
ne%oti!tions !re su++essfu##< +on+#u)e)> future (rote+tion +!n "e (rovi)e) for in t$e s$!re$o#)ersA !%ree,ent4
T<(i+!##<> e!+$ (!rt< un)ert!Ces to use its "est en)e!vours not to use or )is+#ose !n< infor,!tion 2$i+$ it ,!< !+;uire
+on+ernin% t$e +o,(!n<> its su"si)i!ries or !n< of t$e ot$er (!rties
4
Dis+#osure ,!< "e (er,itte) in so,e +ir+u,st!n+es> for e9!,(#e> if !## t$e (!rties !n)Eor t$e +o,(!n<
+onsent> to +o,(#< 2it$ t$e or)er of ! +ourt of +o,(etent juris)i+tion or> if t$e infor,!tion re#!tes to t$e +o,(!n< !n)
)is+#osure 2i## !)v!n+e its "usiness4 T$e !%ree,ent usu!##< (rovi)es t$!t t$e +o,(!n< (!n) its su"si)i!ries) 2i## use
re!son!"#e en)e!vours to ensure t$!t its offi+ers> e,(#o<ees !n) !%ents o"serve ! si,i#!r o"#i%!tion of +onfi)en+e in
res(e+t of t$e (!rties in t$e joint venture4
1
Confi)enti!#it< ,!< "e inferre) "< t$e +ourts in !n< event: see #ea!er v &op,de7 Ltd J1613K A## ER *10> CAH L)& (inerals
Ltd v 8nternational &orona Resources Ltd J1668K :SR **14
:or ! +onfi)enti!#it< +#!use see :or, +#!use 18 J106K (ost4
/!rties 2i## !#so un)ert!Ce to (ro+ure t$!t t$eir e,(#o<ees or !%ents )o not use )is+#ose +onfi)enti!# infor,!tion4
!21/$
/2 *a5 matters
T$e (!rti+i(!nts in t$e joint venture !re often invo#ve) in t$eir in)ivi)u!# +o,,er+i!# !+tivities 2$i+$ ,!< +re!te
tr!)in% #osses !n) ot$er !,ounts e#i%i"#e for t!9 re#ief4 T$is is !#so true of t$e "usiness of t$e joint venture itse#f4 T$e
In+o,e !n) Cor(or!tion T!9es A+t 1655
1
> (rovi)es ! v!riet< of re#iefs for +onsorti!> ! ter, 2$i+$ it uses suffi+ient#<
2i)e#< to e,"r!+e +or(or!te joint ventures> 2$i+$ ,!< "e e#i%i"#e !%!inst t$e t!9!"#e (rofits of eit$er t$e (!rti+i(!nt or
t$e +o,(!n<4 T$e re#iefs s$ou#) "e set !%!inst t$e t!9!"#e (rofits of t$e "usiness or%!nis!tion t$!t 2i## (ro)u+e %re!test
over!## t!9 "enefit4 A++or)in%#<> it is usu!#> in t$e s$!re$o#)ersA !%ree,ent> to !##o2 e!+$ (!rti+i(!nt to re;uire t$e
+o,(!n< to !++e(t or surren)er su,s e#i%i"#e for re#ief on ter,s t$!t ! su, e;u!# to t$e t!9 re#ief o"t!ine) is (!i) in
return
4 In t$is 2!<> e!+$ in)ivi)u!# "usiness or%!nis!tion o"t!ins t$e o(ti,u, t!9 !)v!nt!%e 2it$ no +orres(on)in%
)is!)v!nt!%e vis'P'vis t$e ot$er or%!nis!tions to 2$i+$ it is re#!te) t$rou%$ t$e joint venture> in+#u)in% t$e +o,(!n<
itse#f4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss *8M*1& (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
See :or, +#!use 114 (A) J10&1K (ost4 As to !v!i#!"#e re#iefs see /!r!%r!($ &*5 J1&*K et se; (ost4
!21"$
"# 3hare transfers
"#11 &estrictions on share transfers
In t$eor<> one of t$e !)v!nt!%es of t$e +o,(!n< !s ! for, of "usiness or%!nis!tion is t$e (otenti!# e!se of tr!nsfer of
t$e 2$o#e> or (!rt> of ! (!rti+i(!ntAs invo#ve,ent "< t$e tr!nsfer of !n !((ro(ri!te nu,"er of s$!res4 -< +ontr!st>
+$!n%in% !n in)ivi)u!#As invo#ve,ent in ! (!rtners$i( re;uires ! ,u+$ ,ore for,!# !n) +o,(#e9 (ro+e)ure> invo#vin%
t$e +onsent of !## t$e (!rtners
1
4 /!r!)o9i+!##<> t$e +or(or!te joint venture is in ,!n< 2!<s ! (!rtners$i( t<(e of
"usiness or%!nis!tion seeCin% to enjo< t$e !)v!nt!%es of +o,(!n< #!2 in t$e (rovision of ! +onvenient tr!)in% ve$i+#e4
As 2it$ (!rtners$i(> it is (!rt#< t$e in)ivi)u!# vision> +$!r!+teristi+s !n) resour+es of t$e (!rti+i(!nts 2$i+$ "rou%$t
t$e, to%et$er in t$e first (#!+e> !n) t$e unrestri+te) tr!nsfer of (!rti+i(!tion )oes not re(resent t$e intentions !n) nee)s
of t$e (!rties or t$e joint venture itse#f4 A++or)in%#<> t$e s$!re$o#)ersA !%ree,ent 2i## !#,ost inv!ri!"#< restri+t t$e
free)o, of ! (!rti+i(!nt to tr!nsfer $is s$!res4
T$e )et!i# of t$e restri+tions v!ries +onsi)er!"#<4 At t$e e9tre,e t$ere is ! tot!# (ro$i"ition of t$e tr!nsfer>
+$!r%in%> %r!ntin% of o(tions over or )is(os!# of t$e s$!res or !n< "enefi+i!# interest in t$e,
4 In su+$ ! +!se> un#ess !

(!rt< +!n (ersu!)e $is +o'(!rti+i(!nts to +onsent> $e is> effe+tive#<> #o+Ce) into t$e joint venture !s ! s$!re$o#)er
in)efinite#<4 T$is ,!< "e ,ore )esir!"#e t$!n t$e retention of free)o, of tr!nsfer "< t$e (!rti+i(!nts> "ut it r!ises its
o2n (ro"#e,s !n) ,ost s$!re$o#)ersA !%ree,ents t$erefore ,o)if< t$e (ro$i"ition in ! v!riet< of 2!<s to !##o2 so,e
#!titu)e4
1
/!rtners$i( A+t 1568 s *(5) (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/): see !#so /ri,e !n) S+!n#!n 'he Law o.
Partnership (1660) ( 1164
:or ! (rovision in t$e !rti+#es restri+tin% s$!re tr!nsfers to +ert!in +!te%ories of (er,itte) tr!nsferee on#< see :or, 5 J168*K
(ost4 :or ! (rovision in t$e !%ree,ent i,(osin% ! tot!# restri+tion on tr!nsfer see :or, & +#!use 1 J1051K (ost4
!212$
"#1% Pre+emption ri'hts
Li"er!#is,> 2$ere it o++urs> is usu!##< !++o,(#is$e) "< ! (re'e,(tion (rovision in t$e +o,(!n<As !rti+#es of
!sso+i!tion4 T$is often (rovi)es t$!t t$e s$!res of ! (!rti+i(!nt 2$o 2is$es to tr!nsfer $is s$!re$o#)in% ,ust first "e
offere) to ot$er $o#)ers of t$e s!,e +#!ss of s$!res (if !n<) 2it$ !n< unso#) s$!res "ein% offere) to $o#)ers of ot$er
+#!sses of s$!res4 T$e !rti+#es ,!< !##o2 for +o,(#ete free)o, of tr!nsfer "et2een $o#)ers of t$e s!,e +#!ss of s$!res4
Often ! +or(or!te (!rti+i(!nt is %iven free)o, to tr!nsfer its s$!res to !n< +o,(!n< 2$i+$ is (!rt of t$e s!,e %rou( of
+o,(!nies !s itse#f4 7$en ! ne2 s$!re$o#)er joins t$e venture> (ro(er#< )r!2n (rovisions re;uire t$!t $e un)ert!Ces !##
t$e o"#i%!tions of t$e s$!re$o#)ersA !%ree,ent4 7$ere t$e e9er+ise of (re'e,(tion ri%$ts or ot$er )is(os!# of s$!res
+ou#) !ffe+t +ontro# of t$e +o,(!n<> s(e+ifi+ (rovision +!n "e ,!)e in t$e !rti+#es re;uirin% offers of +ontro# to "e
e9ten)e) to !## s$!re$o#)ers !n) for s$!re$o#)ers to "e "oun) to !++e(t su+$ !n offer of ! +ert!in (er+ent!%e to )o so
1
4
1
!2%#$
"#1( ?ptions
7$i#st in so,e joint ventures t$e tr!nsfer of s$!res is envis!%e) !s ! (ossi"i#it<> ot$er joint ventures !re for,e) 2it$
t$e e9(e+t!tion t$!t (!rti+i(!nts 2i## tr!nsfer or )is(ose of t$eir s$!res )urin% t$e #ife of t$e joint venture4 :or e9!,(#e>
! joint venture ,!< "e inten)e)> fro, t$e outset> to "e ! $!#f2!< st!%e to t$e !+;uisition of t$e 2$o#e "usiness of t$e
venture "< one (!rti+i(!nt on (!<,ent of ! f!ir (ri+e to t$e ot$er (!rti+i(!nts4 A#tern!tive#<> !n in)ivi)u!# (!rti+i(!nt
,!< 2is$ to "e sure of "ein% !"#e to se## $is $o#)in% !fter ! +ert!in (erio)4 In su+$ +ir+u,st!n+es> t$e s$!re$o#)ersA
!%ree,ent +ont!ins (ut or +!## o(tions over one (!rt<As s$!res 2$i+$ ,!< "e e9er+is!"#e eit$er !t ! fi9e) ti,e or over !
(erio)> !n) !##o2s for !+;uisition eit$er !## !t on+e or in s(e+ifie) tr!n+$es
1
4 A furt$er v!ri!tion is t$e DTe9!s s$oot outA
2$ere ever< (!rt< ,!< seeC to "u< out t$e ot$ers t$e (ri+e "ein% fi9e) "< t$e $i%$est ten)er ,!)e "< ! (!rt<
4
1
:or D(utA !n) D+!##A o(tions see :or,s *8 J16K> *1 J16&K (ost4

!2%1$
"#1) Aaluation of shares
-ot$ (re'e,(tion ri%$ts !n) o(tions r!ise t$e (ro"#e, of t$e v!#u!tion
1
of t$e s$!res to "e !+;uire)4 It is usu!# (r!+ti+e>
in t$e +!se of o(tions> for ! +#!use to "e in+or(or!te) in t$e !%ree,ent settin% out ! (re+ise for,u#! for t$e +!#+u#!tion
of t$e o(tion (ri+e4 De(en)in% u(on t$e t<(e of "usiness of t$e +o,(!n<> t$e for,u#! ,!< "e "!se) on t$e !ver!%e
e!rnin%s of t$e +o,(!n< over ! nu,"er of (revious <e!rs> or> in t$e +!se of "usinesses 2$i+$ +re!te !ssets r!t$er t$!n
in+o,e> on t$e "!sis of t$e +!(it!# v!#ue of t$e !ssets of t$e +o,(!n<4 Su+$ for,u#!e ,!< "e !#so use) in su((ort of
(re'e,(tion ri%$ts or t$e !%ree,ent ,!< (rovi)e t$!t t$e !u)itors fi9 ! f!ir v!#ue of s$!res if t$e (re'e,(tion ri%$t is
e9er+ise)4 It is +o,,on for t$e (ri+e for,u#! to "e v!rie) !++or)in% to t$e +ir+u,st!n+es in 2$i+$ t$e !+;uisition of
t$e s$!res t!Ces (#!+e4 In t$is +onne+tion> )ifferent +onsi)er!tions ,!< 2e## !((#< )e(en)in% u(on 2$et$er t$e
tr!nsferor 2is$es to se##> is re;uire) to )o so "< t$e !%ree,ent> or is "ein% for+e) to se## "e+!use of "re!+$ of t$e ter,s
of t$e !%ree,ent4
1
:or e9(ress v!#u!tion +#!uses see :or,s +#!use 10 J10&0K> & +#!use 104 J1056K (ost4
As to s$!re v!#u!tion %ener!##< see /!r!%r!($ 1*1 J186K et se; (ost4
!2%%$
"1 Deadloc> resolution
"111 &easons for deadloc>
De!)#o+Cs ,!< !rise in ! joint venture for ! nu,"er of re!sons4 T$e +o,,on vision for t$e venture ,!< f!)e !s t$e
enter(rise $!s to f!+e t$e s$!r( re!#ities of +o,,er+i!# !+tivit< !n) +o,(etition> or (!rti+i(!nts ,!< fin) t$!t t$e< $!ve
fun)!,ent!##< )ifferent !((ro!+$es to "usiness4 A#tern!tive#<> (!rti+i(!ntsA in)ivi)u!# interests ,!< (u## in )ifferent
)ire+tions %iven t$e ne2 re!#it< 2$i+$ +onfronts t$e,4 A )e!)#o+C +on+erns t$e fun)!,ent!# !s(e+ts of t$e o(er!tion of
t$e venture !n)> if it +ontinues> (revents ne+ess!r< )e+isions "ein% t!Cen on t$e +on)u+t of t$e +o,(!n<As "usiness4
If ,!jor )is!%ree,ents over Ce< (o#i+< issues +!nnot "e reso#ve) "< t$e e9er+ise of one si)eAs su(erior votin%
(o2er> t$e nor,!# )e,o+r!ti+ (ro+e)ures +!nnot offer t$e so#ution to t$e (ro"#e,4 T$is ,!< !rise "e+!use of une;u!#
"!#!n+in% of votin% (o2er 2it$in t$e joint venture> or "e+!use ! ,inorit< $!s !n effe+tive ri%$t of veto> eit$er t$rou%$
its +#!ss votin% ri%$ts or "e+!use t$e s$!re$o#)ersA !%ree,ent re;uires un!ni,it< on t$e (oints in issue4 T$e resu#t is !
)e!)#o+C4 It ,!< even "e i,(ossi"#e to $o#) ! ,eetin% of s$!re$o#)ers or of )ire+tors "e+!use one or ,ore (!rti+i(!nts
2it$$o#)s t$e !tten)!n+e of t$eir re(resent!tives> ,!Cin% t$e ,eetin% in;uor!te4 To +over t$is situ!tion> it is usu!# for
t$e s$!re$o#)ersA !%ree,ent to (rovi)e t$!t> if ! furt$er ,eetin% is +!##e) 2$i+$ is !#so in;uor!te> ! )e!)#o+C is )ee,e)
to $!ve !risen4
!2%($
"11% Deadloc> proisions
T$ere !re nu,erous 2!<s of )e!#in% 2it$ ! )e!)#o+C4 T$e s$!re$o#)ersA !%ree,ent ,!< (rovi)e t$!t in t$is situ!tion
one of t$e (!rties is )ee,e) to $!ve %iven noti+e to tr!nsfer $is s$!res to t$e ot$ers> !n) t$us "e "ou%$t out !++or)in%
to ! (re)eter,ine) for,u#! or ! (ri+e fi9e) "< t$e !u)itors4 So,eti,es (rovision is ,!)e t$!t t$e +o,(!n< "e 2oun)
u(4 Ar"itr!tion is un#iCe#< to "e !n effe+tive so#ution to t$e (ro"#e,> "e+!use !r"itr!tion +!n )e+i)e f!+ts in )is(ute !n)
!((#< t$e #!2 to t$e,> "ut is i##'e;ui((e) to )e+i)e issues of +o,,er+i!# (o#i+<4 Even if it 2ere "etter e;ui((e) for t$is
(ur(ose> t$e !r"itr!torAs )e+ision 2ou#) sti## "e #iCe#< to #e!ve t$e (!rties in +onf#i+t> t$us i,(e)in% t$e !+tu!#
i,(#e,ent!tion of t$e )e+ision4 As t$e (ur+$!se of ! (!rti+i(!ntAs s$!res "< t$e ot$er (!rti+i(!nt !n) t$e 2in)in% u( of
t$e +o,(!n< !re )r!sti+ so#utions> it ,!< "e (ossi"#e to (ost(one t$ese ,e!sures for ! s$ort (erio) )urin% 2$i+$ !
for,!#ise) s<ste, of ,e)i!tion or !#tern!tive )is(ute reso#ution seeCs to (ro)u+e !n !++e(t!"#e !((ro!+$ to t$e issues
in )is(ute4
!2%)$
"11( Deadloc> in a t0o+party joint enture
A )e!)#o+C (rovision s$ou#) )efine 2$en )e!)#o+C $!s "een re!+$e) !n) set out t$e (ro+e)ure 2$i+$ is to "e !((#ie) to
"re!C it4 In ! t2o'(!rt< joint venture> ! t<(i+!# (rovision is t$!t )e!)#o+C is (resu,e) to $!ve o++urre) if eit$er or "ot$
of t2o situ!tions $!s !risen: (1) t$e "o!r) $!s not (!sse) ! reso#ution on ! +o,(!n< ,!tter "e+!use of ! tie) vote !n)
eit$er (!rt< $!s notifie) t$e ot$er> 2it$in ! s(e+ifie) (erio)> t$!t t$e ,!tter $!s not "een reso#ve) to its s!tisf!+tion> or
() t2o su++essive "o!r) ,eetin%s !re in;uor!te4 T$ese t2o situ!tions ref#e+t t$e t2o 2!<s in 2$i+$ ! (!rt< +!n +re!te !
)e!)#o+C> n!,e#< "< usin% its votin% ri%$ts !t "o!r) ,eetin%s to (revent +$!n%e> or "< si,(#< f!i#in% to !tten)> t$ere"<
#e!vin% t$e "o!r) in;uor!te4
In t$e event of ! )e!)#o+C> eit$er (!rt< "e+o,es entit#e) un)er t$e +#!use> (ossi"#< 2it$in ! (res+ri"e) (erio)>
to serve ! noti+e on t$e ot$er offerin% to se## !## ("ut not (!rt) of its s$!re$o#)in% to t$e ot$er or to (ur+$!se !## of t$e
ot$erAs s$!res !t ! s(e+ifie) (ri+e4 T$is noti+e is usu!##< ,!)e irrevo+!"#e 2it$out t$e +onsent of t$e ot$er (!rti+i(!nt4
T$e ot$er (!rti+i(!nt ,!< serve ! +ounter'noti+e 2it$in ! s(e+ifie) (erio)> offerin% to "u< t$e ori%in!# serverAs s$!res
or to se## $is o2n s$!res to $i, !t t$e s(e+ifie) (ri+e4 If su+$ ! +ounter'noti+e is issue)> t$e (!rti+i(!nts "e+o,e
+o,,itte) to )e!# on its ter,s4 If no +ounter'noti+e is issue)> t$e re+i(ient is )ee,e) to $!ve !++e(te) t$e ter,s of t$e
ori%in!# noti+e4 T$e )e!)#o+C +#!use s$ou#) !#so s(e+if< ! )!te "< 2$i+$ t$e s$!re tr!nsfer !n) t$e (!<,ent of t$e (ri+e
,ust "e +o,(#ete)
1
4
1
:or e9!,(#es of )e!)#o+C +#!uses see :or,s 0 +#!use 1& J11*0K> 11 +#!use 1& J150K (ost !n) for su((ortin% !rti+#es see :or,
15 J15*3K (ost4
!2%,$
"11) Deadloc> in a multi+party joint enture
T$e (ro+e)ures out#ine) for ! t2o'(!rt< joint venture ,!< "e !)!(te) to ,eet t$e nee)s of ,u#ti'(!rt< joint ventures "<
+onferrin% t$e (o2er on !n< of t$e ,!jorit< in t$e )e!)#o+Ce) vote> or !n< (!rt< 2$o 2!s (resent !t t$e )e!)#o+Ce)
"o!r) ,eetin%> to serve ! noti+e on t$e )ire+tors of t$e +o,(!n< re;uirin% eit$er t$!t t$e +o,(!n< "e 2oun) u(> or t$!t
t$e )issi)ent ,inorit< se## its s$!res to t$e +o,(!n<
1
4 On servi+e of t$e noti+e> t$e +o,(!n< "e+o,es "oun) to +!rr<
out t$e +$osen !#tern!tive> !n)> if t$!t is t$e !+;uisition of t$e ,inorit<As s$!res> t$e ,inorit< "e+o,e o"#i%e) to
tr!nsfer t$e s$!res to t$e +o,(!n<4
T$is (ro+e)ure )e!#s on#< 2it$ )e!)#o+C !risin% fro, ! ,inorit< usin% t$e re;uire,ent of un!ni,it< to
(revent t$e ,!jorit< !+$ievin% t$eir 2is$es "ut )oes not reso#ve t$e (ro"#e, of ! tie) vote 2$en t$ere is no ,inorit<4
T$is ,!< "e !))resse) eit$er "< ! s(e+ifi+ (rovision> or "< !n !((#i+!tion to t$e +ourt for t$e just !n) e;uit!"#e 2in)in%
u( of t$e +o,(!n< "e+!use t$e inso#u"#e )e!)#o+C ,!Ces it i,(ossi"#e for t$e +o,(!n< to +!rr< out t$e joint venture
2$i+$ is its (ur(ose4
1
See :or, && J1686K (ost4 :or ! (rovision for )e!)#o+C reso#ution on ,inor issues on#< see :or, &1 J1610K (ost4
!2%.$
"% Determination of disputes by an e5pert
It ,!< "e ,ore suit!"#e to use !n outsi)er> in ! (ro+ess si,i#!r to !n !r"itr!tion> to reso#ve issues 2$i+$ !re #ess
fun)!,ent!# !n) i,(ort!nt to t$e (!rties !n) t$e o(er!tion of t$e joint venture4 T$is en!"#es su+$ issues to "e reso#ve)
2it$out t$e )r!sti+ +onse;uen+es of eit$er t$e ter,in!tion of t$e joint venture or for+in% ! )issi)ent ,inorit< to se##4
T$e se#e+tion of t$e ,!tters to "e )e!#t 2it$ in t$is 2!< re;uires +!re4 If t$e +riterion to "e !((#ie) is t$!t of
+o,(!r!tive uni,(ort!n+e> t$e< ,ust "e so +#!ssifie) in re#!tion to "ot$ t$e (!rti+u#!r "usiness of t$e joint venture !n)
to t$e in)ivi)u!# nee)s !n) sensitivities of t$e (!rties4 It is $e#(fu# if t$e< s$!re +o,,on +$!r!+teristi+s t$us !##o2in%
t$e se#e+tion of !n !r"iter 2it$ t$e re#ev!nt sCi##s4 Usu!##<> ,!tters 2i## "e of ! fin!n+i!# or "usiness n!ture> 2$i+$ 2i##
,!Ce t$e, suit!"#e for )eter,in!tion "< ! ;u!#ifie) !++ount!nt4
T$e re#ev!nt +#!use ,!< (rovi)e t$!t if ! reso#ution re#!tin% to ! ,!tter 2$i+$ re;uires un!ni,ous !((rov!#
!n) is of ! (res+ri"e) t<(e is not (!sse) !t !n< t2o +onse+utive "o!r) ,eetin%s !t 2$i+$ it is (ro(ose)> !n< (!rt<
votin% in f!vour of it ,!<> 2it$in ! #i,ite) (erio)> !((oint ! ;u!#ifie) e9(ert on "e$!#f of t$e +o,(!n< to reso#ve t$e
,!tter4 T$e e9(ert ,ust ,eet )efine) +riteri! !n) "e +$osen "< !%ree,ent "et2een t$e (!rti+i(!nts> or> in )ef!u#t of
!%ree,ent> se#e+te) "< ! s(e+ifie) t$ir) (!rt<4 T$e (ro+e)ure to "e !)o(te) is entire#< !t t$e )is+retion of t$e ;u!#ifie)
e9(ert e9+e(t t$!t> e!+$ (!rti+i(!nt is entit#e) to su",it t$eir in)ivi)u!# vie2s on $o2 t$e ,!tter s$ou#) "e )eter,ine)>
2it$ t$eir re!sons4 T$e )e+ision of t$e ;u!#ifie) e9(ert on t$e ,!tter in )is(ute 2i## "e fin!# !n) "in)in% on (!rti+i(!nts
for !## (ur(oses (su"je+t on#< to t$eir fi)u+i!r< )uties !s )ire+tors of t$e +o,(!n<) !n) t$e (!rties !n) t$eir res(e+tive
no,inees on t$e "o!r) ,ust %ive effe+t to !n) i,(#e,ent it !s (ro,(t#< !s re!son!"#< (r!+ti+!"#e !fter t$e )!te of
)eter,in!tion4 T$us> !n< +onsent re;uire) fro, !n< (!rt< "< t$!t +#!use to i,(#e,ent t$e )e+ision of t$e ;u!#ifie)
e9(ert s$!## "e )ee,e) to $!ve "een %iven4
!2%/$
"( Dispute resolution in 'eneral
7$ere joint ventures invo#ve (!rti+i(!nts fro, ! nu,"er of )ifferent +ountries> it is i,(ort!nt to +onsi)er 2$et$er t$e
#!2 !((#i+!"#e to t$e s$!re$o#)ersA !%ree,ent> !n) t$e (#!+e of in+or(or!tion of t$e +o,(!n<> s$ou#) "e t$!t of En%#!n)
or e#se2$ere4 Juris)i+tion to $e!r )is(utes s$ou#) "e +onferre) on t$e +ourts or !r"itr!tors of t$e +ountr< 2$ose #!2 is
!((#i+!"#e to t$e !%ree,ent4 7$ere t$e %overnin% #!2 is to "e En%#is$ #!2> it fo##o2s t$!t juris)i+tion s$ou#) "e
+onferre) on En%#is$ institutions
1
4
7$et$er )is(utes !re to "e reso#ve) "< #iti%!tion or !r"itr!tion is ! ,!tter for t$e se#e+tion of t$e (!rti+i(!nts
invo#ve)4 Ar"itr!tion $!s t$e !)v!nt!%e of se+re+<> ! ,!tter #iCe#< to "e of (!rti+u#!r +on+ern if !r%u,ents !re to "e
!))u+e) 2$i+$ in !n< 2!< ref#e+t u(on t$e vi!"i#it< of t$e +o,(!n< !n) its !"i#it< to +on)u+t its "usiness> or t$e
)is+#osure of tr!)e se+rets or ot$er +o,,er+i!##< sensitive infor,!tion is invo#ve)
4 If #iti%!tion is t$e %ener!# (referre)

,e!ns of )is(ute reso#ution> it s$ou#) sti## "e "orne in ,in) t$!t so,e te+$ni+!# issues ,!< "e (!rti+u#!r#< suit!"#e for
su",ission to !n in)e(en)ent e9(ert> su+$ !s t$e v!#u!tion of t$e +o,(!n<As s$!res "< in)e(en)ent !u)itors> t$us
!##o2in% )esir!"#e e9(ertise to "e use) 2it$in t$e #iti%!tion (ro+ess itse#f4
1
:or ! +$oi+e of #!2 +#!use !n) su",ission to juris)i+tion +#!use see :or,s +#!use 8 J10*0K> & +#!use 8 J1065K (ost4
:or !r"itr!tion +#!uses "ot$ 2it$ !n) 2it$out !#tern!tive )is(ute reso#ution or +on+i#i!tion (rovisions see :or,s * J16*K> *&
J160K (ost res(e+tive#<4
!2%"$
") *ermination of the joint enture
T$e s$!re$o#)ersA !%ree,ent s$ou#) ,!Ce (rovision for t$e +ir+u,st!n+es> in !))ition to )e!)#o+C> in 2$i+$
ter,in!tion ,!< "e )esir!"#e4 Co,,on e9!,(#es !re serious "re!+$es of t$e ter,s of t$e !%ree,ent> t$e inso#ven+< of
! (!rt<> or ! +$!n%e in t$e +ontro# of one of t$e (!rti+i(!nts 2$i+$ ,!Ces ter,in!tion )esir!"#e
1
4 T$e joint venture ,!<
$!ve "een for,e) for ! fi9e) ter, in 2$i+$ +!se t$e s$!re$o#)ersA !%ree,ent (rovi)es for its ter,in!tion !t t$e
e9(ir!tion of t$!t (erio)4 T$e s$!re$o#)ersA !%ree,ent nor,!##< (rovi)es t$!t if ! (!rt< +e!ses to $o#) s$!res in t$e
+o,(!n<> it 2i## +e!se to "e ! (!rt< to t$e !%ree,ent !n) t$erefore $!ve no ri%$ts t$ereun)er4
/rovisions re%!r)in% +$!n%e of +ontro# of t$e +o,(!n< !re often su"t#< )r!fte) so !s to +over $i))en tr!nsfers
of +ontro# of ! (!rti+i(!nt +o,(!n<> su+$ !s tr!nsfers of t$e "enefi+i!# o2ners$i( of s$!res> or +$!n%es in t$e
+o,(osition of t$e (!rti+i(!nt +o,(!n<As senior ,!n!%e,ent
4 7$ere t$ere !re ,ore t$!n t2o (!rties to t$e venture> !

)e+ision $!s to "e ,!)e 2$et$er> in t$e event of one (!rt< )ef!u#tin% or "e+o,in% inso#vent> t$e entire !%ree,ent
s$ou#) +o,e to !n en) or 2$et$er it s$ou#) +ontinue "et2een t$e re,!inin% (!rti+i(!nts4 It is nor,!# to (rovi)e for its
+ontinu!tion in su+$ +ir+u,st!n+es> (rovi)e) t$!t t$e +o,,er+i!# re!#ities of t$e (!rti+u#!r joint venture !##o2 it to
+ontinue 2it$out t$e )ef!u#tin% or inso#vent (!rti+i(!nt4
T$e s$!re$o#)ersA !%ree,ent s$ou#) !#so )e!# 2it$ t$e +onse;uen+es of ter,in!tion4 T$e "!si+ !#tern!tives
!re for ! )ef!u#tin% (!rt< to "e "ou%$t out "< t$e ot$er (!rti+i(!nts> or for t$e +o,(!n< to "e #i;ui)!te)4 In )r!ftin% t$e
joint venture )o+u,ent!tion> +!refu# +onsi)er!tion nee)s to "e %iven to 2$et$er !n< !n+i##!r< !%ree,ents entere) into
!s (!rt of t$e joint venture> su+$ !s t$e #i+en+es of !n< inte##e+tu!# (ro(ert< ri%$ts> s$ou#) ter,in!te or +ontinue4 7$ere
t$e (!rti+u#!r ri%$ts !re essenti!# for t$e +ontinue) "usiness !+tivit< of t$e venture> t$en t$e< s$ou#) "e +ontinue)4 It is>
for inst!n+e> (ossi"#e to (rovi)e for t$e s!#e of s$!res of !n out%oin% (!rtner "< v!rious !#tern!tive ,et$o)s f!i#in%
2$i+$ #i;ui)!tion of t$e +o,(!n< ensues
&
4
On ter,in!tion> it 2i## "e ne+ess!r< to !tten) to +ert!in ,!tters 2$i+$ !re not +overe) "< t$e s$!re$o#)ersA
!%ree,ent su+$ !s !#tern!tive !rr!n%e,ents for #o!ns or %u!r!ntees (rovi)e) "< t$e 2it$)r!2in% (!rt<> !n) to +onsi)er
t!9 ,!tters in or)er to ,!9i,ise fis+!# "enefit fro, t$e !#ter!tion
*
4
1
See :or,s +#!use 1* J10&&K> & +#!use 1* J1051K (ost4
See :or,s 3 J168&K> &* J161K (ost4

&
*
As to t!9 issues see /!r!%r!($ &3 J1&11K et se; (ost4
!2%2$
-: CONSORTIU= AND SI=ILAR AGREE=ENTS
1: INTRODUCTION
", *he consortium a'reement
A +onsortiu, !%ree,ent is ! si,(#e +ontr!+tu!# joint venture 2it$ no +o,(!n< for,e) to un)ert!Ce t$e venture4 T$e
stru+ture is si,(#ifie) "e+!use no +o,(!n< is invo#ve)> "ut nevert$e#ess t$e fun)!,ent!# o"je+tives of t$e
!rr!n%e,ent> !n) t$e !%ree,ent 2$i+$ un)er(ins it> )o not )iffer si%nifi+!nt#< fro, t$ose of ! +or(or!te joint venture4
T$us> in t$e un)er#<in% +ontr!+t "et2een t$e, t$e (!rties 2i## 2is$> !s in t$e s$!re$o#)ersA !%ree,ent of ! +or(or!te
joint venture> to re+or) (re+ise#< 2$!t t$e venture is> $o2 it is to "e +!rrie) out> t$e ri%$ts !n) e9(e+t!tions of t$e
(!rties !n) $o2 t$e< !re to "e se+ure)> !n) !rr!n%e,ents for )is(utes or ter,in!tion4
!2(#$
". Factors affectin' use of consortia
".11 -uropean le'al systems
=ost Euro(e!n #e%!# s<ste,s !##o2 t$e use of +onsorti! +ontr!+t !%ree,ents to su((ort joint ventures if t$e (!rties so
2is$ !n) t$e +onse;uen+es of usin% t$e, to un)er(in ! joint venture !re %ener!##< si,i#!r in e!+$ +ountr<4 T$e f!+tors
!ffe+tin% e!+$ +$oi+e !re t$erefore "ro!)#< si,i#!r in t$e Unite) Bin%)o, or ot$er Euro(e!n +ountr< !n) in+#u)e t$e
e9tent> +o,(#e9it<> !n) )ur!tion of t$e joint venture !n) fin!n+i!# +onsi)er!tions4
!2(1$
".1% Comple5ity and duration
T$e ,ore e9tensive !n) +o,(#e9 ! joint venture> t$e ,ore #iCe#< it is t$!t ! si,(#e +ontr!+tu!# joint venture 2i## "e
insuffi+ient> !n) ! +or(or!te joint venture 2i## "e nee)e)4 In %ener!#> +ontr!+tu!# joint ventures !re "est e,(#o<e)
2$ere t$e venture is to "e of ver< #i,ite) )ur!tion !n) ,!< "e use) !s +over for t$e first (re#i,in!r< ste( to o"t!in !
+ontr!+t> 2it$ t$e +ontr!+t !+tu!##< "ein% +!rrie) out> if se+ure)> t$rou%$ ! +or(or!te joint venture4 T$e +ontr!+tu!#
+onsortiu, stru+ture is ,ost +o,,on#< e,(#o<e) 2$ere t$e (!rties 2is$ to +o'o(er!te 2$en +!rr<in% out ! )efine)
(roje+t for ! )efinite (erio) for e9!,(#e> ! s(e+ifi+ +onstru+tion (roje+t> +o'o(er!tion in ! (!rti+u#!r (ie+e of (r!+ti+!#
rese!r+$> or ! +ontr!+t for t$e su((#< of $i%$ te+$no#o%< e;ui(,ent (ursu!nt to !n or)er fro, ! t$ir) (!rt<4 In )r!ftin%
t$e !%ree,ent it is not ne+ess!r<> !s 2it$ t$e t<(i+!# +or(or!te joint venture> to %ive ! %ener!# )es+ri(tion of t$e for, of
"usiness to "e o(er!te)> "ut it is ne+ess!r< to i)entif< +#e!r#< t$e (!rti+u#!r (roje+t or +ontr!+t 2$i+$ t$e +onsortiu, is
for,e) to +!rr< out4 E9!,(#es of su+$ !%ree,ents !re +onsorti! to (erfor, ! s(e+ifi+ +ontr!+t for ! t$ir) (!rt<
1
>

to
ne%oti!te 2it$ or su",it ! ten)er to ! t$ir) (!rt< for ! s(e+ifi+ +ontr!+t !n) to enter into ! joint venture !%ree,ent if
su++essfu#
> or to +o'o(er!te in t$e )esi%n !n) )eve#o(,ent of ! (ro)u+t

&
4
1
See :or, 6 J1381K (ost4
See :or, 18 J13&1K (ost4

&
!2(%$
".1( Financial considerations
:in!n+i!# +onsi)er!tions 2$i+$ ,!< !ffe+t t$e )e+ision to use ! +onsortiu, in+#u)e t$e initi!# e9(ense of t$e venture>
+!s$ f#o2 !n) t!9 tr!ns(!ren+<4 If it is )iffi+u#t to (rovi)e st!rt'u( e9(enses> so,e for, of +ontr!+tu!# joint venture
,!< "e !((ro(ri!te for t$e initi!# st!%es of t$e venture> !s t$is #ess for,!# for, is e!sier to est!"#is$4 If t$e (roje+t is
2e## fun)e) 2it$ !)e;u!te (rovision for st!rt'u( +osts !n) it is )esir!"#e to !++u,u#!te in+o,e !n) )efer t$e
)istri"ution of (rofits> t$e +or(or!te joint venture (rovi)es t$e ,ore !((ro(ri!te stru+ture4
A +ontr!+tu!# joint venture enjo<s t!9 tr!ns(!ren+< un)er ,ost #e%!# s<ste,s> 2it$ t$e resu#t t$!t e!+$ (!rt< is
su"je+t to t!9!tion on $is (ortion of t$e in+o,e fro, t$e venture4 E;u!##<> in+o,e e9(enses !n) !n< t!9 "enefits !re
(!sse) on )ire+t#< to e!+$ (!rt< for in)ivi)u!# use4 It is t$erefore ne+ess!r< to +onsi)er 2$et$er or not t$is +re!tes t$e
,ost t!9 !)v!nt!%eous situ!tion for t$e in)ivi)u!# (!rties4
!2(($
: -ID AND JOINT VENTURE AGREE=ENTS
"/ 7ntroduction
T$e +onsortiu, !%ree,ent is fre;uent#< use) to ne%oti!te 2it$ or su",it ! ten)er to ! t$ir) (!rt< for ! s(e+ifi+ +ontr!+t>
!n) to enter into ! joint venture !%ree,ent if t$e ten)er is su++essfu#4 Su+$ !%ree,ents ,!< "e entere) into "e+!use t$e
t!sC re(resente) "< t$e +ontr!+t re;uires sCi##s !n) e;ui(,ent 2$i+$ neit$er (!rt< $!s in)ivi)u!##<> "ut 2$i+$ +!n "e
foun) in t$e (!rtiesA +o,"ine) in)ivi)u!# resour+es
1
4 In su+$ !n !%ree,ent> t$e (!rties i)entif< t$e n!ture of t$eir
in)ivi)u!# "usiness !n) resour+es> !n) t$e (roje+t for 2$i+$ t$e +ontr!+t is "ein% sou%$t4 T$e (!rties !%ree to un)ert!Ce
t$e +o,,it,ents !n) to re%u#!te t$eir ri%$ts in re#!tion to t$e ne%oti!tion !n) ten)er in !++or)!n+e 2it$ t$e !%ree,ent4
It is +o,,on for t$is stru+ture to +onsist of t2o se(!r!te !%ree,ents: ! "i) !%ree,ent> settin% out t$e
!%ree,ent "et2een t$e (!rties re#!tin% to t$e "i)> !n) ! joint venture !%ree,ent> !nne9e) to it> 2$i+$ sets out t$e ter,s
on 2$i+$ t$e +ontr!+t 2i## "e +!rrie) out if t$e "i) is su++essfu#4 T$e (!rties +o,,it t$e,se#ves> in t$e "i) !%ree,ent>
to enter into t$e joint venture !%ree,ent if t$e "i) is su++essfu#4 T$e "i) !%ree,ent usu!##< s(e+ifies t$!t it +o,es into
for+e on t$e )!te 2$en it is si%ne) "< "ot$ (!rties4
1
:or e9!,(#e> ! +o##!"or!tion "et2een ! "ui#)in% +ontr!+tor !n) ! )esi%n fir, 2it$ en%ineerin% +!(!"i#ities to un)ert!Ce t$e
+onstru+tion of ! #!r%e "ui#)in%4
!2()$
&: T.E -ID AGREE=ENT
"" Bey re6uirements
T$e +entr!# re;uire,ents of t$e "i) !%ree,ent in re#!tion to t$e ne%oti!tion !re t$!t t$e (!rties !%ree to (re(!re ! fu##<
(ri+e) !n) )et!i#e) "i) in !++or)!n+e 2it$ eit$er t$e re;uire,ents of t$e t$ir) (!rt<> or s(e+ifie) +riteri! set out in t$e
!%ree,ent 2it$in ! s(e+ifie) (erio)4 T$e (ri+es !n) )et!i#s +ont!ine) in t$e "i) !re fi9e) so !s to "e !++e(t!"#e to e!+$
(!rti+i(!nt in re#!tion to t$e (!rts of t$e (roje+t 2$i+$ it is to un)ert!Ce in)ivi)u!##<4 T$e (!rties !#so !%ree to ensure
t$!t t$e "i) is su",itte) "< ! s(e+ifie) )!te4
T$e t$ir) (!rt<> to 2$o, t$e "i) is su",itte)> ,!< seeC +#!rifi+!tion of ite,s in it !n)Eor !)just,ent of ter,s
in res(e+t of !## or !n< of its +o,(onent (!rts4 A++or)in%#<> t$e "i) !%ree,ent usu!##< (rovi)es t$!t if t$e t$ir) (!rt<
re;uires +#!rifi+!tion of !n< ite, in t$e "i)> t$e (!rti+i(!nt res(onsi"#e for it un)er t$e joint venture !%ree,ent 2i##
(rovi)e t$e ne+ess!r< infor,!tion4 A)just,ent of t$e ter,s of t$e !%ree,ent !t t$e inst!n+e of t$e t$ir) (!rt< usu!##<
re;uires t$e +onsent of !## t$e (!rti+i(!nts in t$e +onsortiu, to (rote+t t$eir in)ivi)u!# +o,,er+i!# situ!tion4
!2(,$
"2 *ermination of bid a'reement
T$e "i) !%ree,ent nor,!##< ter,in!tes on t$e o++urren+e of t$e e!r#iest of t$ree events n!,e#<: (1) t$e t$ir) (!rt<
reje+tin% t$e "i)H () t$e t$ir) (!rt< !++e(tin% t$e "i) t$ere"< "rin%in% t$e joint venture !%ree,ent into for+e or (&) t$e
e9(ir< of ! s(e+ifie) (erio) fro, t$e su",ission of t$e "i)4
U(on !++e(t!n+e of t$e "i) t$e (!rties usu!##< !%ree to enter into ! 2ritten !%ree,ent 2it$ t$e t$ir) (!rt< in
!++or)!n+e 2it$ t$e "i) !n) t$ere!fter enter into t$e !%ree) for, of t$e joint venture !%ree,ent to re%u#!te t$e +!rr<in%
out of t$e (roje+t> t$e +onsortiu, !%ree,ent t$ereu(on ,er%in% 2it$ t$e joint venture !%ree,ent4
!2(.$
2# Non+competition
T$e ;uestion of 2$et$er (!rties in t$e +onsortiu, s$ou#) "e free to +!rr< out t$e s!,e !+tivities in)e(en)ent#< often
!rises 2$en t$e +onsortiu, is for,e) to un)ert!Ce +ontr!+ts not <et se+ure)4 T$is 2i## not "e !n issue in t$e +!se of
s(e+ifi+ se+ure) +ontr!+ts4 7$i#e it is (ossi"#e to in+#u)e ! (rovision in t$e !%ree,ent restri+tin% t$e in)ivi)u!#
(!rti+i(!nts fro, su",ittin% se(!r!te in)e(en)ent ten)ers> t$ere is ! risC t$!t su+$ ! restri+tion ,i%$t +!use t$e
!%ree,ent to "e seen !s one 2$i+$ resu#ts in t$e for,!tion of ! (!rtners$i( "et2een t$e (!rti+i(!nts> 2it$ (ro"!"#<
un)esir!"#e t!9 +onse;uen+es
1
4 Conse;uent#<> t$e ,ost +o,,on so#ution is to for, ! +onsortiu, to (ursue !n) ten)er
for +ontr!+ts> t$e !%ree,ent for 2$i+$ in+#u)es su+$ ! restri+tion of +o,(etition !n) enter into ! joint venture
!%ree,ent to 2$i+$ t$ese +ontr!+ts +!n "e !ssi%ne) 2$i+$ e9+#u)es it4
1
As to t!9 !s(e+ts of ! +or(or!te (!rtners$i( see /!r!%r!($ &05 J1&1&K et se; (ost4
!2(/$
21 Confidentiality
It is #iCe#< t$!t (!rti+i(!nts 2i## reve!# sensitive infor,!tion !"out t$eir +o,,er+i!# o(er!tions> in)ustri!# sCi##s !n)
e;ui(,ent )urin% t$e )is+ussions #e!)in% to t$e ,!Cin% of t$e "i)4 As 2it$ ! +or(or!te joint venture> ! +onfi)enti!#it<
+#!use is t$erefore !((ro(ri!te
1
4
1
:or ! +onfi)enti!#it< +#!use see :or, 18 +#!use 3 J13&0K (ost4 See !#so /!r!%r!($ 35 J613K !nte4
!2("$
*: T.E JOINT VENTURE AGREE=ENT
2% 7ntroduction
T$e joint venture !%ree,ent re+ites t$e !%ree,ent "et2een t$e (!rti+i(!nts to +!rr< out t$e +ontr!+t 2it$ t$e t$ir) (!rt<>
!n) (rovi)es for its +o,,en+e,ent (usu!##< on si%n!ture "< !## (!rti+i(!nts)> !n) ter,in!tion (usu!##< 2$en t$e
+ontr!+t $!s "een (erfor,e) !n) !## outst!n)in% ,!tters !risin% un)er t$e !%ree,ent $!ve "een )e!#t 2it$ !++or)in% to
its ter,s)4 Un)er t$e !%ree,ent> t$e (!rties +o,,it t$e,se#ves to (ro+ee)in% 2it$ t$e +ontr!+t> un)ert!Cin% t$e 2orC
!n) (rovi)in% t$e ,!teri!#s !s re;uire) "< t$e !%ree,ent4 T$e !%ree,ent !#so !((ortions t$e +ontri"ution of t$e (!rties
!n) s(e+ifies t$e r!tios in 2$i+$ (rofits !n) #osses !risin% fro, t$e joint venture !re to "e s$!re)4 T$e for,u#! !)o(te)
is> t<(i+!##<> si,i#!r to t$!t of (!rtners$i(> !n) ref#e+ts t$e re#!tive v!#ue !ttri"ute) to e!+$ (!rt<As +ontri"ution to t$e
venture4
!2(2$
2( Contribution of the parties
T$e +onsortiu, 2i## "e for,e) to +!rr< out t$e (!rti+u#!r (roje+t "e+!use t$e (!rti+i(!nts fee# t$!t> in)ivi)u!##<> t$e< )o
not $!ve suffi+ient resour+es for t$e (roje+t to "e ! (r!+ti+!"#e or !ttr!+tive (ro(osition un)ert!Cen !#one4 It is t$us t$e
(oo#in% of t$e resour+es of t$e (!rti+i(!nts 2$i+$ 2i## en!"#e t$e venture to "e un)ert!Cen4 T$e resour+es 2$i+$ t$e
(!rties (oo# 2i## "e (!rt#< fin!n+i!#> "ut t$e< 2i## !#so +ontri"ute +o,(#e,ent!r< sCi##s !n) te+$ni+!# resour+es 2$i+$
!re even ,ore essenti!# to t$e su++ess of t$e joint venture t$!n +o,"inin% fin!n+i!# resour+es4 In ! ,!nuf!+turin%
+onsortiu,> for e9!,(#e> )ifferent ,e,"ers ,!< ,!nuf!+ture )ifferent (!rts to "e !sse,"#e) "< !not$er (!rti+i(!nt
2$i#e in ! +onstru+tion (roje+t> one (!rti+i(!nt ,!< (rovi)e t$e #!n)> !not$er t$e (roje+t ,!n!%e,ent sCi##s !n) ! t$ir)
e9e+ute t$e !+tu!# +onstru+tion4 T$e +onsortiu, !%ree,ent s$ou#) +#e!r#< set out t$e fin!n+i!# !n) ot$er +ontri"utions
to "e ,!)e "< e!+$ (!rt<> t$ere"< )efinin% t$e ro#es of t$e (!rties in e9e+utin% t$e venture4
C!(it!# +ontri"utions v!r< !++or)in% to t$e +ir+u,st!n+es of e!+$ joint venture !n) 2$ere re;uire)> s$ou#) "e
fu##< )e!#t 2it$ in t$e +onsortiu, !%ree,ent4 It ,!< "e t$e +!se t$!t no +!(it!# +ontri"ution is re;uire) fro, !n< of t$e
(!rti+i(!nts4 It is (ossi"#e t$!t (!rti+i(!nts ,!< $!ve entire#< se(!r!te ro#es in re#!tion to t$e venture "e+!use t$e<
,ere#< +ontinue to +!rr< on t$eir e9istin% "usinesses> +ontri"utin% so,e of t$eir (ro)u+t to t$e joint venture4 It is
un#iCe#< t$!t su"st!nti!# +o,,on fun)s 2i## "e nee)e) in t$ese +ir+u,st!n+es4 Joint ventures 2$i+$ !re ,ore
inte%r!te)> su+$ !s t$e +ontri"ution of te+$ni+!# resour+es to ,!nuf!+ture !n ite, so te+$ni+!##< !)v!n+e) t$!t no
in)ivi)u!# (!rti+i(!nt +ou#) un)ert!Ce it> re;uire +!(it!# +ontri"utions4 7$ere +!(it!# +ontri"utions !re nee)e)> t$e
re;uire,ents (#!+e) on e!+$ (!rti+i(!nt !re fu##< )e!#t 2it$ in t$e +onsortiu, !%ree,ent4
!2)#$
2) 3upportin' a'reements
As 2it$ +or(or!te joint ventures> t$e +onsortiu, !%ree,ent ,!< "e su((orte) "< ot$er !%ree,ents essenti!# for t$e
su++ess of t$e joint venture su+$ !s #i+en+es> or !ssi%n,ents of (ro(ert< ri%$ts> su((#< !%ree,ents !n) servi+e
!%ree,ents
1
4 T$e +onsortiu, !%ree,ent sets out e!+$ (!rt<As %ener!# o"#i%!tions 2it$ re%!r) to t$ese !%ree,ents> !n)
is su((orte) "< )et!i#e) !n+i##!r< )o+u,ents4
1
As to su((ortin% !%ree,ents see /!r!%r!($ 58 J1&1K et se; (ost4
!2)1$
2, &esponsibilities to third parties
T$e (!rti+i(!nts 2i## 2is$ to !voi) +onstitutin% ! (!rtners$i( "e+!use e!+$ (!rtner is !n !%ent of t$e fir, !n) is joint#<
!n) sever!##< res(onsi"#e for !## #i!"i#ities +re!te)
1
4 T$e )istin+tion "et2een ! +onsortiu, !n) ! (!rtners$i( +!n "e i##'
)efine) in (r!+ti+e> !n) +ert!in (rovisions in t$e +onsortiu, !%ree,ent ,!Ce it ,ore #iCe#< t$!t it 2i## "e t!Cen "< t$e
+ourts to $!ve +onstitute) t$e (!rti+i(!nts (!rtners in ! (!rtners$i( r!t$er t$!n ,ere (!rti+i(!nts in ! joint venture4 To
tr< to !voi) t$is resu#t> ! +onsortiu, !%ree,ent t<(i+!##< )is+#!i,s !n< intention to +re!te ! (!rtners$i(> !n) often !#so
e9+#u)es t$e ri%$t of !n< (!rt< to !+t !s t$e !%ent of t$e ot$ers4 On o++!sion> $o2ever> one (!rti+i(!nt ,!< "e
!((ointe) to !+t !s ,!n!%er of t$e +onsortiu,> in 2$i+$ +!se $e> in)ivi)u!##<> $!s !%en+< (o2ers4 7$i#e t$e
+onsortiu, !%ree,ent seeCs to !voi) ! t$ir) (!rt< +#!i, of joint !n) sever!# #i!"i#it<> it usu!##< (rovi)es for
(ro(ortion!te in)e,nities in t$e event of t$ir) (!rt< +#!i,s> !n) for !n< (!rti+i(!nt !t f!u#t to in)e,nif< t$e ot$ers fu##<
in res(e+t of su+$ +#!i,s4
1
See t$e /!rtners$i( A+t 1568 s 0 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/): see vo# &8 (1661 Reissue) /ARTNERS.I/
/!r!%r!($ 35 J63K4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
!2)%$
2. Amendments to the third party contract
T$e (!rties 2i## $!ve !ssesse) t$e risCs !n) ju)%e) t$eir o"#i%!tions in re#!tion to t$e (re+ise ter,s of t$e +ontr!+t to "e
+!rrie) out "< t$e +onsortiu,4 An< v!ri!tion of its ter,s 2i## !#ter t$ese risCs !n) re)efine t$ose o"#i%!tions> (ossi"#< to
t$e )etri,ent of one or ot$er of t$e (!rti+i(!nts4 A++or)in%#<> ! joint venture !%ree,ent t<(i+!##< (rovi)es t$!t no
(!rti+i(!nt ,!< offer> re;uest or !%ree to !n< !,en),ent of t$e t$ir) (!rt< +ontr!+t or ter,in!te or re(u)i!te !n<
o"#i%!tion on !n< (!rt< to it> 2it$out t$e +onsent of t$e ot$er (!rties4 T$us> e!+$ (!rti+i(!nt ,!< use its (o2er of veto
eit$er to (revent su+$ !#ter!tion> or to o"t!in in)e,nities or ot$er su((ort fro, its +o'(!rti+i(!nts !s ! +on)ition of its
!%ree,ent4
!2)($
2/ <ana'ement
As t$ere is no +o,(!n< in ! +onsortiu,> t$ere +!n "e no for,!# "o!r) of )ire+tors4 =!n< +onsorti! set u( ! #ess for,!#
"o!r)> or ,!n!%e,ent +o,,ittee> to o(er!te !s ! )is+ussion foru, for ,!tters !ffe+tin% t$e venture !n) t$e +onsortiu,
(!rti+i(!nts4 T$e (!rties si,(#< !((oint ,e,"ers of t$e "o)< !n) re(#!+e t$e, !s t$e< see fit4 If t$e foru, is to $!ve
!n< (o2ers or !ut$orit<> t$ese s$ou#) "e )eter,ine) in !)v!n+e !n) +#e!r#< )efine) in t$e !%ree,ent> to%et$er 2it$ t$e
votin% ri%$ts of t$e re(resent!tives4 It is unusu!# for t$e +o,,ittee to $!ve t$e (o2er to !,en) or v!r< t$e t$ir) (!rt<
+ontr!+t or to !((rove !n< ,!tter re;uirin% t$e in)ivi)u!# +onsent of !n< (!rt<4 One (!rt< or ,ore ,!< "e %iven ! ri%$t
of veto4
!2))$
2" Project mana'ement
T$e !+tu!# ,!n!%e,ent of t$e venture ,!< "e )e#e%!te) to ! s(e+ifie) (erson> or to one of t$e (!rti+i(!nts> su"je+t to
(o#i+ies #!i) )o2n eit$er "< t$e (!rties 2it$in t$e ,!n!%e,ent !%ree,ent> or "< t$e ,!n!%e,ent foru, if one is
+onstitute)4 A t<(i+!# so#ution is t$e !((oint,ent of ! +o,(etent (roje+t ,!n!%er "< e!+$ (!rti+i(!nt for t$e )!<'to')!<
,!n!%e,ent of its (!rt of t$e o(er!tion4 E!+$ (!rti+i(!nt un)ert!Ces to (ro+ure t$!t its (roje+t ,!n!%er (rovi)es !##
infor,!tion re!son!"#< re;uire) "< t$e ,!n!%e,ent +o,,ittee !n) +o,(#ies 2it$ un!ni,ous )e+isions of t$!t
+o,,ittee> !s 2e## !s +onsu#tin% 2it$ t$e (roje+t ,!n!%ers !((ointe) "< t$e ot$er (!rti+i(!nts to $!r,onise t$e
+on)u+t of )!<'to')!< o(er!tions4 E!+$ (roje+t ,!n!%er !#so !%rees !n) i,(#e,ents !((ro(ri!te ,e!sures for inter !#i!>
#i!ison 2it$ t$e t$ir) (!rt< !n) !n< ot$er (rofession!#s invo#ve) in t$e (roje+t !n) #i!ison re%!r)in% )esi%n +$!n%es !n)
v!ri!tions un)er t$e ,!in +ontr!+t (if !n<)
1
4 .o2ever> t$e (roje+t ,!n!%ers )o not nor,!##< $!ve t$e (o2er to v!r< t$e
ter,s of t$e !%ree,ents or to !((rove or +onsent to !n< ,!tter re;uirin% ! (!rti+i(!ntAs +onsent4
1
Ot$er ,!tters ,!< in+#u)e $e!#t$ !n) s!fet<> sto+C> inventor< +ontro#> stor!%e> site se+urit< !n) fire (revention4
!2),$
22 :iability under the third party contract
T$e un)er#<in% +ontr!+t 2it$ t$e t$ir) (!rt< 2i## (ro"!"#< e9(ose !## (!rti+i(!nts to t$e (ossi"i#it< of !n !+tion for
"re!+$ of +ontr!+t even t$ou%$ t$e !%ree,ent usu!##< (rovi)es t$!t one (!rti+i(!nt is (ri,!ri#< res(onsi"#e for t$e
(!rti+u#!r o"#i%!tion4 A++or)in%#<> t$e joint venture !%ree,ent 2i## +ont!in !n in)e,nit< +#!use un)er 2$i+$ t$e (!rt<
"e!rin% t$e (ri,!r< res(onsi"i#it< 2i## in)e,nif< $is +o'(!rti+i(!nts in res(e+t of !n< #oss t$e< in+ur in ,eetin% ! +#!i,
fro, t$e t$ir) (!rt<4 T$e ri%$t of in)e,nit< s$ou#) not> of +ourse> "e e9er+is!"#e unti# t$e #i!"i#it< to t$e t$ir) (!rt< $!s
"een est!"#is$e) "< #iti%!tion or !r"itr!tion if it is t$e su"je+t of )is(ute4
!2).$
1## Claims a'ainst the third party
T$e t$ir) (!rt< ,!< !#so in+ur ! +ontr!+tu!# #i!"i#it< to t$e (!rti+i(!nts4 In su+$ ! situ!tion> t$e (!rti+i(!nts ,!< "in)
t$e,se#ves to !+t joint#< in )e!#in% 2it$ t$e +#!i,> !%reein% to instru+t so#i+itors !n) ot$er e9(erts joint#< 2$ere
ne+ess!r<4 As t$e )is(ute ,!< "e (rotr!+te)> t$e (!rties usu!##< !%ree to "e!r its +osts !n) e9(enses e;u!##< 2$i#e it
(ro+ee)s4 On fin!# )eter,in!tion or sett#e,ent t$e tot!# +osts t$ere"< in+urre) (!fter t!Cin% into !++ount !n<
+ontri"ution re+overe) fro, t$e t$ir) (!rties to t$e )is(ute) 2i## t$en "e !((ortione) (ro r!t! !++or)in% to t$e !,ounts
re+overe) "< or !2!r)e) !%!inst e!+$ of t$e (!rties to t$e joint venture !%ree,ent4
!2)/$
1#1 &i'ht to brin' proceedin's
Cir+u,st!n+es ,!< !rise in 2$i+$ on#< so,e of t$e (!rti+i(!nts 2is$ to ,!int!in or )efen) ! +#!i, un)er t$e t$ir)
(!rt< +ontr!+t4 In su+$ +ir+u,st!n+es t$e (!rties 2is$in% to t!Ce !+tion !re usu!##< e,(o2ere) to use t$e n!,e of t$e
ot$er(s) to "rin% or +ontest su+$ (ro+ee)in%s $!vin% (rovi)e) !((ro(ri!te se+urit< for +osts4 A## +osts !n) e9(enses
in+urre) !re to "e "orne "<> !n) !## su,s re+overe) "e#on% to> t$e (!rties "rin%in% or resistin% t$e +#!i,4
!2)"$
1#% Confidentiality
T$e !%ree,ent s$ou#) +ont!in ! +onfi)enti!#it< +#!use> si,i#!r to t$!t in ! +or(or!te venture !%ree,ent> 2$i+$ +overs
+onfi)enti!# infor,!tion o"t!ine) "< ! (!rti+i(!nt in re#!tion to t$e +#ients "usiness or t$e !ff!irs of t$e ot$er
(!rti+i(!nt
1
4 T$e o"#i%!tions of +onfi)enti!#it< usu!##< +ontinue in)efinite#< "ut +e!se to !((#< to !n< infor,!tion
+o,in% into t$e (u"#i+ )o,!in (e9+e(t t$rou%$ ! (!rt<As "re!+$ of its o"#i%!tions)4 In !))ition> (!rties usu!##< !%ree not
to e,(#o<> en%!%e or su"'+ontr!+t !n< e,(#o<ee of t$e ot$er (!rti+i(!nts )urin% t$e ter, of t$e !%ree,ent4
1
As to +onfi)enti!#it< in re#!tion to +or(or!te joint ventures see /!r!%r!($ 35 J613K !nte4
!2)2$
1#( *a5ation
E!+$ (!rti+i(!nt usu!##< !%rees to "e!r its o2n #i!"i#it< for !n< t!9!tion (in+#u)in% VAT) !risin% in res(e+t of its
(!rti+i(!tion in t$e venture !n) un)ert!Ces to in)e,nif< t$e ot$er (!rties in res(e+t of !n< su+$ t!9!tion (!i)> "< t$e,>
for 2$i+$ it is (ri,!ri#< #i!"#e4
!2,#$
1#) *ransferability of participation
T$e in)ivi)u!# sCi##s !n) resour+es of t$e (!rties in ! +onsortiu, !re #iCe#< to "e even ,ore i,(ort!nt t$!n t$ose of
(!rties in ! +or(or!te joint venture4 Conse;uent#<> free)o, to tr!nsfer (!rti+i(!tion is #iCe#< to "e even ,ore restri+te)4
It is usu!##< envis!%e) t$!t !## (!rties 2i## re,!in in t$e +onsortiu, unti# t$e venture $!s "een !++o,(#is$e) even if one
(!rt< +e!ses to "e ! ,e,"er of t$e +onsortiu, "e+!use> for e9!,(#e> it $!s "re!+$e) ! fun)!,ent!# ter, of t$e
!%ree,ent or is inso#vent4 T$e +onsortiu, !%ree,ent %ener!##< (rovi)es t$!t $is ri%$ts !n) o"#i%!tions ,!< not "e
tr!nsferre) 2it$out t$e +onsent of t$e ot$ers4 T$us> t$e ot$er (!rties 2i## "e free to fin) ! ne2 (!rti+i(!nt 2it$ t$e
ne+ess!r< sCi##s !n) resour+es to re(#!+e t$e one 2$o $!s +e!se) to (!rti+i(!te4
!2,1$
1#, Dispute resolution and deadloc>
In %ener!#> t$e issues 2it$ re%!r) to reso#ution of )is(utes in ! +onsortiu, !re si,i#!r to t$ose !risin% in +or(or!te joint
ventures
1
4 If t$e venture $!s no intern!tion!# i,(#i+!tions> t$e !%ree,ent s$ou#) (rovi)e for eit$er !r"itr!tion or +ourt
(ro+ee)in%s4
-e+!use ! +onsortiu, joint venture is usu!##< for,e) to !+$ieve ! #i,ite) o"je+tive> !n) not to +on)u+t !
"usiness in)efinite#<> it is #ess #iCe#< t$!t )e!)#o+C 2i## !rise !n) if it )oes> t$e +onse;uen+es !re #ess serious t$!n in t$e
+!se of ! +or(or!te joint venture4 In %ener!#> t$e +onsortiu, 2i## +ontinue un)er t$e ori%in!# ter,s of t$e !%ree,ent>
un#ess !## (!rties !%ree to ! +$!n%e4 Dissentin% (!rties +!n t$erefore "e $e#) to t$e ter,s of t$e ori%in!# !%ree,ent !n)
+ontinue !s (!rties unti# t$e n!tur!# en) of t$e venture4 In so,e +!ses> 2it$ re%!r) to #ess fun)!,ent!# ,!tters> t$e
!%ree,ent ,!< "e )r!fte) to !##o2 (oints of )is!%ree,ent to "e )e+i)e) "< ! ,!jorit< vote of t$e (!rti+i(!nts>
)eter,ine) eit$er "< nu,"er or !++or)in% to t$e (er+ent!%es of t$e s$!re of (rofits or +!(it!#4
1
As to )is(ute reso#ution for +or(or!te joint ventures see /!r!%r!($ 5 J63K et se; !nte4
!2,%$
1#. *ermination
Un#iCe ,ost +or(or!te joint ventures> t$e ,ost usu!# 2!< for ! +onsortiu, joint venture to +o,e to !n en) is entire#<
n!tur!##<> "< t$e +o,(#etion of t$e (roje+t for 2$i+$ it 2!s set u(4 It ,!< "e "rou%$t to !n en) ,ore !"ru(t#< if t$e
(roje+t "e+o,es i,(ossi"#e> eit$er for (r!+ti+!# re!sons> or "e+!use t$e (erfor,!n+e of it "e+o,es i##e%!#4 In su+$
+ir+u,st!n+es> t$e !%ree,ent s$ou#) ter,in!te !uto,!ti+!##<4 T$e !%ree,ent itse#f ,!< (rovi)e for ter,in!tion in
+ert!in +ir+u,st!n+es> for e9!,(#e> if one of t$e (!rti+i(!nts "e+o,es inso#vent or t$e (!rti+i(!nts !re no #on%er
(re(!re) to +ontinue 2it$ ! (!rti+i(!nt 2$o $!s serious#< "re!+$e) t$e ter,s "ut for 2$o, it is i,(r!+ti+!"#e to fin) !n
!((ro(ri!te re(#!+e,ent4
T$e (re+ise +ir+u,st!n+es %ivin% rise to t$e ri%$t to ter,in!te> !n) t$e +onse;uen+es> )e(en) on t$e
(rovisions in t$e !%ree,ent4 T$e ter,in!tion of t$e !%ree,ent #e!)s to t$e (re(!r!tion of !++ounts )e!#in% 2it$ (rofits
or #osses in t$e !%ree) r!tios> t$e fin!n+i!# +ontri"utions ,!)e "< t$e (!rties> res(onsi"i#ities to in)e,nif< e!+$ ot$er
un)er t$e ter,s of t$e !%ree,ent> !n) !n< +onse;uent fis+!# res(onsi"i#ities4 Ter,in!tion ,!< !#so $!ve +onse;uen+es
in re#!tion to !n+i##!r< ri%$ts %r!nte) to t$e +onsortiu,4
1
:or e9!,(#e ! +onsortiu, to su((#< +ert!in ite,s to ! t$ir) (!rt< 2$en t$e su((#< +ontr!+t is not o"t!ine)4
!2,($9!2.#$
(*) CO=/AN? LA7 AS/ECTS
A: INTRODUCTION
1#/ Characteristics of the 6uasi+partnership
En%#is$ +o,(!n< #!2 $!s (rove) +!(!"#e of )eve#o(in% in nu,erous )ire+tions to (rovi)e stru+tures for ver< )ifferent
Cin)s of "usiness or%!nis!tions> fro, t$e #!r%est (u"#i+ +o,(!n< to t$e s,!## ;u!si'(!rtners$i(4 T$e ;u!si'(!rtners$i(
is t$e t<(e of +o,(!n< ,ost fre;uent#< use) !s t$e ve$i+#e for ! +or(or!te joint venture !n) its +$!r!+teristi+s $!ve
"een i)entifie) !s fo##o2s
1
:
18341 it is usu!##< for,e) or +ontinue) on t$e "!sis of ! (erson!# re#!tions$i( invo#vin% ,utu!# +onfi)en+eH
1834 t$ere ,!< "e !n !%ree,ent or un)erst!n)in% t$!t !## or so,e of t$e s$!re$o#)ers !re to (!rti+i(!te in t$e +on)u+t
of t$e "usinessH
1834& restri+tions on t$e tr!nsfer of s$!res 2i## "e t$e ru#e r!t$er t$!n t$e e9+e(tionH
1834* t$e in)ivi)u!#s invo#ve) ,!< !#so $!ve ,!)e re#!tive#< su"st!nti!# +!(it!# +ontri"utions to t$e +o,(!n<H !n)
18340 t$e s$!re$o#)ers !re ! s,!##> +#ose'Cnit %rou(> invo#ve) in t$e )!<'to')!< o(er!tion of t$e "usiness> !n)
fin!n+i!##< !n) (erson!##< +o,,itte) to t$e +o,(!n<4
T$ese fe!tures su%%est t$!t t$e interests of s$!re$o#)ers in su+$ +o,(!nies #ie in four ,!in !re!s:
18341 e,(#o<,ent !n) (!rti+i(!tion> %iven t$eir +#ose invo#ve,ent 2it$ t$e +o,(!n<H
18343 t$e (reserv!tion of t$e st!tus ;uo: to (rote+t t$e "!sis on 2$i+$ t$e "usiness $!s "een set u(H
18345 t$e (ro(er +on)u+t of t$e +o,(!n<As !ff!irs: to ensure +ontinue) %oo)2i## !,on% t$e (!rties !n) t$e (ros(erit<
of t$e "usinessH !n)
18346 t$e fin!n+i!# (osition> %iven t$e +o,,it,ent of t$eir (erson!# resour+es to t$e +o,(!n<4
7it$ t$e e9+e(tion of t$e nee) for t$e (!rti+i(!nts to "e !+tu!##< e,(#o<e) in t$e joint venture> t$e
+$!r!+teristi+s of ! ;u!si'(!rtners$i( !re ver< ,u+$ t$ose of ! joint venture +o,(!n<4 A++or)in%#<> t$e #!2 !ffe+tin%
;u!si'(!rtners$i( +o,(!nies is $i%$#< re#ev!nt to un)erst!n)in% t$e #!2 %overnin% t$e +o,(!n< use) !s t$e joint
venture ve$i+#e4
1
See -ren)! .!nni%!n DSe+tion *06 of t$e Co,(!nies A+t 1650G! +o)e of +on)u+t for t$e ;u!si'(!rtners$i(QA J1655K L=CL@
184
!2.1$
1#" *he 6uasi+partnership relationship
T$e re+o%nition of t$e )iverse interests !n) e9(e+t!tions 2it$in ! sin%#e #e%!# stru+ture $!s not "een e!s< for En%#is$
+o,(!n< #!2 !n) it 2!s not unti# t$e 1618s !n) 1638s t$!t t$e ter, D;u!si'(!rtners$i(A 2!s +oine)
1
4 @u!si'(!rtners$i(s
$!ve in +o,,on t$e )esire to o"t!in t$e (rote+tion of #i,ite) #i!"i#it< 2$i#e ,o)if<in% t$e +onstitution!# stru+tures of
t$e +o,(!n< so t$!t t$e (!rti+i(!nts enjo< intern!##< t$e ri%$ts !n) (rote+tions +$!r!+teristi+ of (!rtners4 .o2ever>
2$i#e t$e D(!rtnersA ,!< enjo< e;u!#it< of s$!re$o#)in%> ,!n!%e,ent !n) votin% ri%$ts> t$is is not essenti!# for ! ;u!si'
(!rtners$i( to "e est!"#is$e)
4 At t$e $e!rt of t$e ;u!si'(!rtners$i( +on+e(t is ! re#!tions$i( "et2een t$e (!rti+i(!nts

o(er!tin% ! "usiness to%et$er on t$e "!sis of trust !n) +onfi)en+e so t$!t t$e +onstitution!# !rr!n%e,ents )o not e9(ress
t$e fu## un)erst!n)in% !+$ieve) "< t$e (!rties> !n) $en+e t$e #e%iti,!te e9(e+t!tions of e!+$ (!rti+i(!nt4 T$e ,ere f!+t
t$!t (!rti+i(!nts +o,e to%et$er to for, ! s,!## +o,(!n< )oes not +re!te ! ;u!si'(!rtners$i( in t$e !"sen+e of t$e
!))ition!# f!+tors4 In Re a &ompan, 1*o 55;5CD o. :C=<6
&
> /eter Gi"son J st!te) t$!t Dt$ere ,ust "e !ver,ents t$!t
so,et$in% e;uiv!#ent to (!rtners$i( o"#i%!tions 2ere +re!te)A
*
4 -< t$e s!,e toCen> ! ;u!si'(!rtners$i( +!n "e +re!te)
2it$out t$ere $!vin% "een ! (re'e9istin% (!rtners$i(> "ut 2$ere su+$ ! (!rtners$i( (re'e9ists t$e o"#i%!tions !risin%
fro, t$!t for, of "usiness or%!nis!tion D,i%$t "e t!Cen to +ontinueA
0
4
1
See Re /C (eat #upplies 1Guild.ord6 Ltd J1611K & A## ER &8> J1611K 1 7LR 111H Re E7panded Plu!s Ltd J1611K 1 A## ER
533> J1611K 1 7LR 01*H Re Fildes Bros Ltd J1638K 1 A## ER 6&> J1638K 1 7LR 06H Ebrahimi v Westbourne Galleries Ltd
J163&K AC &18> J163K A## ER *64
See Re Bird Precision Bellows Ltd J165*K C$ *16 !t *&& (er Nourse J4
&
Re a &ompan, 1*o 55;5CD o. :C=<6 (1655) * -CC 584
*
I"i) !t 5* (er Gi"son J4
0
I"i) !t 5* (er Gi"son J4
!2.%$
-: T.E JUST AND E@UITA-LE /RINCI/LE
1#2 Application of partnership la0
It is not suffi+ient for t$e +ourts to fin) t$!t ! ;u!si'(!rtners$i( e9ists if t$ere !re no ,e!ns of %ivin% effe+t to t$e
!))ition!# e9(e+t!tions of t$e (!rti+i(!nts4 T$e +ourts $!ve sou%$t to i)entif<> 2it$in +o,(!n< #!2> ,e!ns of (rote+tin%
su+$ e9(e+t!tions !n) $!ve re#ie) on t$eir !"i#it< to 2in) u( ! +o,(!n< on t$e just !n) e;uit!"#e %roun)
1
4
Re Eenid/e 'obacco &o Ltd
2$i+$ +on+erns ! ,er%er> i##ustr!tes t$e (ro"#e,s r!ise) "< ;u!si'(!rtners$i(s>

!n) t$e ,e!ns use) "< t$e +ourts to reso#ve t$e,4 A s,!## +o,(!n< 2!s for,e) "< t2o entre(reneurs !s t$e ,e!ns of
,er%in% t2o +o,(#e,ent!r< "usinesses !n) re+onstitutin% t$e, !s ! sin%#e joint enter(rise4 T$e t2o entre(reneurs
2ere t$e on#< ,e,"ers of t$e +o,(!n<> $o#)in% e;u!# nu,"ers of s$!res !n) e;u!# ri%$ts of ,!n!%e,ent4 /erson!#it<
)ifferen+es su"se;uent#< #e) to ! ,utu!# #oss of +onfi)en+e !n) +o,(#ete ,!n!%e,ent )e!)#o+C4 T$e +o,(!n< +ou#)
$!r)#< +ontinue !s ! %oin% +on+ern> !n) one of t$e (!rti+i(!nts !((#ie) for it to "e 2oun) u( on t$e "!sis t$!t> in t$e
+ir+u,st!n+es> t$is 2!s just !n) e;uit!"#e4 T$e 2in)in% u( or)er 2!s u($e#) "< t$e Court of A((e!#> 2$i+$ $e#) t$!t
t$e or%!nis!tion> !#t$ou%$ ! +or(or!te "o)<> 2!s essenti!##< ! (!rtners$i( !n) it s$ou#) t$erefore "e tre!te) !s !
(!rtners$i( in 2$i+$ t$e (!rtners $!) #ost +onfi)en+e in e!+$ ot$er> !n) "e "rou%$t to !n en)
&
4
T$is !((ro!+$ 2!s su"se;uent#< +onfir,e) "< t$e Ju)i+i!# Co,,ittee of t$e /riv< Coun+i#
*
!n) t$e (rin+i(#e
t$!t +or(or!te (!rtners$i( t<(e ventures s$ou#) "e 2oun) u( in +ir+u,st!n+es 2$ere ! (!rtners$i( 2ou#) "e )isso#ve)
2!s !((#ie) in t$e +!se of Re Davis and &ollett Ltd
0
4 .ere t$ere 2!s no ,!n!%e,ent )e!)#o+C "ut ,ere#< ! +o,(#!int
t$!t one of t2o e;u!# s$!re$o#)ers 2!s e9+#u)in% t$e ot$er fro, (!rti+i(!tin% in t$e ,!n!%e,ent of t$e +o,(!n<4
Cross,!n J st!te) t$!t t$e s!,e +ir+u,st!n+es 2$i+$ entit#e) ! (!rtner to re;uire t$e )isso#ution of ! (!rtners$i(
entit#e) ! (erson 2$o is e;u!##< intereste) 2it$ one ot$er (erson in ! +o,(!n< to $!ve t$!t +o,(!n< 2oun) u( on t$e
%roun) t$!t t$e +ir+u,st!n+es ren)er it just !n) e;uit!"#e
1
4
In !((#<in% t$is (rin+i(#e> t$e +ourts $!ve $e#) t$!t it is ne+ess!r< to )e,onstr!te t$e e9isten+e of !
(!rtners$i( t<(e of stru+ture4 To )o so it is not suffi+ient ,ere#< to s$o2 t$!t t2o e;u!# s$!re$o#)ers in ! s,!##
+o,(!n< $!ve #ost +onfi)en+e in e!+$ ot$er !n) +!nnot +o'o(er!te4 It is !#so ne+ess!r< to est!"#is$ t$!t t$ere e9iste) !
+#e!r un)erst!n)in% t$!t e!+$ of t$e (!rti+i(!nts s$ou#) enjo< (!rtners$i('t<(e ri%$ts !%!inst e!+$ ot$er> !n) t$!t t$e
+onstitution!# )o+u,ents 2ere never inten)e) to "e t$e e9+#usive st!te,ent of t$e (!rti+i(!ntsA ri%$ts !%!inst one
!not$er
3
4
!2.($
1
T$e +ourts re+o%nise) t$e issue "efore t$e< e9(#i+it#< re+o%nise) t$e ;u!si'(!rtners$i( !s ! se(!r!te s(e+ies of +o,(!n<
re;uirin% s(e+i!# +onsi)er!tion> !n) turne) to st!tute %iven t$e )efi+ien+ies of t$e +!se #!2 re,e)ies of fr!u) on t$e ,inorit< !n)
t$e +ontr!+t "et2een ,e,"ers +onstitute) "< t$e +onstitution )o+u,ents4 See S . Goo (inorit, #hareholders Protection (166*)
+$ 14
Re Eenid/e 'obacco &o Ltd J1611K C$ *14

&
In t$e +!se of (!rtners$i( t$is 2ou#) "e "< dissolution un)er t$e just !n) e;uit!"#e %roun): see vo# &8 (1661 Reissue)
/ARTNERS.I/ /!r!%r!($ 10& J161K et se;4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) ( 384
*
See Loch v +ohn Blackwood Ltd J16*K AC 35&4
0
Re Davis and &ollett Ltd J16&0K C$ 16&4 See !#so Re Lundie Bros Ltd J1610K A## ER 16> J1610K 1 7LR 18014
1
Re Davis and &ollett Ltd !"ove4
3
See Re Davis 8nvestments 1East @am6 Ltd J1611K & A## ER 61H Re W R Willcocks B &o Ltd J163*K C$ 11&4 See !#so Re /C
(eat #upplies 1Guild.ord6 Ltd J1611K & A## ER &8H Re Fildes Bros Ltd J1638K 1 A## ER 6&4
!2.)$
11# *he just and e6uitable principle in the Couse of :ords@ Ebrahimi v Westbourne Galleries t!
It 2!s not unti# t$e 1638s t$!t t$e !((#i+!tion of t$e just !n) e;uit!"#e %roun) for 2in)in% u( ! +o,(!n< !n) its
inter+onne+tion 2it$ t$e ;u!si'(!rtners$i( +!,e to "e +onsi)ere) "< t$e .ouse of Lor)s4 Ebrahimi v Westbourne
Galleries Ltd
1
+on+erne) ! +o,(!n< for,e) to t!Ce over ! "usiness run on t$e "!sis of e;u!# (!rtners$i( "et2een t2o
(!rti+i(!nts4 Initi!##<> "ot$ (!rti+i(!nts $e#) e;u!# s$!res !n) 2ere )ire+tors 2it$ e;u!# ,!n!%e,ent !ut$orit<4 -ot$
tr!nsferre) s$!res to t$e son of one of t$e (!rti+i(!nts !n) !((ointe) $i, to t$e "o!r) of )ire+tors4 T$e ot$er (!rti+i(!nt
2!s su"se;uent#< re,ove) fro, t$e -o!r) !n) $e !((#ie) for t$e +o,(!n< to "e 2oun) u( un)er t$e just !n) e;uit!"#e
+#!use> !n) for !n or)er for t$e ot$er s$!re$o#)ers to (ur+$!se $is s$!res !t ! f!ir v!#u!tion

"e+!use of t$eir Do((ressiveA
+on)u+t
4
In t$e #e!)in% ju)%,ent> Lor) 7i#"erfor+e !++e(te) t$!t in (rin+i(#e> +o,(!nies !re to "e run si,(#< in
!++or)!n+e 2it$ t$e (o2ers !n) (rovisions of t$e !rti+#es !n) ,e,or!n)u, !s t$e +onstitution!# )o+u,ents of t$e
+o,(!n<4 If> $o2ever> ! true ;u!si'(!rtners$i( situ!tion e9ists> t$e +ourts 2i## intervene 2$ere t$e +entr!# o"#i%!tions of
t$e (!rtners$i( !re not (erfor,e) "< one (!rt< or t$e ot$er> "< 2in)in% it u( un)er t$e just !n) e;uit!"#e %roun) !s t$e<
2ou#) )o to )isso#ve ! true (!rtners$i(4 In t$e (!rti+u#!r +ir+u,st!n+es of e9+#usion fro, ,!n!%e,ent> t$e +ourt 2ou#)
t$erefore intervene to 2in) u( t$e +o,(!n< on t$e just !n) e;uit!"#e %roun) if t$e !((#i+!nt +ou#) (rove t$e e9isten+e
of so,e s(e+i!# un)er#<in% o"#i%!tion of $is fe##o2 ,e,"er(s) in %oo) f!it$> or +onfi)en+e> t$!t so #on% !s t$e "usiness
+ontinue) $e s$ou#) "e entit#e) to ,!n!%e,ent (!rti+i(!tion even if t$e e9+#usion 2!s in !++or)!n+e 2it$ t$e
+onstitution!# )o+u,ents 2$i+$ $!) "een "re!+$e)
&
4
An i,(ort!nt +onsi)er!tion> t$erefore> is est!"#is$in% t$!t ! ;u!si'(!rtners$i( re#!tions$i( e9ists in t$e first
(#!+e4 T$is re;uires ,ore t$!n ! "!re +o,,er+i!# re#i!n+e on t$e +onstitution!# )o+u,ent!tion of t$e +o,(!n<4
A++or)in% to Lor) 7i#"erfor+e> Dt$e su(eri,(osition of e;uit!"#e +onsi)er!tions
*
A re;uires> t<(i+!##<> one or ,ore of
t$e fo##o2in% e#e,ents:
D(i) !n !sso+i!tion for,e) or +ontinue) on t$e "!sis of ! (erson!# re#!tions$i(> invo#vin% ,utu!# +onfi)en+eGt$is
e#e,ent 2i## often "e foun) 2$ere ! (re'e9istin% (!rtners$i( $!s "een +onverte) into ! #i,ite) +o,(!n<H (ii) !n
!%ree,ent> or un)erst!n)in%> t$!t !##> or so,e (for t$ere ,!< "e Ds#ee(in%A ,e,"ers)> of t$e s$!re$o#)ers s$!##
(!rti+i(!te in t$e +on)u+t of t$e "usinessH (iii) restri+tion u(on t$e tr!nsfer of t$e ,e,"ersA interest in t$e
+o,(!n<Gso t$!t if +onfi)en+e is #ost> or one ,e,"er is re,ove) fro, ,!n!%e,ent> $e +!nnot t!Ce out $is st!Ce
!n) %o e#se2$ere
0
A4
T$ese +onsi)er!tions !re not ne+ess!ri#< e9$!ustive4
!2.,$
1
Ebrahimi v Westbourne Galleries Ltd J163&K AC &184
T$is !((#i+!tion 2!s ,!)e un)er t$e Co,(!nies A+t 16*5 s 18> no2 re(#!+e) "< t$e Co,(!nies A+t 1650 s *06> 2$i+$
re;uire) +on)u+t D(reju)i+i!#A to t$e ,e,"ers of t$e +o,(!n<4
&
Ebrahimi v Westbourne Galleries Ltd !"ove4 See !#so Re ) and B& &hewin! Gum Ltd J1630K 1 A## ER 1813H Bentle,%#tevens v
+ones J163*K A## ER 10&H Re R ) *oble B #ons 1&lothin!6 Ltd J165&K -CLC 3&4
*
Ebrahimi v Westbourne Galleries Ltd !"ove !t &364 See !#so Re 'ottenham @otspur plc J166*K 1 -CLC 100H Re #aul D @arrison
B #ons plc J1660K 1 -CLC 1*> CA4
0
Ebrahimi v Westbourne Galleries Ltd !"ove4
!2..$
111 Deficiencies of the just and e6uitable 'round
T$ere is> $o2ever> ! serious (ro"#e, in re#!tion to t$e use of t$e just !n) e;uit!"#e %roun) to +ontro# t$e ;u!si'
(!rtners$i(: 2$ere it is !((#ie) t$e resu#t is t$e 2in)in% u( of t$e +o,(!n< !n) t$e ter,in!tion of its "usiness4 T$is is !
)r!+oni!n so#ution !n) t$e +ourts $!ve ,!)e it +#e!r t$!t t$e< 2i## on#< e,(#o< it 2$en t$ere is no ot$er +onstru+tive
!#tern!tive4 If t$ere is !n !#tern!tive 2$i+$ 2i## !+$ieve ! f!ir resu#t for t$e (etitioner> t$e (etition to $!ve t$e +o,(!n<
2oun) u( 2i## "e reje+te)4
In Re a &ompan, 1*o 5594D< o. :C=96
1
! ;u!si'(!rtner 2$o $!) "een e9+#u)e) fro, t$e ,!n!%e,ent of t$e
+o,(!n< !((#ie) for ! 2in)in% u( or)er on t$e just !n) e;uit!"#e %roun)4 .o2ever> $is fe##o2 s$!re$o#)ers $!) "een
(re(!re) to (ur+$!se $is s$!res on t$e "!sis of ! f!ir !n) re!son!"#e v!#u!tion4 T$e +ourt reje+te) t$e 2in)in% u(
(etition "e+!use t$e ,!tter +ou#) $!ve "een f!ir#< reso#ve) "< t$e !((#i+!ntAs !++e(t!n+e of t$e offer !n) +onfir,e)
t$!t e!+$ ;u!si'(!rtner 2!s entit#e) to !((#< to t$e +ourt for t$e +o,(!n< to "e 2oun) u( on t$e %roun) t$!t t$e
+on)u+t of t$e ,!jorit< ,!)e it just !n) e;uit!"#e to )o so4 In )e+i)in% 2$et$er to ,!Ce !n or)er t$e +ourt ,ust
+onsi)er 2$et$er> $!vin% re%!r) to ot$er ,!tters su+$ !s !n offer to !+;uire t$e (etitionerAs s$!res> t$e ;u!si'(!rtner
2!s !+tin% unre!son!"#< in seeCin% ! 2in)in%'u( or)erH if so> it 2ou#) not "e just !n) e;uit!"#e to or)er t$e 2in)in% u(
of t$e +o,(!n<
4
1
Re a &ompan, 1*o 5594D< o. :C=96 J165&K A## ER 50*4
I"i) !t 5114
!2./$
C: UN:AIRL? /REJUDICIAL CONDUCT
11% &emedies under the Companies Acts
11%11 Companies Act 12)" 3ection %1#
In t$e (!st> t$e use of t$e just !n) e;uit!"#e %roun)> for !## its )efi+ien+ies> 2!s t$e so#e ,e!ns of (rote+tin% t$e
un)erst!n)in% un)er(innin% t$e ;u!si'(!rtners$i(4 .o2ever> t$e )r!sti+ resu#ts of its o(er!tion ,!)e refor, )esir!"#e
1
4
Conse;uent#<> t$e Co,(!nies A+t 16*5 Se+tion 18

(rovi)e)

! st!tutor< re,e)< for ,inorit< s$!re$o#)ers 2$o 2ere
t$e vi+ti,s of o((ressive +on)u+t: it !##o2e) t$e +ourt to or)er t$e ,!jorit< to (ur+$!se t$eir interest in t$e +o,(!n< !t
! f!ir (ri+e
4 Su"se;uent#<> t$e Co,(!nies A+t 1658 Se+tion 30 s$ifte) t$e test for ,!Cin% !n or)er in f!vour of t$e
!((#i+!nt fro, Do((ressiveA +on)u+t "< t$e ,!jorit< to 2$et$er t$e +on)u+t of t$e +o,(!n<As !ff!irs 2!s Dunf!ir#<
(reju)i+i!#A to t$e !((#i+!ntAs interests4
1
/ro"#e,s !risin% fro, t$e juris)i+tion un)er t$e just !n) e;uit!"#e %roun) 2ere +onsi)ere) "< t$e Co$en Co,,ittee> est!"#is$e)
"< t$e -o!r) of Tr!)e> 2$ose 16*0 re(ort resu#te) in t$e Co,(!nies A+t 16*5 s 184
Atte,(ts to foun) ! juris)i+tion to intervene un)er t$e Co,(!nies A+t 16*5 s 18 so t$!t t$e +ourts ,i%$t or)er one or ,ore
(!rtners to "u< out t$e interest of t$e ot$er (in %ener!# ! ,u+$ ,ore s!tisf!+tor< so#ution to t$e (ro"#e,) f!i#e) "e+!use of t$e
)iffi+u#t< in (ersu!)in% t$e +ourts t$!t t$e o(er!tion of ! +o,(!n< in !++or)!n+e 2it$ its +onstitution!# re;uire,ents> fi9e) "< its
)o+u,ent!tion> +onstitute) Do((ressive +on)u+tA4 On#< t2o +!ses see, to $!ve "een su++essfu##< "rou%$t un)er t$e se+tion: Re
@R @armer Ltd J160*K & A## ER 156> J1606K 1 7LR 1H #cottish &o%operative Wholesale #ociet, Ltd v (a,er J1606K AC &*>
J1605K & A## ER 114
!2."$
11%1% Companies Act 12", 3ection ),2
T$e +urrent (rovision> t$e Co,(!nies A+t 1650 Se+tion *06> entit#es ! ,e,"er of ! +o,(!n< to !((#< for ! 2in)in% u(
or)er on t$e %roun) t$!t t$e +o,(!n<As !ff!irs !re "ein% or $!ve "een +on)u+te) in ! ,!nner 2$i+$ is unf!ir#<
(reju)i+i!# to t$e interests of its ,e,"ers (%ener!##< or in (!rt) or t$!t !n !+tu!# or (ro(ose) !+t or o,ission of t$e
+o,(!n< is or 2ou#) "e (reju)i+i!#
1
4 T$e #e%is#!tion %ives ! 2i)e ,e!nin% to D,e,"erA
!n) (rovi)es t$!t 2$ere !

+ourt is s!tisfie) t$!t ! (etition for re#ief is 2e## foun)e) it ,!< ,!Ce !((ro(ri!te or)ers %ivin% re#ief
&
4 It is t$erefore
2i)e'r!n%in% !n) f#e9i"#e in t$e (o2ers %iven to t$e +ourts> !n) t$e +ourts $!ve turne) to it 2it$ ent$usi!s,4
1
Co,(!nies A+t 1650 s *06 !s !,en)e) "< t$e Co,(!nies A+t 1656 S+$ 16 (!r! 11 (5 .!#s"ur<As St!tutes (*t$ E)n)
CO=/ANIES)4
Co,(!nies A+t 1650 s *06()4

&
I"i) s *06(&)4
!2.2$
11( Application of the Companies Act 12", 3ection ),2 by the courts
11(11 *he -brahimi principle
In !++or)!n+e 2it$ t$e Co,(!nies A+t 1650 Se+tion *06
1
> t$e +ourts $!ve fo+use) on t$e (reju)i+e to t$e interests of
,e,"ers !s o((ose) to t$e (revious re;uire,ent of o((ression of t$e ,e,"ers
4 T$e 2or)in% of Se+tion *06 $!s "een

vie2e) !s s$o2in% ! +#e!r #e%is#!tive intention to e9(!n) t$e s+o(e of t$e re,e)<
&
4 In Re a &ompan,
*
.off,!nn J 2!s
(re(!re) to !((#< t$e re!sonin% of t$e .ouse of Lor)s in Ebrahimi
0
to ! (etition un)er Se+tion *06 re%!r)in% t$e
re,ov!# of ! ,!n!%in% )ire+tor fro, $is (ost +ontr!r< to t$e ter,s of ! s$!re e9+$!n%e !%ree,ent4 T$is !((ro!+$ $!s
"een fo##o2e) 2it$ so,e +onsisten+<
1
4
1
CO=/ANIES)4
See t$e Co,(!nies A+t 16*5 s 184

&
See Re a &ompan, J1650K -CLC 58 (er Vine#ott J4
*
See Re a &ompan, J1651K -CLC &314
0
Ebrahimi v Westbourne Galleries Ltd J163&K AC &18: see /!r!%r!($ 118 J610K !nte4
1
See Re a &ompan, J1651K !"ove !t &36M&584 In so )oin%> .off,!nn J reje+te) t$e !((ro!+$ of Lor) Gr!nt+$ester in Re a
&ompan, 1*o 55FF<4 o. :C=96 J165&K C$ 135 t$!t su+$ !n !((ro!+$ +ou#) not "e !((#ie) to ! (etition un)er s *064 See Re
Pos!ate B Denb, 1)!encies6 Ltd J1653K -CLC 5H Dili!enti v RW(D Operations elowna Ltd J1631K 1 -CLR &1H Re Blue
)rrow plc J1653K -CLC 0504
!2/#$
11(1% -stablishin' the scope of the companys articles
7$ere re#i!n+e is (#!+e) on t$e !((#i+!tion of t$e Ebrahimi
1
(rin+i(#e in ! (etition un)er t$e Co,(!nies A+t Se+tion
*06
> it 2i## "e ne+ess!r<> !s in t$e Ebrahimi situ!tion> for t$e (etitioner to est!"#is$ t$!t t$ere is so,e s(e+i!#
!rr!n%e,ent !n) un)erst!n)in% "et2een t$e (!rties un)er 2$i+$ t$e !rti+#es of t$e +o,(!n< +!nnot "e t!Cen !s !n
e9+#usive !n) e9$!ustive st!te,ent of t$eir ri%$ts !n) o"#i%!tions4 Sin+e t$e (resu,(tion is t$!t t$e !rti+#es !re
e9+#usive> t$ere is ! +#e!r !n) su"st!nti!# "ur)en on t$e (etitioner to est!"#is$ t$e e9isten+e of t$e s(e+i!# !rr!n%e,ent
in t$e (!rti+u#!r +ir+u,st!n+es
&
4 It !((e!rs t$!t 2$ere !## t$e ,e,"ers of ! +o,(!n< !re )ire+tors it 2i## usu!##< "e
!ssu,e) t$!t ! ;u!si'(!rtners$i( is inten)e)4 .o2ever> t$e (resu,(tion ,!< "e re"utte) "< s$o2in% t$!t> in t$e
(!rti+u#!r +ir+u,st!n+es> not !## t$e )ire+tors 2ou#) (!rti+i(!te in t$e )!<'to')!< !+tivities of t$e +o,(!n<> even t$ou%$
t$e resu#t of t$is is t$!t t$ose )ire+tors not so (!rti+i(!tin% 2i## $!ve no %u!r!ntee of ! return on t$eir invest,ent in t$e
+o,(!n<
*
4
T$e "!si+ (ro(osition for t$e o(er!tion of Se+tion *06 is t$!t t$ere is ! su"st!nti!# "ur)en on t$e (etitioner to
s$o2 t$!t t$e +onstitution!# )o+u,ents )o not +ont!in t$e fu## un)erst!n)in% of t$e (!rties !s to t$eir "usiness
!rr!n%e,ent> "e+!use t$ose )o+u,ents (#!+e t$e res(onsi"i#it< for t$e ,!n!%e,ent of t$e +o,(!n< on t$e )ire+tors
0
4 It
is> t$erefore> +onsistent 2it$ ! "!si+ t$e,e of En%#is$ +o,(!n< #!2 t$!t t$e intervention of t$e +ourts s$ou#) "e fir,#<
"!se) on t$e (rin+i(#e t$!t t$e +onstitution!# )o+u,ents )o not re(resent t$e fu## !%ree,ent "et2een t$e (!rties> !n)
t$!t t$e intervention s$ou#) "e #i,ite) to t$e e9tent t$!t is ne+ess!r< to (rovi)e ! re,e)< !risin% fro, t$e )is+re(!n+<
!n) not e9ten) furt$er
1
4
!2/1$
1
Ebrahimi v Westbourne Galleries Ltd J163&K AC &184 See /!r!%r!($ 118 J610K !nte4
CO=/ANIES)4
&
See Re Blue )rrow plc J1653K -CLC 0504
*
See Re Fildes Bros Ltd J1638K 1 A## ER 6&4
0
See @oward #mith Ltd v )mpol Petroleum Ltd J163*K AC 51 !t 5&> /C (er Lor) 7i#"erfor+e:
DT$ere is no !((e!# on ,erits fro, ,!n!%e,ent )e+isions to +ourts of #!2H nor 2i## +ourts of #!2 !ssu,e to !+t
!s ! Cin) of su(ervisor< "o!r) over )e+isions 2it$in t$e (o2ers of ,!n!%e,ent $onest#< !rrive) !tA4
1
See Re a &ompan, 1*o 55FF<4 o. :C=96 J165&K C$ 1354
!2/%$
11(1( *est of unfair prejudice
T$e +on+e(t of unf!ir (reju)i+e !roun) 2$i+$ t$e juris)i+tion of t$e +ourt is "!se)> )e(en)s on its !+tu!# effe+t on t$e
(etitionerAs interests> not on t$e +ons+iousness of t$e !+tor of t$e effe+t 2$i+$ $is !+tions 2ou#) $!ve on t$ose interests4
T$e test !((e!rs to "e D2$et$er ! re!son!"#e "<st!n)er observin! the conse>uences o. their conduct 2ou#) re%!r) it !s
$!vin% unf!ir#< (reju)i+e) t$e (etitionerAs interestsA
1
4 It t$erefore )oes not ,!tter t$!t t$e (reju)i+i!# !+tivities 2ere
ot$er2ise entire#< #e%!#> !n) in !++or)!n+e 2it$ t$e +onstitution of t$e +o,(!n<
4
1
See Re Bove, @otel "entures Ltd (&1 Ju#< 1651> unre(orte)) (er S#!)e J> ;uote) 2it$ !((rov!# in Re R ) *oble B #ons
1&lothin!6 Ltd J165&K -CLC 3& !t 68M61 (er Nourse J4
See Re a &ompan, J1650K -CLC 584

!2/($
11(1) *he Dcompanys affairs
A (etitioner un)er t$e Co,(!nies A+t 1650 Se+tion *06
1
,ust s$o2 t$!t it is t$e +o,(!n<As !ff!irs 2$i+$ $!ve "een> or
!re "ein%> +on)u+te) in !n unf!ir#< (reju)i+i!# ,!nner4 T$e D+o,(!n<As !ff!irsA $!ve "een %iven ! 2i)e inter(ret!tion
"< t$e +ourts> !s no )efinition is !tte,(te) "< t$e 1650 A+t4 T$e +ourts $!ve inter(rete) t$e ter, !s +!(!"#e of +overin%
! +o,(!n<As D%oo) 2i##> its (rofits or #osses> its +ontr!+ts !n) !ssets in+#u)in% its s$!re$o#)in% in !n) !"i#it< to +ontro#
t$e !ff!irs of ! su"si)i!r< !n) (er$!(s in t$e #!tter re%!r) ! su"si)i!r<A
4 In Re B#B @oldin!s Ltd

&
t$e tr!nsfer of
"ro!)+!stin% "usiness ori%in!##< +!rrie) out "< t$e (!rent +o,(!n< to its 2$o##<'o2ne) su"si)i!r< !n) t$e su"se;uent
,er%er of t$e su"si)i!r< 2it$ ! t$ir) +o,(!n< 2!s $e#) to "e +on)u+t in t$e !ff!irs of t$e (!rent +o,(!n<4 7it$ re%!r)
to )ire+tors> ! )ire+torAs +on)u+t in settin% u( ! riv!# "usiness !n) +$!nne##in% 2orC 2$i+$ ri%$tfu##< "e#on%e) to t$e
+o,(!n< to it> in "re!+$ of $is )uties !s ! (!rtner in ! ;u!si'(!rtners$i( +o,(!n<> 2!s $e#) to "e (ositive ,is+on)u+t
in re#!tion to t$e !ff!irs of t$e +o,(!n<
*
4
!2/)$
1
CO=/ANIES)4
In t$e +onte9t of t$e Co,(!nies A+t 1650 s *&(): R v Board o. 'rade 1610K 1 @- 18&> J161*K A## ER 0114
&
Re B#B @oldin!s Ltd J166&K -CLC *1> J166K -CC 6104 See !#so Re a &ompan, 1*o 559F<5 o. :C==6 J1661K -CLC *58>
J166K -CC 560 2$ere t$e Court of A((e!# $e#) t$!t t$e 2it$$o#)in% of ,one< o2e) to ! su"si)i!r< +o,(!n< "< ! (!rent
+o,(!n< t$!t e9er+ise) fin!n+i!# +ontro# over it +ou#) +onstitute !+ts )one in t$e +on)u+t of t$e su"si)i!r<As !ff!irs4
*
See Re #tewarts 1Bri7ton6 Ltd J1650K -CLC *4 .o2ever> !n e9(e+t!tion t$!t )ire+tor s$!re$o#)ers 2i## not se## t$eir s$!res )oes
not re#!te to t$e +on)u+t of t$e +o,(!n<As !ff!irs so !s to f!## 2it$in t$e !,"it of t$e Co,(!nies A+t 1650 s *06: see Re Leeds
$nited @oldin!s plc J1661K -CLC 0*04
!2/,$
11(1, DA member of a company
To $!ve #o+us st!n)i to sue un)er t$e Co,(!nies A+t Se+tion *06
1
t$e (etitioner ,ust "e ! s$!re$o#)er4 T$ere is>
t$erefore> +onsi)er!"#e risC in +!rr<in% on ! joint venture o(er!tion t$rou%$ ! no,inee s$!re$o#)er in t$e joint venture
+o,(!n<4 In Re a &ompan, 1*o 55;:D5 o. :C=D6
! joint venturer in ! +o,(!n< te,(or!ri#< re%istere) $is s$!res in $is

2ifeAs n!,e for re!sons of +onvenien+e4 .is +ontr!+t of e,(#o<,ent 2it$ t$e +o,(!n< 2!s ter,in!te) )urin% t$is
(erio)4 7$en $e sou%$t ! re,e)< $e 2!s not !##o2e) to (ro+ee) un)er Se+tion *06> !s $e 2!s not ! ,e,"er> "ut> it
2!s $e#) t$!t $is 2ife +ou#) (ro+ee) on $is "e$!#f4 A++or)in% to .off,!nn J> t$e juris)i+tion to re,e)< +on)u+t
Dunf!ir#< (reju)i+i!#A to t$e interests of ,e,"ers en!"#e) t$e +ourt to (rote+t not on#< t$e ri%$ts of ,e,"ers "ut !#so t$e
ri%$ts> e9(e+t!tions !n) o"#i%!tions of t$e in)ivi)u!# s$!re$o#)ers inter seG In ! t<(i+!# ;u!si'(!rtners$i( t$ese 2ou#)
in+#u)e t$e e9(e+t!tions t$!t t$e ,e,"er 2ou#) "e !"#e to (!rti+i(!te in t$e ,!n!%e,ent of t$e +o,(!n< !n) s$!re in
its (rofits t$rou%$ s!#!rie) e,(#o<,ent !s 2e## !s t$e e9(e+t!tion t$!t ! no,inee ,e,"erAs $us"!n) !n) "enefi+i!r<
s$ou#) enjo< t$ose ri%$ts !n) "enefits
&
4
1
CO=/ANIES)4
Re a &ompan, 1*o 55;:D5 o. :C=D6 (1651) -CLC &61> (1651) -CC 66> 314
&
I"i) !t 66> 514
!2/.$
11) -stablishin' the e5pectations of minority shareholders
In %ener!#> !n< unf!ir (reju)i+e in ! joint venture 2i## "e )e,onstr!"#e fro, t$e s$!re$o#)ersA !%ree,ent 2$i+$ sets out
t$e ter,s !%ree) "et2een t$e (!rti+i(!nts 2$i+$ $!ve +o,e to "e )isre%!r)e)4 T$e ;uestion !rises of 2$et$er ! (!rt<
2$o is ! ,inorit< s$!re$o#)er !n) $!s un2ise#< (!rti+i(!te) in ! joint venture 2it$out t$e (rote+tion of ! (ro(er#<
)r!2n s$!re$o#)ersA !%ree,ent +!n re#< on t$e Co,(!nies A+t 1650 Se+tion *06
1
4 As t$e se+tion is not #i,ite) to
situ!tions in 2$i+$ s$!re$o#)ersA !%ree,ents $!ve "een use)> re,e)ies ,!< sti## "e !v!i#!"#e un)er it in re#!tion to
o((ressive !+tion "< ! +onstitution!# ,!jorit< 2it$in t$e joint venture4 T$e +ourt ,!< "e !"#e to infer t$!t t$ere e9iste)
! re!son!"#e e9(e+t!tion t$!t t$e ,inorit< 2ou#) "e entit#e) to (!rti+i(!te in t$e ,!n!%e,ent of t$e +o,(!n<
4 On t$e
ot$er $!n)> ! ,inorit< 2$o entere) into t$e joint venture 2it$out t$ere "ein% !n< +#e!r un)erst!n)in% t$!t t$e< 2ou#)
"e !"#e to (!rti+i(!te in t$e ,!n!%e,ent> 2i## not "e !"#e to +o,(#!in !"out t$eir e9+#usion fro, (!rti+i(!tion (rovi)e)
t$!t t$e +onstitution!# ,e+$!nis, of t$e +o,(!n< is (ro(er#< e,(#o<e) for t$e (ur(ose4
1
CO=/ANIES)4
See Auinlan v Esse7 @in!e &o Ltd J1661K -CLC *134

!2//$
11, 8rounds for a petition under the Companies Act 12", 3ection ),2
11,11 7ntroduction
A ,inorit< (!rt< in ! joint venture 2i## "e intereste) in t$e 2!< in 2$i+$ t$e +o,(!n< is ,!n!%e)> !n) in t$e
)istri"ution of !n< (rofits %ener!te)4 Be< issues !re 2$et$er ! ,inorit< 2i## "e !"#e to seeC re)ress for in+o,(etent
,!n!%e,ent of t$e +o,(!n<> f!i#ure to (!< )ivi)en)s !n) t$e )i#ution of its s$!re$o#)in%4 Anot$er i,(ort!nt
+onsi)er!tion is 2$et$er ! ,inorit<As ri%$ts un)er t$e Co,(!nies A+t 1650 Se+tion *06
1
2i## "e !ffe+te) if its o2n
+on)u+t is #ess t$!n (erfe+t4
1
CO=/ANIES)4
!2/"$
11,1% <ismana'ement of the company
In %ener!#> ,is,!n!%e,ent is ! )iffi+u#t issue for +o,(!n< #!2 "e+!use in)ivi)u!# re,e)ies for s$!re$o#)ers 2i##
invo#ve t$e +ourts in )e+i)in% 2$et$er (!rti+u#!r +o,,er+i!# )e+isions 2ere (ro(er or i,(ro(er4 T$e +ourts $!ve "een
re#u+t!nt to intervene> un)er t$e Co,(!nies A+t 16*5 Se+tion 18
1
!n) t$e Co,(!nies A+t 1650 Se+tion *06
>
re+o%nisin% t$!t t$e< 2ou#) "e )e+i)in% 2it$ t$e "enefit of $in)si%$t !n) t$!t t$e )ire+tors> !s t$e !((ro(ri!te
+onstitution!# "o)< of t$e +o,(!n<> s$ou#) ,!Ce su+$ )e+isions4 In Re El!indata
&
7!rner J st!te) t$!t t$e +ourt D444 2i##
nor,!##< "e ver< re#u+t!nt to !++e(t t$!t ,!n!%eri!# )e+isions +!n !,ount to unf!ir#< (reju)i+i!# +on)u+tA
*
4 .e
re+o%nise) t$!t !s ! s$!re$o#)er (ur+$!ses s$!res Cno2in% t$!t t$eir v!#ue 2i## )e(en) on t$e +o,(eten+e of t$e
,!n!%e,ent> $e t!Ces t$e risC t$!t t$e ;u!#it< of t$e ,!n!%e,ent of t$e +o,(!n< ,!< "e (oor !n) t$ere is no
unf!irness to $i, if t$is is t$e +!se4 To !((ro!+$ t$e (ro"#e, ot$er2ise 2ou#) %ive ! re,e)< to ! s$!re$o#)er in
+ir+u,st!n+es 2$ere t$e )ire+tors 2ere not in "re!+$ of t$eir )ut< of sCi## !n) +!re4 Nevert$e#ess> e9+e(tion!#
+ir+u,st!n+es ,i%$t 2e## %roun) ! su++essfu# Se+tion *06 !((#i+!tion> for e9!,(#e 2$ere ,!jorit< s$!re$o#)ers
(ersiste) in ret!inin% ! D)e,onstr!"#< in+o,(etentA f!,i#< ,e,"er in +$!r%e of t$e +o,(!n<As "usiness
0
4
Co,(!n< ,is,!n!%e,ent 2!s !#so +onsi)ere) in Re (acro 18pswich6 Ltd
1
2$i+$ +on+erne) ! Se+tion *06
!((#i+!tion "< ,inorit< s$!re$o#)ers in ! (ro(ert< +o,(!n< 2$o !##e%e) t$!t t$e )ire+tors $!) f!i#e) to su(ervise t$e
+o,(!n<As (ro(ert< (ro(er#< !n) $!) se#e+te) unsuit!"#e (ro(erties for invest,ent4 It 2!s $e#) t$!t 2$i#st t$e #!tter
2!s ! ,!tter of ,ere +o,,er+i!# ju)%e,ent !n) +ou#) not %ive rise to ! Se+tion *06 re,e)<> t$e %ross )efi+ien+ies in
t$e )!<'to')!< $!n)#in% of (ro(erties in t$e +o,(!n<As (ortfo#io re(resente) ,is,!n!%e,ent of its (ro(ert< 2$i+$
2ou#) %ive rise to intervention4
!2/2$
1
See Re Five (inute &ar Wash #ervice Ltd J1611K 1 A## ER *> J1611K 1 7LR 3*04
CO=/ANIES)4 See !#so Re #am Weller B #ons Ltd J1668K C$ 154
&
Re El!indata J1661K -CLC 6064
*
I"i) !t 66&4
0
I"i) !t 66*4
1
Re (acro 18pswich6 Ltd J166*K -CLC &0*4
!2"#$
11,1( Failure to pay diidends
It is un#iCe#< t$!t ,inorit< s$!re$o#)ers 2i## $!ve ! re,e)< if no )ivi)en)s !re (!i)4 Retention of in+o,e for
reinvest,ent in t$e "usiness ,!< "e ! (erfe+t#< (ro(er e9(#!n!tion for t$e f!i#ure to (!< )ivi)en)s4 If t$ere is no #o%i+!#
re!son for t$e retention of t$e )ivi)en)s it is (ossi"#e to !r%ue t$!t t$e s$!re$o#)ers !re not "ein% (reju)i+e)> !s t$e
+o,(!n<As !ssets> in 2$i+$ t$e< !## $!ve ! s$!re> !re in+re!sin%4
It is un#iCe#< t$!t t$e non'(!<,ent of )ivi)en)s 2i## o++ur in iso#!tion !s usu!##<> t$e ,!jorit< 2i## not "e
(re(!re) to for%o in+o,e 2$en t$ere is no re!son for )ivi)en)s to "e !++u,u#!te)4 Conse;uent#<> t$e ,!jorit< ,!<
seeC to ,!ni(u#!te ! +o,(!n< "< +ou(#in% t$e f!i#ure to (!< )ivi)en)s 2it$ ! )e+ision to (!< su"st!nti!# )ire+torsA fees>
to t$e (reju)i+e of t$e ,inorit< s$!re$o#)ers 2it$out )ire+tors$i(s4 In su+$ +ir+u,st!n+es it is +#e!r t$!t t$e +ourts !re
(re(!re) to intervene4 In Re #am Weller B #ons Ltd
1
)ivi)en)s (!i) "< t$e +o,(!n< $!) not in+re!se) over ! (erio) of
&3 <e!rs> )es(ite t$e f!+t t$!t #!r%e (rofits 2ere %ener!te)4 T$e s$!re$o#)ers 2$o r!n t$e +o,(!n< (!i) t$e,se#ves
s!#!ries> t$ere"< "enefitin% t$e,se#ves to t$e (reju)i+e of t$e ,inorit< s$!re$o#)ers 2$o 2ere not )ire+tors4 7$i#st t$e
!++u,u#!tion of un(!i) (rofits %!ve rise to ! %ener!# in+re!se in t$e +!(it!# of t$e +o,(!n<> t$e in+re!se) v!#ue of t$e
s$!res 2ou#) "e ,ore ,!rCe)#< fe#t !,on% t$e ,!jorit< +ontro##in% interest t$!n t$e ,inorit< s$!re$o#)ers4 It 2!s $e#)
t$!t t$e (!<,ent of #o2 )ivi)en)s 2!s +!(!"#e of !,ountin% to +on)u+t unf!ir#< (reju)i+i!# to t$e interests of t$e
,inorit< s$!re$o#)ers4
!2"1$
In Re &umana Ltd

t$e ,!jorit< s$!re$o#)er (!i) $i,se#f in e9+ess of O&08>888 !s )ire+torAs feesH t$is 2!s
$e#) to "e unf!ir#< (reju)i+i!# to t$e ot$er ,inorit< s$!re$o#)ers4 It 2ou#) see,> t$erefore> t$!t t$e ,ere (!<,ent of !n
e9+essive fee ,!< !,ount to unf!ir (reju)i+e even t$ou%$ it is not +ou(#e) 2it$ f!i#ure to (!< )ivi)en)s "e+!use t$ese
fees 2i## re)u+e t$e !,ount of )ivi)en)s (!<!"#e4 .o2ever> t$e +ourts 2i## on#< intervene 2$ere t$e )ire+torsA fees !re
%ross#< in e9+ess of t$e v!#ue of t$e )ire+torsA servi+es> !n) t$erefore +#e!r#< unjustifi!"#e4 It is ,ost un#iCe#< t$!t t$e
+ourts 2i## ,!Ce t$e )r!+oni!n or)er t$!t t$e +o,(!n< "e 2oun) u(> "ut 2i## inste!) %r!nt ot$er re,e)ies un)er t$e
Co,(!nies A+t Se+tion *11
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4
1
Re #am Weller B #ons Ltd J1668K C$ 154
Re &umana Ltd J1651K -CLC *&8> CA4

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Co,(!nies A+t 1650 s *11 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See !#so Re a &ompan, 1*o 55FF:4 o. :CCD6 J1663K
1 -CLC *364
!2"%$
11,1) Dilution of shareholdin'
If ! +o,(!n<As +onstitution!# )o+u,ents or t$e s$!re$o#)ersA !%ree,ent )o not +over )i#ution of s$!re$o#)in%s t$e
;uestion of 2$et$er ! ,inorit< s$!re$o#)er ,!< use t$e Co,(!nies A+t Se+tion *06
1
to (revent> or o"t!in re)ress for
su+$ )i#ution 2i## )e(en) on $is #e%iti,!te e9(e+t!tions4 T$is turns on t$e (re+ise !rr!n%e,ent !n) !%ree,ent on t$e
"!sis of 2$i+$ t$e +o,(!n< 2!s in+or(or!te)4 In t$e +!se of ! ;u!si'(!rtners$i(> t$e (ro(ortion!te s$!re$o#)in% is
usu!##< of fun)!,ent!# i,(ort!n+e !n) in t$e +!se of ! +or(or!te joint venture !#,ost inv!ri!"#< so
4 In su+$
+ir+u,st!n+es t$e +ourts ,!< 2e## "e re!)< to +on+#u)e t$!t !n< !tte,(t to )i#ute ! s$!re$o#)erAs $o#)in% 2i## (reju)i+e
$is interests> !n) t$!t> +onse;uent#<> !n un)erst!n)in% t$!t t$e st!tus ;uo is not to "e !#tere) e9iste) !,on% t$e
s$!re$o#)ers
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4
1
CO=/ANIES)4
See +!ses of !tte,(te) )i#ution su+$ !s &lemens v &lemens Bros Ltd J1631K A## ER 15H Pennell v "enida 8nvestments Ltd (0
Ju#< 163*> unre(orte)> note) (1651) ** =LR *8)H Greenhal!h v )rderne &inemas Ltd J16*1K 1 A## ER 01> CA4
&
See Re a &ompan, J1650K -CLC 58 ()e+ision of t$e Court of A((e!# is re(orte) !s Re &umana Ltd J1651K -CLC *&8)H Re a
&ompan, J1651K -CLC &14
!2"($
11. *he conduct of the petitioner
T$e +on)u+t of t$e (etitioner ,!< "e re#ev!nt to t2o !s(e+ts of !n !((#i+!tion un)er t$e Co,(!nies A+t 1650 Se+tion
*06
1
n!,e#<: (1) 2$et$er t$e +on)u+t +o,(#!ine) of 2!s unf!ir#< (reju)i+i!# to t$e interests of t$e (etitioner or !n
inevit!"#e re!+tion to t$e (etitionerAs o2n +on)u+t> !n) () t$e re,e)ies !v!i#!"#e un)er Se+tion *11 of t$e A+t for !n<
unf!ir#< (reju)i+i!# +on)u+t4 T$e (etitionerAs +on)u+t ,!< justif< !+ts 2$i+$ !re (reju)i+i!# to $is interests> !n) 2$i+$>
2ere it not for $is "e$!viour> 2ou#) $!ve "een unf!ir4 :or e9!,(#e> if ! +o,(!n< $!s "een set u( on t$e "!sis t$!t t$e
(etitioner 2ou#) +ontri"ute ti,e !n) effort to its ever<)!< "usiness !+tivities> f!i#ure to )o so ,!< justif< $is e9+#usion
fro, t$e ,!n!%e,ent of t$e +o,(!n<
4
T$e +ourt )oes not> in %ener!#> see itse#f !s ! referee of ,is,!n!%e,ent or ,isju)%,ent
&
4 .o2ever> t$e
+o,(!n<As re!+tion to t$e s$!re$o#)erAs "e$!viour ,ust "e seen to "e (ro(ortion!# !n) inevit!"#eH ot$er2ise it 2i##
+onstitute +on)u+t 2$i+$ is unf!ir#< (reju)i+i!# to $is interests4 T$e f!+t t$!t t$e (etitionerAs +on)u+t is not !"ove
+riti+is, )oes not (re+#u)e t$e +ourt fro, %ivin% re#ief if t$e re;uire,ents of Se+tion *06 !re s!tisfie)
*
4

.o2ever> even
if t$e (etitionerAs +on)u+t justifies t$e +o,(!n< "e$!vin% in ! 2!< 2$i+$ is (reju)i+i!# to $is interests> t$e ot$er
s$!re$o#)ers !re not re#ieve) of t$eir )uties to $i, !n) s$ou#) "e (re(!re) to +o,(ens!te $i, (ro(er#< for $is s$!res4
:!i#ure to )o t$is resu#ts in t$e )issentient s$!re$o#)er "ein% #o+Ce) into t$e +o,(!n< 2it$out !n< return on $is
invest,ent
0
> !n) ,!< itse#f +onstitute unf!ir#< (reju)i+i!# +on)u+t to t$e (etitioner> entit#in% t$e +ourt to intervene on
$is "e$!#f un)er Se+tion *064
!2")$
1
CO=/ANIES)4
See Re Wondo.le7 'e7tiles Pt, Ltd J1601K VLR *054

&
See Re (acro 18pswich6 Ltd J166*K -CLC &0*4 As to t$e +ourtsA !((ro!+$ to +o,(!n< ,is,!n!%e,ent see /!r!%r!($ 1104
J636K !nte4
*
See Re London #chool o. Electronics Ltd J1651K C$ 11 !t & (er Nourse J4
0
See Re +erm,n #t 'urkish Baths Ltd J1631K & A## ER 15*> J1631K 1 7LR 18*> CA4
!2",$
11/ Brea>do0n of the 6uasi+partnership relationship
T$e +ourts $!ve re+o%nise) t$!t t$e re#!tions$i( "et2een t$e ,e,"ers of ! ;u!si'(!rtners$i( ,!< "re!C )o2n 2it$out
!n< of t$e (!rties "ein% !t f!u#t
1
4

Nevert$e#ess> t$e resu#t is t$!t t$e "usiness +!n +ontinue on#< if one of t$e (!rties
severs $is +onne+tion 2it$ it4 Often it 2i## "e +#e!r 2$i+$ of t$e (!rties is t$e ,ost vit!# (!rti+i(!nt fro, t$e +o,(!n<As
(oint of vie2 !n) in su+$ +ir+u,st!n+es> t$e ot$er (!rt< ,ust "e e9(e+te) to #e!ve4 T$e +ourt is free> in t$ese
+ir+u,st!n+es> to !((#< t$e Co,(!nies A+t 1650 Se+tion *06
!n) or)er t$!t !)e;u!te +o,(ens!tion "e (!i) for t$e

(etitionerAs s$!res4 In so )oin%> it !((e!rs it is ,ere#< )oin% 2$!t t$e (!rties 2ou#) $!ve e9(e+te) $!) t$e< t$ou%$t
!"out ! (!rti+i(!nt #e!vin% t$e +o,(!n< on t$e "re!C)o2n of t$e re#!tions$i(4
1
See Re a &ompan, J1651K -CLC &1H Re a &ompan, 1*o 55F;<< o. :C=D6 J1653K 1 7LR 18> J1653K -CLC 6*4
CO=/ANIES)4
!2".$
11" &emedies under the Companies Act 12", 3ection ).1
7$en ! (etitioner $!s est!"#is$e) t$!t $is interests $!ve "een t$e su"je+t of unf!ir#< (reju)i+i!# "e$!viour un)er t$e
Co,(!nies A+t 1650 Se+tion *06
1
> t$e +ourt +!n ,!Ce use of t$e v!rie) !n) e9tensive re,e)ies !v!i#!"#e to it un)er
Se+tion *11 of t$e A+t4 T$is (rovision e,(o2ers t$e +ourt to ,!Ce !((ro(ri!te or)ers for %ivin% re#ief in res(e+t of t$e
,!tters +o,(#!ine) of4 7it$out (reju)i+e to t$e e9tensive n!ture of t$is %ener!# (o2er> Se+tion *11() sets out !
)et!i#e) #ist of t$e t<(es of or)er 2$i+$ t$e +ourt ,!< ,!Ce4 T$e +ourt ,!<:
11541 re%u#!te t$e +on)u+t of t$e +o,(!n<As !ff!irs in t$e futureH
1154 re;uire t$e +o,(!n< to refr!in fro, )oin% or +ontinuin% !n !+t +o,(#!ine) of "< t$e (etitioner or to )o !n !+t
2$i+$ t$e (etitioner $!s +o,(#!ine) it $!s o,itte) to )oH
1154& !ut$orise +ivi# (ro+ee)in%s to "e "rou%$t in t$e n!,e> !n) on "e$!#f> of t$e +o,(!n< "< su+$ (erson or (ersons
!n) on su+$ ter,s !s t$e +ourt ,!< )ire+tH !n)
1154* (rovi)e for t$e (ur+$!se of t$e s$!res of !n< ,e,"ers of t$e +o,(!n< "< ot$er ,e,"ers or "< t$e +o,(!n<
itse#f !n)> in t$e +!se of ! (ur+$!se "< t$e +o,(!n< itse#f> !ut$orise t$e re)u+tion of t$e +o,(!n<As +!(it!#
!++or)in%#<4
T$e ,ost +o,,on re#ief (res+ri"e) for t$e ;u!si'+ontr!+tu!# (!rtners$i( is !n or)er t$!t t$e res(on)ents (ur+$!se t$e
s$!res of t$e (etitioner> t$us en)in% $is +onne+tion 2it$ t$e "usiness in 2$i+$ $e $!)> in re!#it<> stoo) !s (!rtner4 It is
)iffi+u#t to see 2$!t ot$er re,e)< +ou#) usefu##< "e !((#ie) on t$e "re!C)o2n of ! (!rtners$i('t<(e re#!tions$i(4
.o2ever> t$e re,e)< re;uires t$!t t$e (etitionerAs s$!res "e !+;uire) !t ! f!ir v!#u!tion> !n) t$e "!sis on 2$i+$ t$e
s$!res "e v!#ue) ,!< often "e ! (o2erfu# su"si)i!r< issue "et2een t$e (!rties
4
1
CO=/ANIES)4
As to t$e "!sis of s$!re v!#u!tion see /!r!%r!($ 1*1 J186K et se; (ost4
!2"/$
112 7nterim orders
One !re! of +on+ern in +onne+tion 2it$ (ro+ee)in%s un)er t$e Co,(!nies A+t Se+tion *06
1
is t$e inevit!"#e )e#!<
"et2een t$e fi#in% of t$e (etition !n) t$e $e!rin% of t$e ,!tter> )urin% 2$i+$> in ,ost +!ses> t$e (etitioner> $!vin% "een
ouste) fro, t$e ,!n!%e,ent of t$e +o,(!n<> 2i## "e !"#e neit$er to (!rti+i(!te in its !ff!irs nor to ,onitor t$e (osition
of t$e +!(it!# 2$i+$ $e $!s investe) in t$e +o,(!n<4 Durin% t$is (erio) t$e +ourt $!s no juris)i+tion to ,!Ce !n interi,
or)er !s su+$> "e+!use t$e +ourtsA juris)i+tion on#< !rises on+e !n !)ju)i+!tion of unf!ir (reju)i+e $!s "een ,!)e
4
1
CO=/ANIES)4
See Re a &ompan, 1*o 55F:<4 o. :C=D6 J1653K 1 7LR 0504

!2""$
D: S.ARE.OLDERSA AGREE=ENTS
1%# *he use of shareholders a'reements
T$e juris)i+tion of t$e +ourts "ot$ un)er t$e Co,(!nies A+t Se+tion *06
1
!n) t$e use of t$e just !n) e;uit!"#e "!sis
to
2in) u( ! +o,(!n< is "!se) on t$e (ro(osition t$!t t$e +onstitution!# )o+u,ents )o not +ont!in t$e tot!#it< of t$e
!rr!n%e,ent of t$e (!rties> !n)> +onse;uent#<> (ro+ee)in% on t$e "!sis of t$ese )o+u,ents !#one )efe!ts t$e #e%iti,!te
e9(e+t!tions of so,e of t$e (!rties
&
4 It $!s sin+e "een re!#ise) t$!t !n e9tensive s$!re$o#)ersA !%ree,ent is t$e "est 2!<
of e9(ressin% t$e tot!#it< of t$e un)erst!n)in% "et2een t$e ;u!si'(!rtners !n) is (refer!"#e to !)!(tin% t$e +o,(!n<As
+onstitution!# )o+u,ents4
T$e use of s$!re$o#)ersA !%ree,ents is st!n)!r) (r!+ti+e in t$e stru+turin% of ! +or(or!te joint venture4 T$ese
!%ree,ents> 2$i+$ un#iCe t$e +o,(!n<As +onstitution!# )o+u,ents> !re not (u"#i+ )o+u,ents> !re no2 2i)e#< use) in
(riv!te +o,(!nies of t$e ;u!si'(!rtners$i( t<(e> so,eti,es !t t$e insisten+e of e9tern!# #en)ers to t$e "usiness> "ut
,ore usu!##< "e+!use of t$e (re+ise infor,!# nee)s of t$e (!rti+u#!r "usiness4 T$e< ,!< "e use) to for,!#ise !
(!rtners$i('t<(e !%ree,ent su+$ !s ! joint venture 2it$in t$e s$e#ter of ! #i,ite) +o,(!n< !n) !re often si,i#!r to
(!rtners$i( !%ree,ents4 T$e use of ! s$!re$o#)ersA !%ree,ent !##o2s ! ve$i+#e not un#iCe ! #i,ite) (!rtners$i( to "e
+re!te)> "ut one in 2$i+$> un#iCe t$e #i,ite) (!rtners$i(> t$e D(!rtiesA +!n "ot$ (!rti+i(!te in t$e ,!n!%e,ent !n) enjo<
#i,ite) #i!"i#it<4 On o++!sion> $o2ever> t$e ,!in (ur(ose of t$e use of s$!re$o#)ersA !%ree,ents is to (rovi)e ! fir,
+or(or!te stru+ture 2$ere t$e +o,(!n< is seeCin% to "orro2 su"st!nti!# su,s fro, ! "!nC or ot$er fin!n+i!# institution
*
4
In t$e event of ! )is(ute> t$e first (oint of referen+e for t$e (!rties !n) t$eir !)visers is no #on%er t$e
+onstitution!# )o+u,ent!tion> "ut t$e s$!re$o#)ersA !%ree,ents4 Nor,!##<> 2$ere for,!# !%ree,ents !re e,(#o<e)
settin% out t$e re#!tions !n) e9(e+t!tions of t$e (!rties> t$e +ourts 2i## infer t$!t t$e e9(ress (rovisions !re e9$!ustive
"ut> +onfronte) 2it$ +#e!r evi)en+e> t$e< ,!< "e s!tisfie) t$!t furt$er !%ree,ents !n) e9(e+t!tions 2ere +re!te) 2$i+$
!re not +ont!ine) in t$e for,!# )o+u,ents
0
4
!2"2$
1
CO=/ANIES)4
See Ebrahimi v Westbourne Galleries Ltd J163&K AC &18 !n) /!r!%r!($ 118 J610K !nte4 As to t$e (rovisions of ! s$!re$o#)ersA
!%ree,ent see /!r!%r!($ 15 J563K !nte4
&
See Re a &ompan, J1650K -CLC 584
*
See Russell v *orthern Bank Development &orpn Ltd J166K & A## ER 111> .L4
0
See Re a &ompan, 1*o 5595:4 o. :CCD6 J1663K -CLC 14
!22#$
1%1 -ffects of shareholders a'reements
T$e effe+t of s$!re$o#)ersA !%ree,ents fe## to "e +onsi)ere) "< t$e .ouse of Lor)s in Russell v *orthern Bank
Development &orpn Ltd
1
2$ere !n e9tensive s$!re$o#)ersA !%ree,ent 2!s entere) into !s (!rt of ! "!nCAs efforts to !i)
!n !i#in% "ri+C',!Cin% +o,(!n<4 T$e !%ree,ent> to 2$i+$ t$e +o,(!n< 2!s ! (!rt<> (rovi)e)> inter !#i!> t$!t no ne2
+!(it!# s$ou#) "e issue) 2it$out t$e 2ritten +onsent of !## t$e (!rties4 It 2!s !r%ue)> unsu++essfu##< !t first inst!n+e !n)
in t$e Court of A((e!#> t$!t t$e !%ree,ent 2!s ineffe+tive "e+!use t$e (rovision "re!+$e) t$e st!tutor< (o2er of t$e
+o,(!n< to in+re!se its s$!re +!(it!#4 T$e .ouse of Lor)s $e#) t$!t t$e un)ert!Cin% 2ou#) "in) t$e +o,(!n< !fter
votin% +ontro# $!) (!sse) to ne2 s$!re$o#)ers !n) !s su+$> it 2!s !s o"no9ious !s if it $!) "een +ont!ine) in t$e
!rti+#es4 It 2!s> $o2ever> in)e(en)ent !n) sever!"#e !n) t$e s$!re$o#)ersA !%ree,ent 2!s enfor+e!"#e "< t$e
s$!re$o#)ers inter se !s ! (erson!# !%ree,ent 2$i+$ )i) not fetter t$e +o,(!n< in t$e e9er+ise of its (o2ers4
T$e +!se 2ou#) !((e!r to "e !ut$orit< for t2o Ce< (ro(ositions4 :irst> ! s$!re$o#)ersA !%ree,ent is v!#i) !s !
+ontr!+t "et2een t$e s$!re$o#)ers> !n) !#so "et2een t$e +o,(!n< !n) t$e s$!re$o#)ers> (rovi)e) t$!t in it t$e +o,(!n<
)oes not un)ert!Ce !n< res(onsi"i#it< or +o,,it,ent 2$i+$ it is un!"#e #!2fu##< to (ro,ise4 Se+on)> if t$e
s$!re$o#)ersA !%ree,ent is ,is)r!fte) so t$!t t$e +o,(!n< )oes un)ert!Ce ,ore t$!n it is #!2fu##< !"#e> t$e +ourts ,!<
"e (re(!re) to fin) t$!t t$e +o,(!n<As (ro,ise is se(!r!te !n) sever!"#e> !n) $!vin% severe) t$e +o,(!n<As (ro,ise>
enfor+e t$e (ro,ises "et2een t$e s$!re$o#)ers
4
!221$
1
See Russell v *orthern Bank Development &orpn Ltd J166K & A## ER 111> .L4
T$e )istin+tion !rti+u#!te) "< Lor) J!un+e< is "!se) on $is (er+e(tion t$!t t$e for, of s$!re$o#)ersA !%ree,ent "efore $i, 2!s
o"no9ious> in so f!r !s t$e +o,(!n< 2!s ! (!rt<> "e+!use it (ur(orte) to su(erse)e t$e !rti+#es !n) 2ou#) "in) t$e +o,(!n< !fter
votin% +ontro# $!) (!sse) to t$e s$!re$o#)ers4 It is> $o2ever> ;uestion!"#e 2$et$er t$e !+tu!# )e+ision in Russell )r!2s t$e
)istin+tion ,!)e "< Lor) J!un+e< "e+!use $is +o,,ents on t$e (osition of t$e compan,3s (ro,ises !re in f!+t o"iter4 T$e
!ut$orit< of t$e (ro(ositions of #!2 st!te) in Russell v *orthern Bank !re furt$er 2e!Cene) "< t$e i,(erfe+t +it!tion of !ut$orit<
to> !n) $!n)#in% "<> t$e .ouse: see t$e !n!#<sis "< =r -ri!n D!ven(ort @C in D7$!t Di) Russell v *orthern Bank Development
&orpn Ltd De+i)eQA (166&) 186 L@R 00&4 Si%nifi+!nt#<> t$e !((e##!nt $!) not ,!)e t$e +o,(!n< ! (!rt< to t$e (ro+ee)in%s>
seeCin% re#ief !%!inst t$e s$!re$o#)ers on#< un)er t$e s$!re$o#)ersA !%ree,ent> !n) +on+e)in% (!n) t$erefore not !r%uin%) t$e
+!se !%!inst t$e +o,(!n<4
!22%$
1%% -ffect of a companys promise to a third party
Russell
1
2!s not +on+erne) 2it$ t$e (osition of t$e +o,(!n< if its +ontr!+tu!# (ro,ise not to !#ter its +onstitution!#
)o+u,ents $!) "een %iven not to t$e s$!re$o#)ers> "ut to ! t$ir) (!rt< (for inst!n+e ! "!nC 2$i+$ $!) !)v!n+e) ,one<
to t$e +o,(!n< on t$e "!sis of> inter !#i!> (ro,ises "< t$e +o,(!n< !n) its s$!re$o#)ers not to !#ter its )ire+tors or
+!(it!#)4 T$is 2!s not t$e situ!tion "rou%$t "efore t$e +ourt in Russell> "ut it +!n !rise in re#!tion to "ot$ ;u!si'
(!rtners$i(s in %ener!#> !n) joint ventures in (!rti+u#!r4 It is su",itte) t$!t 2$en +onfronte) st!rC#< 2it$ t$e issue of
t$e (osition of t$e +o,(!n< in re#!tion to "ot$ s$!re$o#)ers !n) t$ir) (!rties to 2$i+$ it $!s %iven (ro,ises> t$e +ourts
!re un#iCe#< to !##o2 t$e +o,(!n< to ev!)e t$e +o,,er+i!# res(onsi"i#ities 2$i+$ it $!s vo#unt!ri#< t!Cen on4
1
Russell v *orthern Bank Development &orpn Ltd J166K & A## ER 111> .L4
!22($
1%( Controllin' the companys po0ers
1%(11 3pecial resolutions
=!n< of t$e (o2ers +onferre) on ! +o,(!n< +!n "e +ontro##e) "< t$e use of !((ro(ri!te#< )r!2n s$!re$o#)ersA
!%ree,ents4 T$e ,ost sensitive ones re;uire ! s(e+i!# reso#ution to "e (!sse)> !n) t$e fo##o2in% #ist of t$e situ!tions in
2$i+$ su+$ ! reso#ution is re;uire) %ives so,e in)i+!tion of t$e e9tent of t$e (o2ers 2$i+$ +!n "e +ontro##e) in t$is
,!nner4 A s(e+i!# reso#ution is re;uire) to:
1&4141+$!n%e t$e o"je+ts of ! +o,(!n<
1
H
1&414!#ter t$e !rti+#es of !sso+i!tion of ! +o,(!n<
H
1&414&!#ter !n< +on)ition +ont!ine) in ! +o,(!n<As ,e,or!n)u, 2$i+$ +ou#) #!2fu##< $!ve "een +ont!ine) in its
!rti+#es
&
H
1&414*+$!n%e ! +o,(!n<As n!,e
*
H
1&4140r!tif< !+tion "< t$e )ire+tors outsi)e t$e o"je+ts of t$e +o,(!n<
0
H
1&4141re#ieve !n< #i!"i#it< of )ire+tors or !n< ot$er (erson in+urre) "e+!use t$e )ire+tors $!ve !+te) outsi)e t$e
+o,(!n<As o"je+ts
1
H
1&4143to !##o2 ! (riv!te +o,(!n< to re're%ister !s ! (u"#i+ +o,(!n<
3
H
!22)$
1&4145to !##o2 ! (u"#i+ +o,(!n< to re're%ister !s ! (riv!te +o,(!n<
5
H
1&4146to %ive )ire+tors (o2er to i%nore or ,o)if< ,e,"ersA st!tutor< (re'e,(tion ri%$ts to su"s+ri"e for ne2 s$!res
or on t$e issue of o(tions or +onverti"#es> if t$e (o2er is not %iven "< t$e !rti+#es> or to rene2 su+$ ! (o2er
6
H
1&41418 to )e+i)e t$!t un+!##e) s$!re +!(it!# s$!## not "e +!##e) u( e9+e(t on 2in)in% u(
18
H
1&41411 to re)u+e s$!re +!(it!# if so !ut$orise) "< t$e +o,(!n<As !rti+#es
11
H
1&4141 !((rove t$e %ivin% of fin!n+i!# !ssist!n+e for t$e !+;uisition of s$!res in ! (riv!te +o,(!n< or its $o#)in%
+o,(!n<
1
H
1&4141& !ut$orise t$e ter,s of ! +ontin%ent +ontr!+t un)er 2$i+$ ! +o,(!n< ,!< "e+o,e entit#e) or o"#i%e) to "u<
its o2n s$!resH to v!r<> revoCe or rene2 !n< su+$ !ut$orit<H !n) to v!r< !n e9istin% +ontin%ent (ur+$!se
+ontr!+t
1&
H
1&4141* !((rove ! (!<,ent out of ! (riv!te +o,(!n<As +!(it!# for t$e re)e,(tion or (ur+$!se of !n< of its o2n
s$!res
1*
H
1&41410 ,!Ce ! (riv!te +o,(!n< e9e,(t fro, !u)itin% re;uire,entsH to !#ter ! +o,(!n<As ,e,or!n)u, so !s to
ren)er t$e )ire+torsA or ,!n!%ersA or !n< ,!n!%in% )ire+torAs #i!"i#it< un#i,ite)
10
H
1&41411 to !((rove t$e !ssi%n,ent "< ! )ire+tor or ,!n!%er of $is offi+e to !not$er (erson
11
H
1&41413 to reso#ve to (etition for +o,(u#sor< #i;ui)!tion
13
H t$e )ire+tors !#so $!ve t$e (o2er to (etition
15
H
1&41415 to reso#ve t$!t ! +o,(!n< "e vo#unt!ri#< 2oun) u(> un#ess t$e +ir+u,st!n+es !re su+$ t$!t !n or)in!r< or
e9tr!or)in!r< reso#ution is suffi+ient
16
H
1&41416 to !((rove t$e !++e(t!n+e "< ! #i;ui)!tor in ! ,e,"ersA vo#unt!r< 2in)in% u( of s$!res of !not$er +o,(!n<
to 2$i+$ !ssets of t$e +o,(!n< in #i;ui)!tion !re to "e tr!nsferre)
8
4
!22,$
1
Co,(!nies A+t 1650 s * (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
I"i) s 6(1)4
&
I"i) s 13(1)4
*
I"i) s 5(1)4
0
I"i) s &0(&)4
1
I"i) s &0(&)4
3
I"i) s *&(1)(!)4
5
I"i) s 0&(1)(!)4
6
I"i) s 604 T$is (rovision is irre#ev!nt to ! (riv!te +o,(!n< if t$e st!tutor< (re'e,(tion ri%$ts !re e9+#u)e) "< its ,e,or!n)u,
or !rti+#es un)er s 614
18
I"i) s 184
11
I"i) s 1&0(1)4
1
I"i) s 100(*) !n) (0)4
1&
I"i) s 13&()4
1*
I"i) s 13&()4
10
I"i) s 084 Not in (r!+ti+e #iCe#< to "e restri+te) "< ! s$!re$o#)ersA !%ree,ent4
11
I"i) s &854
13
Inso#ven+< A+t 1651> s 1(1)(!) (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
15
I"i) s 1*(1)4
16
I"i) s 5*(1)(")4
8
I"i) ss 118> 1114
!22.$
1%(1% &emoal of directors
T$e e9+e(tion to t$e (rin+i(#e t$!t ! +o,(!n< +!n "in) itse#f 2it$ re%!r) to t$e e9er+ise of its (o2ers !rises in t$e +!se
of t$e re,ov!# of )ire+tors4 T$e Co,(!nies A+t 1650
1
(rovi)es t$!t ! +o,(!n< ,!<> "< or)in!r< reso#ution> re,ove !
)ire+tor "efore t$e e9(ir!tion of $is (erio) of offi+e> not2it$st!n)in% !n<t$in% in its !rti+#es or in !n< !%ree,ent
"et2een it !n) $i,4 S(e+i!# noti+e is re;uire) of su+$ ! reso#ution4 .o2ever> t$is is not to "e t!Cen !s )e(rivin% !
(erson re,ove) un)er it of +o,(ens!tion or )!,!%es (!<!"#e to $i, in res(e+t of t$e ter,in!tion of $is !((oint,ent
!s )ire+tor or !n< !((oint,ent ter,in!tin% 2it$ t$!t !s )ire+tor> or !s )ero%!tin% fro, !n< (o2er to re,ove ! )ire+tor
2$i+$ ,i%$t ot$er2ise e9ist4
1
Co,(!nies A+t 1650 s &8&(1)> () (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 T$e f!+t t$!t e9(ress (rovision is ,!)e in t$e
1650 A+t to +over t$e re,ov!# of )ire+tors su%%ests t$!t t$e +o,(!n< +!n !%ree "< +ontr!+t not to e9er+ise its st!tutor< (o2ers4
!22/$
E: /RE'E=/TION /ROVISIONS AND O::ERS TO /URC.ASE
1%) 7ntroduction
T$e ,ost +o,,on re#ief for ;u!si'(!rtners$i(s un)er t$e Co,(!nies A+t 1650 Se+tion *06
1
is t$e (ur+$!se of t$e
res(on)entAs s$!res "< t$e (etitioner !t ! f!ir v!#u!tion t$us severin% $is +onne+tion to t$e "usiness4 An i,(ort!nt
f!+tor in t$e v!#u!tion of s$!res in su+$ +ir+u,st!n+es is t$e si%nifi+!n+e of !n< v!#u!tion +#!use in t$e s$!re$o#)ersA
!%ree,ent or +onstitution!# )o+u,ents4 Anot$er i,(ort!nt issue is t$e effe+t of !n offer "< t$e ,!jorit< to (ur+$!se t$e
,inorit<As s$!re4
1
CO=/ANIES)4
!22"$
1%, Pre+emption proisions
1
1%,11 3hareholder 0ho ceases to be a director to sell shares to the majority
A (re'e,(tion +#!use ,!< (rovi)e t$!t ! s$!re$o#)er 2$o +e!ses to "e ! )ire+tor ,ust se## $is s$!res to t$e ,!jorit< !t
! f!ir v!#ue4 Su+$ ! +#!use +onstitutes ! )eni!# of t$e e9isten+e of !n< #e%iti,!te e9(e+t!tion of "ein% !"#e to +ontinue in
offi+e !n) (!rti+i(!te in t$e ,!n!%e,ent of t$e !ff!irs of t$e +o,(!n< so #on% !s t$e +o,(!n<As "usiness !+tivities
+ontinue4 As su+$> no unf!ir (reju)i+e +!n> in %ener!#> !rise un#ess t$e ,!jorit< )en< t$e "enefit of t$e +#!use to t$e
,inorit<
4
1
See S . Goo (inorit, #hareholders Protection (166*) ( 11 et se;4 Goo $!s i)entifie) t$e four situ!tions re#!tin% to (re'e,(tion
(rovisions !n) offers to (ur+$!se 2$i+$ !re su,,!rise) !t /!r!%r!($s 1041 J666KM114 J188&K (ost4
T$is is t$e re!# e9(#!n!tion of t$e )e+ision of .off,!nn J in Re a &ompan, 1*o 55F;<< o. :C=D6 J1653K 1 7LR 18 !n) ot$er
)e+isions on t$e s!,e "!sis: Re a &ompan, 1*o 55<D9; o. :C=F6 J1651K -CLC &1H Re &astleburn Ltd J1661K -CLC 56H Re a
&ompan, 1*o 55D=;F o. :C==6 J1656K -CLC &104
Goo> $o2ever> i)entifies e9+e(tion!# +ir+u,st!n+es n!,e#<:
(i) 2$ere t$e !rti+#es (rovi)e so,e !r"itr!r< or !rtifi+i!# ,et$o) of v!#u!tion: see Re a &ompan, 1*o 55F;<< o. :C=D6
!"ove !t 118 /er .off,!nn JH or
(ii) 2$ere t$ere $!s "een "!) f!it$ or (#!in i,(ro(riet< in t$e +on)u+t of t$e res(on)ents: see Re a &ompan, 1*o 55F;<<
o. :C=D6 !"oveH or
(iii) 2$ere t$e v!#uer 2!s not 2$o##< in)e(en)ent of !n< +onne+tion 2it$ t$e res(on)ent or t$e tr!ns!+tions of 2$i+$
+o,(#!int 2!s ,!)e: see Re Boswell B &o 1#teel6 Ltd (1655) 0 -CC 1*0 !t 101 (er =orritt J4
!222$
1%,1% <ember to offer shares to other shareholders
T$e !rti+#es ,!< on#< in+#u)e ! +o,,on for, (re'e,(tion (rovision re;uirin% ! ,e,"er )esirin% to tr!nsfer s$!res to
offer to se## $is s$!res to $is fe##o2 s$!re$o#)ers !t ! f!ir v!#ue fi9e) "< t$e !u)itors4 No o++urren+e of (reju)i+i!#
+on)u+t is e9(ress#< +onte,(#!te)4 It $!s "een su%%este)
1
t$!t if> in t$is situ!tion> t$ere is unf!ir#< (reju)i+i!# +on)u+t
2$i+$ !ffe+ts t$e (etitioner ;u! ,e,"er> t$e ,ere (resen+e of t$e (re'e,(tion (rovision or t$e res(on)entAs offer to
"u< out t$e (etitioner s$ou#) not (re+#u)e $i, fro, (etitionin% un)er t$e Co,(!nies A+t Se+tion *06
4 T$e +ourts $!ve

$e#) t$!t in su+$ +ir+u,st!n+es no or)er s$ou#) "e ,!)e unti# t$e ,!jorit< $!ve refuse) to res(on) to !n offer to se##
t$e s$!res !t ! f!ir (ri+e
&
4 Su+$ !n !((ro!+$ !++or)s 2it$ ot$er )e+isions t$!t it 2ou#) "e unre!son!"#e to !++e(t !
re!son!"#e offer "< ot$er (!rties to (ur+$!se t$e s$!res of ! (etitioner for t$e 2in)in% u( of ! +o,(!n< r!t$er t$!n
(ursue t$e re,e)< of #i;ui)!tion
*
4
!1###$
1
See S . Goo (inorit, #hareholders Protection (166*) ( 11 et se;4 See !#so Re a &ompan, 1*o 55;;5 o. :CC:6 J1661K -CLC
063)4
CO=/ANIES)4
&
See Re a &ompan, 1*o 55<D9; o. :C=F6 (1651) -CC 66> 161 !t 160M161 (er .off,!nn J:
D444if ! (etitioner is +o,(#!inin% of +on)u+t 2$i+$ 2ou#) "e unf!ir#< (reju)i+i!# on#< if !++o,(!nie) "< !
refus!# on t$e (!rt of t$e ,!jorit< to "u< $is s$!res !t ! f!ir (ri+e> !n) t$e !rti+#es (rovi)e ! ,e+$!nis, for
)eter,inin% su+$ ! (ri+e> $e s$ou#) not "e entit#e) to (etition unti# $e $!s invoCe) or offere) to invoCe t$!t
,e+$!nis, !n) t$e ,!jorit< $!ve refuse) to "u< !t t$e (ri+e so )eter,ine)4A
See !#so t$e ju)%,ents of .off,!nn J in Re a &ompan, 1*o 55F;<< o. :C=D6 J1653K 1 7LR 18> su" no, Re IE? Ltd (1561)
-CC 66> 08> 2$ere $e +on+#u)e) t$!t to $o#) to t$e +ontr!r< 2ou#) not "e to Dsu(eri,(ose e;uit!"#e +onsi)er!tionA on $is
ri%$ts un)er t$e !rti+#es "ut to re#ieve $i, fro, t$e "!r%!in $e ,!)e (!t 66> 05)4 Re a &ompan, 1*o 55;5CD o. :C=<6 (1653) *
-CC 58H Re a &ompan, 1*o 55D=;F o. :C==60 J1656K -CLC &10H Re &astleburn Ltd J1661K -CLC 564
*
See Re a &ompan, 1*o 5594D< o. :C=96 J165&K A## ER *0*> J165&K 1 7LR 63H Re a &ompan, 1*o 55;=F; o. :C=D6 (1653) &
-CC 1*H Re a &ompan, 1*o 55;5CD o. :C=<6 !"oveG
!1##1$
1%. ?ffers to purchase shares in the absence of pre+emption proisions
1%.11 ?ffers to purchase petitioners shares at fair alue
7$ere t$ere !re no (re'e,(tion (rovisions in t$e !rti+#es> t$e res(on)ent ,!<> nevert$e#ess> offers to "u< t$e
(etitionerAs s$!res !t ! f!ir v!#ue to "e fi9e) "< !n in)e(en)ent v!#uer
1
4 Su+$ !n offer s$ou#) not (re+#u)e t$e ,!Cin%
of !n or)er un)er t$e Co,(!nies A+t 1650 Se+tion *06
> sin+e su+$ ! v!#u!tion 2ou#) "e on t$e "!sis t$!t ! )is+ount
s$ou#) "e ,!)e for t$e ,inorit< $o#)in%
&
> !n) un)er Se+tion *06 t$e s$!re$o#)er $!s ! stron% +!se t$!t no su+$
)is+ount s$ou#) "e ,!)e
*
4 T$is> of +ourse> (resu((oses t$!t t$e !##e%!tion of unf!ir (reju)i+e +!n "e ,!)e out4
1
As to t$e v!#u!tion of s$!res see /!r!%r!($ 1*1 J186K et se; (ost4
CO=/ANIES)4
&
See S . Goo (inorit, #hareholders Protection (166*) ( 11 et se;4
*
As to t$e !((#i+!tion of ! )is+ount in s$!re v!#u!tion see /!r!%r!($ 1*3 J18&0K et se; (ost4
!1##%$
1%.1% ?ffers to buy out petitioner on a pro+rata basis
7$ere t$ere !re no (re'e,(tion (rovisions t$e res(on)ents ,!< offer to "u< out t$e (etitioner on ! (ro r!t! "!sis to "e
v!#ue) "< !n in)e(en)ent v!#uer4 .ere t$e (ros(e+tive (etitioner is "ein% offere) 2$!t $e +ou#) seeC fro, t$e +ourt>
!n) it 2ou#) "e !n !"use of t$e +ourt (ro+e)ure
1
un#ess it +!n eit$er "e s$o2n t$!t t$e v!#uer 2ou#) not "e in)e(en)ent
!n) o"je+tive> or t$e (etitioner is seeCin% !n or)er t$!t $e "e !##o2e) to (ur+$!se t$e res(on)entAs s$!res
4
1
See Re a &ompan, *o 15594D< o. :C=96 J165&K A## ER 50*> J165&K 1 7LR 63H Re a &ompan, 1*o 55D=;F o. :C==6 J1656K
-CLC &104
See Re a &ompan, 1*o 55;=F; o. :C=D6 J1653K -CLC 01H Re a &ompan, 1*o 55;5CD o. :C=<6 (1653) * -CC 584
!1##($
1%/91%" -ffect of an offer
T$e ;uestion of 2$et$er it is (ro(er for t$e +ourt to ,!Ce !n or)er un)er t$e Co,(!nies A+t Se+tion *06
1
on t$e "!sis
t$!t t$e ,!jorit<As !+tions !re unf!ir#< (reju)i+i!# to t$e ,inorit< !fter t$e ,!jorit< $!ve offere) to "u< out t$e interests
of t$e ,inorit< !t t$e v!#ue fi9e) un)er t$e s$!re$o#)ersA !%ree,ent or ot$er )o+u,ents 2!s !))resse) in Re a
&ompan, 1*o 55F;<< o. :C=D6
4 A++or)in% to .off,!nn J:
D444 if t$e !rti+#es (rovi)e ! ,et$o) for )eter,inin% t$e f!ir v!#ue of ! (!rt<As s$!res> ! ,e,"er seeCin% to se## $is
s$!res on ! "re!C)o2n of re#!tions 2it$ ot$er s$!re$o#)ers s$ou#) not or)in!ri#< "e entit#e) to +o,(#!in of unf!ir
+on)u+t if $e $!s ,!)e no !tte,(t to use t$e ,!+$iner< (rovi)e) "< t$e !rti+#esA
&
4
It !((e!rs t$!t t$e ;uestion of 2$et$er t$e res(on)ents $!ve ,!)e ! re!son!"#e offer to t$e (etitioner s$ou#) not
!uto,!ti+!##< "e re#ev!nt to t$e f!irness of t$e res(on)entsA +on)u+t !n) t$!t t$e re#ev!n+e of t$e offer s$ou#) )e(en)
on t$e (!rti+u#!r +ir+u,st!n+es of t$e +!se
*
4 .o2ever> in Re )bbe, Leisure Ltd
0
> .off,!nn J (ointe) out t$e %re!t +ost
invo#ve) in !((#i+!tions un)er t$e Co,(!nies A+t 1650 Se+tion *06 !n) tooC t$e vie2 t$!t t$ere 2ere stron% (o#i+<
re!sons to restri+t> so f!r !s (ossi"#e> +#!i,s "rou%$t un)er t$e se+tion4
1
CO=/ANIES)4
Re a &ompan, 1*o 55F;<< o. :C=D6 J1653K 1 7LR 184

&
I"i) !t 1184 T$is %ener!# st!te,ent is t$e su"je+t of sust!ine) +riti+is, "< /rofessor /renti+e (1655) OJLS 00 !t 56M614
*
See S . Goo (inorit, #hareholders Protection (166*) ( 164
0
Re )bbe, Leisure Ltd J1656K 0 -CLC 1164
!1##)$9!1#11$
(0) CO=/AN? LA7 ISSUES
A: EVOLUTION O: ENGLIS. CO=/AN? LA7
1%2 3cope of -n'lish company la0
T$e +o,(#e9 2e" of s$!re$o#)ersA !%ree,ents +o,,on#< use) to ,o)if< "!si+ +o,(!n< #!2 stru+tures in t$e +!se of !
+or(or!te joint venture is ! +#e!r in)i+!tion t$!t En%#is$ +o,(!n< #!2 is fun)!,ent!##< i##'e;ui((e) to )e!# 2it$ t$e
re;uire,ents of t$ose 2$o 2is$ to $!ve ! "usiness 2$i+$ +onfers #i,ite) #i!"i#it< "ut !#so (rote+ts t$eir in)ivi)u!#
ri%$ts !s t$ou%$ t$e< 2ere (!rtners in ! fir,4 T$e re!sons for t$e (resent )iffi+u#ties !re $istori+!#4 T$e Unite)
Bin%)o, evo#ve) ! sin%#e "o)< of +o,(!n< #!2 to +over !## +o,(!nies 2$!tever t$eir siIe !n) s$!(e
1
4
7$i#st En%#is$ +o,(!n< #!2 $!s )istin%uis$e) "et2een (riv!te !n) (u"#i+ +o,(!nies sin+e t$e Co,(!nies
A+t 1683> t$e )istin+tion is !+$ieve) on#< "< re#ievin% (riv!te +o,(!nies of so,e of t$e re%u#!tor< o"#i%!tions i,(ose)
u(on (u"#i+ +o,(!nies
4 T$e +entr!# "o)< of %overnin% #!2 in e!+$ +!se re,!ins t$e s!,e4 As su+$> it (resu((oses no
re#!tions$i( "et2een t$e in)ivi)u!# s$!re$o#)ers> ot$er t$!n ! +ontr!+tu!# one
&
> !n) +on+erns itse#f 2it$ )efinin% 2$ere
t$e +onstitution!# (o2ers of ,!n!%e,ent 2it$in t$e +o,(!n< #ie (n!,e#< 2it$ t$e "o!r) of )ire+tors) !n) t$e
!++ount!"i#it< of t$e ,!n!%e,ent "o)< to t$e s$!re$o#)ers !t #!r%e4 It !#so (resu((oses t$!t s$!re$o#)ers !re !
+$!n%in% !non<,ous %rou( 2$i+$ 2i##> in %ener!#> $!ve t$eir nee)s !)e;u!te#< ,et "< !n !nnu!# ,eetin% !t 2$i+$ t$e
)ire+tors ,!< "e +!##e) to !++ount "< t$e ,e,"ers$i(
*
4
1
See Go2er Principles o. (odern &ompan, LawH .o#)s2ort$ @istor, o. En!lish Law vo# 5 ( 16MH :or,o< 'he @istorical
Foundations o. (odern &ompan, LawH CooCe &orporation 'rust and &ompan,4
E% t$e #!+C of ,ini,u, +!(it!# re;uire,ent> t$e ,o)ifie) ru#es 2it$ re%!r) to !++ounts> !n) t$e re#!9e) ru#es for t$e (rovision
of fin!n+i!# !ssist!n+e to (ur+$!se t$e +o,(!n<As o2n s$!res4 See /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies
(1661)4
&
T$e re%istere) )o+u,ents of t$e +o,(!n< $!ve> of +ourse> ! +ontr!+tu!# effe+t: see Oakbank Oil &o v &rum (155) 5 A(( C!s
10H @ickman v ent or Romne, (arsh #heep Breeders )ssociation J1610K 1 C$ 5514
*
A))ition!# ,eetin%s ,!< "e +!##e)> "ut r!re#< !re4
!1#1%$
-: USING T.E CO=/AN? STRUCTURE :OR A JOINT VENTURE
1: INTRODUCTION
1(# Conse6uences of usin' the company structure
T$e +o,,er+i!# )<n!,i+s of t$e +or(or!te joint venture !re t$ose of ! (!rtners$i(> "ut t$e #e%!# stru+ture i,(ose) for
t$e o(er!tion of t$e +or(or!te joint venture ve$i+#e is !)!(te) for ver< )ifferent (ur(oses> !n) to ,eet ver< )ifferent
nee)s4 T$e resu#t of t$is is !n in!)e;u!te stru+ture in t2o i,(ort!nt res(e+ts4 :irst> t$e +#ose re#!tions "et2een t$e
(!rti+i(!nts in ! joint venture 2i## ne+ess!ri#< %ive rise to ! +onsi)er!"#e )e%ree of trust !n) re#i!n+e "et2een t$e,4 In
t$is> t$e< !re si,i#!r to (!rtners$i(s
1
4 .o2ever> in t$e +!se of (!rtners$i(> En%#is$ #!2 re+o%nises t$is re!#it< "<
i,(osin% fi)u+i!r< res(onsi"i#it< u(on (!rtners in re#!tion to t$eir )e!#in%s 2it$ one !not$er4 As su+$> t$ese )uties )o
not !rise in re#!tion to one s$!re$o#)erAs )e!#in%s 2it$ !not$er4 T$ere is so,e su%%estion fro, t$e +!se #!2 t$!t in vie2
of t$e )iffi+u#ties !risin% fro, t$is situ!tion t$e +ourts !re i,(osin% fi)u+i!r< res(onsi"i#ities in t$e +!se of joint
ventures
4 In !n< event> t$e (ro"#e,s 2$i+$ #urC $ere nee)> !t #e!st> to "e re+o%nise)> !n) +!refu##< "orne in ,in)4
Se+on)> t$e ru#es seeCin% to re%u#!te !n) i,(ose res(onsi"i#it< u(on ,!n!%e,ent tr!)ition!# to En%#is$ +o,(!n< #!2
,!< "e i##'suite) to t$e joint venture stru+ture !n) +!n %ive rise to +o,(#i+!tion !n) injusti+e4 In s$ort> t$e !+tu!#
stru+tures of +o,(!n< #!2 t$rou%$ 2$i+$ t$e +or(or!te joint venture o(er!tes ,!< $!ve t$e (otenti!# to i,(ose %re!ter
res(onsi"i#ities t$!n !re )esir!"#e u(on t$e )ire+tors of t$e joint venture ve$i+#e> !n) insuffi+ient res(onsi"i#ities u(on
t$e venturers t$e,se#ves !s t$e s$!re$o#)ers in t$e +o,(!n<4
1
As ! resu#t> (!rtners o2e fi)u+i!r< )uties to e!+$ ot$er: see vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($s *& J01K> 11 J31K4
See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) (( 138M1354
As to fi)u+i!r< )uties in t$e +!se of joint ventures see /!r!%r!($ 1&6 J181K (ost4
!1#1($
: A//OINT=ENT AND RE=OVAL O: DIRECTORS
1(1 *he board of directors
Un)er t$e Co,(!nies A+t 1650 !n) tr!)ition!# +o,(!n< #!2 stru+tures> t$e ,!n!%e,ent of t$e +o,(!n< is entruste)
"< t$e s$!re$o#)ers to t$e )ire+tors of t$e +o,(!n<
1
4 T$e +onstitution!# ri%$t of ,!n!%e,ent is in t$e $!n)s of t$e
)ire+tors su"je+t to t$e ri%$t of t$e s$!re$o#)ers to re(#!+e t$e,> if t$e ne+ess!r< ,!jorit< +!n "e !+$ieve)4 In !)!(tin%
t$e stru+tures of t$e +o,(!n< to ,eet t$e nee)s of ! joint venture it is usu!# for e!+$ joint venturer to "e %iven t$e ri%$t
to !((oint ! )ire+tor or )ire+tors to t$e "o!r) of t$e joint venture +o,(!n<4 T$e in)ivi)u!# venturers 2i## see t$is ri%$t
!s ! ,e!ns of (rote+tin% t$eir in)ivi)u!# interests in t$e o(er!tion of t$e joint venture> $!vin% ! +#e!r voi+e in> !n)
"ein% fu##< infor,e) of t$e ventureAs o(er!tions4
1
As to t$e ,!n!%e,ent !n) !),inistr!tion of +o,(!nies see vo# 18 CO=/ANIES /!r!%r!($ 1 J1K et se;4 See !#so /ri,e !n)
S+!n#!n 'he Law o. Private Limited &ompanies (1661)4
!1#1)$
1(% Dismissal of directors
T$e +onstitution!# stru+ture un)er En%#is$ +o,(!n< #!2 %ener!##< 2orCs !%!inst t$e nee)s of t$e joint venturers
"e+!use t$e %ener!# ,eetin% of t$e +o,(!n< +!n )is,iss ! )ire+tor "< ! si,(#e ,!jorit< not2it$st!n)in% !n<t$in% in
t$e !rti+#es or !n< !%ree,ent "et2een t$e +o,(!n< !n) t$e )ire+tor
1
4 If> t$erefore> one of t$e venturers !+;uires !
,!jorit< of t$e votin% ri%$ts in ! joint venture +o,(!n< $e 2i## "e +onstitution!##< !"#e to )is,iss t$e )ire+tors
!((ointe) "< ot$er venturer(s) #e!vin% $is o2n no,inee )ire+tors to run t$e venture4 7$i#st t$e )ire+tors 2i## sti## "e
"oun) "< t$eir fi)u+i!r< )uties to +onsi)er t$e interests of t$e +o,(!n< !s ! 2$o#e> r!t$er t$!n t$e n!rro2 interests of
t$e venturer 2$o $!s !((ointe) t$e,
> it ,!< 2e## "e fe#t t$!t> in (r!+ti+e> it 2i## "e )iffi+u#t to s$o2 t$!t (referen+e
$!s "een %iven to t$e interests of t$e no,in!tin% venturer to t$e (reju)i+e of t$e +o,(!n< !s ! 2$o#e4 T$e )is!((ointe)
s$!re$o#)er ,!< "e !"#e to "rin% (ro+ee)in%s un)er t$e Co,(!nies A+t 1650 Se+tion *06

on t$e "!sis t$!t one of its
#e%iti,!te e9(e+t!tions> n!,e#< t$!t of ,!n!%e,ent of t$e "usiness> $!s "een frustr!te)4 Nevert$e#ess> t$ese !re
re,e)ies 2$i+$ !rise ,ere#< to )e!# 2it$ t$e +onse;uen+es of t$e situ!tion4
1
See t$e Co,(!nies A+t 1650 s &8&(1) (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See /ri,e !n) S+!n#!n 'he Law o.
Private Limited &ompanies (1661) +$ 54
T$e +#!ssi+ e9(osition of t$e res(onsi"i#it< of ! )ire+tor to $is +o,(!n< is t$!t of Lor) Cr!n2ort$ in )berdeen Rl, &o v Blaikie
Bros (150*) 1 =!+; *11 !t *314 See /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies (1661) ( 114
!1#1,$
1(( Preentin' the remoal of directors
1((11 Constitutional documents
T$e (!rti+i(!tion of t$e in)ivi)u!# venturers> t$rou%$ t$eir !((oint,ent of )ire+tors> +!n "e %u!r!ntee) "< )r!ftin% t$e
+onstitution!# )o+u,ents so t$!t it "e+o,es i,(ossi"#e to re,ove no,inee )ire+tors4 T2o te+$ni;ues> t$e use of !
Bushell v Faith +#!use !n) t$e +re!tion of )ifferent +#!sses of s$!res> !re !v!i#!"#e4 T$ese !re )is+usse) in turn4
!1#1.$
1((1% *he use of a Bushell v Faith clause
A Bushell v Faith
1
+#!use (rovi)es for !n in+re!se in t$e votin% (o2er of ! joint venturer in t$e event of !n< reso#ution
"ein% (ro(ose) to re,ove $is no,inee )ire+tor4 In effe+t> t$erefore> t$e no,ineeAs )ire+tor is entren+$e) "e+!use t$e
in+re!se in votin% (o2er 2i## en!"#e $i, to )efe!t t$e reso#ution for $is re,ov!#4 Bushell v Faith0 in 2$i+$ t$e .ouse
of Lor)s !((rove) t$e use of t$e +#!use> +on+erne) t$e re,ov!# of ! )ire+tor in ! (riv!te #i,ite) +o,(!n< in 2$i+$ t$e
(#!intiff !n) t$e )efen)!nt> 2$o 2ere "ot$ )ire+tors> !n) t$eir sister $e#) 188 $un)re) s$!res e!+$4 T$e (#!intiff 2!s in
)is(ute 2it$ t$e )efen)!nt> $er "rot$er> re%!r)in% $i, !s !n in!)e;u!te )ire+tor 2$o 2!s not fu#fi##in% $is )uties4 S$e
t$erefore sou%$t $is re,ov!# fro, offi+e !s )ire+tor 2it$ t$e !ssist!n+e of $er sister 2$o 2!s not ! )ire+tor of t$e
+o,(!n<4
:o##o2in% t$e !((rov!#> !t ! %ener!# ,eetin%> of t$e reso#ution for t$e )efen)!ntAs re,ov!# "< ! vote of t2o
to one> t$e )efen)!nt )e,!n)e) ! vote "< (o##4 .e +#!i,e) $e 2!s entit#e) to +!st &88 votes !%!inst t$e reso#ution "<
virtue of ! (rovision in t$e +o,(!n<As !rti+#es of !sso+i!tion4 A#t$ou%$ "< t$e !rti+#es t$e votin% !t ! %ener!# ,eetin%
"< (o## 2ou#) nor,!##< "e one vote (er s$!re> t$e +o,(!n<As !rti+#es !#so (rovi)e) t$!t 2$ere ! reso#ution 2!s
(ro(ose) !t ! %ener!# ,eetin% for t$e re,ov!# fro, offi+e of ! )ire+tor> !n< s$!res $e#) "< t$!t )ire+tor s$ou#)> on !
(o##> +!rr< t$e ri%$t to t$ree votes (er s$!re4 T$e (#!intiff !n) $er sister 2ere outvote) !n) t$e reso#ution )efe!te)4
T$e (#!intiff +onten)e) t$!t t$e re#ev!nt !rti+#e 2!s inv!#i)> "ein% +ontr!r< to t$e Co,(!nies A+t 16*5
Se+tion 15*
4 T$e .ouse of Lor)s $e#) t$!t it 2!s effe+tive !n) t$!t t$e Co,(!nies A+t 1650 Se+tion &8& ,ere#<
(revente) t$e !rti+#es of !sso+i!tion of ! +o,(!n< fro, (res+ri"in% t$!t ! )ire+tor +ou#) on#< "e re,ove) fro, offi+e
"< ! s(e+i!# or e9tr!or)in!r< reso#ution4 .o2ever> !s t$e Co,(!nies A+ts $!ve never (revente) t$e %r!ntin% of
2ei%$te) votin% on +ert!in reso#utions> t$e .ouse of Lor)s en)orse) t$e v!#i)it< of t$e re#ev!nt !rti+#e
&
4 Bushell v
Faith t$erefore re+o%nises t$!t t$e !rti+#es of !sso+i!tion of ! s,!## +o,(!n< ,!< (rovi)e for t$e entren+$,ent of t$e
(osition of one or ,ore of its )ire+tors "< t$e ,e+$!nis, of 2ei%$te) votin%4
1
-us$e## v :!it$ J1638K AC 18664
No2 t$e Co,(!nies A+t 1650 s &8&4

&
T$e )e+ision 2!s r!tion!#ise) "< Lor) Donov!n in t$e fo##o2in% vein:
DT$ere !re ,!n< s,!## +o,(!nies 2$i+$ !re +on)u+te) in (r!+ti+e !s t$ou%$ t$e< 2ere #itt#e ,ore t$!n
(!rtners$i(s> (!rti+u#!r#< f!,i#< +o,(!nies runnin% ! f!,i#< "usinessH !n) it is> unfortun!te#<> so,eti,es
ne+ess!r< to (rovi)e so,e s!fe%u!r) !%!inst f!,i#< ;u!rre#s> $!vin% t$eir re(er+ussions in t$e "o!r)roo,4A
See Bushell v Faith !"ove !t 1118>11114
!1#1/$
1((1( Creation of different classes of shares
T$e se+on) te+$ni;ue for (reventin% t$e re,ov!# of )ire+tors is t$e +re!tion of )ifferent +#!sses of s$!res !n) t$e
(rovision> in t$e +onstitution!# )o+u,ents> t$!t t$e ri%$t to !((oint ! )ire+tor or )ire+tors> "< ! venturer> is ! +#!ss ri%$t4
C#!ss ri%$ts +!n on#< "e v!rie) "< ,e!ns of t$e ,e+$!nis, +re!te) "< t$e Co,(!nies A+t 1650 Se+tion 10
1
2$i+$
entren+$es t$e ri%$ts fir,#< in f!vour of t$e in)ivi)u!# s$!re$o#)ers4 Un)er t$e re%i,e of Se+tion 10> if t$e
+onstitution!# )o+u,ents +ont!in ! ,e+$!nis, "< 2$i+$ +#!ss ri%$ts +!n "e !#tere) t$en t$is ,ust "e fo##o2e)
4 If t$ere
is no (rovision for !#ter!tion> t$e (osition )e(en)s u(on 2$et$er t$e ri%$ts !re +re!te) "< t$e !rti+#es or t$e
,e,or!n)u, of !sso+i!tion4 If t$e ri%$ts !re +re!te) "< t$e !rti+#es> t$e +onsent of t$e $o#)ers of t$ree';u!rters of t$e
s$!res of t$!t +#!ss ,ust "e o"t!ine) for !#ter!tion to "e !+$ieve)
&
4

If> $o2ever> t$e ri%$ts !re +onferre) "< t$e
,e,or!n)u,> t$e< +!n on#< "e !#tere) 2it$ t$e +onsent of !## t$e ,e,"ers of t$e +o,(!n<
*
4
7$i#st t$e 2i##in%ness of t$e +ourts to (rote+t e9(ress#< +re!te) +#!ss ri%$ts +!n "e use) "< )r!fts,en of
+or(or!te joint venture )o+u,ent!tion to t$eir !)v!nt!%e> it is unfortun!te t$!t t$e +ourts !re !#so (re(!re) to +on+#u)e
t$!t su+$ ri%$ts +!n !rise "< i,(#i+!tion 2it$ resu#ts t$!t ,!< not +oin+i)e 2it$ t$e )r!fts,!nAs intentions
0
4
!1#1"$
1
Co,(!nies A+t 1650 s 10 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
Su"je+t to t$e !))ition!# (rote+tion +onferre) on ,inorities "< i"i) s 10(&)4

&
See t$e Co,(!nies A+t 1650 s 10(0)4
*
I"i) s 10()4
0
See &umbrian *ewspapers Group Ltd v &umberland and Westmorland *ewspaper and Printin! &o Ltd J1653K C$ 14 T$is +!se
$!s "een t$e su"je+t of +onsi)er!"#e +riti+is,4 T$e "est t$!t +!n "e s!i) of it is t$!t t$e ver< e!se 2it$ 2$i+$ t$e "o!r) 2!s
(re(!re) to infer t$e e9isten+e of +#!ss ri%$ts in)i+!tes ! ju)i+i!# 2i##in%ness to u($o#) t$ose ri%$ts 2$en t$e< !re +#e!r#< +re!te)4
!1#12$
&: :IDUCIAR? DUTIES O: DIRECTORS
1() 7ntroduction
Joint venturers !((oint no,inee )ire+tors "e+!use t$e< 2is$> inter !#i!> to ensure t$!t t$e< (!rti+i(!te fu##< in t$e
o(er!tion of t$e +o,(!n<> !re infor,e) of !## )e+isions !n) )is+ussion re#!tin% to it> !n) $!ve t$eir interests (ro(er#<
!n) fu##< t!Cen into !++ount in re#!tion to t$e o(er!tions of t$e venture !n) t$e )e+isions of its )ire+tors4 T$e<
!nti+i(!te !n) )esire t$!t t$e no,inee )ire+tors 2i## (ut t$e interests of t$eir !((ointin% venturer !"ove t$ose of t$e
venture itse#f if ! situ!tion !rises in 2$i+$ t$e interests of t$e venture !n) t$e in)ivi)u!# joint venturer no #on%er
+oin+i)e4 Unfortun!te#<> t$e (otenti!# for t$e +onf#i+tin% interests of t$e venture !n) venturer to %ive rise to +onf#i+tin%
)uties u(on ! no,inee )ire+tor o(ens ! +onsi)er!"#e ,ine fie#) un)er En%#is$ #!24 T$ree (otenti!# issues !rise n!,e#<:
(1) t$e (ro"#e, of )ire+torsA fi)u+i!r< )utiesH () s$!)o2 )ire+tors$i(s !n) (&) t$e #!+C of )uties o2e) "< s$!re$o#)ers
to e!+$ ot$er4 T$ese 2i## "e )is+usse) in turn4
!1#%#$
1(, Directors fiduciary responsibilities
It is +#e!r un)er En%#is$ +o,(!n< #!2 t$!t )ire+tors o2e fi)u+i!r< res(onsi"i#ities to t$e +o,(!n<
1
4 T$e )uties !rise
"e+!use t$e )ire+tors !re !%ents of t$e +o,(!n<> !n) t$e +ourts tr!)ition!##< $!ve $e#) t$!t !n !%ent o2es fi)u+i!r<
res(onsi"i#ities to $is (rin+i(!# "e+!use t$e re#!tions$i( is one of trust !n) +onfi)en+e4 .o2ever> t$e fi)u+i!r<
res(onsi"i#ities !re not t$e +re!tion of st!tute> "ut of t$e +ourts t$e,se#ves4 T$e< !re t$erefore not +#e!r#< set out in
#e%is#!tion> "ut )e(en) on t$eir v!rious for,u#!tions in t$e +!se #!24 /er$!(s t$e +#!ssi+ ju)i+i!# st!te,ent of t$e
res(onsi"i#ities is t$!t of Lor) Greene =R in Re #mith B Fawcett Ltd

in 2$i+$ $e st!te) t$!t t$e )ire+tors of !
+o,(!n< ,ust !+t D"on! fi)e in 2$!t t$e< +onsi)er M not 2$!t ! +ourt ,!< +onsi)er M is in t$e interests of t$e +o,(!n<
!n) not for !n< +o##!ter!# (ur(oseA
&
4 C#e!r#<> )ire+tors !re not !+tin% "on! fi)e for t$e interests of t$e +o,(!n< if t$e<
(ut t$e interests of ! sin%#e (!rti+i(!nt !"ove t$ose of t$e +o,(!n< itse#f> 2$et$er in t$e !)vi+e t$!t t$e< %ive in
)ire+torsA ,eetin%s> in t$e e9er+ise of t$eir (o2ers or in (ro,otin% (!rti+u#!r tr!ns!+tions !s (ro(er for t$e +o,(!n<4
:ro, t$e (oint of vie2 of t$e no,inee )ire+tor $is (osition ,!< see, #ess +#e!r t$!n t$e #e%!# re;uire,ents (#!+e)
u(on $i,4 7$i#e $e ,!< "e (erfe+t#< $!((< !#2!<s to !+t in t$e interests of t$e joint venture +o,(!n<> $e ,!< 2e## "e
!2!re t$!t $is !((ointor 2i## (ro"!"#< $!ve ! +#e!r vie2 t$!t t$e !((ointee s$ou#) re(resent its vie2s> !n) t$!t ! f!i#ure
to %ive fu## re(resent!tion to t$e !((ointorAs interests ,!< #e!) to t$e !((oint,ent "ein% ter,in!te) !n) ! ne2 )ire+tor
!((ointe) in $is (#!+e4
1
As to )ire+tors %ener!##< see vo# 18 CO=/ANIES /!r!%r!($ JK et se;4 See !#so /ri,e !n) S+!n#!n 'he Private Law o.
&ompanies ( 138 et se; !n) R Gr!nt$!, DT$e +ontent of t$e )ire+torAs )ut< of #o<!#t<A J166&K J-L 1*64
Re #mith B Fawcett Ltd J16*K C$ &8*> CAG

&
Re S,it$ N :!2+ett Lt) !"ove4
!1#%1$
1(. <odifyin' the directors duties
:ro, t$e (oint of vie2 of +o,,er+e> t$e issue !rises !s to 2$et$er t$e %ener!# )ut< of )ire+tors to (ut t$e interests of
t$e +o,(!n< of 2$i+$ t$e< !re )ire+tors first s$ou#) "e ,o)ifie) in t$e +!se of no,inee )ire+tors4 A +!se +!n "e ,!)e>
!n) Co,,on2e!#t$ juris)i+tions see, to "e ,!Cin% ,ove,ents in t$is )ire+tion in t$eir +!se #!2> for !t #e!st !##o2in%
t$e ,e,"ers of t$e +o,(!n< !s ! 2$o#e to +onsent to t$e ,o)ifi+!tion of t$e )ut<
1
4 -< +ontr!st> En%#is$ +o,(!n< #!2
!s <et %ives no in)i+!tion of ,o)if<in% t$e essenti!# (ri,!+< of t$e )ut< o2e) "< t$e )ire+tor to t$e +o,(!n< of 2$i+$
$e is ! )ire+tor4 7$i#e En%#is$ +o,(!n< #!2 )oes not see, to (revent t$e !((oint,ent of no,inee )ire+tors on t$e
"!sis t$!t t$eir (osition ,!< in t$e future %ive rise to ! +onf#i+t of )uties> it sti## see,s to ste!)f!st#< re;uire t$!t 2$ere
su+$ ! +onf#i+t of )uties !+tu!##< !rises it is t$e )ire+torAs res(onsi"i#ities to $is +o,(!n< 2$i+$ ,ust (rev!i#4
1
See Levin v &lark J161K NS7R 151H Berlei @estia 1*?6 Ltd v Fern,hou!h J1658K NRLR 1084
!1#%%$
1(/ -nforcement of fiduciary duties
A su"si)i!r< issue is 2$et$er t$e verti+!# fi)u+i!r< )uties o2e) "< t$e no,inee )ire+tors of ! joint venture +o,(!n<
+!n "e enfor+e) "< t$e in)ivi)u!# venturers4 Su+$ )uties !re o2e) to t$e +o,(!n<> !n) it is t$e +o,(!n< 2$i+$ ,ust
enfor+e t$e,4 It is "< no ,e!ns +#e!r t$!t !n !tte,(t "< t$e )r!fts,!n to !##o2 ! )ire+tor to %ive (riorit< to $is
no,in!tin% venturer "< !((ro(ri!te (rovisions in t$e +onstitution!# )o+u,ents 2ou#) "e effe+tive un)er En%#is$ #!2
1
4
1
See t$e )i+t! of Lor) Dennin% in #cottish &o%operative Wholesale #ociet, Ltd v (e,er J1606K AC &* !n) t$e v!rious ju)%,ents
in Boultin! v )ssociation o. &inemato!raph0 'elevision and )llied 'echnicians J161&K @- 181> CA4
Ne2 Re!#!n) no2 for,!##< re+o%nises t$e +o,,er+i!# unre!#it< of t$is situ!tionH 2$i#e its Co,(!nies A+t s 1&1(1) sets out
! %ener!# )ut< on ! )ire+tor to !+t in %oo) f!it$ !n) in t$e +o,(!n<As "est interest !s $e (er+eives t$e,> t$ere is ! s(e+ifi+
,o)ifi+!tion in re#!tion to joint ventures in s 1&1(*)4 T$is (rovi)es t$!t ! )ire+tor of ! +o,(!n< in+or(or!te) to +!rr< out ! joint
venture "et2een t$e s$!re$o#)ers ,!<> 2$en e9er+isin% (o2ers or (erfor,in% )uties !s )ire+tor in +onne+tion 2it$ t$e +!rr<in%
out of t$e joint venture> if e9(ress#< (er,itte) to )o so "< t$e +onstitution of t$e +o,(!n<> !+t in t$e ,!nner 2$i+$ $e or s$e
"e#ieves is in t$e "est interests of ! s$!re$o#)er or s$!re$o#)ers even t$ou%$ it ,!< not "e in t$e "est interests of t$e +o,(!n<4
!1#%($
1(" :iability of appointin' enturer as a shado0 director
If (otenti!# )!n%ers !rise for !n !((ointee )ire+tor> t$e s!,e is true for t$e !((ointor4 T$e venturer 2i## "e usin% t$e
+or(or!te venture stru+ture "e+!use of t$e #i,ite) #i!"i#it< 2$i+$ it i,(oses> !n) 2i## 2is$ to use $is (osition !s !
s$!re$o#)er to %ener!te (rofit 2it$out in+urrin% #i!"i#it<4 .o2ever> t$e +on+e(t of t$e s$!)o2 )ire+tor ,!< +!use t$is
!tte,(t to foun)er4 A s$!)o2 )ire+tor is )efine) in t$e Co,(!nies A+t 1650 Se+tion 3*1()
1
> !s ! (erson in !++or)!n+e
2it$ 2$ose )ire+tions or instru+tions t$e )ire+tors of t$e +o,(!n< !re !++usto,e) to !+t4 A (erson is not )ee,e) to "e
! s$!)o2 )ire+tor ,ere#< "e+!use t$e )ire+tors !+t on !)vi+e %iven "< $i, in ! (rofession!# +!(!+it<4
T$e (otenti!# i,(!+t of t$is on ! joint venture is +#e!r4 No,inee )ire+tors of ! joint venture ve$i+#e 2i## often
!t #e!st !((e!r to !+t in !++or)!n+e 2it$ )ire+tions %iven to t$e, "< t$eir !((ointors4 On o++!sion t$is 2i## un)ou"te)#<
"e t$e (osition4 T$e ;uestion !rises !s to 2$et$er t$e !((ointors 2i## "e+o,e s$!)o2 )ire+tors !s ! resu#t4 If t$ere !re
#ines to "e )r!2n 2$i+$ )e,!r+!te 2$en t$e res(onsi"i#it< !rises> 2$ere in (r!+ti+e )o t$e< #ieQ Unfortun!te#<> on#< !
fe2 )e+isions $!ve "een re(orte) in t$is !re! !n) t$ere is t$erefore #itt#e +!se #!2 fro, 2$i+$ +#e!r %ui)e#ines +!n "e
seen4 T$ere 2ou#)> $o2ever> !((e!r to "e t2o (rin+i(#es on t$e "!sis of 2$i+$ it 2i## "e r!re for t$e joint venturer
!((ointor to ,!Ce $i,se#f ! s$!)o2 )ire+tor of t$e joint venture4 :irst> it !((e!rs t$!t t$e inf#uen+e of t$e venturer ,ust
e9ten) to t$e ,!jorit< of t$e )ire+tors of t$e +o,(!n<> !n) t$!t t$e !"i#it< to inf#uen+e ! ,inorit< is insuffi+ient4
Se+on)> t$e )ire+tors invo#ve) ,ust "e tru#< D!++usto,e) to !+tA> 2$i+$ re;uires !+ts Dnot on one in)ivi)u!# o++!sion
"ut over ! (erio) of ti,e !n) !s ! re%u#!r +ourse of +on)u+tA
4
If ! joint venturer is foun) to "e ! s$!)o2 )ire+tor of t$e joint venture +o,(!n< !n) t$e +o,(!n< $!s "een
res(onsi"#e for 2ron%fu# tr!)in%> #i!"i#it< ,!< "e i,(ose) un)er t$e !((ro(ri!te (rovisions of t$e Inso#ven+< A+t
1651
&
4 :urt$er> t$ere !re )i+t! in Re $niso.t Group Ltd 1*o ;6
*
to t$e effe+t t$!t s$!)o2 )ire+tors ,i%$t o2e fi)u+i!r<
)uties to t$e +o,(!n< in t$e s!,e 2!< !s (ro(er#< !((ointe) )ire+tors> 2$i+$ 2ou#) resu#t in s$!)o2 )ire+tors "ein%
su"je+t to !## t$e (otenti!# (ro"#e,s of +onf#i+tin% interests f!+in% !+tu!# )ire+tors4
!1#%)$
1
Co,(!nies A+t 1650 s 3*1() (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
As to t$e (resent situ!tion 2it$ re%!r) to s$!)o2 )ire+tors see D =i#,!n DS$!)o2 Dire+tors: furt$er %ui)!n+e fro, t$e +ourtsA
(1660) 10 Inso#ven+< L!2<er 104
Su((ort for t$e (ro(osition t$!t t$e inf#uen+e of venturers u(on t$eir no,inee )ire+tors 2i## r!re#< resu#t in t$eir "ein%
foun) to "e s$!)o2 )ire+tors !rises fro, t$e +!se of Re @,drodam 1&orb,6 Ltd J166*K -CC 111 2$ere =i##ett LJ +on+#u)e)
t$ere 2!s no !uto,!ti+ (resu,(tion t$!t t$e "o!r) of ! su"si)i!r< is !++usto,e) to !+t on t$e instru+tions of t$e )ire+tors of t$e
(!rent4
&
Inso#ven+< A+t 1651 s 1* (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
*
Re $niso.t Group Ltd 1*o ;6 J166*K 1 -CLC 186> J166*K -CC 3114
!1#%,$
*: DUTIES -ET7EEN S.ARE.OLDERS
1(2 :ac> of duties bet0een shareholders
T$e ;uestion !rises !s to 2$et$er fi)u+i!r< res(onsi"i#ities !re o2e) "et2een t$e venturer s$!re$o#)er in ! corporate
joint venture %iven t$e %ener!# (rin+i(#e of En%#is$ +o,(!n< #!2 t$!t su+$ )uties !re not o2e) "< one set of
s$!re$o#)ers to !not$er4 Aut$orit< for t$e (ro(osition t$!t> in %ener!#> s$!re$o#)ers )o not o2e !n< fi)u+i!r< )ut< to
e!+$ ot$er in )e+i)in% $o2 to e9er+ise t$e vote re(resente) "< t$eir s$!res> +!n "e foun) in t$e )i+t! of 7!#ton J in
*orthern &ounties #ecurities Ltd v +ackson B #teeple Ltd
1
>

2$ere ! votin% s$!re$o#)er 2!s )es+ri"e) !s e9er+isin% $is
(ro(ert< ri%$ts !n) !s o2in% no fi)u+i!r< )ut< to t$e +o,(!n<4 T$e votin% ri%$t 2$i+$ !++o,(!nies t$e s$!re is
t$erefore seen "< En%#is$ #!2 !s ! (ro(ert< ri%$t !+;uire) "< t$e s$!re$o#)er4
1
*orthern &ounties #ecurities Ltd v +ackson B #teeple Ltd J163*K 1 7LR 11&& !t 11**4
!1#%.$
1)# Fraud on the minority
T$e on#< ,!jor e9+e(tion to t$e (rin+i(#e t$!t s$!re$o#)ers )o not o2e e!+$ ot$er ! fi)u+i!r< )ut< is +ont!ine) in t$e
)eriv!tive !+tion +onferre) u(on t$e ,inorit< en!"#in% t$e, to seeC ! re,e)< fro, t$e +ourt 2$ere t$ere $!s "een !
Dfr!u) on t$e ,inorit<A4 T$e e9+e(tion is +re!te) to +over t$e situ!tion 2$ere t$e ,!jorit< $!ve "e$!ve) i,(ro(er#<>
!n) 2ou#) use t$eir +ontro# of t$e +o,(!n< to (revent t$e ,!tter +o,in% "efore t$e +ourt4 .o2ever> t$e i,(ro(er
"e$!viour $!s to "e of ! (!rti+u#!r v!riet< resu#tin% in t$e !+;uisition of (ro(ert< ri%$ts or o((ortunities (ro(er#<
"e#on%in% to t$e +o,(!n< "< t$e ,!jorit<
1
4 As su+$> t$e +entr!# e9!,(#e of t$is t<(e of !+tion is 2$ere t$ere is !
"re!+$ of fi)u+i!r< )ut< "< )ire+tors !n) t$e 2ron%)oers !re in +ontro# of t$e +o,(!n<> or 2$ere t$e ,!jorit< !re
seeCin% to e9(ro(ri!te t$e s$!res of t$e ,inorit< "< ,!Cin% !,en),ents to t$e !rti+#es of !sso+i!tion4
7$i#e t$e Dfr!u) on t$e ,inorit<A e9+e(tion +!n "e of so,e use to (rote+t ,inorities> it +!nnot "e !r%ue) t$!t
it re(resents t$e +re!tion of ! "ro!) (rin+i(#e t$!t fi)u+i!r< res(onsi"i#ities !re o2e) "< one venturer s$!re$o#)er to
!not$er in ! +or(or!te joint venture4 T$e f!+t t$!t t$ere is no +!se #!2 in su((ort of t$e (rin+i(#e su%%ests t$!t> in
%ener!#> su+$ ! )ut< is not o2e)4 .o2ever> Elliott v Wheeldon
,!< "e in)i+!tive of ! 2i##in%ness on t$e (!rt of t$e

En%#is$ +ourts to evo#ve su+$ ! )ut<4 T$e (#!intiff 2!s ! (!rti+i(!nt s$!re$o#)er in ! +or(or!te joint venture 2$o %!ve !
%u!r!ntee in res(e+t of t$e +o,(!n<As )e"ts4 .e !##e%e)> inter !#i!> t$!t $is +o'venturer $!) "re!+$e) ! fi)u+i!r< )ut<
o2e) to $i, 2$en $e ,is!((ro(ri!te) fun)s of t$e +or(or!te ve$i+#e> t$us ,!Cin% it inso#vent !n) +!usin% t$e (#!intiff
to in+ur #i!"i#it< un)er t$e %u!r!ntee4 On t$e inter#o+utor< !((#i+!tion "< t$e )efen)!nt to striCe out t$e (#!intiffAs
!+tion> Nourse LJ st!te) t$!t ! joint venturer o2e) ! )ut< to $is +o'joint venturer 2$o 2!s ! %u!r!ntor to D+on)u+t
$i,se#f !s )ire+tor in su+$ ! 2!< !s not> e9+e(t in %oo) f!it$> to in+re!se $is #i!"i#ities !n) %u!r!nteeA
&
4
!1#%/$
As t$e fi)u+i!r< !r%u,ent 2!s not "!se) on t$e Co,(!nies A+t 1650 Se+tion *06> "ut inste!) "rou%$t "< one
s$!re$o#)er venturer )ire+t#< !%!inst t$e ot$er t$e +!se $!s nove# !s(e+ts4 .o2ever> it +!nnot "e s!i) t$!t it )oes ,ore
t$!n in)i+!te t$e (ossi"i#it< of ! 2i##in%ness of t$e +ourt to ,ove> !s it 2!s ,ere#< !n inter#o+utor< !((#i+!tion> !n) t$e
fi)u+i!r< (osition t$erefore> )ee,e) ,ere#< to "e !r%u!"#e4 Nevert$e#ess> furt$er su((ort for t$e vie2 t$!t t$e +ourts
,!< "e evo#vin% ! vie2 of joint ventures 2$i+$ 2i## +$!n%e tr!)ition!# (er+e(tions of t$e !((#i+!tion of "!si+ #e%!#
(rin+i(#es to t$e, +!n "e )r!2n fro, Dawnawa,0 Da, B &o Ltd v de Braconier d3)lphen
*
4 In t$!t +!se restri+tive
+oven!nts %iven "< one set of joint venturers to t$e joint venture +o,(!n< 2ere $e#) "< t$e Court of A((e!# to "e
enfor+e!"#e b, the other /oint venturers on t$e %roun) t$!t e!+$ joint venturer $!) ! (ro(riet!r< interest to "e (rote+te)4
1
See furt$er /ri,e !n) S+!n#!n 'he Law o. Private Limited &ompanies (1661) ( 0 et se;4
Elliott v Wheeldon J166&K -CLC 0&> CA4

&
Elliott v Wheeldon !"ove !t 034
*
D!2n!2!<> D!< N Co Lt) v )e -r!+onier )AA#($en J1663K IRLR **> CA: see /!r!%r!($ 60 J1*5K et se; (ost !n) = Lo2er
DTo2!r)s !n e,er%in% #!2 of joint ventures: Elliott v Wheeldon J166*K J-L 0834
!1#%"$
C: T.E VALUATION O: S.ARES
1: INTRODUCTION
1)1 3hare aluation
A ,!jor !re! of (otenti!# )iffi+u#t< in t$e +!se of t$e +or(or!te joint venture is t$!t of t$e v!#u!tion of s$!res4 T$is ,!<
"e !n issue eit$er in t$e +!se of ! vo#unt!r< s!#e 2$ere t$ere is ! (re'e,(tion !%ree,ent> or in t$e +!se of ! s!#e su"je+t
to ! +ourt or)er> ,ost #iCe#< un)er t$e Co,(!nies A+t 1650 Se+tion *064
!1#%2$
: VOLUNTAR? SALES
(!) Intro)u+tion
1)% *he mar>et
T$e v!#ue of !n< !sset is t$e (ri+e 2$i+$ it 2i## fet+$ on t$e o(en ,!rCet4 T$is (resu((oses t$!t t$ere is ! ,!rCet for t$e
!sset in ;uestion> !n) t$!t it is free to "e )is(ose) of on t$!t (!rti+u#!r ,!rCet4 In t$e +!se of s$!res in (u"#i+
+o,(!nies> t$e sto+C e9+$!n%e (rovi)es !n o(en ,!rCet on 2$i+$ t$e s$!res +!n "e free#< "ou%$t !n) so#)4 7it$
(riv!te +o,(!nies> $o2ever> t$ere is no su+$ o(en ,!rCet t$rou%$ 2$i+$ t$e v!#ue of s$!res +!n "e !s+ert!ine) on !
)!<'"<')!< "!sis4 Nevert$e#ess> t$e ,ost o"vious 2!< of !s+ert!inin% t$e v!#ue of (!rti+u#!r s$!res in ! (riv!te
+o,(!n< is to in)i+!te t$!t t$e< !re !v!i#!"#e for s!#e to t$ose in)ivi)u!#s 2$o ,i%$t "e intereste) in (ur+$!sin% t$e,
in or)er to )is+over 2$!t offers !re ,!)e4 .o2ever> t$is si,(#e !((ro!+$ is often not !v!i#!"#e> "e+!use +ir+u,st!n+es
(revent t$e s$!res in t$e (riv!te +o,(!n< "ein% t!Cen to ,!rCet4 In t$e +!se of ! +or(or!te joint venture t$is 2i##
usu!##< "e "e+!use t$ere !re restri+tions on t$e tr!nsfer of t$e s$!res 2$i+$ (revent t$e, "ein% %ener!##< tr!nsfer!"#e to
!n< 2i##in% (ur+$!ser4 If t$e venturers !re in)ivi)u!#s> it ,!< "e t$!t no ,!rCet tr!nsfer is re;uire) "e+!use t$e s$!res
!re to "e in$erite) on )e!t$> "ut t$ere is nevert$e#ess ! nee) to )eter,ine t$eir v!#ue for t$e (ur(ose of ev!#u!tin% t$e
tot!# v!#ue of t$e est!te> its (ro(er )istri"ution> !n) t$e t!9es to "e (!i) u(on it4
!1#(#$
(") V!#u!tion "< t$e +ourts
1)( <ain considerations
T$e +!se #!2 in)i+!tes t$!t t$e +ourts i,(ose no sin%#e fr!,e2orC or !((ro!+$ in seeCin% to v!#ue ! +o,(!n<As s$!res
in su+$ +ir+u,st!n+es "ut se#e+t t$e ,ost !((ro(ri!te te+$ni;ue !n) !((ro!+$ to )e!# 2it$ t$e (!rti+u#!r situ!tion 2$i+$
+onfronts t$e,4 I,(ort!nt f!+tors 2$i+$ 2i## $!ve ! "e!rin% on t$eir ,et$o) !re 2$et$er:
1*&41 t$e s$!res to "e v!#ue) !re free#< tr!nsfer!"#e or su"je+t to restri+tion on tr!nsferH
1*&4 t$e s$!res in ;uestion !re ,ere#< ! ,inorit< $o#)in% or !re su+$ !s to !##o2 t$e +o,(!n< to "e +ontro##e) "< t$e
$o#)erH !n)
1*&4& t$e +ir+u,st!n+es 2$i+$ )i+t!te t$!t ! v!#u!tion s$ou#) "e ,!)e in t$e first (#!+e4
!1#(1$
1)) Pro+rata aluation
T$e usu!# !((ro!+$ of t$e +ourts is to seeC to ,!Ce ! v!#u!tion on ! (ro r!t! "!sis> t$!t is v!#uin% t$e tot!#it< of t$e
s$!res of t$e s!,e t<(e !s t$ose 2$i+$ $!ve to "e v!#ue) (s$!res of t$e s!,e )eno,in!tion !n) su"je+t to si,i#!r
restri+tions on tr!nsfer (if !n<)) !n) )ivi)in% t$!t v!#u!tion r!te!"#< "et2een t$e s$!res to "e v!#ue) !n) ot$ers in t$e
s!,e +#!ss4 T$e +ourts 2i## t$en +onsi)er 2$et$er t$e v!#u!tion s$ou#) "e )is+ounte) or inf#!te) to re(resent t$e
+o,,er+i!# 2ort$ of t$e (!rti+u#!r s$!res to "e v!#ue)4 An i,(ort!nt +onsi)er!tion in t$is res(e+t 2ou#) "e 2$et$er t$e
!+;uirer 2ou#) o"t!in +ontro# of t$e +o,(!n<> or ,ere#< "e ! ,inorit< s$!re$o#)er 2it$ !n inf#uen+e re#!tive to t$e
nu,"ers of s$!res to "e v!#ue)4
To !+$ieve ! (ro r!t! v!#u!tion> t$e first ste( is to v!#ue t$e +o,(!n< !s ! 2$o#e> so t$!t !n !((ro(ri!te
(ro(ortion +!n "e !((ortione) to t$e +#!ss of s$!res of 2$i+$ t$e s$!res to "e v!#ue) !re (!rt4 T$is is in itse#f ;uite
+o,(#e94 T$e first ,!tter to "e )e+i)e) is 2$et$er t$e +o,(!n< is to "e v!#ue) !s ! %oin% +on+ern 2it$ ! +ontinuin%
"usiness4 If it is to "e v!#ue) on t$is "!sis> t$e !ssets !re #o+Ce) in> "ut t$e +o,(!n< is %ener!tin% ! (rofit (or !n<
+onverte) tr!)in% #osses 2$i+$ +!n "e use) to o"t!in t!9 re#ief)

for 2$i+$> to%et$er 2it$ t$e !ssets ne+ess!r< to %ener!te
t$e (rofits> ! (ur+$!ser 2ou#) "e (re(!re) to (!< ! (re,iu, for future !++ess4
!1#(%$
1), Capitalised profits
T$e v!#u!tion of t$e su, to re(resent t$e +!(it!#ise) (rofits is f!r fro, e!s<4 In Buckin!ham v Francis
1
! s,!## (riv!te
+o,(!n< $!) ver< fe2 !ssets "ut enjo<e) +onsi)er!"#e e!rnin% (otenti!#4 T$e s$!res to "e v!#ue) 2ere ! ,inorit<
$o#)in% of !"out t2o'fift$s of t$e issue) s$!re +!(it!# of t$e +o,(!n<4 T$e "re!C'u( v!#ue of t$e +o,(!n< 2!s> !s
St!u%$ton J re+o%nise)> ne%#i%i"#e4 In v!#uin% t$e +!(it!#is!tion of t$e (rofits to !+$ieve ! %oin% +on+ern v!#u!tion> t$e
ju)%e $!) to esti,!te t2o unCno2n f!+tors: (i) t$e net future (rofits over t$e +o,in% <e!rs !n) (ii) t$e (ri+e e!rnin%s
r!tio "ein% t$e nu,"er of <e!rs ! (ur+$!ser 2ou#) "e 2i##in% to 2!it unti# $is e9(en)iture 2!s re+ou(e) fro, (rofits4
T$is invo#ve) !n e#e,ent of %uess2orC !n) so,e !##o2!n+e for risCs4 T$e fi%ure (!<!"#e for t$e "usiness 2!s set !t t$e
(ro)u+t of t$e first fi%ure ,u#ti(#ie) "< t$e se+on)4 T$e s$!res to "e v!#ue) 2ere t$en 2ort$ *8L of t$is fi%ure> t$!t
"ein% t$e r!tio of t$e ,inorit< s$!re$o#)in% to t$e 2$o#e4
1
Buckin!ham v Francis J1651K A## ER 3&54
!1#(($
1). Disposal of assets
If t$e +o,(!n< $!s +e!se) to "e ! %oin% +on+ern> its !ssets 2i## "e )is(ose) of for 2$!tever t$e< 2i## fet+$> !n) t$e
v!#ue of t$e +o,(!n< 2i## "e t$e v!#ue of t$ose !ssets on t$e ,!rCet
1
> to%et$er 2it$ !n< unuse) (rofits #ess t$e
+o,(!n<As #i!"i#ities4 On o++!sion t$e +ourts ,!< )e+i)e t$!t> even t$ou%$ t$e +o,(!n< is +ontinuin% its "usiness> it
2ou#) nevert$e#ess "e in+orre+t to v!#ue on t$!t "!sis> !n) t$!t ! f!irer v!#u!tion 2ou#) "e o"t!ine) if t$e s$!res 2ere
v!#ue) on t$e "!sis t$!t t$e !ssets 2ere to "e )is(ose) of4
1
Usu!##<> t$e v!#ue of t$e !ssets in ! %oin% +on+ern 2i## "e +onsi)er!"#< %re!ter t$!n t$eir v!#ue in !n iso#!te) )is(os!#4
!1#()$
1)/ 7ncrements or discounts
On+e t$e +ourt $!s for,e) ! vie2 of t$e v!#ue of t$e +o,(!n<> t$e !((ro(ri!te (ro(ortion to "e !ttri"ute) to t$e +#!ss of
s$!res to 2$i+$ t$e s$!res to "e v!#ue) "e#on%> !n) )ivi)e) t$is v!#ue (ro(ortion!##<> it is t$en #eft 2it$ t$e even ,ore
)iffi+u#t ,!tter of )e+i)in% 2$et$er or not t$ere s$ou#) "e so,e in+re,ent!# !))ition or )is+ount to t$!t v!#ue to
re(resent t$e !+tu!# +o,,er+i!# 2ort$ of t$e (!rti+u#!r s$!res> !n)> if so> t$e !,ount of su+$ in+re,ent4 T2o (!rti+u#!r
situ!tions 2$i+$ re;uire furt$er +onsi)er!tion !n) 2$i+$ !++ount for ,ost +!ses t$!t !rise in (r!+ti+e !re 2$ere t$ere is
! (re'e,(tion (rovision in t$e !rti+#es> !n) t$e v!#u!tion of s$!res in ;u!si'(!rtners$i(s4
!1#(,$
1)" Pre+emption proisions
It is usu!# for t$e !rti+#es of ! (riv!te +o,(!n< to +ont!in (rovisions restri+tin% t$e tr!nsfer!"i#it< of its s$!res4 T$e
,ost ,o)ern for, of restri+tion is not ! %ener!# (ro$i"ition on tr!nsfer> "ut ! (rovision 2$i+$ +onfers (re'e,(tion
ri%$ts on t$e ,e,"ers of t$e +o,(!n<> un)er 2$i+$ t$e< $!ve first refus!# on t$e s$!res of !n< ,e,"er 2$i+$ !re (ut
u( for s!#e
1
4 As (!rt of t$e (re'e,(tion ,e+$!nis, it is usu!# to (rovi)e t$!t> if it is e9er+ise)> t$e (ur+$!sers 2i## (!< !
f!ir (ri+e for t$e s$!res (ur+$!se) un)er it> su+$ f!ir (ri+e to "e set "< t$e +o,(!n<As !u)itors> or so,e ot$er s(e+ifie)
e9(ert4
T$e #e!)in% !ut$orit< on t$e i,(#i+!tions of ! (re'e,(tion ,e+$!nis, is t$!t of t$e Court of A((e!# in Dean
v Prince
2$i+$ +on+erne) t$e v!#u!tion of s$!res in ! (riv!te +o,(!n< in 2$i+$ t$e t$ree )ire+tors $e#) !## t$e s$!res4
T$e !rti+#es (rovi)e) t$!t on t$e )e!t$ of ! )ire+tor $is s$!res 2ere to "e so#) to t$e survivin% )ire+tors !t ! f!ir (ri+e to
"e est!"#is$e) "< t$e +o,(!n<As !u)itor4 In v!#uin% t$e s$!res of t$e )e+e!se) ,!jorit< s$!re$o#)er> t$e !u)itor )e+i)e)
on ! (ro r!t! "!sis of v!#u!tion> 2it$ t$e +o,(!n< tre!te) !s not +ontinuin% !s ! %oin% +on+ern4 Conse;uent#<> t$e
s$!res 2ere v!#ue) on t$e "!sis of t$e #o2est (ossi"#e !((ro!+$ to t$e v!#u!tion4 T$e )e+e!se)As 2i)o2 +$!##en%e) t$e
"!sis of t$e !u)itorAs !((ro!+$> !r%uin% t$!t t$e t2o survivin% )ire+tors 2ere !+;uirin% t$e +ontro##in% s$!re$o#)in% !n)
t$!t t$erefore> ! (re,iu, s$ou#) "e !))e) to t$e (ri+e 2$i+$ t$e !u)itor $!) fi9e)4 In reje+tin% $er +ontention it see,s
(ro"!"#e t$!t t$e Court of A((e!#As )e+ision 2!s "!se) ver< ,u+$ u(on t$e in)ivi)u!# f!+ts "efore it4 T$e +ourt see,s
to $!ve !++e(te) t$!t ! v!#u!tion of t$e "usiness on ! "re!C'u( "!sis 2!s !((ro(ri!te in t$e (!rti+u#!r +ir+u,st!n+es>
"e+!use t$e "usiness 2!s in f!+t #oss',!Cin% !t t$e ti,e of )e!t$
&
4 It justifie) t$e +on+#usion t$!t no (re,iu, s$ou#)
"e !))e) on t$e "!sis t$!t s(#ittin% t$e )e+e!se)As ,!jorit< s$!re$o#)in% e;u!##< "et2een t$e t2o +ontinuin% )ire+tors
(!s $!) to "e )one) 2ou#) +onfer +ontro# on neit$er
*
4
!1#(.$
One i,(ort!nt f!+tor in su+$ +!ses is t$e 2or)in% of t$e (!rti+u#!r (re'e,(tion (rovision "efore t$e +ourt4 In
Dean v Prince t$e (rovision in t$e +o,(!n<As !rti+#es 2!s t$!t t$e !,ount (!<!"#e !s f!ir v!#ue s$ou#) "e t$e !u)itorAs
v!#u!tion of t$e (resent 2ort$ of t$e compan,3s shares 2$i+$ re;uire) ! v!#u!tion of t$e tot!# s$!re$o#)in%4 In Re
&astleburn Ltd
0
t$e .i%$ Court )istin%uis$e) Dean v Prince on t$e "!sis t$!t t$e +onstru+tion of t$e )ifferent 2or)in%
of t$e !rti+#es in Re &astleburn Ltd re;uire) ! v!#u!tion of t$e (!rti+u#!r (!r+e# of t$e s$!res of t$e )e(!rtin% ,e,"er4
:urt$er> t$e !rti+#es in Re &astleburn Ltd> un#iCe t$ose in Dean v Prince0 (rovi)e) t$!t t$e s$!res s$ou#) "e v!#ue) on
t$e "!sis of ! s!#e "et2een ! notion!# 2i##in% "u<er !n) ! notion!# 2i##in% se##er4 -ot$ t$ese f!+tors justifie) t$e
!u)itors !((ro!+$in% t$e (etitionerAs $o#)in% !s ! ,inorit< one !n) !((#<in% ! )is+ount !++or)in%#<
1
4
1
T$ere !re nu,erous e9!,(#es in t$e re(orte) +!ses: see e% 'ett v Phoeni7 Propert, and 8nvestment &o Ltd J1651K -CLC 1*64 If
t$e re,!inin% ,e,"ers 2is$ to e9er+ise t$e (o2er of (re'e,(tion t$e< ,ust )o so in res(e+t of !## t$e s$!res to "e so#)H t$e<
+!nnot )o so in res(e+t of so,e on#<: Ocean &oal &o Ltd v Powell Du..r,n #team &oal &o Ltd J16&K 1 C$ 10*4
Dean v Prince J160*K C$ *864

&
Dean v Prince !"ove !t *54
*
Dean v Prince !"ove !t *&14
0
Re &astleburn Ltd J1661K -CLC 56> 0 -CC 104
1
See Re @owie and &raw.ord3s arbitration J1668K -CC &&84
!1#(/$
1)2 Aaluation proisions
A furt$er (oint 2$i+$ is of i,(ort!n+e is t$e ter,s of t$e (rovisions for v!#u!tion4 It +ou#) $!ve "een !r%ue) in Dean v
Prince
1
t$!t t$e (o2er !n) res(onsi"i#it< to v!#ue t$e s$!res 2!s %iven to t$e !u)itors> !n) t$!t t$erefore t$ere 2!s no
roo, for t$e intervention of t$e +ourts4 T$is 2!s t$e !((ro!+$ of .off,!nn J in t$e su"se;uent +!se of Re IE? Ltd
in
2$i+$ ! )ire+tor !n) s$!re$o#)er 2!s vote) off t$e "o!r)> !n) )is,isse) fro, $is e,(#o<,ent4 T$e !rti+#es (rovi)e)
t$!t in su+$ +ir+u,st!n+es $is s$!res s$ou#) "e offere) to t$e ot$er ,e,"ers !t ! (ri+e to "e !%ree) "< t$e ven)or !n)
t$e )ire+tor or in +!se of )ifferen+e !t ! (ri+e +ertifie) "< t$e !u)itor of t$e +o,(!n<4 T$e )ire+tor sou%$t re#ief un)er
t$e Co,(!nies A+t 1650 !%!inst t$e +o,(u#sor< s!#e of $is s$!res4 .off,!nn J> +on+#u)e) t$!t un)er t$e !rti+#es t$e
!u)itor 2!s res(onsi"#e for t$e v!#u!tion4 T$is +onstitute) t$e !u)itor t$e +onstitution!# ,!+$iner< for t$is (ur(ose> !n)
it 2ou#) t$erefore not "e ri%$t for t$e +ourt to intervene un#ess "!) f!it$ or i,(ro(riet< +ou#) "e s$o2n or t$e !rti+#es
(rovi)e) for so,e !r"itr!r< or !rtifi+i!# ,et$o) of v!#u!tion
&
4 It t$erefore see,s t$!t t$e +ourts 2i## not "e e!si#<
(ersu!)e) to intervene in su+$ +ir+u,st!n+es> even if +onvin+e) t$!t ! v!#u!tion is ,ist!Cen4
1
Dean v Prince J160*K C$ *864
Re IE? Ltd (1651) -CC 66> 084 See !#so Re a &ompan, 1*o 55F;<< o. :C=D6 J1653K 1 7LR 184
&
Re IE? Ltd !"ove !t 1184 .o2ever> if ! ,e,"er +onsi)ere) t$!t $is s$!res $!) "een in+orre+t#< v!#ue) $e 2ou#) "rin%
(ro+ee)in%s in ne%#i%en+e to $!ve t$e v!#u!tion set !si)e (i"i) !t 111)4 .off,!nn J $!) !#re!)< voi+e) t$ese vie2s in t$e s#i%$t#<
e!r#ier +!se of Re a &ompan, 1*o 55<D9; o. :C=F6 (1651) -CC 66> 1614
!1#("$
&: VALUATION O: S.ARES /URSUANT TO AN ORDER UNDER T.E CO=/ANIES ACT 1650 SECTION *11
1,# 8uidelines
/!rti+u#!r issues !rise in %r!ntin% re#ief un)er t$e Co,(!nies A+t 1650 Se+tion *11
1
!n) t$e +ourts $!ve set out !
nu,"er of %ui)e#ines for o(er!tin% un)er Se+tions *06 !n) *11 of t$e A+t4 T$ese !re !s fo##o2s:
10841 No in+entive s$ou#) "e %iven to ,inorit< o((ressionH
1084 =inorit< $o#)in%s s$ou#) not "e )is+ounte)H
1084& E9+#usive +ontri"utions of eit$er ,!jorit< or ,inorit< s$ou#) not "e ref#e+te) in t$e v!#u!tionH
1084* T$e +on)u+t of t$e (etitioner ,!< "e t!Cen into !++ountH
10840 T$e )!te of v!#u!tion s$ou#) !+$ieve f!irness to "ot$ (!rtiesH
10841 T$e (etitioner s$ou#) "e +o,(ens!te) for #oss of use of $is invest,entH !n)
10843 T$e !2!r) ,!< in+#u)e +on)itions !n) ter,s for !## t$e res(on)ents to r!ise fin!n+e4
1
Co,(!nies A+t 1650 s *11 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
!1#(2$
1,1 7ncenties to minority oppression
In)ivi)u!#s 2$o $!ve "e$!ve) 2it$ unf!ir (reju)i+e to t$e interests of t$e (etitioner s$ou#) not "e !##o2e) to ret!in !n<
!)v!nt!%e fro, t$eir o((ressive !+tivities> !s ot$er2ise t$ere 2i## sti## "e !n in+entive for ,!jorities to o((ress
,inorities sin+e> )es(ite !n< +o,(ens!tion 2$i+$ t$e< !re or)ere) to (!<> t$e< 2i## "e #eft 2it$ ! D(rofitA fro, t$eir
!+tivities4 To !+$ieve t$is it 2i## nor,!##< "e ne+ess!r< to v!#ue t$e (etitionerAs s$!res on t$e "!sis t$!t no o((ression
$!s t!Cen (#!+e> !#t$ou%$ on o++!sion t$is 2i## on#< "e (ossi"#e in ! so,e2$!t rou%$ !n) re!)< ,!nner
1
4 In #cottish
&o%operative Wholesale #ociet, Ltd v (e,er
t$e unf!ir#< (reju)i+i!# +on)u+t +onsiste) of t$e ,!jorit<

,is!((ro(ri!tin% t$e !ssets of t$e +o,(!n< !n) t$e +ourt !((ro!+$e) t$e v!#u!tion on t$e footin% t$!t t$e !ssets 2ere
sti## o2ne) "< t$e +o,(!n<4 Si,i#!r#<> in #and.ord v #and.ord &ourier #ervice Pt, Ltd
&
2$ere t$e +on)u+t $!)
+onsiste) of t$e ,!jorit< )istri"utin% (rofits in t$e for, of e9+essive s!#!ries to t$e,se#ves to t$e (reju)i+e of t$e
(etitioner> t$e +o,(!n< !((ro!+$e) t$e v!#u!tion on t$e "!sis of 2$!t t$e +o,(!n<As )istri"ut!"#e (rofits 2ou#) $!ve
"een $!) t$e s!#!ries "een restri+te) to ! re!son!"#e !,ount4
1
See Re (acro 18pswich6 Ltd J166*K -CLC &0*4
#cottish &o%operative Wholesale #ociet, Ltd v (e,er J1606K AC &*> .L4

&
#and.ord v #and.ord &ourier #ervice Pt, Ltd (1653) 18 ACLR &3&4
!1#)#$
1,% Discountin' minority holdin's
A vo#unt!r< v!#u!tion +!rrie) out (ursu!nt to t$e +o,(!n<As !rti+#es or t$e s$!re$o#)ersA !%ree,ent
1
> 2i## nor,!##< "e
)is+ounte) 2$ere t$e s$!re$o#)in% to "e v!#ue) +onstitutes ! ,inorit< s$!re$o#)in% !n) su"je+te) to ! (re,iu, 2$ere
it is ! ,!jorit< s$!re$o#)in% +!rr<in% t$e +ontro# of t$e +o,(!n<4 T$is is not t$e +!se in ! v!#u!tion un)er t$e
Co,(!nies A+t 1650 Se+tion *11
4 Conse;uent#<> t$e v!#u!tion 2i## usu!##< "e on t$e "!sis of ! (ro r!t! !((ro!+$4 If !
+o,(!n< $!s "een ! ;u!si'(!rtners$i(> "ut $!s +e!se) to "e ! +o,(!n< of t$is n!ture !t t$e ti,e of t$e !((#i+!tion
un)er Se+tion *06> it 2i## "e !((ro(ri!te for t$e (etitionerAs s$!res to "e (ur+$!se) !t ! )is+ount "e+!use $e $!s +e!se)
to "e ! (!rt< to ! ;u!si'(!rtners$i(
&
4

Even in t$e +!se of ;u!si'(!rtners$i(s> it 2!s !++e(te) in Re Bird Precision
Bellows Ltd
*
t$!t +ir+u,st!n+es ,i%$t !rise 2$ere ! (ro r!t! v!#u!tion 2it$ no )is+ounts ,i%$t not "e !((ro(ri!te4
T$ese in+#u)e situ!tions in 2$i+$ t$e ;u!si'(!rtnerAs "e$!viour $!) (ro,(te) t$e +o,(!n<As re!+tion to $i,> !n) t$e
(etitionerAs +on)u+t 2ou#) su%%est t$!t ! (ro r!t! !((ro!+$ 2ou#) "e unf!ir to t$e +ontinuin% ,e,"ers of t$e
+o,(!n<
0
4 Anot$er +ir+u,st!n+e is 2$ere t$e (etitioner> !#t$ou%$ su"je+te) to unf!ir#< (reju)i+i!# +on)u+t> ,!< $!ve
!+;uire) $is s$!res !t ! )is+ount fro, one of t$e ori%in!# (!rti+i(!nts in t$e +ontinuin% ;u!si'(!rtners$i(> !n) ! si,(#e
(ro r!t! !((ro!+$ ,i%$t unjust#< enri+$ $i,4
1
As to v!#u!tion in vo#unt!r< s$!re s!#es see /!r!%r!($ 1* J18&8K et se; !nte4
Co,(!nies A+t 1650 s *11 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See .off,!nn J in Re a &ompan, J1651K -CLC
&1 !t &164
&
See Re DR &hemicals (1656) 0 -CC &64
*
Re Bird Precision Bellows Ltd J165*K C$ *164
0
As to t$e i,(!+t of t$e (etitionerAs +on)u+t see /!r!%r!($ 10* J18*&K (ost4
!1#)1$
1,( -5clusie contributions
T$e +o,(!n< ,!< $!ve "enefite) fro, ! +ontri"ution ,!)e e9+#usive#< "< eit$er t$e ,!jorit< or t$e ,inorit<4 If t$is
2ere to "e ref#e+te) in t$e v!#u!tion in)ivi)u!#s 2$o $!) not +ontri"ute) 2ou#) "enefit fro, it> !n) for t$is re!son it
s$ou#) "e e9+#u)e) fro, t$e v!#u!tion4 T$is situ!tion 2i## ,ost fre;uent#< o++ur 2$en t$e res(on)entAs efforts $!ve
,!)e ! su"st!nti!# i,(rove,ent to t$e +o,(!n< !fter t$e (etitioner $!s "een e9+#u)e) fro, (!rti+i(!tion> "ut it ,!<
e;u!##< !rise 2$ere t$e (etitioner $!s ,!)e ! +ontri"ution 2$i+$ is on#< ref#e+te) in t$e +o,(!n<As !++ounts !fter $e
$!s )e(!rte)
1
4
1
See Re London #chool o. Electronics J1651K C$ 114
!1#)%$
1,) *he conduct of the petitioner
It 2i## "e r!re for t$e (etitionerAs +on)u+t to o(er!te so !s to ,!Ce t$e (reju)i+e o++urrin% to $is interests f!ir
1
>

"ut it
+!n "e t!Cen into !++ount in se#e+tin% !n !((ro(ri!te re,e)<
4 It is su",itte) t$!t t$e (etitionerAs +on)u+t ,i%$t !#so "e

! f!+tor to "e t!Cen into !++ount in )e+i)in% t$e "!sis of v!#u!tion 2$ere t$e +ourt or)ers $is s$!res to "e !+;uire) if
t$!t +on)u+t $!s !ffe+te) t$e v!#ue of t$e efforts of t$e ,!jorit< on t$e +o,(!n<As "e$!#f4 T$e #e!)in% i##ustr!tion of
t$is is Re Bird Precision Bellows Ltd
&
2$i+$ +on+erne) ! s,!## (riv!te +o,(!n<> 2$i+$ +ou#) "e (ro(er#< +$!r!+terise)
!s ! ;u!si'(!rtners$i(4 T2o )ire+tors> 2$o 2ere ,inorit< s$!re$o#)ers 2ere )is,isse) fro, t$eir )ire+tors$i(s !s !
resu#t of ! ,!n!%e,ent )is(ute4 T$e< !((#ie) to t$e +ourt un)er t$e e;uiv!#ent (rovisions to t$e Co,(!nies A+t 1650
Se+tion *06
*
+#!i,in% t$!t t$e +o,(!n<As !ff!irs $!) "een +on)u+te) in ! ,!nner 2$i+$ 2!s unf!ir#< (reju)i+i!# to
t$e,> in t$!t> t$e< $!) "een e9+#u)e) fro, t$e ,!n!%e,ent of t$e +o,(!n<> !n) sou%$t !n or)er t$!t t$e re,!inin%
,e,"ers s$ou#) "e re;uire) to (ur+$!se t$eir s$!res !t ! f!ir v!#ue4 In )eter,inin% t$e (ri+e to "e (!i) for t$e s$!res>
Nourse J> 2$i#e !++e(tin% t$!t t$ere 2!s no %ener!# ru#e for t$e v!#u!tion of s$!res in ! (riv!te +o,(!n<> tooC t$e vie2
t$!t in t$e +!se of ! ;u!si'(!rtners$i(> s$!res s$ou#) usu!##< "e v!#ue) on ! si,(#e (ro r!t! footin% r!t$er t$!n 2it$ !n
!))ition or su"tr!+tion to ref#e+t t$eir +o,,er+i!# v!#ue4 .o2ever> in e9+e(tion!# +!ses> ! (re,iu, or )is+ount to t$!t
(ri+e 2ou#) "e !((ro(ri!te> for e9!,(#e on t$e e9(u#sion of ! ;u!si'(!rtner 2$o )eserve) to "e e9(e##e)> or ! ,inorit<
s$!re$o#)er 2$o $!) !+;uire) $is interest "< (ur+$!se !t ! )is+ount fro, t$e ori%in!# ,!jorit< ,e,"er4 In t$e
(!rti+u#!r +!se it 2!s !((ro(ri!te to +onsi)er t$e +on)u+t of t$e res(on)ent in )is,issin% t$e !((#i+!nts in ,!Cin% t$e
v!#u!tion 2$i+$ $e $!) )e+i)e)
0
4
!1#)($
1
As to t$e +on)u+t of t$e (etitioner %ener!##< see /!r!%r!($ 111 J65*K !nte4
Re Bird Precision Bellows Ltd J165*K C$ *16H on !((e!# J1651K C$ 105> CA4
&
Re Bird Precision Bellows Ltd !"ove4
*
CO=/ANIES)4
0
7$i#e v!#uin% t$e s$!res on ! str!i%$t (ro r!t! "!sis> Nourse J note) t$!t t$e +o,(!n< 2!s one 2it$ ! %oo) (rofit re+or) !n)
v!#ue) it on ! %oin% +on+ern "!sis> t!Cin% into !++ount its future e!rnin%s !n) its !ssets4 .e !#so st!te)> o"iter> t$!t if $e $!) fe#t
t$!t it 2!s ! +!se in 2$i+$ ! )is+ount s$ou#) "e ,!)e or (re,iu, %iven> t$e !,ount of t$e )is+ount or (re,iu, s$ou#) "e !
,!tter for t$e ju)%,ent of !n !((ro(ri!te e9(ert r!t$er t$!n ! fi%ure (u##e) out of t$e !ir "< t$e ju)%e4 On !((e!# "ot$ $is
ju)%,ent !n) re!sonin% 2ere u($e#)4
!1#))$
1,, *he date of aluation
T$e )!te for v!#u!tion s$ou#) "e +$osen to ensure ,!9i,u, f!irness to t$e (!rties4 T$e v!#ue of t$e +o,(!n<As !ssets
,!< $!ve in+re!se) or )e+re!se) "et2een t$e )!te of t$e e9+#usion of t$e (etitioner fro, its !ff!irs !n) t$e )!te of t$e
(etition for re!sons entire#< outsi)e t$e +ontro# of t$e (!rties4 T$e )!te on 2$i+$ t$e v!#ue of t$e +o,(!n< is to "e t!Cen
in su+$ +ir+u,st!n+es> 2i## t$erefore !ffe+t t$e !,ount of +o,(ens!tion (!<!"#e4 In Re &umana Ltd
1
t$e v!#ue of t$e
+o,(!n<As !ssets> !n) t$erefore of its s$!res> $!) )e+#ine) "et2een t$e )!te of t$e "re!C)o2n of t$e re#!tions$i(
"et2een t$e (!rties !n) t$e )!te of t$e ju)%,ent of t$e +ourt4 Vine#ott J> in %r!ntin% re#ief> or)ere) t$!t t$e s$!res
s$ou#) "e v!#ue) !t t$e )!te of t$e (etition on t$e "!sis t$!t t$is 2!s t$e D)!te on 2$i+$ t$e (etitioner e#e+ts to tre!t t$e
unf!ir +on)u+t of t$e ,!jorit< !s in effe+t )estro<in% t$e "!sis on 2$i+$ $e !%ree) to +ontinue to "e ! s$!re$o#)erA
4
:urt$er> if t$e )efen)!nts $!) !+te) f!ir#<> t$e< 2ou#) $!ve offere) to (ur+$!se $is s$!res on t$!t )!te4 T$e )e+#ine in
t$e v!#ue of t$e s$!res $!) "een !s ! resu#t of ! %ener!# ,!rCet )e+#ine> !n) t$e )efen)!nts !((e!#e) on t$e "!sis t$!t in
su+$ +ir+u,st!n+es> t$e )e+#ine in v!#ue> "ein% )ue to entire#< e9tr!neous +ir+u,st!n+es> s$ou#) "e s$!re) "< t$e
(etitioner4 T$e Court of A((e!# tooC t$e vie2 t$!t t$e ti,e of v!#u!tion 2!s ! ,!tter for t$e tri!# ju)%e> !n) t$e
!((e##!te +ourts s$ou#) "e s#o2 to intervene4
7$ere t$e v!#ue of t$e +o,(!n< $!s in+re!se) !fter t$e )!te of t$e e9+#usion of t$e (etitioner fro, t$e
o(er!tions of t$e +o,(!n<> it is )iffi+u#t to see 2$< t$e (etitioner s$ou#) s$!re in t$e in+re!se in t$e v!#ue of t$e
+o,(!n< sin+e $e $!s not +ontri"ute) to t$e in+re!se in t$e v!#ue of t$e s$!res> !n) $!s +e!se) in re!#it< to "e !
(!rti+i(!nt in t$e (!rtners$i(4 .e s$ou#)> $o2ever> "e +o,(ens!te) for "ein% e9+#u)e) fro, t$e use of $is invest,ent
"et2een t$ose )!tes4
!1#),$
1
Re &umana Ltd J1651K -CLC *&84
I"i) !t *&14 T$e +ourt 2i## se#e+t t$e )!te 2$i+$ !+$ieves t$e ,ost su"st!nti!# f!irness in t$e (!rti+u#!r +ir+u,st!n+es: see Re
El!indata J1661K -CLC 606H Re a &ompan, 1*o 55;;5 o. :CC:60 e7 p @olden J1661K -CLC 0634
7it$ re%!r) to t$e se#e+tion of t$e )!te of t$e (etition "< Vine#ott J in Re &umana Ltd !"ove> !s /rofessor /renti+e $!s (ointe)
out :
D444 t$is +!use) no unf!irness to t$e res(on)ent for t$e re!sons %iven "< Vine#ott J: t$e res(on)ent 2!s free to
,!Ce !n offer to (ur+$!se t$e (etitionerAs s$!res !t t$e ti,e t$e (etitioner #eft t$e +o,(!n<4 In f!+t to $!ve t!Cen
into +onsi)er!tion t$e )e+#ine in t$e v!#ue of t$e s$!res 2ou#) $!ve +!use) !n unf!irness to t$e (etitioner !s t$e
(etitioner 2!s )enie) t$e o((ortunit< of investin% t$e (ro+ee)s 2$i+$ $e s$ou#) $!ve re+eive) for $is s$!res in
!n !#tern!tive invest,ent !n) t$us (rote+tin% t$e v!#ue of $is invest,ent4 A#so> on+e ! s$!re$o#)er ter,in!tes
$is re#!tions$i( 2it$ t$e +o,(!n<> $e 2i## "e un!"#e to +ontro# or ,onitor t$e +o,(!n<As !ff!irs !n) t$is s$ou#)
not "e !##o2e) to (reju)i+e $is interests> ! (reju)i+e 2$i+$ ,i%$t o++ur if t$e +ourt 2ere to t!Ce into
+onsi)er!tion ! )e+#ine in t$e v!#ue of t$e s$!res "et2een t$e )!te of $is e9+#usion !n) t$e )!te of t$e !+tion4A
See D D /renti+e in DT$e T$eor< of t$e :ir,: =inorit< S$!re$o#)ersA O((ression: Se+tions *06M*11 of t$e Co,(!nies A+tA
(1655) 5 OJLS 00 ( 514
!1#).$
1,. Compensation for loss of use of the petitioners inestment
Durin% t$e (erio) "et2een t$e )!te of t$e e9+#usion of t$e (etitioner !n) t$!t of t$e +ourt or)er> t$e (etitioner 2i## $!ve
re+eive) no return on $is invest,ent nor 2i## $e $!ve "een !"#e to re!#ise $is +!(it!# !n) invest it e#se2$ere4 T$e or)er
,!)e "< t$e +ourt s$ou#) +o,(ens!te t$e (etitioner for t$e #oss of use of $is +!(it!# )urin% t$is (erio)
1
!n) on+e ,!)e
2i## "e interest "e!rin% unti# it $!s "een s!tisfie) "< t$e )efen)!nt
4
1
In Re Bird Precision Bellows Ltd J165*K C$ *16 Nourse J +on+#u)e) t$!t t$ere 2!s no (o2er to ,!Ce !n !2!r) of interest !s
su+$ to +over t$e (erio) until ju)%,ent> "ut #eft o(en t$e issue of 2$et$er +o,(ens!tion +ou#) "e in+#u)e) in t$e !2!r)4 In
(rin+i(#e it +!n "e: see D D /renti+e DT$e t$eor< of t$e :ir,: =inorit< S$!re$o#)ersA O((ression: Se+tions *06'*11 of t$e
Co,(!nies A+t 1650A (1655) 5 OJLS 00 ( 534
T$e r!te of interest is !t t$e )is+retion of t$e +ourt> "ut "!se r!te S 1L 2i## usu!##< "e !2!r)e): see Buckin!ham v Francis
J1651K -CLC &0&4
See t$e Ju)%,ents A+t 15&5 s 13 ( .!#s"ur<As St!tutes (*t$ E)n) JUDG=ENTS AND EFECUTIONS)4 Sin+e 1 A(ri# 166&
t$e r!te of interest $!s "een 5L (er !nnu,: see t$e Ju)%,ent De"ts (R!te of Interest) Or)er 166&E01*4
!1#)/$
1,/ Finance
T$e !2!r) ,!< in+#u)e +on)itions !n) ter,s for !## t$e res(on)ents to r!ise fin!n+e4 It ,!< not "e (r!+ti+!"#e for t$e
res(on)ents to r!ise t$e ne+ess!r< fin!n+e to !+;uire t$e (etitionerAs s$!res i,,e)i!te#<4 T$e +ourt ,!< t$erefore
in+#u)e ! ter, t$!t t$e su, "e (!<!"#e "< inst!#,ents> or in+#u)e !n es+!(e +#!use to )e!# 2it$ t$e +ontin%en+< t$!t t$e
res(on)ents !re un!"#e to r!ise t$e ne+ess!r< fin!n+e4 T$e Court of A((e!# $!s> $o2ever> $e#) t$!t t$ere is no
o"#i%!tion on t$e +ourt to in+#u)e su+$ (rovisions> !n) it ,!< +$oose not to )o so
1
4 Su+$ (rovisions +!n "e seen !s
"ein% in t$e interests of "ot$ (etitioner !n) res(on)ent> sin+e t$e !#tern!tive in t$e +ir+u,st!n+es is for t$e +o,(!n< to
"e 2oun) u( un#ess t$e (!rties +!n re!+$ ! sensi"#e !++o,,o)!tion "et2een t$e,se#ves4 .o2ever> it is su",itte) t$!t
2$ere su+$ (rovisions !re use)> (rovision s$ou#) !#so "e ,!)e for t$e (etitioner to "e +o,(ens!te) for t$e #!+C of use
of $is +!(it!#4 As t$e (etitioner is +o,(u#sori#< +onstitute)> in effe+t> ! +re)itor of ! +o,(!n< in 2$i+$ $e +!n no #on%er
(!rti+i(!te> +onsi)er!tion s$ou#) "e %iven !s to 2$et$er t$e (!<,ents )ue to $i, +!n "e se+ure) "< t$e res(on)ents so
t$!t $e $!s so,e (riorit< if t$e res(on)entAs ,!n!%e,ent !n) o(er!tion of t$e +o,(!n< #e!)s to its inso#ven+<4
1
Re Cu,!n! Lt) J1651K -CLC *&84
!1#)"$
1," 3cope of order
7$i#e !n or)er un)er t$e Co,(!nies A+t 1650 Se+tion *11
1
2i## nor,!##< "e ,!)e !%!inst t$e e9istin% ,!jorit<
s$!re$o#)ers> t$e 2or)in% is 2i)e4 In Re a &ompan, J1651K
2$ere t$e ,!jorit< s$!re$o#)er res(onsi"#e for t$e

unf!ir#< (reju)i+i!# +on)u+t $!) )is(ose) of $is s$!res i,,e)i!te#< !fter t$e fi#in% of t$e (etition> t$e +ourt sti## foun)
t$e (o2er to ,!Ce !n or)er !%!inst $i, )es(ite $is no #on%er "ein% ! ,e,"er of t$e +o,(!n<4 It !#so ,!)e !n or)er
!%!inst ! +o,(!n< 2it$ 2$i+$ t$e e9',!jorit< s$!re$o#)er $!) "e+o,e invo#ve)4

If ! ,!jorit< s$!re$o#)er is "ut !
no,inee for !not$er (erson> !n or)er +ou#) "e ,!)e !%!inst "ot$ t$e ot$er (erson !n) t$e no,inee4 T$is is !n
i,(ort!nt +onsi)er!tion if it is t$e ot$er (erson 2$o $!s t$e ,e!ns of "u<in% out t$e (etitioner> !s it often 2i## "e
&
4
1
Co,(!nies A+t 1650 s *11 (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4
Re ! Co,(!n< J1651K -CLC 154

&
See Re Little Ol,mpian Each%Wa,s Ltd J166*K -CLC *84
!1#)2$9!1#.#$
(1) JOINT VENTURES AND UB CO=/ETITION LA7
1,29%%# *he Competition Bill
It is !nti+i(!te) t$!t t$e Co,(etition -i## 2i## re+eive ro<!# !ssent !t t$e en) of 1665 !n) "e "rou%$t into for+e so,e
ti,e in 1666
1
4 T$e ,!in +$!n%es to Unite) Bin%)o, +o,(etition #!2 in+#u)e t$e re(e!# of t$e Restri+tive Tr!)e
/r!+ti+es A+t 1631 !n) t$e Res!#e /ri+es A+t 16314 T$e Co,(etition A+t 2i## re(#!+e t$e Restri+tive Tr!)e /r!+ti+es
A+t 2it$ ! ne2 st!tutor< +o)e re%u#!tin% restri+tive (r!+ti+es4 T$ese +$!n%es 2ere first (ro(ose) in ! 7$ite /!(er on
restri+tive tr!)e (r!+ti+es

2$i+$ !r%ue) t$!t t$e ne2 #!2 s$ou#) "e "!se) on EC Tre!t< Arti+#es 50(1)
&
4 T$e ne2
#e%is#!tion 2i## t$erefore i,(ose ! %ener!# (ro$i"ition on !%ree,ents> in+#u)in% joint ventures !n) +on+erte) (r!+ti+es>
2$i+$ $!ve !s t$eir o"je+t or effe+t t$e restri+tion or )istortion of +o,(etition 2it$in t$e Unite) Bin%)o, or (!rt of it
*
4
T$e nee) for re%istr!tion of restri+tive (r!+ti+es un)er t$e Restri+tive Tr!)e /r!+ti+es A+t 2i## "e )is+ontinue)4 T$e
%ener!# (ro$i"ition 2i## "e su"je+t to in)ivi)u!# e9e,(tion un)er ! si,i#!r (rovision to Arti+#e 50(&) !n) "#o+C
e9e,(tions su+$ !s !%ree,ents !n) joint ventures re#!tin% to te+$ni+!# i,(rove,ents4 T$ere 2i## "e no re;uire,ent for
(u"#i+ interest !s ! %roun) for e9e,(tion
0
4
!1#.1$
1
At t$e ti,e of (u"#i+!tion> Nove,"er 1665> t$e Co,(etition -i## is "efore /!r#i!,ent4 T$e (ro%ress of t$e -i## $!s "een )e#!<e)
!n) si%nifi+!nt !,en),ents to it !re "ein% )e"!te) in t$e .ouse of Lor)s4 T$e Co,(etition A+t 2i## "e +onsi)ere) in )et!i# in !
future issue of t$e #oose'#e!f servi+e u()!te 2$en it +o,es into for+e4 See /ri,e> G!#e N S+!n#!n 'he Law and Practice o. +oint
"entures (1663) +$ 34
See Govern,ent 7$ite /!(er O(en =!rCets: Ne2 /o#i+< on Restri+tive Tr!)e /r!+ti+esA Ju#< 1656 2$i+$ 2!s revie2e)
fo##o2in% ! +onsu#t!tion (!(er (u"#is$e) in =!r+$ 16614
&
EC Tre!t< !rt 50 2i## "e+o,e !rt 51 2$en t$e Tre!t< of A,ster)!, 1663 is r!tifie)4
*
7$!t +onstitutes ! (!rt of t$e Unite) Bin%)o, for t$e (ur(oses of t$e !((#i+!tion of t$ese (rovisions 2i## re,!in ! ;uestion of
f!+t4 T$e (r!+ti+e !)o(te) "< +!se #!2 on t$e Restri+tive Tr!)e A+t /r!+ti+es 1631 ,i%$t "e of (ersu!sive !ut$orit<4 See #outh
Eorkshire 'ransport )c>uisition (C, 1118) 2$i+$ +on+erne) t$e =ono(o#ies !n) =er%ers Co,,ission !+tin% un)er t$e :!ir
Tr!)in% A+t 163& s 1*4
0
See note !"ove4
!1#.%$9!11,#$
(3) JOINT VENTURES AND EC CO=/ETITION LA7
A: CONCENTRATIVE JOINT VENTURES
1: INTRODUCTION
%%1 Co+operatie and concentratie joint entures
EC +o,(etition #!2 ,!Ces ! )istin+tion "et2een so'+!##e) D+o'o(er!tive joint venturesA> 2$i+$ !re !ssesse) "<
Dire+tor!te'Gener!# IV !((#<in% EC Tre!t< Arti+#es 50 !n) 51
1
> !n) D+on+entr!tive joint venturesA4 T$e #!tter !re
!ssesse) "< t$e =er%er T!sC :or+e> !((#<in% EC Coun+i# Re%u#!tion *81*E56 (t$e =er%er Contro# Re%u#!tion)4
1
EC Tre!t< !rts 50> 51 2i## "e+o,e !rts 51> 5 res(e+tive#< 2$en t$e Tre!t< of A,ster)!, 1663 is r!tifie)4
!11,1$
%%% Concentration
T$e ter, D+on+entr!tionA is "ro!)er t$!n t$e En%#is$ #!2 +on+e(t of ,er%ers !n) t!Ceovers> 2$i+$ is 2$< +on+entr!tive
joint ventures f!## to "e +onsi)ere) un)er EC Coun+i# Re%u#!tion *81*E56 2$i+$ st!tes:
DT$e +re!tion of ! joint venture (erfor,in% on ! #!stin% "!sis !## t$e fun+tions of !n !utono,ous e+ono,i+ entit<>
which does not !ive rise to co%ordination o. the competitive behaviour o. the parties amon!st themselves or
between them and the /oint venture0 s$!## +onstitute +on+entr!tion444A
1

A joint venture 2$i+$ is for,e) (rin+i(!##< to +o'or)in!te +o,(etition "et2een t$e (!rti+i(!nts to t$e venture in t$e
re#ev!nt ,!rCet> +!nnot "e ! +on+entr!tion 2it$in t$e ter,s of Re%u#!tion *81*E564
1
EC Coun+i# Re%u#!tion *81*E56 !rt &()4 T$e 2or)s in it!#i+s 2ere re(e!#e) "< EC Coun+i# Re%u#!tion 1&18E63 !rt 1(&) e9+e(t
in re#!tion to !n< +on+entr!tion !#re!)< su"je+t to !n !%ree,ent or !nnoun+e,ent or 2$ere +ontro# 2!s !+;uire) (!s )efine) in
i"i) !rt *(1)) "efore 1 =!r+$ 1665 or !n< +on+entr!tion su"je+t to (ro+ee)in%s "< t$e +o,(etition !ut$orit< of ! ,e,"er st!te
"efore 1 =!r+$ 16654 As to t$e !,en),ents to Re%u#!tion *81*E56 see /!r!%r!($ *& J1131K (ost4
!11,%$
: EC COUNCIL REGULATION *81*E56 ON =ERGER CONTROL
%%( *he adanta'es of consideration under &e'ulation )#.)E"2
7$!t> if !n<> !re t$e !)v!nt!%es in t$e joint venture "ein% )e!#t 2it$ un)er EC Coun+i# Re%u#!tion *81*E56 r!t$er t$!n
EC Tre!t< Arti+#es 50 !n) 51Q T$e ,!in !)v!nt!%es !re:
&41 t$e +riteri! for "rin%in% t$e Re%u#!tion into o(er!tionH
&4 t$e n!ture of t$e test for +o,(!ti"i#it< of t$e (ro(ose) venture 2it$ t$e Re%u#!tionH
&4& t$e s(ee) of t$e (ro+e)ureH
&4* t$e n!ture of )e+isions un)er t$e Re%u#!tionH
&40 t$e e9+#usive juris)i+tion of t$e Re%u#!tionH !n)
&41 t$e (ossi"i#it< of ,u#ti(#e fi#in%s for +#e!r!n+e4
T$ese !re )is+usse) in turn4
1
!11,($
%%) DCommunity dimension re6uirement
EC Coun+i# Re%u#!tion *81*E56 +o,es into o(er!tion on#< if t$e venture $!s ! DCo,,unit< )i,ensionA
1
4 T$e test for
)eter,inin% 2$et$er ! joint venture $!s ! Co,,unit< )i,ension is "< referen+e to t$e +on+e(t of t$e t$res$o#)4 T$e
t$res$o#)s !re +urrent#< $i%$> !#t$ou%$ t$e Coun+i# of =inisters $!s fin!##< re!+$e) !%ree,ent on #o2erin% t$e,
4
Des(ite t$is f!+t ,!n< joint ventures 2i## "e )e!#t 2it$ "< n!tion!# #!2 inste!)4 EC Tre!t< Arti+#es 50 !n) 51 !((#<
2$ere t$ere is !n effe+t on tr!)e "et2een ,e,"er st!tes su"je+t to t$e turnover re;uire,ents in t$e EC Co,,ission
Noti+e on ,inor !%ree,ents
&
4 T$is !ssess,ent is "< no ,e!ns e!s<> 2$ere!s Re%u#!tion *81*E56 (rovi)es ! +#e!r
juris)i+tion!# +ut'off (oint 2$i+$ is re!son!"#< e!s< to )eter,ine4
1
EC Coun+i# Re%u#!tion *81*E56 !rt 1() st!tes:
D:or t$e (ur(oses of t$is Re%u#!tion> ! +on+entr!tion $!s ! Co,,unit< )i,ension 2$ere: (!) t$e +o,"ine)
!%%re%!te 2or#)'2i)e turnover of !## t$e un)ert!Cin%s +on+erne) is ,ore t$!t ECU 0888 ,i##ionH !n) (") t$e
!%%re%!te Co,,unit<'2i)e turnover of e!+$ of !t #e!st t2o of t$e un)ert!Cin%s +on+erne) is ,ore t$!n ECU
08 ,i##ionH un#ess e!+$ of t$e un)ert!Cin%s +on+erne) !+$ieves ,ore t$!n t2o't$ir)s of its !%%re%!te
Co,,unit<'2i)e turnover 2it$in one !n) t$e s!,e =e,"er St!te4A
EC Coun+i# Re%u#!tion *81*E56 !rt 1(&) 2$i+$ (rovi)es for ! revie2 of t$res$o#)s "efore t$e en) of t$e fourt$ <e!r fo##o2in%
t$e !)o(tion of Re%u#!tion *81*E564
&
EC Co,,ission Noti+e on !%ree,ents of ,inor i,(ort!n+e OJ C&3 641463 (1&4
!11,)$
%%, *he test for compatibility
T$e test for +o,(!ti"i#it< of t$e (ro(ose) venture 2it$ EC Coun+i# Re%u#!tion *81*E56 is its i,(!+t on effe+tive
+o,(etition4 A++or)in% to t$e Re%u#!tion:
DA +on+entr!tion 2$i+$ +re!tes or stren%t$ens ! )o,in!nt (osition !s ! resu#t of 2$i+$ effe+tive +o,(etition
2ou#) "e si%nifi+!nt#< i,(e)e) in t$e +o,,on ,!rCet or in ! su"st!nti!# (!rt of it s$!## "e )e+#!re) in+o,(!ti"#e
2it$ t$e +o,,on ,!rCetA
1
4
T$is test is !r%u!"#< ! #ess )e,!n)in% one t$!n EC Tre!t< Arti+#e 50
> 2$i+$ ,e!ns t$!t it is e!sier to o"t!in !

+#e!r!n+e for ! joint venture un)er Re%u#!tion *81*E564 To s!tisf< Arti+#e 50(&)> t$e (!rties 2ou#) $!ve to s$o2 t$!t t$e
"enefits of t$e (ro(ose) !rr!n%e,ent out2ei%$ its !nti'+o,(etitive effe+ts4
1
EC Coun+i# Re%u#!tion *81*E56 !rt (&)4
!11,,$
%%. 3peed
/!rties !re #iCe#< to $e!r fro, t$e =er%er T!sC :or+e ,ore ;ui+C#< t$!n fro, t$e rest of Dire+tor!te'Gener!# IV
"e+!use t$ere !re stri+t %ui)e#ines #!i) )o2n in EC Coun+i# Re%u#!tion *81*E56
1
4 A )e+ision is #iCe#< to "e re!+$e) 2it$
re%!r) to ! joint venture 2it$in four ,ont$s of t$e )!te on 2$i+$ (ro+ee)in%s 2ere initi!te)> !#t$ou%$ t$e =er%er T!sC
:or+e 2i## nor,!##< ,!Ce its vie2s Cno2n 2it$in ! ,ont$4 A#t$ou%$ t$e Co,,ission intro)u+e) !n !++e#er!te)
(ro+e)ure for stru+tur!# joint ventures> 2$i+$ $!s "een in o(er!tion sin+e 1 J!nu!r< 166& (2$ere ! +o'o(er!tive joint
venture invo#ves +ru+i!# +$!n%es in t$e stru+ture of t$e (!rties> (!rti+u#!r#< in t$e +!se of (ro)u+tion !n) fu##< f#e)%e)
joint ventures)> )e+isions )o not $!ve to "e t!Cen for t2o ,ont$s !n) t$e %ui)e#ines !re not #e%!##< "in)in%
4 De+isions
+!n t!Ce !s #on% !s t2o <e!rs in t$e +!se of +o'o(er!tive joint ventures !n) even +o,fort #etters !re un#iCe#< to "e
re+eive) for si9 ,ont$s4 If> inste!)> (!rties re+eive notifi+!tion of t$e Co,,issionAs intention to o(en !n investi%!tion>
it +ou#) t!Ce even #on%er4 It is not unCno2n for t$ree <e!rs to e#!(se "et2een notifi+!tion !n) t$e fin!# )e+ision
&
4
1
EC Coun+i# Re%u#!tion *81*E56 !rt 184
/ress Noti+e of & De+e,"er 166 DCo,,ission !+ts to f!+i#it!te +re!tion of +o'o(er!tive joint venturesA4
&
See Philips/Osram J166*K * C=LR 06> OJ 166* CE*4
!11,.$
%%/ Nature of decisions under &e'ulation )#.)E"2
A )e+ision un)er EC Re%u#!tion *81*E56 is un#i,ite) in )ur!tion 2$ere!s +#e!r!n+e un)er EC Tre!t< Arti+#es 50 !n)
51
1
+!n "e %iven for ! #i,ite) (erio)4 In !n< event> in)ivi)u!# e9e,(tion )e+isions> +o,fort #etters !n) ne%!tive
+#e!r!n+e !re %iven on t$e "!sis of t$e f!+ts t$!t t$e Co,,ission $!s "efore it4 A si%nifi+!nt +$!n%e in +ir+u,st!n+es
2ou#) $!ve to "e +o,,uni+!te) to t$e Co,,ission or t$ere is ! )!n%er of t$e +#e!r!n+e "ein% 2it$)r!2n4 De+isions
un)er Re%u#!tion *81*E56 t$erefore offer ,ore #e%!# +ert!int<4
1
!11,/$
%%" -5clusie jurisdiction of &e'ulation )#.)E"2
On+e it $!s "een )e+i)e) t$!t ! joint venture is +on+entr!tive !n) t$!t it $!s ! Co,,unit< )i,ension> t$en neit$er
n!tion!# ,er%er #e%is#!tion nor EC Tre!t< Arti+#es 50 or 51
1
+!n !((#<4 EC Coun+i# Re%u#!tion *81*E56 +onfers
e9+#usive juris)i+tion on t$e Co,,ission4 Even if t$e +on+entr!tive joint venture )oes not $!ve ! Co,,unit<
)i,ension> t$en EC Tre!t< Arti+#es 50 !n) 51 !re sti## in!((#i+!"#e
4
1
See -urnsi)e !n) =!+CenIie Stu!rt DJoint Venture An!#<sis: T$e L!test C$!(terA (1660) & ECLR 1&54 T$e< note: EC Coun+i#
Re%u#!tion *81*E56 !rt !#one> !n) not EC Coun+i# Re%u#!tion 13> !((#ies to +on+entr!tions !s )efine) in Re%u#!tion *81*E56
!rt & ie 2it$out referen+e to t$eir siIe4 Re%u#!tion *81*E56 !rt 1 )istin%uis$es +on+entr!tions 2it$ Co,,unit< )i,ension fro,
t$ose 2it$out it !n) +onfir,s t$!t t$e )efinition of Co,,unit< )i,ension is D2it$out (reju)i+eA to i"i) !rt 2$i+$ t$erefore
overri)es i"i) !rt 14
!11,"$
%%2 <ultiple filin's for clearance
T$e i)e! "e$in) t$e Re%u#!tion *81*E56 2!s t$!t t$ere s$ou#) "e ! Done'sto( s$o(A for Euro(e!n ,er%er +ontro#
2$ere!s t$is is not t$e +!se for joint ventures su"je+t to EC Tre!t< Arti+#e 50
1
4 =u#ti(#e fi#in%s for +#e!r!n+e !re
entire#< (ossi"#e un)er t$!t re%i,e4
1
!11,2$
%(# Disadanta'es of consideration under &e'ulation )#.)E"2
T$e ,!jor )is!)v!nt!%e of t$e s<ste, intro)u+e) "< EC Coun+i# Re%u#!tion *81*E56 is t$!t notifi+!tion is ,!n)!tor<
!n) ,ust "e ,!)e "efore t$e tr!ns!+tion is +on+#u)e)4 T$is is so even 2$ere t$e (ro(ose) !%ree,ent +#e!r#< $!s no
!nti'+o,(etitive i,(#i+!tions4 :!i#ure to notif< ! +on+entr!tion ,!< !ttr!+t ! fine
1
4 .o2ever> notifi+!tion un)er EC
Tre!t< Arti+#e 50
is not ,!n)!tor< !n) +!n "e ,!)e on+e t$e !%ree,ent to set u( t$e joint venture $!s "een +on+#u)e)4
/!rties f!i#in% to notif< !n !%ree,ent t$!t infrin%es Arti+#e 50(1) !re su"je+t to t$e s!n+tion of nu##it< in Arti+#e 50()
!n) t$e )!n%er of fines in EC Coun+i# Re%u#!tion 13E1 2$i+$ i,(#e,ents EC Tre!t< Arti+#es 50 !n) 51
&
4
1
EC Coun+i# Re%u#!tion *81*E56 !rt 184
&
EC Coun+i# Re%u#!tion 13E1 !rt 10()4
!11.#$
&: EC CO==ISSION NOTICE ON CONCENTRATIVE AND CO'O/ERATIVE JOINT VENTURES
(!) Intro)u+tion
%(1 Distin'uishin' co+operatie and concentratie joint entures
T$e ,ost re+ent Co,,ission Noti+e
1
on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures )efines
joint ventures !s un)ert!Cin%s 2$i+$ !re joint#< +ontro##e) "< t2o or ,ore ot$er un)ert!Cin%s
4 In (r!+ti+e> t$e<
en+o,(!ss ! "ro!) r!n%e of o(er!tions> fro, ,er%er'#iCe o(er!tions to +o'o(er!tion for (!rti+u#!r fun+tions su+$ !s
rese!r+$ !n) )eve#o(,ent> (ro)u+tion or )istri"ution4
7it$ re%!r) to t$e +on+e(t of +on+entr!tion> EC Coun+i# Re%u#!tion *81*E56

st!tes t$!t t$is s$ou#) "e )efine)
to +over on#< o(er!tions "rin%in% !"out ! #!stin% +$!n%e in t$e stru+ture of t$e un)ert!Cin%s +on+erne)
&
4 O(er!tions
2$i+$ $!ve !s t$eir so#e o"je+t or effe+t t$e +o'or)in!tion of +o,(etitive "e$!viour of un)ert!Cin%s 2$i+$ re,!in
in)e(en)ent !re t$erefore outsi)e t$e s+o(e of Re%u#!tion *81*E564
T$e Ce< to t$e )istin+tion "et2een t$e t2o for,s of joint venture 2ou#) see, to "e 2$et$er> in t$e +!se of !
+on+entr!tion> t$e joint venture invo#ves D! #!stin% +$!n%e in t$e stru+ture of un)ert!Cin%sA4
1
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 14 T$ere
!re (ro(os!#s to refor, t$e s<ste, furt$er4 See Co,,unit< =er%er Contro# Green /!(er on t$e Revie2 of t$e =er%er
Re%u#!tion CO=(61) 16 fin!#H Co,,uni+!tion fro, t$e Co,,ission to t$e Coun+i# !n) to t$e Euro(e!n /!r#i!,ent re%!r)in%
t$e revision of t$e =er%er Re%u#!tion4
EC Co,,ission Noti+e on +on+entr!tive !n) +o'o(er!tive joint ventures (!r! &4

&
EC Coun+i# Re%u#!tion *81*E56 Re+it!# &4
!11.1$
(") Joint +ontro#
%(% *he concept of joint control
T$e EC Co,,ission Noti+e on t$e )istin+tion "et2een +o'o(er!tive !n) +on+entr!tive joint ventures +onsi)ers t$e
)ifferen+es "et2een t$e t2o t<(es of joint ventures un)er t$e t2o $e!)in%s DJoint +ontro#A !n) DStru+tur!# +$!n%e of t$e
un)ert!Cin%sA4
T$e +on+e(t of joint +ontro# is )efine) !s Dt$e (ossi"i#it< of e9er+isin% )e+isive inf#uen+e on !n un)ert!Cin%
2$i+$ is )eter,ine) "< "ot$ #e%!# !n) f!+tu!# +onsi)er!tionsA
1
4 Joint +ontro# is #inCe) to t$e notion of +on+entr!tion
!s
t$e #!tter revo#ves !roun) t$e ;uestion of $o2 ,u+$ joint +ontro# is e9er+ise) over t$e joint venture "< t$e (!rent
+o,(!nies4 T$e (rin+i(#es of joint +ontro# !re set out in )et!i# in t$e Co,,ission Noti+e on ! +on+entr!tion
&
4 It st!tes
t$!t joint +ontro# +!n "e est!"#is$e) on ! #e%!# or )e f!+to "!sis !n) t$!t it e9ists if t$e s$!re$o#)ers (t$e (!rent
+o,(!nies) ,ust re!+$ !%ree,ent on ,!jor )e+isions +on+ernin% t$e joint venture
*
4 A++or)in% to t$e Co,,issionAs
Noti+e on ! +on+entr!tion> joint +ontro# e9ists 2$ere t2o or ,ore un)ert!Cin%s +!n e9er+ise )e+isive inf#uen+e over
!not$er un)ert!Cin% "< "#o+Cin% !+tions 2$i+$ )eter,ine t$e str!te%i+ +o,,er+i!# "e$!viour of !n un)ert!Cin%
0
4
:urt$er> joint +ontro# is +$!r!+terise) "< t$e (ossi"i#it< of ! )e!)#o+C situ!tion resu#tin% fro, t$e (o2er of t2o or ,ore
(!rent +o,(!nies to reje+t (ro(ose) str!te%i+ )e+isions
1
4
1
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 1 (!r! 184
I"i) (!r! 04
&
EC Co,,ission Noti+e on t$e notion of ! +on+entr!tion OJ C&50 &14146* ( 04
*
I"i) (!r! 154
0
I"i) (!r! 164
1
I"i) (!r! 164
!11.%$
%(( =oint control and eto ri'hts
T$e EC Co,,ission Noti+e on ! +on+entr!tion !#so +onsi)ers votin% ri%$ts
1
!n) sets out t$e veto ri%$ts 2$i+$ +onfer
joint +ontro#
4 T$ese veto ri%$ts ,ust "e re#!te) to t$e str!te%i+ )e+isions on t$e "usiness (o#i+< of t$e joint venture !n)
%o "e<on) t$e veto ri%$ts nor,!##< !++or)e) to ,inorit< s$!re$o#)ers to (rote+t t$eir fin!n+i!# interests !s investors in
t$e joint venture
&
4 T$us> ! veto ri%$t 2$i+$ (revents t$e s!#e or 2in)in% u( of t$e joint venture> 2i## not +onfer joint
+ontro#
*
4 Veto ri%$ts 2$i+$ +onfer joint +ontro# t<(i+!##< re#!te to t$e "u)%et> "usiness (#!n> ,!jor invest,ents or t$e
!((oint,ent of senior ,!n!%e,ent
0
4 Veto ri%$ts re#!tin% to t$e te+$no#o%< to "e use) "< t$e joint venture 2$ere
te+$no#o%< is ! Ce< fe!ture of its !+tivities or ne2 (ro)u+t #ines to "e )eve#o(e) ,!< !#so "e i,(ort!nt in est!"#is$in%
t$e e9isten+e of joint +ontro#
1
4
1
EC Co,,ission Noti+e on t$e notion of ! +on+entr!tion OJ C&50 &14146* ( 0 (!r! 84
I"i) (!r! 4
&
I"i) (!r! 4 See -urnsi)e !n) =!+CenIie Stu!rt DJoint Venture An!#<sis: T$e L!test C$!(terA (1660) & ECLR 1&54 T$e< note
t$!t veto (o2ers re#!tin% to +$!n%es to t$e !rti+#es or +!(it!# )o not +onfer joint +ontro#4
*
EC Co,,ission Noti+e on t$e notion of ! +on+entr!tion (!r! 4
0
I"i) (!r! &4
1
I"i) (!r! 54
!11.($
(+) Stru+tur!# +$!n%es of un)ert!Cin%s
%() Nature of full+function joint entures
T$e EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures st!tes t$!t t$e
joint venture ,ust (erfor,> on ! #!stin% "!sis> !## t$e fun+tions of !n !utono,ous e+ono,i+ entit<
1
: essenti!##<> it ,ust
o(er!te on ! ,!rCet> (erfor,in% t$e fun+tions nor,!##< +!rrie) out "< ot$er un)ert!Cin%s o(er!tin% on t$e s!,e
,!rCet4 In or)er to )o so t$e joint venture ,ust $!ve suffi+ient fin!n+i!# !n) ot$er resour+es in+#u)in% fin!n+e> st!ff !n)
!ssets (t!n%i"#e !n) int!n%i"#e) in or)er to o(er!te ! "usiness !+tivit< on ! #!stin% "!sis
4 T$ese Dfu##'fun+tionA joint

ventures 2i##> #iCe ! +on+entr!tive joint venture "e su"je+t to t$e =er%er Contro# Re%u#!tion re%i,e
&
4
1
I"i) (!r! 1&4 In res(e+t of inte##e+tu!# (ro(ert< ri%$ts it is suffi+ient t$!t t$ese ri%$ts !re #i+ense) to t$e joint venture for its
)ur!tion4
&
EC Coun+i# Re%u#!tion *81*E56 on ,er%er +ontro#4
!11.)$
%(, Constituent elements of a full+function joint enture
A joint venture is not ! fu##'fun+tion venture
1
if it on#< t!Ces over one s(e+ifi+ fun+tion 2it$in t$e (!rent +o,(!niesA
"usiness !+tivities 2it$out !++ess to t$e ,!rCet4 T$is is t$e +!se> for e9!,(#e> for joint ventures #i,ite) to rese!r+$ !n)
)eve#o(,ent or (ro)u+tion4 Su+$ joint ventures !re !u9i#i!r< to t$eir (!rent +o,(!niesA "usiness !+tivities4 T$is is !#so
t$e +!se 2$ere ! joint venture is essenti!##< #i,ite) to t$e )istri"ution or s!#es of its (!rent +o,(!niesA (ro)u+ts !n)>
t$erefore> !+ts (rin+i(!##< !s ! s!#es !%en+<4 .o2ever t$e f!+t t$!t ! joint venture ,!Ces use of t$e )istri"ution net2orC
or out#et of one or ,ore of its (!rent +o,(!nies> nor,!##< 2i## not )is;u!#if< it !s Dfu##'fun+tionA !s #on% !s t$e (!rent
+o,(!nies !re !+tin% on#< !s !%ents of t$e joint venture
4
1
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 1 (!r! 1*4
See C!se IVE=418: '*'/&anad Post ( De+e,"er 1661> unre(orte))H C!se IVE=41*6: Lucas/Eaton (6 De+e,"er 1661>
unre(orte))4
!11.,$
%(. &esources of a full+function joint enture
Ne+ess!r< resour+es for ! fu##'fun+tion joint venture in+#u)e fin!n+e> st!ff !n) !ssets> !s 2e## !s !n< re#ev!nt
inte##e+tu!# (ro(ert< ri%$ts4 In El. )tochem/Rohm and @aas
1
t$e Co,,ission )e+i)e) t$!t t$e joint venture 2!s !n
!utono,ous e+ono,i+ entit< "e+!use t$e (!rents tr!nsferre) !## ne+ess!r< resour+es (($<si+!# !n) $u,!n) to t$e joint
venture !n) ! ne2 f!+tor< 2!s )ue to "e "ui#t4 T$e (!rents !#so %!ve t$e joint venture e9+#usive !n) irrevo+!"#e
inte##e+tu!# (ro(ert< #i+en+es4 It 2!s envis!%e) t$!t t$e joint venture 2ou#) $!ve its o2n f!+i#ities for rese!r+$ !n)
)eve#o(,ent !n) its o2n )istri"ution net2orC4 T$e Co,,ission t$erefore +on+#u)e) t$!t t$e joint venture 2!s !"#e to
!+t in)e(en)ent#< of its (!rents !s "ot$ ! "u<er !n) su((#ier4
1
C!se IVE=481& El. )tochem/Rohm and @aas =er%er Contro# Re(orter -48 1&&4
!11..$
%(/ 3ales dependence and the full+function joint enture
T$e f!+t t$!t ! joint venture re#ies on its (!rents for ,ost of its s!#es )urin% t$e initi!# st!rt'u( (erio) of t$ree <e!rs )oes
not (revent it fro, "ein% ! fu##'fun+tion joint venture4 T$e issue is: )oes t$e joint venture (#!< !n !+tive ro#e on t$e
,!rCet in ;uestion 2$en s!#es to t$e (!rent !re i%nore)Q :!+tors su+$ !s t$e (er+ent!%e of t$ese s!#es re#!tive to tot!#
(ro)u+tion !n) 2$et$er nor,!# +on)itions of s!#e !((#< !re re#ev!nt4
!11./$
%(" *he joint enture and joint sales a'ency contrasted
T$e EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures )istin%uis$es
"et2een ! joint venture !n) ! joint s!#es !%en+<
1
4 T$e Ce< in )ifferenti!tin% "et2een t$ese t2o for,s of enter(rise
2ou#) see, to invo#ve !n !((re+i!tion of $o2 ,u+$ v!#ue is !))e) to t$e (ro)u+t or servi+es "< t$e !+tivities of t$e
joint venture4 A s,!## rise in v!#ue 2ou#) in)i+!te t$e for,!tion of ! joint s!#es !%en+<4
In #hell &himie/El. )tochem
t$e (!rent +o,(!nies (ro,ise) to %u!r!ntee ,ost of t$e r!2 ,!teri!#s nee)e)
"< t$e joint venture t$e< $!) for,e)4 In t$is inst!n+e t$e Co,,ission foun) t$!t t$e joint venture 2!s ,ore t$!n !
s!#es !%ent for t$e (!rent +o,(!nies "e+!use t$e joint venture )i) (erfor, !n in)ustri!# (ro+ess 2$i+$ !))e) v!#ue to
t$e r!2 ,!teri!# su((#ie) "< t$e (!rents4
1
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 1 (!r!s 6>
104
#hell &himie/El. )tochem> unre(orte)4

!11."$
%(2 *he tradin' company as a full+function joint enture
If t$e joint venture +ou#) "e )es+ri"e) !s ! tr!)in% +o,(!n<> t$en it is #iCe#< to "e ! fu##'fun+tion joint venture4 In or)er
to +onstitute ! fu##'fun+tion joint venture in ! tr!)in% ,!rCet> it ,ust $!ve t$e ne+ess!r< f!+i#ities !n) "e #iCe#< to o"t!in
! su"st!nti!# (ro(ortion of its su((#ies not on#< fro, its (!rent +o,(!nies "ut !#so fro, ot$er +o,(etin% sour+es
1
4
1
See C!se IVE=4136: #P)R/Dansk #upermarked (& :e"ru!r< 166> unre(orte)) +on+ernin% foo) ret!i#H C!se IVE=4&1: 'o,ota
(otor &orpn/Walter Fre, @oldin!/'o,ota France (1 Ju#< 166&> unre(orte)) +on+ernin% +!r )istri"ution4
!11.2$
%)# *he concept of Don a lastin' basis
T$e re#ev!nt +onsi)er!tions to "e t!Cen into !++ount in )e+i)in% 2$et$er t$e joint venture o(er!tes Don ! #!stin% "!sisA
!re set out in t$e EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures
1
4 It
st!tes t$!t t$e f!+t t$!t t$e (!rent +o,(!nies +o,,it t$e ne+ess!r< resour+es to t$e joint venture nor,!##< )e,onstr!tes
t$!t t$is is inten)e) to "e t$e +!se4 A++or)in% to t$e Noti+e> (rovision in ! joint venture !%ree,ent for +ert!in
+ontin%en+ies> for e9!,(#e> t$e f!i#ure of t$e joint venture or fun)!,ent!# )is!%ree,ent !s "et2een t$e (!rent
+o,(!nies
)oes not (revent t$e joint venture fro, "ein% +onsi)ere) !s o(er!tin% on ! #!stin% "!sis4 T$e s!,e is
nor,!##< true 2$ere t$e !%ree,ent s(e+ifies ! (erio) for t$e )ur!tion of t$e joint venture 2$ere t$is (erio) is
suffi+ient#< #on% in or)er to "rin% !"out ! #!stin% +$!n%e in t$e stru+ture of t$e un)ert!Cin% +on+erne)
&
> or 2$ere t$e
!%ree,ent (rovi)es for t$e (ossi"#e +ontinu!tion of t$e joint venture "e<on) t$is (erio)4 -< +ontr!st> t$e joint venture
2i## not "e +onsi)ere) to o(er!te on ! #!stin% "!sis 2$ere it is est!"#is$e) for ! s$ort finite (erio)
*
4
1
T$is ,!< "e !+$ieve) "< t$e in+or(or!tion of (rovisions for t$e eventu!# )isso#ution of t$e joint venture itse#f or t$e (ossi"i#it<
for one or ,ore of t$e (!rent +o,(!nies to 2it$)r!2 fro, t$e joint venture4 See C!se IVE=4*85: RWE/(annesmann (5
:e"ru!r< 166*> unre(orte))4
&
See C!se IVE=406: British )irwa,s/')' (6 O+to"er 166> unre(orte))4 .ere si9 !n) ! $!#f <e!rs 2!s $e#) to "e suffi+ient to
+re!te ! #!stin% +$!n%e in t$e stru+ture of t$e un)ert!Cin%s4 It $!s "een su%%este) t$!t ! joint venture 2ou#) nor,!##< nee) to "e
set u( for !t #e!st ten <e!rs if not Don !n o(en'en)e)A "!sis in or)er to ;u!#if<: see CooC !n) Berse E& (er!er &ontrol4
*
T$is 2ou#) "e t$e +!se> for e9!,(#e> 2$ere ! joint venture is est!"#is$e) in or)er to +onstru+t ! s(e+ifi+ (roje+t su+$ !s ! (o2er
(#!nt> "ut it 2i## not "e invo#ve) in t$e o(er!tion of t$e (#!nt on+e its +onstru+tion $!s "een +o,(#ete)4
!11/#$
()) Co'o(er!tive !s(e+ts
%)1 Co+ordination and concentratie joint entures
In !))ition to joint +ontro# !n) stru+tur!# +$!n%es of t$e un)ert!Cin%s it is ne+ess!r< to +onsi)er 2$et$er t$e D+o'
or)in!tion of t$e +o,(etitive "e$!viour of t$e (!rent +o,(!niesA resu#ts in D!n !((re+i!"#e restri+tion of +o,(etitionA4
EC Coun+i# Re%u#!tion *81*E56 (t$e =er%er Contro# Re%u#!tion) ,!Ces it +#e!r t$!t if t$e o"je+t or effe+t of joint
+ontro# is t$e +o'or)in!tion of +o,(!nies 2$i+$ re,!in in)e(en)ent> t$en t$ere 2i## "e no +on+entr!tion
1
4
T$e EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures )e!#s
2it$ +o'or)in!tion !s ! +on+e(t in )eter,inin% 2$et$er or not ! joint venture is +on+entr!tive4 T$e Noti+e +onsi)ers +o'
or)in!tion of +o,(etitive "e$!viour in t$e (ro)u+t !n) %eo%r!($i+ ,!rCets
4
!11/1$
1
EC Coun+i# Re%u#!tion *81*E56 !rt &()4 See CooC !n) Berse E& (er!er &ontrol 1661 (( *3> 084 A++or)in% to t$e !ut$ors> t$e
r!tion!#e "e$in) t$e )istin+tion is t$!t D2$ere ! tr!ns!+tion> even one 2$i+$ invo#ves so,e +$!n%e to t$e +o,(etitive stru+ture>
$!s effe+ts on +o,(etition "et2een t2o un)ert!Cin%s 2$i+$ +ontinue in e9isten+e !s in)e(en)ent e+ono,i+ entities> t$e
!((ro(ri!te +ontro# is t$rou%$ EC Tre!t< !rt 50 !n) not t$rou%$ ,er%er +ontro#4A
T$e< note furt$er:
D444 t$e Co,,ission $!s ,!)e it +#e!r in sever!# )e+isions t!Cen un)er JEC Coun+i# Re%u#!tion
*81*E56K !n) t$e Interf!+e Noti+e> t$!t Dit is (ri,!ri#< +on+erne) 2it$ t$e +o,(etitive i,(!+t "et2een t$e
(!rents t$e,se#ves> r!t$er t$!n "et2een eit$er of t$e, !n) t$e joint venture itse#f4 T2$ere one of t$e
s$!re$o#)ers $!s t$e ,!in res(onsi"i#it< for t$e ,!rCet "e$!viourA of t$e joint venture t$e Co,,ission !++e(ts
t$!t it is +o,,er+i!##< unre!#isti+ to e9(e+t +o,(etition "et2een t$!t (!rt< !n) t$e joint ventureA4 T$e
Co,,ission $!s in+re!sin%#< use) t$e +on+e(t of Din)ustri!# #e!)ers$i(A Dto justif< t$e +on+#usion t$!t !n
o(er!tion is +on+entr!tive (rovi)e) one of t$e joint venture (rin+i(!#s $!s 2it$)r!2n fro, t$e (ro)u+t or
%eo%r!($i+ ,!rCets of t$e joint venture> 2$i#e t$e ot$er> t$ou%$ re,!inin%> $!s !ssu,e) over!## res(onsi"i#it<
for t$e joint ventureAs !+tivities4 In essen+e t$e joint venture is +onsi)ere) one e+ono,i+ unit 2$ere t$e (!rent
$!s in)ustri!# #e!)ers$i( !n) !n instru,ent of its +o,,er+i!# (o#i+<A4
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 1 (!r!s 13M
84
!11/%$
%)% Co+ordination of behaiour in product and 'eo'raphic mar>ets
%)%11 Product mar>et
Re#ev!nt +onsi)er!tions in res(e+t of t$e (ro)u+t ,!rCet set out in t$e Noti+e on +on+entr!tive !n) +o'o(er!tive joint
ventures in+#u)e:
*41412$et$er t$e (!rent +o,(!nies tr!nsfer !## of t$eir "usiness !+tivities to t$e joint venture in 2$i+$ +!se t$ere is
no (ossi"i#it< of +o'or)in!tionH
*4142$et$er t$e (!rent +o,(!nies o(er!te on t$e s!,e ,!rCet !s t$e joint venture in 2$i+$ +!se t$ere is no +o'
or)in!tionH
*414&2$ere t$ere is ! net2orC of #inCs "et2een t$e (!rent !n) t$e joint venture in t$e ,!rCets in 2$i+$ t$e joint
venture is !+tive !n) t$e ,!in !i, of t$e joint venture is to stren%t$en t$ose #inCsH
*414*2$ere t$e (!rents !re !+tive on ! nei%$"ourin% ,!rCet
1
4
1
EC Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures OJ C&50 &14146* ( 1 (!r!s 13>
154
!11/($
%)%1% 8eo'raphic mar>et
T$e fin!# f!+tor re#ev!nt to t$e )eter,in!tion of 2$et$er ! joint venture is ! fu##'fun+tion joint venture re#!tes to t$e
%eo%r!($i+ ,!rCet in 2$i+$ t$e venture o(er!tes4 Co'or)in!tion of +o,(etitive "e$!viour is sti## (ossi"#e even 2$ere
t$e (!rents !n) t$e joint venture o(er!te in )ifferent %eo%r!($i+ ,!rCets4 In t$is event> t$e Co,,ission 2i## +onsi)er
$o2 +#ose#< t$e ,!rCets interre#!te !n) if furt$er inte%r!tion o++urs in t$e future4 Co'or)in!tion is !#so (ossi"#e 2$ere
t$e joint ventureAs "usiness is of %re!t e+ono,i+ i,(ort!n+e !s !%!inst t$e (!rentsA "usiness on t$eir ,!rCet>
(!rti+u#!r#< 2$ere t$e t2o ,!rCets !re #inCe)4 .o2ever +o'or)in!tion 2ou#) "e ,ost un#iCe#< to o++ur 2$ere t$e joint
ventureAs "usiness !+tivities !re not of %re!t e+ono,i+ i,(ort!n+e4
7$ere t$e +o'or)in!tion t!Ces (#!+e outsi)e t$e EC or EEA !n) $!s no !((re+i!"#e effe+t on +o,(etition> t$e
joint venture 2i## nevert$e#ess "e re%!r)e) !s +on+entr!tive4 If t$e +o'o(er!tive !s(e+ts of t$e joint venture !re on#< of
,inor i,(ort!n+e> t$en t$e< 2i## not (revent t$e venture fro, "ein% +onsi)ere) +on+entr!tive> !#t$ou%$ ! #!r%e nu,"er
of ,inor e#e,ents ,!< #e!) to t$e +on+#usion t$!t t$e venture is in f!+t +o'o(er!tive4 In "ot$ of t$ese +!ses t$e joint
venture #e!)s to t$e +o'or)in!tion of +o,(etitive "e$!viour of t$e (!rents
1
4
!11/)$
1
A++or)in% to -urnsi)e !n) =!+CenIie Stu!rt DJoint Venture An!#<sis: T$e L!test C$!(terA (1660) & ECLR 1&5> t$e EC
Co,,ission Noti+e on t$e )istin+tion "et2een +on+entr!tive !n) +o'o(er!tive joint ventures 2i## #e!) to ,ore joint ventures
"ein% +onsi)ere) !s +on+entr!tive4 T$e< note:
DIt is no2 (ossi"#e to envis!%e +on+entr!tive joint ventures 2$ere one or "ot$ (!rents ,!< )i+t!te t$e
+o,,er+i!# !n) +o,(etitive (o#i+< of t$e joint venture> !n) 2$ere one or "ot$ (!rents re,!ins !+tive in t$e
joint ventureAs ,!rCet4 T$e on#< #i,it on t$is is t$!t t$e joint venture ,ust not !+t !s t$e instru,ent for ! +o'
or)in!tion of +o,(etitive "e$!viour "et2een t$e (!rents 2$i+$ !,ounts to ! "re!+$ of Arti+#e 504 T$is
+onstitutes ! si%nifi+!nt )eve#o(,ent of t$e (osition envis!%e) "< t$e 1668 Noti+e4A
!11/,$
(e) Refor, of Re%u#!tion *81*E56
%)( Amendments
T$ere $!s "een ! nu,"er of +$!n%es to t$e EC Coun+i# Re%u#!tion *81*E56 on ,er%er +ontro#
1
4 T$e +on+e(t of !
+on+entr!tion
$!s "een 2i)ene) to in+#u)e !## fu##'fun+tion joint ventures4 T$is ,e!ns t$!t fu##'fun+tion +o'o(er!tive
joint ventures !re no2 su"je+t to +onsi)er!tion un)er Re%u#!tion *81*E564 .o2ever> 2$ere t$e joint venture #e!)s to
t$e +o'or)in!tion of t$e +o,(etitive "e$!viour of +o,(!nies t$!t nevert$e#ess st!< in)e(en)ent> t$e Re%u#!tion
&
$!s
"een !,en)e) to !##o2 t$e Co,,ission to !((#< EC Tre!t< Arti+#es 50(1) !n) 50 (&)
*
"ut to fo##o2 t$e (ro+e)ure in
Re%u#!tion *81*E564 T$is 2ou#) $!((en 2$ere t2o or ,ore (!rent +o,(!nies re,!in !+tive in t$e ,!rCet of t$e joint
venture> or 2$ere t$e +re!tion of t$e joint venture %ives rise to t$e +o'or)in!tion of t$e (!rentsA !+tivities in u(stre!,>
)o2nstre!, or nei%$"ourin% ,!rCets
0
4
T$e !ssess,ent of t$e +on+entr!tive !n) +o'or)in!tion !s(e+ts of !## fu##'fun+tion joint ventures !"ove t$e
Re%u#!tion t$res$o#)s no2 f!## 2it$in t$e e9+#usive +o,(eten+e of t$e Co,,ission 2$i#st t$e +on+entr!tive !s(e+ts of
fu##'fun+tion joint ventures "e#o2 t$e t$res$o#)s f!##s 2it$in t$e +o,(eten+e of t$e ,e,"er st!tes4
1
EC Coun+i# Re%u#!tion *81*E56 !s !,en)e) "< EC Coun+i# Re%u#!tion 1&18E634
7it$in t$e ,e!nin% of EC Coun+i# Re%u#!tion *81*E56 !rt &4

&
I"i) !rt 4
*
0
Co,,unit< =er%er Contro# Green /!(er on t$e Revie2 of t$e =er%er Re%u#!tion CO=(61) 16 fin!#4
!11/.$
%)) Adanta'es of ne0 system
T$e (er+eive) !)v!nt!%es of t$is ne2 s<ste, !re !s fo##o2s:
**41 !## fu##'fun+tion joint ventures 2i## "e e9!,ine) 2it$in t$e (ro+e)ure !n) )e!)#ines of t$e Re%u#!tion *81*E56H
**4 on#< one fin!# )e+ision 2i## "e !)o(te) "!se) on ! %#o"!# !ssess,ent of !## !s(e+ts of t$e +!seH !n)
**4& t$e +o,(#e9ities in$erent in t$e )istin+tion "et2een +o'o(er!tive fu##'fun+tion !n) +on+entr!tive joint ventures
2i## "e e#i,in!te)4
!11//$
%), 7mpact of reforms
An< re)u+tion in t$e )iffi+u#ties in !ssessin% t$e )istin+tion "et2een +o'o(er!tive !n) +on+entr!tive joint ventures is to
"e 2e#+o,e)4 T$e !)v!nt!%es of "rin%in% ! joint venture un)er EC Coun+i# Re%u#!tion *81*E56 on ,er%er +ontro#
r!t$er t$!n un)er EC Tre!t< Arti+#es 50 or 51
1
2ou#) see, to out2ei%$ t$e )is!)v!nt!%es4 T$e "ro!)enin% of t$e s+o(e
of t$e Re%u#!tion is t$erefore !#so ! 2e#+o,e )eve#o(,ent4
1
EC Tre!t< !rts 50> 51 2i## "e+o,e Arts 51> 5 res(e+tive#< 2$en t$e Tre!t< of A,ster)!, 1663 is r!tifie)4
!11/"$
-: CO'O/ERATIVE JOINT VENTURES
1: INTRODUCTION
%). -C *reaty Article ",
Co'o(er!tive joint ventures !re su"je+t to !n!#<sis un)er EC Tre!t< Arti+#e 50(1)4 If t$e< 2ere foun) to "e in "re!+$ of
Arti+#e 51
1
> t$e< 2ou#) "e (ro$i"ite)> !s t$ere is no (ossi"i#it< of e9e,(tion fro, t$e (ro$i"ition set out in t$!t Arti+#e4
T$ere !re sever!# (ossi"#e out+o,es to t$e !n!#<sis
:
*141 t$e joint venture is foun) not to infrin%e EC Tre!t< Arti+#e 50(1) !n) is t$erefore +#e!re)H
*14 t$e joint venture is foun) to infrin%e Arti+#e 50(1) "ut s!tisfies t$e +on)itions set out in Arti+#e 50(&) !n) is
t$erefore +#e!re)H !n)
*14& t$e joint venture s!tisfies t$e +on)itions of ! "#o+C e9e,(tion4
1
EC Tre!t< !rts 50> 51 2i## "e+o,e !rts 51> 5 2$en t$e Tre!t< of A,ster)!, 1663 is r!tifie)4
See V!#entine Bor!$ &ases and (aterials on E& &ompetition Law 1661 ( 01> 2$o +ites t$e fo##o2in% !s t$e D,!in +!usesA for
t$e Co,,issionAs +on+ern in t$is !re!:
(!) )is+our!%e,ent of +o,(etition "et2een (!rties 2$o !re !+tu!# or (otenti!# +o,(etitorsH
(") t$e (ossi"i#it< of t$e $!"it of +o'o(er!tion "ein% s(re!) to ot$er ,!rCetsH
(+) fore+#osure of t$ir) (!rties "< over'in+#usive joint venturesH
()) #!+C of +o,(etition "et2een net2orCs of joint venturesH !n)
(e) t$e use of e9+essive !n+i##!r< restri+tions4
!11/2$
: -LOCB EFE=/TIONS
(!) T<(es of "#o+C e9e,(tions
%)/ Bloc> e5emptions for co+operatie joint entures
T$ere !re sever!# (ossi"#e "#o+C e9e,(tions t$!t +ou#) !((#< to +o'o(er!tive joint ventures
1
:
*341 rese!r+$ !n) )eve#o(,ent !%ree,ents (EC Co,,ission Re%u#!tion *15E50)
*34 s(e+i!#is!tion !%ree,ents (EC Co,,ission Re%u#!tion *13E50)

&
H !n)
*34& te+$no#o%< tr!nsfer !%ree,ents (EC Co,,ission Re%u#!tion *8E61)
*
1
EC Co,,ission Noti+e of 6 Ju#< 1615 on +o'o(er!tion !%ree,ents OJ C5* 545415 ( 1* is ! usefu# %ui)e on t$e Co,,issionAs
vie2s on joint ventures4
EC Co,,ission Re%u#!tion *15E50 !,en)e) "< EC Co,,ission Re%u#!tion 101E6&4

&
EC Co,,ission Re%u#!tion *13E50 !s !,en)e) "< EC Co,,ission Re%u#!tion 101E6&4
*
EC Co,,ission Re%u#!tion *8E614 As to te+$no#o%< tr!nsfer !%ree,ents see /!r!%r!($ &8 J155K et se; (ost4
!11"#$
(") Rese!r+$ !n) )eve#o(,ent
%)" &e'ulation )1"E", on research and deelopment a'reements
EC Co,,ission Re%u#!tion *15E50 on rese!r+$ !n) )eve#o(,ent !%ree,ents (rovi)es t$!t EC Tre!t< Arti+#e 50(1)
1

2i## not !((#< to !%ree,ents for
:
*541 joint rese!r+$ !n) )eve#o(,ent of (ro)u+ts or (ro+esses !n) joint e9(#oit!tion of t$e resu#ts of t$!t rese!r+$ !n)
)eve#o(,entH
*54 joint e9(#oit!tion of t$e resu#ts of rese!r+$ !n) )eve#o(,ent of (ro)u+ts or (ro+esses joint#< +!rrie) out
(ursu!nt to ! (rior !%ree,ent "et2een t$e s!,e un)ert!Cin%sH or
*54& joint rese!r+$ !n) )eve#o(,ent of (ro)u+ts !n) (ro+esses e9+#u)in% joint e9(#oit!tion of t$e resu#ts> in so f!r !s
su+$ !%ree,ents f!## 2it$in t$e s+o(e of Arti+#e 50(1)4
If t$e (!rties )o not +o,(ete> t$en t$e e9e,(tion +!n !((#< for t$e #en%t$ of t$eir (ro%r!,,e for rese!r+$
!n) )eve#o(,ent4 .o2ever> 2$ere t$e resu#ts of t$e rese!r+$ !n) )eve#o(,ent !re joint#< e9(#oite) "< t$e (!rties> t$en
t$e< !re on#< entit#e) to "enefit fro, t$e "#o+C e9e,(tion for five <e!rs fro, t$e ti,e 2$en t$e (ro)u+t 2!s first (ut
on t$e ,!rCet4 7$ere t$e (!rties )o +o,(ete> t$en t$e< ,ust not $!ve ! ,!rCet s$!re of ,ore t$!n 8L for t$e (ro)u+t
in ;uestion
&
4
1
EC Co,,ission Re%u#!tion *15E50 !rt 14

&
I"i) !rt &4
!11"1$
%)2 Permissible restrictions
As 2it$ !## "#o+C e9e,(tions> EC Co,,ission Re%u#!tion *15E50 +ont!ins ! #ist of (er,issi"#e restri+tions
1
4 T$e<
in+#u)e:
*641 !n un)ert!Cin% not to +!rr< out in)e(en)ent rese!r+$ t$!t is re#!te) to t$e !re! in 2$i+$ t$e joint venture
o(er!tesH
*64 !n un)ert!Cin% not to ,!nuf!+ture t$e (ro)u+ts ,!)e "< t$e joint ventureH !n)
*64& !n un)ert!Cin% to "u< t$e (ro)u+t 2$i+$ is t$e su"je+t of t$e joint venture fro, t$e (!rties to t$e joint venture
on#<4
1
EC Co,,ission Re%u#!tion *15E50 !rt *4
!11"%$
%,# 7ntellectual property ri'hts
EC Co,,ission Re%u#!tion *15E50 Arti+#e 0 re#!tes to (er,issi"#e #i+ensin% of inte##e+tu!# (ro(ert< ri%$ts4 T$is
in+#u)es:
0841 !n un)ert!Cin% to infor, t$e (!rties to t$e joint venture of D(!tente) !n) non'(!tente) te+$ni+!# Cno2#e)%e
ne+ess!r< for t$e +!rr<in% out of t$e rese!r+$ !n) )eve#o(,ent (ro%r!,,e for t$e e9(#oit!tion of its resu#tsAH
084 !n un)ert!Cin% not to use !n< Cno2'$o2 for !n< ot$er (ur(ose ot$er t$!n t$e joint ventureH !n)
084& !n o"#i%!tion to Cee( !## Cno2'$o2 +onfi)enti!# even !fter t$e e9(ir< of t$e ter, of t$e joint venture4
!11"($
%,1 *he blac> list
Cert!in restri+tions> if +ont!ine) in ! joint venture !%ree,ent> 2i## (revent t$e !((#i+!tion of EC Co,,ission
Re%u#!tion *15E50
1
4 T$ese in+#u)e restri+tions on:
0141 t$e (!rtiesA free)o, to +!rr< out rese!r+$ !n) )eve#o(,ent in !re!s t$!t !re not +onne+te) 2it$ t$e joint
ventureH
014 t$e ;u!ntit< of (ro)u+ts ,!nuf!+ture)H !n)
014& t$e (ri+es !t 2$i+$ t$e joint venture (ro)u+t is so#)4
1
!11")$
%,% *he opposition procedure
Re%u#!tion *15E50 +ont!ins !n o((osition (ro+e)ure
1
4 On+e !%ree,ents $!ve "een notifie) t$e< !re )ee,e) e9e,(t if
t$e Co,,ission )oes not r!ise o"je+tions 2it$in si9 ,ont$s of notifi+!tion4
1
!11",$
%,( Commission policy on research and deelopment joint entures
T$e Co,,issionAs (o#i+< 2it$ re%!r) to rese!r+$ !n) )eve#o(,ent joint ventures is referre) to in its T$irteent$ Re(ort
on Co,(etition /o#i+<
1
4 Its (o#i+< in re#!tion to joint ventures $!s "een su,,!rise)
!s one 2$i+$ seeCs to !+$ieve t$e

"est (ossi"#e "!#!n+e "et2een ! reinfor+e,ent of +o,(etitiveness of Euro(e!n in)ustr< !n) t$e ,!inten!n+e of
2orC!"#e +o,(etition> ,!int!in 2orC!"#e +o,(etition !n) ensure t$!t t$e te+$ni+!# (ro%ress resu#tin% fro, t$e
rese!r+$ )oes not ,ere#< serve to (ro)u+e ,ono(o#< (rofits4
1
EC Co,,ission T$irteent$ Re(ort on Co,(etition /o#i+< (165&)4
See -e##!,< !n) C$i#) &ommon (arket Law o. &ompetition (*t$ E)n> 166&) ( 114
!11".$
(+) S(e+i!#is!tion !%ree,ents
%,) &e'ulation )1/E", on specialisation a'reements
=!nuf!+turers 2$o !re (!rt< to ! joint venture !%ree,ent ,!< !%ree to %ive u( t$e ,!nuf!+ture of +ert!in %oo)s in
f!vour of !not$er (!rt< !n) +on+entr!te on (ro)u+in% ot$er %oo)s4 EC Co,,ission Re%u#!tion *13E50 on s(e+i!#is!tion
!%ree,ents sets out t$e (er,issi"#e restri+tions 2$i+$ ,!< "e +ont!ine) in su+$ ! joint venture !%ree,ent
1
4 It (er,its
re+i(ro+!# o"#i%!tions:
0*41 not to ,!nuf!+ture +ert!in (ro)u+ts or $!ve t$e, ,!nuf!+ture)> "ut to #e!ve it to ot$er (!rties to ,!nuf!+ture
t$e (ro)u+ts or $!ve t$e, ,!nuf!+ture)H or
0*4 to ,!nuf!+ture +ert!in (ro)u+ts or $!ve t$e, ,!nuf!+ture) joint#<4
1
EC Co,,ission Re%u#!tion *13E50 !rts 1> 4 I"i) !rt )e!#s ,!in#< 2it$ e9+#usive )istri"ution ri%$ts4
!11"/$
%,, :imitations on application of &e'ulation )1/E",
An !%ree,ent in+#u)in% ! joint venture 2i## on#< "e e9e,(te) un)er Re%u#!tion *13E50 if t$e fo##o2in% +ir+u,st!n+es
!re s!tisfie)
1
:
0041 t$e (ro)u+ts 2$i+$ !re t$e su"je+t of t$e s(e+i!#is!tion to%et$er 2it$ t$e (!rti+i(!tin% un)ert!Cin%sA ot$er
(ro)u+ts 2$i+$ !re +onsi)ere) "< users to "e e;uiv!#ent in vie2 of t$eir +$!r!+teristi+s> (ri+e !n) inten)e) use
)o not re(resent ,ore t$!n 8 (er +ent of t$e ,!rCet for !## su+$ (ro)u+ts in t$e +o,,on ,!rCet or !
su"st!nti!# (!rt t$ereofH !n)
004 t$e !%%re%!te turnover of !## t$e (!rti+i(!tin% un)ert!Cin%s )oes not e9+ee) ECU 1>888 ,i##ion4
If ! t$ir) (!rt< )istri"utes t$e (ro)u+ts> t$en t$e (ro)u+ts su"je+t to t$e s(e+i!#is!tion !%ree,ent (#us !n< +o,(etin%
(ro)u+ts ,!)e "< t$e t$ir) (!rt< ,ust not !++ount for ,ore t$!n 18L of t$e re#ev!nt ,!rCet4 T$e s!,e !%%re%!te
turnover !((#ies4 Re%u#!tion *13E50 !#so +ont!ins !n o((osition (ro+e)ure
4
1
EC Co,,ission Re%u#!tion *13E50 !rt &4
I"i) !rt *4
!11""$
&: EC CO==ISSION NOTICE ON CO'O/ERATIVE JOINT VENTURES
%,. Commission Notice on co+operation a'reements
T$e EC Co,,ission Noti+e on +o'o(er!tion !%ree,ents
1
is !i,e) !t en+our!%in% +o'o(er!tion "et2een s,!## !n)
,e)iu,'siIe) enter(rises> ! (o#i+< 2$i+$ t$e Co,,ission is sti## Ceen to (ursue4 T$e Noti+e i)entifies sever!#
+!te%ories of +o'o(er!tion !%ree,ents !n) e9(#!ins 2$i+$ t<(e is un#iCe#< to infrin%e EC Tre!t< Arti+#e 50(1)
4 T$e
Noti+e in+#u)es !%ree,ents 2$i+$ 2i## in+#u)e joint ventures D2$ose so#e (ur(ose is t$e joint (ro+ure,ent of
infor,!tion 2$i+$ t$e v!rious enter(rises nee) to )eter,ine t$eir future ,!rCet "e$!viour free#< !n) in)e(en)ent#<> or
t$e use "< e!+$ of t$e enter(rises of ! joint !)visor< "o)<A !n) ot$er for,s of e9+$!n%in% !n) s$!rin% resu#ts !n)
infor,!tionA4 T$e s+o(e of t$e Noti+e is t$erefore so,e2$!t #i,ite)4
1
EC Co,,ission Noti+e of 6 Ju#< 1615 on !%ree,ents> )e+isions !n) +on+erte) (r!+ti+es in t$e fie#) of +o'o(er!tion "et2een
enter(rises OJ C5* 545415 ( 1*4
A Co,,ission Noti+e is not> of +ourse> #e%!##< "in)in%> !#t$ou%$ (!rties +!n t!Ce it into !++ount4 It is usefu# !s !n
in)i+!tion of t$e Co,,issionAs o(inion !t t$e ti,e 2$en it 2!s (u"#is$e)4
!11"2$
%,/ Commission Notice on co+operatie joint entures
T$e EC Co,,ission Noti+e on +o'o(er!tive joint ventures
1
%ives furt$er %ui)!n+e !s to t$e Co,,issionAs !ttitu)e
to2!r)s joint ventures4 It (oints out t$!t EC Tre!t< Arti+#e 50(1)
)oes not !((#< to joint ventures 2$i+$ )o not $!ve t$e

o"je+t or effe+t of (reventin%> restri+tin% or )istortin% +o,(etition !n) #ists e9!,(#es of joint ventures f!##in% into t$is
+!te%or<4 :or e9!,(#e> Arti+#e 50(1) on#< !((#ies to !%ree,ents "et2een in)e(en)ent un)ert!Cin%sH it +!nnot !((#< to
+o,(!nies 2$i+$ for, (!rt of t$e s!,e %rou(4 Nor +!n Arti+#e 50 !((#< to )e ,ini,is !%ree,ents
&
4 Arti+#e 50(1) 2i##
not !((#< to !%ree,ents "et2een non'+o,(etitors or !%ree,ents "et2een +o,(etitors 2$i+$ Dneit$er #i,it t$e (!rtiesA
+o,(etitive "e$!viour nor !ffe+t t$e ,!rCet (osition of t$ir) (!rties4
T$e Noti+e )is+usses ! series of issues !n) (rovi)es )et!i#e) ;uestions for +onsi)er!tion for e!+$ issue4 It
+onsi)ers:
0341 +o,(etition "et2een (!rent +o,(!niesH
034 +o,(etition "et2een (!rent +o,(!nies !n) t$e joint ventureH
034& effe+ts of t$e joint venture on t$e (osition of t$ir) (!rtiesH !n)
034* t$e !((re+i!"#e effe+t of t$e restri+tions of +o,(etition4
T$ese !re e9!,ine) in turn4
1
EC Co,,ission Noti+e of & De+e,"er 166 +on+ernin% t$e !ssess,ent of +o'o(er!tive joint ventures (ursu!nt to Arti+#e 50 of
t$e EC Tre!t< OJ C*& 11446& ( 4
&
EC Co,,ission Noti+e +on+ernin% !%ree,ents of ,inor i,(ort!n+e OJ C&3 641463 ( 1&4
!112#$
%," Competition bet0een parent companies
T$e Noti+e on +o'o(er!tive joint ventures #ists ! series of ;uestions re#!tin% to +o,(etition "et2een t$e (!rent
+o,(!nies of t$e (!rties to ! joint venture !i,e) !t !s+ert!inin% 2$et$er t$e (!rents 2ou#) $!ve "een !"#e to +!rr< out
t$e "usiness of t$e joint venture !#one
1
4 T$is issue is (!rti+u#!r#< (ertinent to )eter,inin% t$e (resen+e or !"sen+e of
+o'or)in!te) +o,(etition "et2een t$e (!rent +o,(!nies4 T$e ;uestions !re inten)e) to +over joint ventures set u( for
,!nuf!+turin% !n) t$e (rovision of servi+es4 T$e< +on+ern t$e +ontri"ution of t$e (!rent +o,(!nies to t$e joint
venture> t$eir invo#ve,ent in !n) Cno2#e)%e of (ro)u+tion !n) s!#es> +!(!+it< to "e!r risCs !n) !++ess to t$e re#ev!nt
,!rCet4
!1121$
1
See EC Co,,ission Noti+e of & De+e,"er 166 +on+ernin% t$e !ssess,ent of +o'o(er!tive joint ventures (ursu!nt to Arti+#e
50 of t$e EC Tre!t< OJ C*& 11446& ( (!r! 164
T$e ;uestions re#!tin% to t$e joint venture (JVs) !re:
Contri"ution to t$e JV
Does e!+$ (!rent +o,(!n< $!ve suffi+ient fin!n+i!# resour+es to +!rr< out t$e (#!nne) invest,entQ Does e!+$ (!rent +o,(!n<
$!ve suffi+ient ,!n!%eri!# resour+es to run t$e JVQ Does e!+$ (!rent +o,(!n< $!ve !++ess to t$e ne+ess!r< in(ut (ro)u+tsQ
/ro)u+tion of t$e JV
Does e!+$ (!rent Cno2 t$e (ro)u+tion te+$ni;ueQ Does e!+$ (!rent ,!Ce t$e u(stre!, or )o2nstre!, (ro)u+ts $i,se#f !n)
)oes it $!ve !++ess to t$e ne+ess!r< (ro)u+tion f!+i#itiesQ
S!#es "< t$e JV
Is t$e !+tu!# or (otenti!# )e,!n) su+$ !s to en!"#e e!+$ (!rent to ,!nuf!+ture t$e (ro)u+t on its o2nQ Does e!+$ (!rent $!ve
!++ess to t$e )istri"ution +$!nne#s nee)e) to se## t$e (ro)u+t ,!nuf!+ture) "< t$e JVQ
RisC f!+tors
C!n e!+$ (!rent +o,(!n< "e!r its o2n te+$ni+!# !n) fin!n+i!# risCs !sso+i!te) 2it$ t$e (ro)u+tion o(er!tions of t$e JVQ
A++ess to t$e re#ev!nt ,!rCet
7$!t is t$e re#ev!nt %eo%r!($i+ !n) (ro)u+t ,!rCetQ 7$!t !re t$e "!rriers to entr< into t$!t ,!rCetQ Is e!+$ (!rent +!(!"#e of
enterin% t$!t ,!rCet on its o2nQ C!n e!+$ (!rent over+o,e e9istin% "!rriers 2it$in ! re!son!"#e ti,e !n) 2it$out un)ue effort
or +ostQ
!112%$
%,2 Competition bet0een parent companies and the joint enture
T$e EC Co,,ission Noti+e on +o'o(er!tive joint ventures st!tes t$!t restri+tions on +o,(etition "et2een t$e (!rents or
"et2een t$e (!rents !n) t$e joint venture 2i## +#e!r#< inf#uen+e t$e re#!tions$i( "et2een t$e res(e+tive (!rties
1
4
A++or)in% to t$e Noti+e> restri+tion of +o,(etition "et2een t$e (!rents !n) joint ventures t<(i+!##< ,!nifests itse#f in
t$e )ivision of %eo%r!($i+!# ,!rCets> (ro)u+t ,!rCets (es(e+i!##< t$rou%$ s(e+i!#is!tion) or +usto,ers4 It notes t$!t in
su+$ +!ses> t$e (!rti+i(!tin% un)ert!Cin%s re)u+e t$eir !+tivit< to t$e ro#e of (otenti!# +o,(etitors !n) t$!t if t$e<
re,!in !+tive +o,(etitors> t$e< 2i## usu!##< "e te,(te) to re)u+e t$e intensit< of +o,(etition
4 T$e Co,,issionAs
!((ro!+$ to t$e re#!tions$i( "et2een t$e joint venture !n) t$e (!rents 2!s set out in GE&/Weir
&
in 2$i+$ it 2!s note):
DEven in t$e !"sen+e of e9(ress (rovisions> t$e +re!tion of ! joint venture %ener!##< $!s ! not!"#e effe+t on t$e
+on)u+t of (!rent (!rties 2$o $!ve ! si%nifi+!nt $o#)in% in t$e joint venture4 7it$in t$e fie#) of t$e joint venture
!n) in re#!te) fie#)s su+$ (!rties !re #iCe#< to +o'or)in!te t$eir +on)u+t !n) "e inf#uen+e) in 2$!t 2ou#) ot$er2ise
$!ve "een t$eir in)e(en)ent )e+isions !n) !+tivities4 7$ere t$e (!rent +o,(!nies !re !+tu!# or (otenti!#
+o,(etitors t$eir (!rti+i(!tion in ! joint venture is !++or)in%#< #iCe#< to i,(!ir free +o,(etition "et2een t$e,>
re%!r)#ess of e9(#i+it (rovisions to t$!t effe+t4A
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! 14
-< +o'or)in!tin% t$eir "usiness (o#i+<> es(e+i!##< !s to (ri+es !n) vo#u,e of (ro)u+tion or s!#es "< vo#unt!ri#< restr!inin% t$eir
efforts4 See EC Co,,ission Noti+e of & De+e,"er 166 (!r! 4
&
GE&/Weir OJ 1633 L&3E1> J1635K 1 C=LR D*4
!112($
%.# -ffects of the joint enture on third parties
T$e EC Co,,ission Noti+e on +o'o(er!tive joint ventures !#so +onsi)ers t$e issue of $o2 t$e joint venture ,!< !ffe+t
t$e (osition of (!rties ot$er t$!n t$e (!rent +o,(!nies
1
4 In (!rti+u#!r> it !))resses t$e (ro"#e,s t$!t ,!< "e f!+e) "<>
inter !#i!> t$e +usto,ers of t$e joint venture4 It t$erefore +onsi)ers $o2 e9+#usive or (referenti!# #inCs "et2een t$e joint
venture !n) its (!rents re%!r)in% (ur+$!ses> s!#es !n) su((#ies 2i## !ffe+t t$e (!rentsA +usto,!r< su((#iers or +#ients4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r!s &M04
!112)$
%.1 Assessment of the effect of the restrictions of competition
A++or)in% to t$e Noti+e on +o'o(er!tive joint ventures t$e s+!#e of t$e joint ventureAs effe+ts on +o,(etition )e(en)s
on ! nu,"er of f!+tors> t$e ,ost i,(ort!nt of 2$i+$ !re
1
:
1141 t$e ,!rCet s$!res of t$e (!rent +o,(!nies !n) t$e joint venture> t$e stru+ture of t$e re#ev!nt ,!rCet !n) t$e
)e%ree of +on+entr!tion in t$e se+tor +on+erne)H
114 t$e e+ono,i+ !n) fin!n+i!# stren%t$ of t$e (!rent +o,(!nies> !n) !n< +o,,er+i!# or te+$ni+!# e)%e 2$i+$ t$e<
,!< $!ve in +o,(!rison to t$eir +o,(etitorsH
114& t$e ,!rCet (ro9i,it< of t$e !+tivities +!rrie) out "< t$e joint ventureH
114* 2$et$er t$e fie#)s of !+tivit< of t$e (!rent +o,(!nies !n) t$e joint venture !re i)enti+!# or inter)e(en)entH
1140 t$e s+!#e !n) si%nifi+!n+e of t$e joint ventureAs !+tivities in re#!tion to t$ose of its (!rentsH
1141 t$e e9tent to 2$i+$ t$e !rr!n%e,ents "et2een t$e fir,s +onne+te) !re restri+tiveH !n)
1143 t$e e9tent to 2$i+$ ,!rCet !++ess "< t$ir) (!rties is restri+te)4
1
t$e EC Tre!t< OJ C*& 11446& ( 4
I"i) (!r! 14
!112,$
%.% =oint enture net0or>s
T$e Noti+e on +o'o(er!tive joint ventures !#so !))resses t$e issue of joint venture net2orCs
1
4 T$is invo#ves
+onsi)er!tion of t$e v!r<in% 2!<s in 2$i+$ t$e net2orC +ou#) $!ve "een set u( !s 2e## !s t$e +u,u#!tive effe+t of t$e
net2orC4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! 34
See Optical Fibres OJ 1651 L&1E&8 2$i+$ +onsi)ere) t$e !((#i+!tion of EC Tre!t< !rt 50 to ! net2orC of joint ventures4
-e##!,< !n) C$i#)> &ommon (arket Law o. &ompetition (166&) ( *8 note:
DTT$e (ossi"i#it< in$erent in su+$ ! situ!tion for t$e +o'or)in!tion of t$e ,!rCet "e$!viour of t$e JVs in ! 2!<
2$i+$ )efe!ts t$e sin%#e ,!rCet %o!# ren)ers it #i!"#e to (!rti+u#!r#< +#ose s+rutin<4 In O(ti+!# :i"res> t$e +!se
2$i+$ est!"#is$e) t$e i,(ort!n+e of net2orC effe+t in JV !n!#<sis un)er Arti+#e 50(1)> Cornin% est!"#is$e) !
series of 08E08 JVs 2it$ #o+!# (!rtners in t$e Unite) Bin%)o,> :r!n+e !n) Ger,!n<4 On t$e f!+ts> t$e
Co,,ission $e#) t$!t t$ere 2!s no re#ev!nt restri+tion of +o,(etition "et2een t$e JV (!rents in e!+$ +ountr<>
"ut t$!t +o,(etition "et2een t$e JVs t$e,se#ves +ou#) "e restri+te) 2it$in t$e ,e!nin% of Arti+#e 50(1)4 T$e
se(!r!te JVs 2ere to "e tre!te) !s in)e(en)ent +o,(etitors "ut Cornin%As (osition 2!s su+$ t$!t it 2ou#)
inf#uen+e !n) +o'or)in!te t$e JVAs +on)u+t> #e!)in% to t$e #iCe#i$oo) of ,!rCet s$!rin% !n) +o##usion "et2een
t$e,4 T$e Co,,ission 2!s> $o2ever> (re(!re) to %r!nt !n e9e,(tion un)er Arti+#e 50(&) !fter v!rious
refine,ents !n) s!fe%u!r)s $!) "een intro)u+e) into t$e !%ree,ents4A
!112.$
%.( =oint entures bet0een non+competitors
T$e EC Co,,ission Noti+e on +o'o(er!tive joint ventures +on+#u)es t$!t joint ventures "et2een non'+o,(etitors !re
un#iCe#< to %ive +!use for +on+ern
1
4 Joint ventures set u( for rese!r+$ !n) )eve#o(,ent> (ro)u+tion !n) )istri"ution of
%oo)s to%et$er 2it$ t$e (rovision of !n !fter's!#es servi+e !re %ener!##< outsi)e t$e s+o(e of EC Tre!t< Arti+#e 50(1)
4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! &4
!112/$
%.) =oint entures bet0een competitors
%.)11 7ntroduction
A++or)in% to t$e Noti+e on +o'o(er!tive joint ventures> 2$ere t$e (!rties to ! joint venture !re +o,(etitors> t$e effe+ts
of t$e joint venture on +o,(etition "et2een t$e (!rents !n) on t$e ,!rCet (osition of t$ir) (!rties ,ust "e !n!#<Ie)
1
4 It
st!tes t$!t t$e re#!tions$i( "et2een t$e !+tivities of t$e joint venture !n) t$ose of t$e (!rents is of )e+isive i,(ort!n+e
!n) notes t$!t in t$e !"sen+e of !n< inter(#!<> EC Tre!t< Arti+#e 50(1)
2i## not usu!##< "e !((#i+!"#e4

1
t$e EC Tre!t< OJ C*& 11446& ( (!r! &14
!112"$
%.)1% &esearch and deelopment joint entures
Rese!r+$ !n) )eve#o(,ent joint ventures !re un#iCe#< to restri+t +o,(etition> (!rti+u#!r#< 2$ere ne2 (ro)u+ts or
(ro+esses !re invo#ve)
1
4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! &34
!1122$
%.)1( 3ales and purchasin' joint entures
Un#iCe rese!r+$ !n) )eve#o(,ent joint ventures> s!#es joint ventures se##in% t$e (ro)u+ts of +o,(etin% ,!nuf!+turers>
!re $e#) to restri+t +o,(etition "et2een t$e (!rents !n) #i,it t$e +$oi+e of (ur+$!sers4 A++or)in% to t$e Noti+e on +o'
o(er!tive joint ventures t$e< "e#on% to t$e tr!)ition!# +!te%or< of $oriIont!# +!rte#s 2$i+$ !re su"je+t to t$e (ro$i"ition
in EC Tre!t< Arti+#e 50(1)
1
2$ere t$e< $!ve !n !((re+i!"#e effe+t on t$e ,!rCet
4
/ur+$!sin% joint ventures $!ve to "e +onsi)ere) on t$e ,erits of e!+$ +!se4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r!s &5> &64
!1%##$
%.)1) <anufacturin' joint entures
A++or)in% to t$e Noti+e on +o'o(er!tive joint ventures> ,!nuf!+turin% joint ventures !re #iCe#< to restri+t +o,(etition>
(!rti+u#!r#< 2$ere t$e (!rent +o,(!nies 2it$)r!2 fro, t$e ,!rCet in f!vour of t$e joint venture !n) "e+o,e
)istri"utors for t$e (ro)u+ts of t$e joint venture
1
4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! *84
!1%#1$
%., =oint entures and indiidual e5emption
Joint ventures 2$i+$ )o not "enefit fro, ! "#o+C e9e,(tion !n) 2$i+$ f!## 2it$in t$e s+o(e of EC Tre!t< Arti+#e 50(1)
1
$!ve to "e +onsi)ere) for in)ivi)u!# e9e,(tion4 T$e +on)itions set out in Arti+#e 50(&) 2ou#) t$erefore $!ve to "e
s!tisfie)4 T$is invo#ves ! +onsi)er!tion of t$e "enefits to "e )erive) for t$ir) (!rties !n) es(e+i!##< +onsu,ers 2$i+$
s$ou#) "e e;u!# to !n< !)verse effe+ts4
T$e EC Co,,issionAs Noti+e on +o'o(er!tive joint ventures sets out (rin+i(#es of !ssess,ent for in)ivi)u!#
e9e,(tions
4 As ! %ener!# (rin+i(#e> t$e Co,,ission 2e#+o,es joint ventures 2$i+$ ,!Ce ne2 (ro)u+ts or o(en u(
ne2 ,!rCets
&
4 .o2ever> it 2i## not res(on) f!vour!"#< to +!rte#s for,e) to fi9 (ri+es> re)u+e s!#es or (ro)u+tion "<
,e!ns of ;uot!s or (!rtition ,!rCets
*
4
1
t$e EC Tre!t< OJ C*& 11446& ( (!r!s 0*'054
&
I"i) (!r! 004
*
I"i) (!r! 014
!1%#%$
%.. Ancillary restrictions
%..11 Additional a'reements
T$e Noti+e on +o'o(er!tive joint ventures )istin%uis$es "et2een restri+tions of +o,(etition 2$i+$ !rise fro, t$e
+re!tion !n) o(er!tion of ! joint venture !n) !))ition!# !%ree,ents 2$i+$ 2ou#)> on t$eir o2n> +onstitute restri+tions of
+o,(etition "< #i,itin% t$e (!rtiesA free)o, in t$e ,!rCet
1
4 T$ese !))ition!# !%ree,ents !re eit$er (1) )ire+t#< re#!te)
to !n) ne+ess!r< for t$e est!"#is$,ent !n) o(er!tion of t$e joint venture
or () !re +on+#u)e) !t t$e s!,e ti,e !s t$e

joint venture4 T$e first t<(e of !))ition!# !%ree,ents ,ust "e !ssesse) to%et$er 2it$ t$e joint venture
&
4 T$e< !re tre!te)
!s !n+i##!r< restri+tions un)er t$e +o,(etition ru#es if t$e< re,!in su"or)in!te in i,(ort!n+e to t$e ,!in o"je+t of t$e
joint venture
*
4 T$e Noti+e sti(u#!tes t$!t in )eter,inin% t$e Dne+essit<A of t$e restri+tion> in !))ition to +onsi)erin% its
n!ture> it s$ou#) "e ensure) t$!t t$e restri+tionAs )ur!tion> su"je+t ,!tter !n) %eo%r!($i+!# fie#) of o(er!tion )o not
e9+ee) t$e nor,!# re;uire,ents for t$e +re!tion !n) o(er!tion of t$e joint venture
0
4
If t$e joint venture )oes not f!## 2it$in t$e s+o(e of t$e (ro$i"ition #!i) )o2n in EC Tre!t< Arti+#e 50(1)
1
>
t$en nor 2i## !n< !n+i##!r< restri+tions
3
4 .o2ever> if ! joint venture is so +!u%$t> t$en !n< !n+i##!r< restri+tions 2i## !#so
"e +!u%$t
5
4 An< restri+tions t$!t !re not re%!r)e) !s !n+i##!r< 2i## $!ve to "e !ssesse) !++or)in% to t$e +riteri! set out in
Arti+#e 50(&)
6
4
!1%#($
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! 104
In so f!r !s t$e< +!nnot "e )isso+i!te) fro, t$e joint venture 2it$out jeo(!r)isin% its e9isten+e4 See EC Co,,ission Noti+e of
& De+e,"er 166 (!r! 104
&
I"i) (!r! 114
*
I"i) (!r! 114
0
I"i) (!r! 114
1
3
EC Co,,ission Noti+e of & De+e,"er 166 (!r! 134
5
I"i) (!r! 134
6
I"i) (!r! 154
!1%#)$
%..1% Determinin' ancillary restrictions
In )e+i)in% 2$et$er restri+tions +!n "e +#!ssifie) !s !n+i##!r<> t$e Noti+e on +o'o(er!tive joint ventures )istin%uis$es
"et2een restri+tions 2$i+$ !ffe+t t$e joint venture !n) t$ose 2$i+$ !ffe+t t$e (!rents
1
4
Restri+tions !ffe+tin% t$e joint venture 2$i+$ %ive +on+rete e9(ression to its o"je+t> for e9!,(#e +#!uses
s(e+if<in% t$e (ro)u+t r!n%e> ,!< "e re%!r)e) !s !n+i##!r<
4 A))ition!# restri+tions 2$i+$ D%o "e<on) t$e )efinition of

t$e ventureAs o"je+t !n) 2$i+$ re#!te to ;u!ntities> (ri+es or +usto,ersA !s 2e## !s e9(ort "!ns> ,!< not "e +onsi)ere)
!s !n+i##!r<
&
4 An !%ree,ent "< t$e joint venture not to ,!nuf!+ture (ro)u+ts 2$i+$ +o,(ete 2it$ t$e joint venture
(ro)u+t (2$i+$ is t$e su"je+t of t$e joint venture) 2i## "e seen !s !n+i##!r< 2$ere t$e joint venture invo#ves ne2
(ro)u+tion +!(!+it< or t$e tr!nsferrin% of te+$no#o%< fro, t$e (!rent +o,(!nies
*
4 Restri+tions #i,itin% t$e s+o(e of t$e
joint venture !re nor,!##< seen !s !n+i##!r<
0
4 7$ere t$e joint venture is #i,ite) to ,!nuf!+turin% so,e %oo)s )urin%
t$e st!rt'u( (erio)> t$en t$is is !#so #iCe#< to "e re%!r)e) !s !n+i##!r<
1
4
Restri+tions 2$i+$ (revent (!rent +o,(!nies fro, +o,(etin% 2it$ t$e joint venture )urin% t$e st!rt'u( (erio)
,!< "e re%!r)e) !s !n+i##!r<
3
4 .o2ever> restri+tions re#!tin% to ;u!ntities> (ri+es or +usto,ers> !n) e9(ort "!ns %o
"e<on) 2$!t is re;uire) for t$e settin%'u( !n) o(er!tion of t$e joint venture !n) ,!< not "e +onsi)ere) !s !n+i##!r<
5
4
!1%#,$
1
t$e EC Tre!t< OJ C*& 11446& ( (!r! 384
I"i) (!r! 314

&
I"i) (!r! 314
*
I"i) (!r! 34
0
I"i) (!r! 3&4
1
I"i) (!r! 3*4
3
I"i) (!r! 304
5
I"i) (!r! 304
!1%#.$
C: BE? EC CASES AND DECISIONS ON JOINT VENTURES
1: EC CO==ISSION CASES ON EFE=/TIONS AND RESTRICTIONS
%./ "e #!in $evelo%ments t!
Re Odin Developments Ltd
1
is seen !s t$e #e!)in% +!se on joint ventures> !s 2e## !s !n in)i+!tion of t$e Co,,issionAs
+urrent t$inCin% on joint ventures !n) !n+i##!r< restr!ints4 T2o (!rties> E#o(!C !n) =et!# -o9> !%ree) to set u( O)in> !
joint venture 2$i+$ 2!s to "e joint#< o2ne) "< t$e,> to +!rr< out rese!r+$ !n) )eve#o(,ent of ! +ont!iner for U.T
(ro+esse) foo)s4 O)in 2!s !#so set u( to )eve#o( t$e te+$no#o%< !n) ,!+$ines for fi##in% t$e +ont!iners !n) for
,!nuf!+turin% !n) )istri"utin% t$e (ro)u+ts if t$e )eve#o(,ent (ro+ess (rove) su++essfu#4
As to inte##e+tu!# (ro(ert< ri%$ts> t$e (!rent +o,(!nies !%ree) to %r!nt O)in> 2$i+$ 2ou#) "e set u( for !n
in)efinite (erio)> !n< re#ev!nt (!tent #i+en+es !n) #i+en+es for un(!tente) (ro)u+ts4 O)in 2ou#) on#< "e !##o2e) to use
t$e inte##e+tu!# (ro(ert< ri%$ts to furt$er t$e !%ree,ent !n) 2ou#) "e re;uire) to Cee( infor,!tion !"out t$e,
+onfi)enti!#4 It 2ou#) "e %r!nte) o2ners$i( of !n< i,(rove,ents it ,!)e to t$ose ri%$ts4 7it$ re%!r) to inte##e+tu!#
(ro(ert< #i+en+es> O)in 2ou#) $!ve t$e e9+#usive ri%$t to e9(#oit !n< of t$e (!rentsA e9istin% inte##e+tu!# (ro(ert< ri%$ts
!s 2e## !s !n< i,(rove,ents4 If it )i) not 2is$ to use t$e ne2 te+$no#o%<> t$en t$e (!rents 2ou#) "e !##o2e) to )o so if
O)in 2ere to offer it to ! t$ir) (!rt<4 T$e (!rents +ou#) o"t!in ! non'e9+#usive #i+en+e fro, O)in to e9(#oit !n< of its
i,(rove,ents (rovi)e) t$eir use of it )i) not +onf#i+t 2it$ O)in4
T$e re#ev!nt !%ree,ents 2ere notifie) in t$e $o(e of "enefitin% fro, t$e o((osition (ro+e)ure in EC
Co,,ission Re%u#!tion *15E50> t$e "#o+C e9e,(tion for rese!r+$ !n) )eve#o(,ent !%ree,ents4 In t$e !#tern!tive> t$e
notifi+!tion !sCe) for eit$er ne%!tive +#e!r!n+e un)er t$e Re%u#!tion
or e9e,(tion un)er EC Tre!t< Arti+#e 50(&)

&
!n)
EC Coun+i# Re%u#!tion 13E1
*
4
!1%#/$
T$e Co,,ission foun) t$!t Re%u#!tion *15E50 )i) not !((#< to t$e notifie) !%ree,ents "e+!use O)in 2!s set
u( to ,!Ce !n) )istri"ute t$e (ro)u+t 2$i+$ is "e<on) t$e s+o(e of t$e Re%u#!tion4 =ore +ru+i!##<> Re%u#!tion *15E50
2ou#) on#< "e !((#i+!"#e to !%ree,ents +!u%$t "< EC Tre!t< Arti+#e 50(1) !n) t$ese !%ree,ents fe## outsi)e its s+o(e
"e+!use t$e (!rents 2ere not !+tu!# or (otenti!# +o,(etitors4 T$ere 2!s t$erefore no nee) for !n Arti+#e 50(&)
e9e,(tion4 Ne%!tive +#e!r!n+e 2ou#) t$erefore "e ,ore !((ro(ri!te4
Arti+#e 50(1) 2!s in!((#i+!"#e "e+!use t$e Co,,ission foun) t$!t it 2!s ,ost un#iCe#< t$!t eit$er (!rent
2ou#) $!ve )eve#o(e) t$e (ro)u+t on its o2n !s e!+$ (!rent nee)e) t$e ot$er (!rentAs te+$no#o%< in or)er to !voi) t$e
e9(en)iture of ,!ssive invest,ent !n) ti,e4 T$e for,!tion of O)in !#so ,e!nt t$!t !n< fin!n+i!# or te+$ni+!# risCs
2ou#) "e s$!re)4 T$e Co,,ission )i) not fee# t$!t t$e settin% u( of O)in 2ou#) (revent t$e (!rentsA +o,(etitors fro,
+!rr<in% out si,i#!r rese!r+$> )eve#o(,ent !n) (ro)u+tion4
T$e Co,,ission +onsi)ere) t$e !n+i##!r< restri+tions to !s+ert!in 2$et$er t$e< 2ent "e<on) 2$!t 2!s
ne+ess!r< for t$e settin% u( !n) runnin% of t$e joint venture4 T$e (rovisions for %r!ntin% t$e e9+#usive ri%$t to O)in to
e9(#oit t$e (ro(riet!r< Cno2'$o2 !n) t$e %r!ntin% of t$e non'e9+#usive #i+en+e to t$e (!rents to use !n< i,(rove,ents>
2ere $e#) to "e ne+ess!r<
0
2$i#st t$e +onfi)enti!#it< !n) se+re+< (rovisions 2ere $e#) not to infrin%e EC Tre!t< Arti+#e
50(1)4 T$e Co,,ission $e#) t$!t t$e se+re+< !n) +onfi)enti!# (rovisions )i) no ,ore t$!n %u!r!ntee t$e +onfi)enti!#it<
of se+ret Cno2'$o2 !n) (revente) t$e ot$er (!rt< fro, usin% O)in !s ! ve$i+#e to o"t!in Cno2'$o2 to 2$i+$ it 2ou#)
not ot$er2ise $!ve !++ess4
Sin+e Odin> ,ost +o'o(er!tive joint ventures $!ve "een e9e,(te) r!t$er t$!n +#e!re)4 In t$!t +!se t$e
Co,,ission +on+#u)e) t$!t t$e (!rents 2ere not +o,(etitors "< t!Cin% ! n!rro2 vie2 of t$e re#ev!nt ,!rCet4 In so,e
of t$e e!r#ier +!ses invo#vin% ne2 te+$no#o%<> t$e Co,,ission $!) t!Cen ! ,u+$ "ro!)er vie2 of t$e re#ev!nt ,!rCet
or +on+#u)e) t$!t t$e (!rents 2ere (otenti!# +o,(etitors "e+!use t$e< $!) !"!n)one) in)ivi)u!# rese!r+$ in t$e fie#) in
2$i+$ t$e joint venture o(er!te)4
!1%#"$
1
Re Odin Developments Ltd C!se IVE&4886 J1661K * C=LR 5&> OJ 1668 L86E104

&
*
EC Coun+i# Re%u#!tion 13E1 !rt *4
0
T$e Co,,ission fe#t t$!t even t$ou%$ t$e (rote+tion !ffor)e) to O)in "< t$e e9+#usive ri%$t to e9(#oit 2ent "e<on) !n< initi!#
st!rtin%'u( (erio) for ne2 te+$no#o%< !n) ,i%$t e9ten) for t$e #ife of O)in it )i) not infrin%e EC Tre!t< !rt 50(1) "e+!use:
(!) "ot$ (!rentsA (ro(riet!r< Cno2'$o2 !n) furt$er rese!r+$ !n) )eve#o(,ent "< O)in 2ere ne+ess!r< to )eve#o( t$e
ne2 (ro)u+t !n) ,!+$iner< !n) te+$no#o%< #inCe) to it !n) for t$e ,!nuf!+turin% !n) ,!rCetin% t$e (ro)u+tH
(") t$ere 2ere no e9(#i+it restri+tions on O)inAs !+tivities in re#!tion to (ri+e> ;u!ntit<> +usto,ers or territor<> even
t$ou%$ its ne2 (ro)u+t ,i%$t +o,(ete 2it$ one of t$e (!rentsA +urrent out(utH
(+) e9+#usivit< 2!s #i,ite) to t$e n!rro2#< )efine) fie#) of t$e !%ree,ent !n) t$e (!rents 2ere not restri+te) in rese!r+$
!n) )eve#o(,ent or e9(#oit!tion of +#ose#< re#!te) !n) (ossi"#< +o,(etin% (ro)u+ts4
!1%#2$
%." BP&'ello((
T$e !((#i+!tion of t$e rese!r+$ !n) )eve#o(,ent "#o+C e9e,(tion
1
2!s +onsi)ere) in BP/ello!!
4 T$e +!se +on+erne)

! joint venture "et2een -/ Intern!tion!# Lt) !n) t$e =7 Be##o%% Co,(!n< 2$o re;ueste) e9e,(tion for t$e joint
)eve#o(,ent of ! )esi%n for t$e "ui#)in% of !n !,,oni! f!+tor<4
T$e joint venture 2!s set u( to t!Ce !)v!nt!%e of t$e +o,(#e,ent!r< sCi##s of -/ 2$o $!) "een invo#ve) in
rese!r+$ !n) )eve#o(,ent into !n) #i,ite) (ro)u+tion of !,,oni!> !n) Be##o%%> ! +ontr!+tor 2$i+$ )esi%ne) (ro+ess
(#!nts4 T$e joint )eve#o(,ent !%ree,ent (rovi)e) for> inter !#i!> o2ners$i( of Cno2'$o2> 2or#)'2i)e non'e9+#usive
ri%$ts for "ot$ (!rties to e9(#oit !n) su"'#i+ense joint#< o2ne) (!tents> !n) +onfi)enti!#it<4 It !#so +ont!ine) restri+tions
2$i+$ #i,ite) t$e s+o(e of Be##o%%As rese!r+$ !n) )eve#o(,ent 2orC on !,,oni! +!t!#<sts !n) (ro+esses4 Be##o%% 2!s
!#so restri+te) fro, )evotin% ,ore ti,e to )eve#o(in% +ert!in (ro+esses> se##in% its (ro+esses on +ert!in ter,s !n)
ten)erin% for ot$er !,,oni! (#!nts 2it$out infor,in% -/
&
4 T$ese restri+tions 2ere !i,e) !t ensurin% t$!t -/ 2!s
,!)e !2!re t$!t it ,i%$t 2!nt to seeC !not$er "usiness to 2orC 2it$ if Be##o%% 2!s f!i#in% to ,!rCet t$e ne2 (ro+ess
effe+tive#<4
T$e Co,,ission foun) t$!t t$ese restri+tions 2ere +!u%$t "< t$e (ro$i"ition in EC Tre!t< Arti+#e 50(1)
*

sin+e t$e< restri+te) t$e (!rentsA free)o, to t!Ce +o,,er+i!# )e+isions4 If t$e venture #e) to t$e su++essfu# (ro)u+tion
of !,,oni!> t$en t$e restri+tions 2ou#) $!ve !n !((re+i!"#e effe+t on tr!)e "et2een ,e,"er st!tes "e+!use !,,oni!
is (ro)u+e) in ,ost ,e,"er st!tes4 T$e rese!r+$ !n) )eve#o(,ent "#o+C e9e,(tion +ou#) not !((#< to t$e !%ree,ents
"e+!use t$e restri+tions on e9(#oit!tion +overe) ,ore t$!n !n< joint#<',!)e (ro)u+t (for inst!n+e t$e +!t!#<st 2$i+$
$!) "een ,!)e "< -/ in)e(en)ent#<)4
!1%1#$
Des(ite t$ese fin)in%s> t$e Co,,ission fe#t !"#e to e9e,(t t$e !%ree,ents on t$e "!sis t$!t if t$e (ro)u+t
2!s ,!)e t$en te+$ni+!# !n) e+ono,i+ (ro%ress 2ou#) "e furt$ere)4 T$e Co,,ission foun) t$!t t$e restri+tions
+ont!ine) in t$e joint venture !%ree,ent 2ere ne+ess!r< for t$e re!sons %iven "< t$e (!rties4 Be##o%% 2ou#) not "e !"#e
to )evote enou%$ ,one< to t$e (roje+t or ensure t$!t !not$er +o,(!n< t$!t it ,i%$t 2orC 2it$ 2ou#) not "enefit for,
-/As rese!r+$ 2it$out t$e first restri+tion !%ree) "< Be##o%%4 So,e of t$e restri+tions
0
!++e(te) "< Be##o%% 2ere
)ee,e) ne+ess!r< to !##o2 -/ to e9(#oit t$e joint#<')eve#o(e) (ro+ess if Be##o%% f!i#e) to )eve#o( or ,!rCet t$e
(ro+ess !+tive#< 2$i#st t$e restri+tions !++e(te) "< -/ 2ere foun) to "e t$e ,ini,u, ne+ess!r< to ensure t$!t Be##o%%
2ou#) ,!Ce !n !)e;u!te (rofit fro, its invest,ent4
1
EC Coun+i# Re%u#!tion *15E504
BP/ello!! J1651K C=LR 116> OJ 1650 L&16E14

&
Be##o%% 2!s restri+te) fro,: (1) +!rr<in% out rese!r+$ on its o2n or in +onjun+tion 2it$ outsi)e (!rties ot$er t$!n rese!r+$ !n)
)eve#o(,ent invo#vin% %r!($ite'"!se) !,,oni! s<nt$esis +!t!#<stsH () s(en)in% ,ore ti,e on )eve#o(in% ot$er (ro+esses
invo#vin% !,,oni!> ot$er t$!n t$ose usin% t$e tr!)ition!# +!t!#<st 2$i+$ is iron'"!se)> 2it$out first te##in% -/H (&) se##in% !n<
ne2 (ro+ess invo#vin% iron'"!se) +!t!#<sts on ,ore f!vour!"#e ter,s t$!n t$ose !v!i#!"#e for t$e s!#e of -/As +!t!#<st 2it$out
first te##in% -/H !n) (*) ten)erin% for !,,oni! (#!nts not invo#vin% t$e (ro)u+t ,!)e "< t$e joint venture 2it$out first te##in%
-/4
*
0
See restri+tions M* in note & !"ove4
!1%11$
%.2 For!&)olkswa(en
Ford/"olkswa!en
1
invo#ve) ! joint venture to )eve#o( !n) ,!nuf!+ture ,u#ti'(ur(ose ve$i+#es to "e (ro)u+e) !t !
f!+tor< in /ortu%!#
4 Un)er t$e joint venture !%ree,ent t$e (!rents 2ou#) e!+$ "u< ! fi9e) nu,"er of ve$i+#es fro, t$e
joint venture
&
> su((#< t$eir o2n en%ines !n) "e res(onsi"#e for )istri"utin% t$eir o2n ve$i+#es 2$i+$ 2ou#) "e )esi%ne)
)ifferent#<4 :or) 2!s !#re!)< ,!Cin% ! ,u#ti'(ur(ose ve$i+#e> !#t$ou%$ it $!) never so#) ,!n< ,o)e#s in Euro(e4 T$is
2!s> $o2ever> ;uite !n o#) ,o)e#4 Vo#Cs2!%en> on t$e ot$er $!n)> $!) not ,!)e ! ,u#ti'(ur(ose ve$i+#e4 Entr< into t$e
,!rCet for ,u#ti'(ur(ose ve$i+#es 2!s seen !s )iffi+u#t "e+!use !n entr!nt 2ou#) nee) to invest +onsi)er!"#e su,s to
)eve#o( !n) ,!nuf!+ture ! suit!"#e ve$i+#e4
T$e Co,,ission foun) t$!t t$e joint venture infrin%e) EC Tre!t< Arti+#e 50(1)
*
"e+!use t$e (!rents 2ere
,!jor +o,(etitors in t$e Euro(e!n +!r ,!rCet !n) e!+$ 2ou#) "e +!(!"#e of ,!Cin% ! ,u#ti'(ur(ose ve$i+#e on its
o2n4 T$e joint )eve#o(,ent !n) ,!nuf!+turin% of t$e ve$i+#es ,e!nt t$!t "ot$ (!rents 2ere investin% su"st!nti!# su,s
in t$e venture4 Neit$er 2ou#) $!ve !n< in+entive to "r!n+$ out on its o2n es(e+i!##< sin+e it $!) to "u< ! +ert!in
!,ount of ve$i+#es fro, t$e joint venture4 T$e Co,,ission !#so fe#t t$!t t$e (!rents 2ere #iCe#< to $!ve e9+$!n%e)
te+$ni+!# Cno2'$o2 2$i+$ +ou#) $!ve ! Cno+C'on effe+t on t$eir +o,(etitive "e$!viour in nei%$"ourin% ,!rCets su+$
!s est!te +!rs or s,!##er v!ns4
In vie2 of +ert!in e9+e(tion!# +ir+u,st!n+es> t$e Co,,ission $e#) t$!t t$e joint venture s!tisfie) t$e
+on)itions #!i) )o2n in Arti+#e 50(&) !n) 2!s t$erefore (re(!re) to e9e,(t t$e !%ree,ent for t$irteen <e!rs su"je+t to
+on)itions !n) o"#i%!tions
0
4 T$e e9+e(tion!# +ir+u,st!n+es in+#u)e) t$e f!+t t$!t t$e joint venture 2ou#) (rovi)e jo"s
!n) i,(rove t$e infr!stru+ture of ! (oor re%ion4 Ren!u#t )o,in!te) t$e ve$i+#es !n) t$ere 2!s no !((re+i!"#e
+o,(etition fro, !n< ot$er Euro(e!n ,!nuf!+turer4 T$e joint venture en!"#e) t$e (!rents to enter 2$!t 2!s effe+tive#<
! ne2 ,!rCet for "ot$ of t$e,4 It 2ou#) i,(rove t$e D(ro)u+tion or )istri"ution of %oo)sA or (ro,ote Dte+$ni+!# or
e+ono,i+ (ro%ressA> !s re;uire) in Arti+#e 50(&)> "e+!use ! st!te of t$e !rt ve$i+#e 2$i+$ 2ou#) set ne2 st!n)!r)s for
+o,(etitors> for e9!,(#e in s!fet<> 2ou#) "e !v!i#!"#e to +onsu,ers> !n) t$e (!rents 2ou#) "e !"#e to use t$eir
res(e+tive Cno2'$o2 !n) e9(ertise to ,!nuf!+ture t$e ve$i+#es4
!1%1%$
1
Ford/"olkswa!en

J166&K 0 C=LR 113> OJ 166& L8E1*4
T$e f!+tor< 2!s to "e "ui#t 2it$ t$e "enefit of ! st!te !i) !((rove) "< t$e Co,,ission4 See EC Tre!t< !rts 6'6* for (rovisions
on st!te !i)s4 St!te !i)s !re (ro$i"ite) "< t$e EC Tre!t< on t$e "!sis t$!t t$e< !re #i!"#e to )istort +o,(etition> !#t$ou%$ t$e
Co,,ission $!s t$e (o2er to !##o2 st!te !i)s4
&
T$e f!+tor< 2ou#) (ro)u+e !"out 168>888 +!rs (er <e!r4 It 2!s %ener!##< !++e(te) t$!t ! f!+tor< 2ou#) nee) to ,!Ce ,ore t$!n
118>888 ve$i+#es for t$e venture to "e fin!n+i!##< vi!"#e4 T$e !##o+!tion 2ou#) nor,!##< "e $!#f of t$e ve$i+#es (ro)u+e) "< t$e
joint venture to%et$er 2it$ s(!re (!rts4
*
0
A++or)in% to -e##!,< !n) C$i#) &ommon (arket Law o. &ompetition (*t$ E)n> 166&) ( 06> t$e t$ree ,!in o"je+tives of t$e
+on)itions 2ere to +ont!in t$e +o##!"or!tion to t$e (ur(ose of t$e joint venture> en!"#e t$e (!rents to +o,(ete !%!inst one
!not$er !s vi%orous#< !s (ossi"#e in s!#es !n) )istri"ution> !n) )eter EC ,!rCet s$!rin%4
!1%1($
%/# *creen%ort&EB+,Euros%ort
It 2ou#) "e 2ron% to !ssu,e t$!t t$e Co,,ission $!s +#e!re) ever< joint venture t$!t $!s "een notifie)4
#creensport/EB$%Eurosport
1
is !n e9!,(#e of ! joint venture t$!t 2!s not +#e!re)4 Euros(ort> ! s!te##ite +$!nne#
)e)i+!te) to s(ort> 2$i+$ +ou#) "e seen in so,e t2ent<'t2o Euro(e!n +ountries (in+#u)in% 5 ,e,"er st!tes)> 2!s run
"< ! 08E08 joint venture "et2een SC< 2$o )e!#t 2it$ ,!rCetin% !n) fun)in% !n) t$e Euros(ort Consortiu,
(DEuros(ortA) 2$i+$ (rovi)e) !++ess to s(orts (ro%r!,,in%4
T$e Co,,ission foun) t$!t t$e (!rties to t$e joint venture $!) "een (otenti!# +o,(etitors in t$e ,!rCet for
settin% u( ! +$!nne# su+$ !s Euros(ort4 It +on+#u)e) t$!t t$e for,!tion of t$e joint venture 2!s (!rt#< inten)e) to
)!,!%e ! #iCe#< +o,(etitor !n) ,e!nt t$!t t$ere 2!s no #on%er !n< effe+tive +o,(etition "et2een t$e (!rents4 T$e
(!rties +#!i,e) t$!t t$e joint venture $!) #e) to !n i,(rove,ent in t$e (ro)u+tion !n) )istri"ution of servi+es4
.o2ever> t$e Co,,ission fe#t t$!t even if t$is 2ere t$e +!se> t$e venture $!) +!use) ! ,!rCe) )istortion in
+o,(etition4 T$e ,e,"ers of Euros(ort +$!nne##e) t$eir enor,ous ;u!ntit< of s(orts (ro%r!,,es so#e#< t$rou%$
Euros(ort 2$i+$ ,!)e it ver< )iffi+u#t for !n<one to enter t$e ,!rCet4 7it$ res(e+t to t$e restri+tions in t$e joint
venture !%ree,ents> t$e Co,,ission )e+i)e) t$!t t$ese +ou#) not "e re%!r)e) !s essenti!# for t$e runnin% of t$e
venture4
1
7 . S,it$ N Son Lt) !n) S+reens(ort v Euro(e!n -ro!)+!stin% Union J166K 0 C=LR 3&> su" no, #creensport/EB$%
Eurosport OJ 1661 L1&E&4
!1%1)$
%/1 Beecham&Parke,$avis
In Beecham/Parke%Davis
1
t$e Co,,ission +onsi)ere) ! joint venture set u( for rese!r+$ !n) )eve#o(,ent into ! )ru%
to tre!t "#oo) +ir+u#!tion )isor)ers4 Un)er t$e !%ree,ent t$e (!rties 2ere to (#!n rese!r+$ joint#< !n) s$!re its resu#ts4
Costs 2ou#) "e s(#it e;u!##<4 E!+$ (!rt< +ou#) !((#< for (!tents to (rote+t t$e resu#ts of its rese!r+$> 2ou#) $!ve ! non'
e9+#usive> ro<!#t<'free #i+en+e !n) "e !"#e to issue su"'#i+en+es
4 T$e (!rties 2ou#) !#so s$!re !n< infor,!tion on

i,(rove,ents to t$e (ro)u+ts !n) +ou#) e9+$!n%e #i+enses for ! (erio) of ten <e!rs fro, t$e ,!rCetin% of t$e (ro)u+t4
T$e Co,,ission )e+i)e) t$!t t$e joint venture 2!s +!u%$t "< EC Tre!t< Arti+#e 50(1)
&
> )es(ite t$e f!+t t$!t
t$e (!rties 2ere not +o,(etitors in t$is fie#) "e+!use "ot$ no #on%er +!rrie) out rese!r+$4 T$e effe+t of t$e +#ose
2orCin% re#!tions$i( "et2een t$e (!rties !n)> in (!rti+u#!r> t$e (#!nnin% of future rese!r+$ !n) t$e e9+$!n%e of
infor,!tion> ,e!nt t$!t it 2!s $i%$#< un#iCe#< t$!t t$e< 2ou#) o(er!te in)e(en)ent#< in t$is !re!4 T$e o"#i%!tions on
i,(rove,ents tooC t$e venture outsi)e t$e s+o(e of t$e EC Co,,ission Noti+e on +o'o(er!tion !%ree,ents
*
"e+!use
t$e venture 2ent "e<on) )eve#o(,ent !n) e9ten)e) to (ro)u+tion4
T$e Co,,ission 2!s (re(!re) to e9e,(t t$e !%ree,ent (rovi)e) t$!t t$e (!rties ,!)e +ert!in !,en),ents
in re#!tion to su"'#i+ensin% !n) ro<!#ties4 In its vie2 t$e !%ree,ent +ontri"ute) to te+$ni+!# (ro%ress "e+!use t$e (!rties
,i%$t not $!ve +!rrie) on 2orCin% in t$is !re!4 T$e f!+t t$!t t$e (!rties )i) not o(er!te !#one in t$is !re! 2!s fe#t to "e
!n essenti!# (!rt of t$e !%ree,ent4 T$e !%ree,ent )i) not (re+#u)e t$e (!rties fro, se##in% t$e )ru%> (ro)u+e) !s !
+onse;uen+e of t$eir +o'o(er!tion> on t$eir o2n if t$e< +$ose to4
1
Beecham/Parke%Davis> J1636K C=LR 103> OJ 1636 L38E114
T$ere 2ere so,e restri+tions in t$e +!se of #i+en+es %r!nte) in J!(!n4

&
*
EC Co,,ission Noti+e of 6 Ju#< 1615 on +o'o(er!tion !%ree,ents OJ C 5* 545415 ( 1*4
!1%1,$
%/% Carbon Gas -echnolo(ie
In &arbon Gas 'echnolo!ie
1
t$e (!rties to t$e !%ree,ent 2ere !#so (revente) fro, +!rr<in% out in)ivi)u!# rese!r+$4
T$e ,!in su((#iers !%ree) to 2orC to%et$er to )eve#o( ! +o!# %!sifi+!tion (ro+ess !n) to "ui#) ! (#!nt for
)e,onstr!tin% t$e (ro)u+t4 A## of t$e (!rties> 2it$ t$e e9+e(tion of -/> !%ree) not to +o,(ete 2it$ t$e joint venture
)urin% t$e #ife of t$e )eve#o(,ent (ro+ess or for five <e!rs !fter #e!vin% t$e joint venture4
T$e Co,,ission foun) t$!t it 2!s i,(ro"!"#e t$!t -/ 2ou#) enter into +o,(etition 2it$ t$e joint venture4
So,e of t$e (!rties to t$e !%ree,ent 2ere (otenti!# +o,(etitors> in t$!t t$e< +ou#) $!ve +!rrie) out t$e (ro+ess on t$eir
o2n4 T$e< $!) t$erefore !++e(te) !n !((re+i!"#e restri+tion of !n< su+$ (otenti!# +o,(etition4 .o2ever> t$e
Co,,ission 2!s !"#e to %r!nt !n e9e,(tion on t$e "!sis t$!t t$e joint venture s!ve) "ot$ ti,e !n) ,one< in t$e
(ro)u+tion of ! Ce< (ro+ess4 An< restri+tions (reventin% +o,(etition "et2een t$e (!rties 2ere seen !s essenti!#4
1
&arbon Gas 'echnolo!ie J165*K C=LR 30> OJ 165& L&31E134
!1%1.$
%/( *o%elem&an(en
T$e Co,,issionAs !((ro!+$ to s(e+i!#is!tion !%ree,ents 2ou#) see, to )e(en) on t$e f!+ts of e!+$ +!se> !#t$ou%$
so,e +#ues +!n "e foun) "< #ooCin% !t +!se #!24 #opelem/Lan!en
1
is seen !s ! +#!ssi+ s(e+i!#is!tion !%ree,ent "et2een
(otenti!# +o,(etitors 2it$ +o,(#e,ent!r< (ro)u+ts !#t$ou%$ so,e (ro)u+ts )i) +o,(ete 2it$ e!+$ ot$er4 So(e#e,> !
:ren+$ +o,(!n<> !n) L!n%en> ! Ger,!n +o,(!n<> "ot$ ,!)e e;ui(,ent for use in $<)r!u#i+ ,!+$iner<4 Neit$er of t$e
(!rties 2!s !+tive in t$e ot$erAs territor< to !n< si%nifi+!nt )e%ree4 T$e joint venture !%ree,ent (rovi)e) t$!t e!+$ (!rt<
2ou#) "u< t$e ot$erAs (ro)u+ts for s!#e 2it$in its o2n territor< !n) (rovi)e !n !fter's!#es servi+e for t$e ot$erAs
(ro)u+ts4 T$e !%ree,ent )i) not re;uire t$e !rr!n%e,ents to o(er!te on !n e9+#usive "!sis> !#t$ou%$ t$e< o(er!te) t$is
2!< in (r!+ti+e4 E!+$ (!rt< (ro,ise) not to ,!Ce !n< (ro)u+ts 2$i+$ 2ou#) +o,(ete 2it$ t$e (ro)u+ts t$!t it 2!s
"u<in% fro, t$e ot$er (!rt<4
T$e Co,,ission )e+i)e) t$!t t$e !rr!n%e,ent +onstitute) ! s(e+i!#is!tion !%ree,ent4 It !#so $e#) t$!t t$e
(!rties 2ere (otenti!# +o,(etitors for t$e ,ost (!rt> "ut t$!t t$e< 2ere !+tu!# +o,(etitors in t$e ,!rCet for t$e #i,ite)
r!n%e of (ro)u+ts t$!t 2ere in +o,(etition4 Co,(etition 2!s restri+te) fro, t$e (oint of vie2 of (ro)u+tion !n)
)istri"ution4 T$e Co,,ission 2!s in+#ine) to e9e,(t t$e !%ree,ent "e+!use it 2ou#) #e!) to ! %re!ter r!n%e of +$e!(er
(ro)u+ts "ein% ,!)e !v!i#!"#e !n) 2ou#) in+re!se inter',e,"er st!te tr!)e4 T$ere 2ere sever!# ot$er (#!<ers in t$e
,!rCet 2$i+$ 2!s $i%$#< +o,(etitive !n) t$erefore t$e !%ree,ent 2ou#) not )estro< +o,(etition or en!"#e eit$er (!rt<
to ,!Ce ,ono(o#< (rofits in its $o,e territor<4 T$e restri+tions in t$e !%ree,ent 2ere ne+ess!r< !n) t$e !%ree,ent
2ou#) "e +onsi)ere) 2it$ t$e +onte9t of EC Co,,ission Re%u#!tion *13E50 on s(e+i!#is!tion !%ree,ents4
1
SO/ELE=EL!n%en J163K C=LR D33> OJ 163 L1&E*34
!1%1/$
%/) )W&.AN
"W/()*
1
is !n e9!,(#e of !not$er t<(e of joint venture> n!,e#< to )eve#o( !n) (ro)u+e ! ne2 r!n%e of (ro)u+ts4
-efore t$e !%ree,ent +!,e into for+e> V7 ,!)e +o,,er+i!# ve$i+#es un)er si9 tonnes 2$i#e =AN ,!nuf!+ture)
si,i#!r ve$i+#es un)er ten tonnes4 T$e !%ree,ent (rovi)e) t$!t> to%et$er> t$e (!rties 2ou#) ,!Ce ve$i+#es of "et2een
si9 !n) nine tonnes to "e so#) 2it$ t$e tr!)e,!rCs of "ot$ (!rties4 E!+$ (!rt< 2!s res(onsi"#e for ,!Cin% +ert!in
+o,(onent (!rts "ut "ot$ 2ou#) !sse,"#e t$e ve$i+#es4 To furt$er t$e !%ree,ent> t$e (!rties t$erefore !%ree) to su((#<
e!+$ ot$er 2it$ t$e (!rts t$e< ,!nuf!+ture) !n) to use on#< (!rts ,!)e "< t$e ot$er (!rt<
4 T$e< un)ertooC not to

+o,(ete 2it$ re%!r) to t$e ve$i+#es +overe) "< t$e !%ree,ent4 Neit$er (!rt< +ou#) #i+ense !n< I/ or Cno2'$o2 ri%$ts
to ! t$ir) (!rt< 2it$out re;uestin% t$e !%ree,ent of t$e ot$er (!rt< if t$e #i+en+e 2!s %r!nte) in +onne+tion 2it$
(ro)u+ts t$!t 2ou#) +o,(ete 2it$ t$e (ro)u+ts for,in% t$e su"je+t ,!tter of t$e !%ree,ent4 =AN un)ertooC
)istri"ution usin% its e9istin% )istri"ution net2orC 2$i+$ o(er!te) in Ger,!n< !n) e#se2$ere 2$i#e V7 2!s entit#e) to
use =ANAs net2orC to )istri"ute its o2n ve$i+#es outsi)e Ger,!n<4
T$e Co,,ission foun) t$!t t$e !%ree,ent infrin%e) EC Tre!t< Arti+#e 50(1)
&
in ! nu,"er of res(e+ts4 :irst>
"ot$ (!rties +ou#) $!ve entere) t$e ,!rCet for ve$i+#es of "et2een si9 !n) nine tonnes "ut 2ere (revente) fro, )oin%
so "< virtue of t$e !%ree,ent4 Se+on)> t$e !rr!n%e,ents for s(#ittin% u( t$e 2orC#o!) resu#te) in s(e+i!#is!tion !n)
effe+tive#< #i,ite) +o,(etition "et2een t$e (!rties in te+$ni+!# innov!tion !s 2e## t$e st!n)!r)isin% of (!rts4 T$ir)> t$e
f!+t t$!t t$e (!rties 2ere (re+#u)e) fro, usin% (!rts su((#ie) "< ot$ers ,e!nt t$!t t$e< $!) #itt#e +$!n+e of su((#<in%
t$e,4 T$e !rr!n%e,ents for )istri"utin% t$e (ro)u+ts ,e!nt t$!t t$ere 2!s no +o,(etition !t t$e s!#es en) 2$i#e t$e
(rovisions on I/ #i+en+es 2ere !#so +!u%$t "< Arti+#e 50(1)4
!1%1"$
In +onsi)erin% t$e !)v!nt!%es t$!t t$e !%ree,ent 2ou#) offer for t$e (ur(oses of e9e,(tion un)er Arti+#e
50(&)> t$e Co,,ission +on+#u)e) t$!t (ro)u+tion 2ou#) "e i,(rove) "e+!use ! ne2 r!n%e of +$e!( (ro)u+ts 2ou#)
+o,e onto t$e ,!rCet4 T$e +ost 2!s #ess t$!n it 2ou#) $!ve "een 2it$out t$e !%ree,ent4 T$e (!rties 2ere (otenti!#
r!t$er t$!n !+tu!# +o,(etitors !n) t$e !rr!n%e,ents ,!)e it (ossi"#e for t$e, to enter into +o,(etition 2it$ "etter
est!"#is$e) ,!nuf!+turers !s t$e< +ou#) offer ! fu##er r!n%e of (ro)u+ts4 Co,(etition "et2een t$e (!rties 2ou#) not "e
)estro<e) sin+e t$e< 2ere "ot$ enterin% t$e ,!rCet for t$e first ti,e4
T$e Co,,ission 2!s +onfi)ent t$!t t$e restri+tions i,(ose) u(on t$e (!rties 2ere no %re!ter t$!n 2!s
ne+ess!r< to ensure t$e su++ess of t$e venture4 It 2ou#) $!ve ,!)e no +o,,er+i!# sense for t$e (!rties to set u( t$eir
o2n )istri"ution s<ste,s4 T$e Co,,ission 2!s t$erefore (re(!re) to %r!nt ! 10'<e!r e9e,(tion in !n !tte,(t to ensure
t$!t t$e (!rties re+eive) !n !)e;u!te return on t$eir invest,ent4
1
"W/()* J165*K 1 C=LR 11> OJ 165& L &31E114
If it (rove) ne+ess!r<> t$e (!rties 2ou#) !#so %ive e!+$ ot$er (!rts t$!t 2ere nee)e) for t$e (ro)u+tion of ve$i+#es not +overe) "<
t$e !%ree,ent4
&
!1%12$
: =ERGER TASB :ORCE DECISIONS RELATING TO T.E NATURE O: JOINT VENTURES
%/, Ascertainin' the nature of a joint enture
T$e )e+isions +onsi)ere) "e#o2 i##ustr!te so,e of t$e f!+tors use) "< t$e =er%er T!sC :or+e in !s+ert!inin% t$e n!ture
of ! joint venture4
!1%%#$
%/. &esources of the joint enture
A joint venture 2ou#) nor,!##< "e seen !s fun+tion!##< !utono,ous 2it$in t$e ,e!nin% of t$e EC Coun+i# Re%u#!tion
*81*E56 on ,er%er +ontro# if it +!rries out !## t$e "usiness fun+tions usu!##< (erfor,e) "< ot$er +o,(!nies !+tive in t$e
s!,e ,!rCet !n) $!s t$e $u,!n !n) fin!n+i!# resour+es ne+ess!r< to %u!r!ntee its surviv!# !n) in)e(en)en+e for !
#en%t$< (erio) of ti,e 2it$out "ein% )e(en)ent on its (!rents4
In $nisource/'ele.Jnica
1
t$e =er%er T!sC :or+e )e+i)e) t$!t t$e joint venture "et2een t$e (!rties 2!s not
fu##< fun+tion!# "e+!use of ! #!+C of suffi+ient resour+es4 T$e joint venture 2!s effe+tive#< ! ,!n!%e,ent +o,(!n< for
t$e intern!tion!# net2orCs o2ne) "< t$e (!rent +o,(!nies> !s n!tion!# #!2 )i) not !##o2 t$e (!rents to !ssi%n t$eir
intern!tion!# net2orCs or to %r!nt t$e re;uisite #i+en+es4 Its ,!in !i, 2!s to servi+e its (!rents !n) it 2!s )e(en)ent on
t$e, for $irin% ,ost of its resour+es4
1
$nisource/'ele.Jnica> unre(orte)4
!1%%1$
%// 7ndependent distribution
7$ere t$e joint venture is !+tive in ! )istri"ution ,!rCet t$!t is )o2nstre!, fro, t$e ,!rCets in 2$i+$ t$e (!rents
o(er!te> t$e =er%er T!sC :or+e nee)s to "e +onvin+e) t$!t t$e joint venture is not just !n !u9i#i!r< s!#es !%en+< for its
(!rents4 It $!s to "e s$o2n t$!t t$e joint venture $!s t$e +$!r!+teristi+s of !n in)e(en)ent )istri"ution +o,(!n< !n)
o"t!ins its su((#ies fro, +o,(!nies t$!t +o,(ete 2it$ its (!rents !s 2e## !s !+;uirin% so,e su((#ies fro, t$e (!rents
t$e,se#ves4
In 'e7aco/*orsk @,dro
1
> 2$i+$ +on+erne) ! joint venture for )istri"utin% refine) oi# (ro)u+ts> t$e =er%er
T!sC :or+e foun) t$!t t$e joint venture 2!s !utono,ous enou%$ to "e seen !s fu##< fun+tion!#> )es(ite t$e f!+t t$!t it
2ou#) o"t!in ! #!r%e (ro(ortion of its su((#ies fro, its (!rents4 T$ese tr!ns!+tions 2ou#) "e ne%oti!te) on !
+o,,er+i!# "!sis !n) t$e joint venture 2!s free to (ur+$!se its su((#ies e#se2$ere4
1
'e7aco/*orsk @,dro> unre(orte)4
!1%%%$
%/" Aalue added by joint enture
In $nion &arbide/Enichem
1
t$e =er%er T!sC :or+e #ooCe) !t t$e v!#ue !))e) "< t$e joint venture to t$e (ro)u+t
su((#ie) "< t$e (!rents to !s+ert!in 2$et$er or not t$e joint venture 2!s !utono,ous enou%$ to "e re%!r)e) !s
+on+entr!tive4 T$e v!#ue !))e) 2!s foun) to "e suffi+ient )es(ite t$e f!+t t$!t t$e joint venture 2!s )e(en)ent on its
(!rents for t$e r!2 (ro)u+t4
1
$nion &arbide/Enichem> unre(orte)4
!1%%($
%/2 Competition bet0een the parties
Co,(etition "et2een t$e (!rties is ! )e+isive f!+tor in )eter,inin% t$e n!ture of ! joint venture4 7$ere t$ere is ! risC of
+o,(etitive "e$!viour "et2een t$e (!rents> t$en t$e joint venture 2i## "e seen !s +o'o(er!tive4 If> $o2ever> on#< one of
t$e (!rent +o,(!nies +ontinues to o(er!te in t$e s!,e ,!rCet !s t$e joint venture> t$en t$is 2i## not (revent t$e joint
venture fro, "ein% +!te%orise) !s +on+entr!tive4 T$is is !#so t$e +!se if t$e !+tivities of one (!rent !re ne%#i%i"#e !n)
!re su"je+t to !n !%ree,ent not to +o,(ete 2it$ t$e joint venture !s 2!s t$e +!se in Babcock/#iemens/B# Railcare
1
4 If
"ot$ (!rents re,!in !+tive in t$e s!,e ,!rCet !s t$e joint venture "ut on#< to ! ne%#i%i"#e )e%ree> t$en t$e venture 2i##
sti## "e seen !s +on+entr!tive !s in $nion &arbide/Enichem
4

If t$e (!rents re,!in !+tive to !n !((re+i!"#e e9tent in "ot$ t$e s!,e (ro)u+t !n) %eo%r!($i+ ,!rCets !s t$e
joint venture> t$en t$e venture 2i## "e re%!r)e) !s +o'o(er!tive 1@oo!ovens/loeckner)
&
4 .o2ever> if t$e (!rents
o(er!te in t$e s!,e (ro)u+t ,!rCet "ut in )ifferent %eo%r!($i+ ,!rCets> t$en t$e =er%er T!sC :or+e 2i## +onsi)er t$e
)e%ree to 2$i+$ t$ose ,!rCets interre#!te !s 2e## !s #iCe#< future )eve#o(,ents in ne2 ,!rCets "efore )eter,inin%
2$et$er t$e joint venture is +on+entr!tive or is ot$er2ise su"je+t to EC Coun+i# Re%u#!tion *81*E56 on ,er%er +ontro#
(Omnitel
*
!n) $nisource/'ele.onica
0
)4
1
Babcock/#iemens/B# Railcare> unre(orte)4
$nion &arbide/Enichem> unre(orte)G

&
@oo!ovens/loeckner> unre(orte)4
*
Omnitel> unre(orte)4
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$nisource/'ele.onica> unre(orte)4
!1%%)$9!1%(#$
(5) SU//ORTING DOCU=ENTATION
A: INTRODUCTION
%"# 3ubsidiary ri'hts and obli'ations
It is r!re for t$e s$!re$o#)ersA> (!rtners$i( or +onsortiu, !%ree,ent 2$i+$ +onstitutes t$e joint venture to "e !n iso#!te)
)o+u,ent4 7$i#e t$e !((ro(ri!te fun)!,ent!# !%ree,ent sets out t$e "!si+ stru+ture of t$e joint venture !n) s$ou#)
+ont!in ! +o,(re$ensive e9(osition of t$e ri%$ts !n) o"#i%!tions of t$e (!rti+i(!nts inter se> t$e joint venture nee)s to
"e su((orte) "< ot$er )o+u,ents> +re!tin% #e%!# ri%$ts !n) o"#i%!tions> 2$i+$ 2i## en!"#e t$e enter(rise to o(er!te
effe+tive#<4 E9!,(#es of su((ortin% !%ree,ents !re #i+en+es or !ssi%n,ents of inte##e+tu!# (ro(ert< ri%$ts> su((#<
!%ree,ents !n) servi+e !%ree,ents4 Su+$ )o+u,ents s$ou#) ensure t$!t t$e joint venture is %r!nte) t$e fu## set of ri%$ts
!n) is (rovi)e) 2it$ t$e !),inistr!tive su((ort t$!t it 2i## nee) for t$e su++essfu# un)ert!Cin% of t$e o"je+ts of t$e
enter(rise4
!1%(1$
%"1 3ubsidiary a'reements and supportin' documents
As ! %ener!# ru#e> in settin% u( ! joint venture it is ne+ess!r< to )eter,ine in !)v!n+e 2$!t !%ree,ents 2i## "e re;uire)
to +re!te !## t$e enfor+e!"#e #e%!# ri%$ts !n) o"#i%!tions !n) to (rovi)e t$e !),inistr!tive infr!stru+ture t$!t 2i## "e
re;uire) in or)er to !+$ieve t$e !i,s of t$e enter(rise4 Usu!##<> t$ese !%ree,ents 2i## "e entere) into !t t$e s!,e ti,e
!s t$e un)er#<in% s$!re$o#)ersA> (!rtners$i( or +onsortiu, !%ree,ent4 Ever< su((ortin% )o+u,ent s$ou#) (res+ri"e t$e
+onse;uen+es of ! (!rti+i(!nt 2it$)r!2in% fro, t$e venture> or t$e ter,in!tion of t$e enter(rise for e!+$ of t$e ri%$ts
!n) o"#i%!tions +re!te) in t$e re#ev!nt )o+u,ent
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A (!rti+u#!r#< +ru+i!# e#e,ent in t$e +!se 2$ere t$e su((ortin% )o+u,ents re#!te to t$e tr!nsfer or #i+ensin% of t$e use of
inte##e+tu!# (ro(ert< or Cno2'$o2: see /!r!%r!($ &8& J11K et se; (ost4
!1%(%$
-: T.E AC@UISITION AGREE=ENT
%"% 7ntroduction
It is so,eti,es ne+ess!r< in t$e +!se of ! +or(or!te joint venture for t$e joint venture +o,(!n< to !+;uire !## or so,e of
t$e !ssets of !n e9istin% enter(rise or enter(rises
1
4 T$e re#ev!nt !ssets 2i## usu!##< "e !+;uire) fro, ! "usiness or
"usinesses
o2ne) "< one or ,ore of t$e (!rti+i(!nts to t$e +or(or!te venture

&
4 T$e ,e+$!nis, of !+;uisition in su+$
+!ses +!n "e eit$er t$e (ur+$!se of s$!res> if t$e !ssets !re !#re!)< o2ne) "< t$e ven)or +o,(!n< !n) t$e joint venture
enter(rise is in+or(or!te)> or t$e )ire+t (ur+$!se of t$e !ssets of t$e ven)or +o,(!n< or +o,(!nies
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4 In eit$er of t$e
!"ove +!ses it is ne+ess!r< for t$e re#ev!nt (!rties> usu!##< ! ven)or +o,(!n< or +o,(!nies !n) t$e joint venture
+o,(!n<> to enter into !n !+;uisition !%ree,ent4 In ! +or(or!te joint venture t$e !+;uisition !%ree,ent !n) t$e
un)er#<in% s$!re$o#)ersA !%ree,ent !re entere) into !t t$e s!,e ti,e4
A +or(or!te joint venture ,!< "e est!"#is$e) to !+;uire t$e "usiness of !n in)e(en)ent t$ir) (!rt<4 In su+$
+!ses t$e !+;uisition !%ree,ent 2i## %ener!##< "e ne%oti!te) !fter t$e joint venture is set u(
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!1%(($
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An) in !((ro(ri!te +!ses t$e #i!"i#ities !tt!+$in% to t$e re#ev!nt enter(rises4 T$e t!9 i,(#i+!tions on !+;uirin% ! "usiness "< t$e
+or(or!te joint venture s$ou#) !#so "e note): see /!r!%r!($ &&3 J1&1K et se; (ost4
T$ese "usinesses 2i## %ener!##< "e #i,ite) #i!"i#it< +o,(!nies4

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Usu!##< t$rou%$ t$e ,e)iu, of ! $o#)in% +o,(!n<4
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-usinesses 2i## re+eive +!s$ +onsi)er!tion for )ire+t !sset (ur+$!ses4
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See elner v Ba7ter (1511) LR C/ 13*H *ewborne v #ensolid 1GB6 Ltd J160*K 1 @- *0 CAH Co,(!nies A+t 1650 s &14 :or
+#!uses for ! s$!re$o#)ersA !%ree,ent 2$ere t$e joint venture +o,(!n< is not <et for,e) see :or,s 8 J1533K> 1 J1535K (ost4
As to t$e )iffi+u#ties invo#ve) in seeCin% to !+;uire t$e !ssets of !n e9istin% enter(rise 2$ere t$e !+;uisition is to "e "< !
+o,(!n< 2$i+$ is not in e9isten+e !t t$e ti,e t$e !%ree,ent is +on+#u)e) "< 2!< of ! (re'in+or(or!tion +ontr!+t> see /ri,e !n)
S+!n#!n 'he Law o. Private Limited &ompanies (1661) ( &34
!1%()$
%"( Non+encumbrance clause
7$ere t$e s!#e of t$e "usiness is "< 2!< of t$e tr!nsfer of !ssets> t$e (!rti+i(!nts in t$e joint venture 2i## 2is$ to
ensure t$!t t$e joint venture +o,(!n< 2i## re+eive !## t$e !ssets +overe) "< t$e s!#e !%ree,ent 2it$out en+u,"r!n+e or
)iffi+u#t<> !n) t$!t t$e joint venture enter(rise is !)e;u!te#< (rote+te) in t$is res(e+t4 T$e s!#e !%ree,ent s$ou#)
t$erefore set out (re+ise#< t$e !ssets to "e !+;uire) "< t$e joint venture> !n) s$ou#) +ont!in ! fu## set of 2!rr!nties !n)
in)e,nities fro, t$e se##er to (rote+t t$e (!rti+i(!nts in t$e venture t$rou%$ t$e joint venture +o,(!n< itse#f
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As to 2!rr!nties !n) in)e,nities for !sset s!#es see vo# *() (1661 Reissue) -USINESSES :or,s 0 J115KM3 J1&88K4
!1%(,$
%") Assets included in sales a'reement
7$ere t$e !+;uisition !%ree,ent is for t$e s!#e of ! "usiness !s ! %oin% +on+ern> t$e !ssets of t$e "usiness 2i## usu!##<
in+#u)e t$e fo##o2in% t<(es:
5*41 "usiness (re,isesH
5*4 e;ui(,ent !n) sto+CsH
5*4& $ire (ur+$!se !n) #e!sin% !rr!n%e,entsH
5*4* )e"tors !n) +re)itorsH
5*40 %oo)2i##Etr!)e ,!rCsH !n)
5*41 "enefit of +ontr!+ts4
!1%(.$
%", Premises
7$ere (re,ises 2$i+$ !re t$e su"je+t of ! s!#e !%ree,ent !re o++u(ie) "< t$e ven)or enter(rise un)er ! #e!se or
ten!n+<> ! #i+en+e to !ssi%n 2i## usu!##< "e re;uire) fro, t$e #essor or #!n)#or)
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T$e #i+en+e s$ou#) "e o"t!ine) "efore
t$e !%ree,ent for t$e !+;uisition of t$e !ssets of t$e "usiness> in+#u)in% t$e re#ev!nt (re,ises> is +on+#u)e)4
A#tern!tive#<> t$e !%ree,ent s$ou#) (rovi)e t$!t !n< su+$ #i+en+e "e o"t!ine) 2it$in ! re!son!"#e ti,e !fter t$e
+on+#usion of t$e !%ree,entH f!i#ure to )o so 2i## !##o2 t$e (ur+$!ser joint venture +o,(!n< to res+in) t$e !+;uisition
!%ree,ent4
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As to (re+e)ents for ! #i+en+e to !ssi%n see vo# &3 (1665 Reissue) SALE O: LAND :or,s 1 J033KM13 J111K4
!1%(/$
%". -6uipment leasin' and hire purchase a'reements
T$e !+;uirin% +or(or!te joint venture nor,!##< t!Ces over !n< e;ui(,ent #e!sin% or $ire (ur+$!se !%ree,ents to 2$i+$
t$e "usiness to "e !+;uire) "< it 2!s ! (!rt<4 T$is is )one on t$e "!sis t$!t t$e o2ner of t$e re#ev!nt !ssets !%rees to t$e
tr!nsfer of t$e o"#i%!tions +re!te) "< t$ose !%ree,ents to t$e +or(or!te joint venture4 In essen+e> t$is !,ounts to !
nov!tion> !#t$ou%$ t$is !n!#<sis is not 2it$out its (ro"#e,s
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As to t$e s!#e of !ssets fro, (ur+$!serAs (oint of vie2 see vo# *() (1661 Reissue) -USINESSES /!r!%r!($ 8 J181K4
!1%("$
%"/ 7ndemnities relatin' to creditors of ac6uired business
A +or(or!te joint venture s$ou#) seeC !n in)e,nit< fro, t$e ven)or(s) of t$e "usiness it is !+;uirin% in res(e+t of !##
o"#i%!tions !n) #i!"i#ities to +re)itors in+urre) "< t$e ven)or "usiness u( to t$e (oint of +o,(#etion of t$e s!#e
!%ree,ent4
!1%(2$
%"" 8ood0ill
7$ere !((ro(ri!te> t$e s!#es or !+;uisition !%ree,ent s$ou#) ensure t$e tr!nsfer of %oo)2i## to t$e !+;uirin% joint
venture4 T$is ,!< in+#u)e su+$ ,!tters !s tr!)e ,!rCs4
!1%)#$
%"2 Apportionment of consideration
A s!#es or !+;uisition !%ree,ent s$ou#) !((ortion t$e +onsi)er!tion "et2een e!+$ !sset to "e !+;uire) "< t$e joint
venture4 T$is ,!< "e re#ev!nt to t!9 issues su+$ !s #i!"i#it< to st!,( )ut<4 7$ere t$e v!#ue of !n !sset +!nnot "e
!s+ert!ine) 2it$out ! v!#u!tion !t t$e )!te on 2$i+$ t$e s!#e !%ree,ent is to t!Ce effe+t> t$e !%ree,ent s$ou#) (rovi)e
t$!t +o,(#etion !++ounts s$ou#) "e (re(!re) "< t$e ven)orAs !++ount!nts> !n) t$!t t$e +onsi)er!tion for su+$ !ssets 2i##
not "e )ue to t$e ven)or unti# fin!#is!tion of t$ose !++ounts4
!1%)1$
%2# 4arranties
On t$e tr!nsfer of ! "usiness> ,ost of t$e #i!"i#ities in+urre) "< t$!t "usiness re,!in t$e res(onsi"i#it< of t$e ven)or
2it$ res(e+t to ,!tters !risin% u( to t$e )!te of t$e tr!nsfer of t$e enter(rise4 7!rr!nties in su+$ +!ses !re not t$erefore
%ener!##< ne+ess!r<
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4 In (r!+ti+e> 2!rr!nties ,!< nee) to "e t!Cen in re#!tion to t$e !ssets tr!nsferre) "< ! ven)or
"usiness to ! +or(or!te joint venture4 T$e< ,!< !#so "e ne+ess!r< in res(e+t of !n< e,(#o<ees !n) t$eir !++rue) ri%$ts
fro, t$e (revious "usiness on t$e tr!nsfer of t$eir +ontr!+ts of e,(#o<,ent to t$e joint venture !n) 2it$ re%!r) to !n<
outst!n)in% #iti%!tion4 .o2ever> t$e (ur+$!ser of ! "usiness> in+#u)in% ! joint venture> 2$i+$ $!s !+;uire) ! "usiness
s$ou#) seeC 2!rr!nties fro, t$e ven)or to t$e effe+t t$!t !## #i!"i#ities> "ot$ !+tu!# !n) +ontin%ent> $!ve "een )is+#ose)
to t$e (ur+$!sin% joint venture4
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T$e situ!tion 2ou#) "e )ifferent in t$e +!se of ! s$!re tr!nsfer tr!ns!+tion4
!1%)%$
C: E=/LO?EE AGREE=ENTS AND /ROVISIONS
%21 -mployees of the endor business
An< ri%$ts !++rue) "< t$e e,(#o<ees of ! "usiness 2$i+$ is "ein% so#) 2i## "e tr!nsferre) to t$e (ur+$!ser 2$ere t$e
"usiness is tr!nsferre) !s !n entire !n) sin%#e un)ert!Cin%4 T$is is ! +onse;uen+e of t$e Tr!nsfer of Un)ert!Cin%s
(/rote+tion of E,(#o<,ent) Re%u#!tions 1651
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4 It 2ou#) t$erefore "e !((ro(ri!te for t$e (ur+$!ser of t$e "usiness
in+#u)in% ! joint venture +o,(!n< to seeC 2!rr!nties re#!tin%> inter !#i!> to t$e ter,s of e,(#o<,ent> !n) t$e e9isten+e
of !n< outst!n)in% e,(#o<,ent )is(utes4
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Tr!nsfer of Un)ert!Cin%s (/rote+tion of E,(#o<,ent) Re%u#!tions 1651E136* !s !,en)e)4 See !#so t$e )e+isions of t$e
Euro(e!n Court of Justi+e !n) t$e )o,esti+ +ourts on t$e EC Coun+i# Dire+tive 33E153 (t$e A+;uire) Ri%$ts Dire+tive)4 T$e
o(er!tion of t$e 1651 Re%u#!tions is !#so )e(en)ent on t$e tr!nsfer of t$e entire un)ert!Cin% in+#u)in% t$e 2orCfor+e fro, t$e
ven)or to t$e (ur+$!ser4
!1%)($
%2% Associated employers
7$ere ! joint venture +o,(!n< +onstitutes !n !sso+i!te) e,(#o<er
1
2it$ ! +o,(!n< or +o,(!nies 2$i+$ su((#ie)
e,(#o<ees to t$e venture> t$en t$e e,(#o<ees 2i## +!rr< t$eir !++rue) e,(#o<,ent ri%$ts to t$eir ne2 e,(#o<,ent !n)
e,(#o<er> even 2$en t$e Tr!nsfer of Un)ert!Cin%s (/rote+tion of E,(#o<,ent) Re%u#!tions 1651
!re not !((#i+!"#e4

:or t$ese (ur(oses e,(#o<ers !re re%!r)e) !s !sso+i!te) if one is ! +o,(!n< of 2$i+$ t$e ot$er> )ire+t#< or in)ire+t#<>
$!s +ontro#> or if "ot$ !re +o,(!nies of 2$i+$ ! t$ir) (erson> )ire+t#< or in)ire+t#<> $!s +ontro#
&
4 T$e test of +ontro# is
)eter,ine) "< referen+e to s$!re$o#)in% r!t$er t$!n fun+tion!# +ontro#
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4 A++or)in%#<> in +!ses 2$ere ! joint venture
+o,(!n< is o2ne) "< t2o (!rti+i(!nts on ! 08'08 s$!re s(#it> t$en it is un#iCe#< t$!t t$e joint venture +o,(!n< 2i## "e
re%!r)e) !s !n !sso+i!te) e,(#o<er of eit$er of t$e (!rti+i(!nts
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See t$e E,(#o<,ent /rote+tion (Conso#i)!tion) A+t 1635 S+$ 1&> (!r! 15 (11 .!#s"ur<As St!tutes (*t$ E)n) E=/LO?=ENT)4
Tr!nsfer of Un)ert!Cin%s (/rote+tion of E,(#o<,ent) Re%u#!tions 1651E136* !s !,en)e)4

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E,(#o<,ent Ri%$ts A+t 1661 s &1 (11 .!#s"ur<As St!tutes (*t$ E)n) E=/LO?=ENT)4
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See Washin!ton )rts )ssociation Ltd v Forster J165&K ICR &*1> EAT4
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See @air &olour &onsultants Ltd v (ena J165*K ICR 131> EAT4
!1%))$
%2( 3econdment a'reements
%2(11 <obility clauses
In t$e +!se of ! se+on),ent !%ree,ent> !n e,(#o<ee ,!< "e tr!nsferre) on ! te,(or!r< "!sis fro, t$e e,(#o<,ent of
one of t$e (!rti+i(!ntsEs$!re$o#)ers of t$e joint venture +o,(!n< to t$!t enter(rise4 .o2ever> in t$ese +ir+u,st!n+es it
s$ou#) "e note) t$!t !n e,(#o<ee +!n on#< "e o"#i%e) to 2orC for t$e joint venture +o,(!n< if t$ere is ! (rovision> !
so'+!##e) ,o"i#it< +#!use> in $is ori%in!# +ontr!+t of e,(#o<,ent 2$i+$ (#!+es su+$ !n o"#i%!tion on t$e e,(#o<ee
1
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1 :or !n !%ree,ent for t$e se+on),ent of e,(#o<ees to ! joint venture +o,(!n< see :or, 10 J1581K (ost4 :or ! #etter fro, t$e
e,(#o<in% +o,(!n< to !n e,(#o<ee "ein% se+on)e) see :or, 16 J1531K (ost4
!1%),$
%2(1% Aicarious liability
Vi+!rious #i!"i#it< for t$e !+tions of t$e se+on)e) e,(#o<ee ,!< rest 2it$ t$e joint venturer 2$o is t$e ori%in!# !n)
(rin+i(!# e,(#o<er4 T$is ,!< re,!in t$e +!se even 2$ere t$e re#ev!nt e,(#o<ee is !+tin% in !++or)!n+e 2it$
instru+tions fro, t$e joint venture +o,(!n< or enter(rise4 A++or)in%#<> it 2ou#) "e !)vis!"#e for !n !((ro(ri!te
in)e,nit< to "e in+#u)e) in !n< se+on),ent !%ree,ent4 An< e,(#o<,ent +ontr!+t> even in t$e +!se of ! se+on),ent
!%ree,ent> s$ou#)> 2$ere !((ro(ri!te> +ont!in restri+tive +oven!nts
1
> !n) +onfi)enti!#it< +#!uses4 Sin+e ! se+on)e)
e,(#o<ee ,!< "e t$e ori%in!tor of inte##e+tu!# (ro(ert<> t$e se+on),ent !%ree,ent s$ou#) )eter,ine 2$o s$ou#) o2n
su+$ (ro(ert<
4
7$ere !((ro(ri!te> t$e joint venture !%ree,ent s$ou#) (rovi)e t$!t 2$ere Ce< e,(#o<ees !re se+on)e) fro,
t$e e,(#o<,ent of one of t$e (!rti+i(!nts to t$e joint venture> neit$er t$e joint venture nor !n< of t$e ot$er (!rti+i(!nts
in it 2i## seeC to so#i+it su+$ e,(#o<ees )urin% t$e +ontinu!tion of t$e joint venture> or even on its ter,in!tion4
1
Restri+tive +oven!nts i,(ose) in t$e +!se of e,(#o<ees 2i## %ener!##< "e )r!fte) !n) !((#ie) in ,ore restri+te) +ir+u,st!n+es
t$!n in t$e +!se of restri+tive +oven!nts i,(ose) on !n e9'(!rtner: see :or, 10 +#!uses &4* J1580K> 6 J1511K (ost4
See t$e Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 s 11() (11 .!#s"ur<As St!tutes (*t$ E)n) CO/?RIG.T) 2$i+$ (rovi)es t$!t
+o(<ri%$t +re!te) "< !n e,(#o<ee is o2ne) "< t$e e,(#o<er un#ess t$ere is !%ree,ent to t$e +ontr!r<4 See !#so :or, 10 +#!use 5
J1518K (ost4
!1%).$
D: RESTRICTIVE COVENANTS
%2) 7ntroduction
7$ere t$e %oo)2i## of t$e enter(rise is tr!nsferre)> t$e (ur+$!ser> in+#u)in% ! joint venture> s$ou#)> in !((ro(ri!te
+ir+u,st!n+es> o"t!in +oven!nts fro, t$e ven)or t$!t t$e #!tter 2i## not +o,(ete 2it$ t$e (ur+$!ser
1
4 Su+$ (rovisions
,!< "re!+$ t$e +o,(etition #!2s "ot$ of t$e ,e,"er st!te(s) !n) of t$e EC> 2$ere t$e enter(rise is "!se) or is to
o(er!te in t$e EC
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As to t$e #e%!# effe+t !n) enfor+e!"i#it< of su+$ +oven!nts 2it$in t$e +onte9t of (!rtners$i( joint ventures see /!r!%r!($ 1
J536K !nte4 See !#so :or, +#!uses 64 J103K> 64& J105K4
As to UB !n) EC +o,(etition #!2 see /!r!%r!($s 106 J1811K !n) 1 J1101K et se; !nte4
!1%)/$
%2, :e'al effect of restrictie coenants in a corporate joint enture
T$e #e%!# effe+ts of restri+tive +oven!nts 2ere +onsi)ere) in Dawna, B Da, and &o Ltd v de Braconier d3)lphen
1

2$i+$ +on+erne) ! restr!int of tr!)e +#!use in ! joint venture !%ree,ent +re!tin% ! joint#< o2ne) +o,(!n<4 T$e
(#!intiff> ! #i,ite) +o,(!n<> 2!s ! (!rti+i(!nt s$!re$o#)er in t$e joint venture +o,(!n< 2$i#e t$ree of t$e )efen)!nts
2ere e,(#o<ees> )ire+tors !n) s$!re$o#)ers of t$e joint venture +o,(!n< 2$o su"se;uent#< ter,in!te) t$eir
e,(#o<,ent 2it$ it !n) joine) t$e fourt$ )efen)!nt4
T$e (#!intiff issue) (ro+ee)in%s !%!inst t$e t$ree )efen)!nts +#!i,in%> inter !#i!> t$e enfor+e,ent of
+ontr!+tu!# un)ert!Cin%s "< t$e, in t$e joint venture !%ree,ent not to +o,(ete 2it$ t$e "usiness of t$e joint venture
+o,(!n<> not to so#i+it "usiness fro, t$e +usto,ers of t$e joint venture +o,(!n< !n) not to so#i+it or enti+e !2!< t$e
,e,"ers of st!ff of t$e joint venture +o,(!n< for one <e!r !fter t$e ter,in!tion of t$eir e,(#o<,ent 2it$ t$e joint
venture +o,(!n<4 T$e )efen)!nts +#!i,e) t$e un)ert!Cin%s 2ere voi) !n) unenfor+e!"#e "ein% !n un#!2fu# restr!int of
tr!)e4 T$e (rin+i(!# issue 2!s 2$et$er t$e (#!intiff +ou#) enfor+e t$e +oven!nts !%!inst +o,(etition !n) so#i+it!tion of
+usto,ers4 T$e )efen)!nts su",itte) t$!t t$e (#!intiff $!) no #e%iti,!te or #!2fu# interest in )oin% so "e+!use it 2!s> in
essen+e> no ,ore t$!n !n investor in> !n) +re)itor of> t$e "usiness o2ne) "< !n) o(er!te) t$rou%$ t$e joint venture
+o,(!n<4 Enfor+e,ent of t$e +#!uses> t$e< +onten)e)> s$ou#) $!ve "een un)ert!Cen "< t$e joint venture +o,(!n<4
T$e +ourt +onsi)ere) 2$et$er ! joint venturer> 2$o 2!s not ! (!rtner
in t$e enter(rise> $!) suffi+ient interest

to "e (er,itte) to enfor+e !nti'+o,(etition !n) !nti'so#i+it!tion +oven!nts !%!inst $is fe##o2 joint venturers> 2$en t$e
enter(rise of t$e venture 2!s to "e )eve#o(e) !n) +!rrie) on t$rou%$ t$e ,e)iu, of ! joint venture +o,(!n<4 It
)eter,ine) t$!t t$e +!te%ories of +!ses in 2$i+$ restr!int of tr!)e +#!uses or +oven!nts 2ere enfor+e!"#e 2ere not
restri+te) to +!ses +on+ernin% ven)ors !n) (ur+$!sers> or ,!sters !n) serv!nts
&
H t$e< 2ere neit$er ri%i) nor e9+#usive4
T$e +oven!nt +ou#) "e enfor+e) 2$en t$e +oven!ntee $!) ! #e%iti,!te interest> of 2$!tever Cin)> to (rote+t> !n) t$e
+oven!nt or +#!use 2!s )r!fte) in ter,s no 2i)er t$!n ne+ess!r< to (rote+t t$!t interest
*
4 A++or)in%#<> t$e Court of
A((e!# $e#) t$!t t$e f!+t t$!t t$e (#!intiff 2!s neit$er t$e (ur+$!ser of ! "usiness fro, t$e )efen)!nts> nor t$eir
e,(#o<er> )i) not ,e!n t$!t t$e +oven!nts in t$e joint venture !%ree,ent +ou#) not "e enfor+e) "< t$e (#!intiff4
!1%)"$
T$e Court of A((e!# !%ree) 2it$ t$e vie2 of t$e ju)%e !t first inst!n+e t$!t t$e (#!intiff enjo<e) ! suffi+ient
#e%iti,!te interest of ! (ro(riet!r< n!ture in t$e joint venture enter(rise to entit#e it to seeC to (rote+t t$ose interests "<
2!< of Drestri+tive +oven!ntsA
0
!n) re%!r)e) !s irre#ev!nt t$e f!+t t$!t t$e joint venture +o,(!n< $!) not "een for,e)
!t t$e ti,e t$e !%ree,ent $!) "een entere) into
1
4 It (#!+e) t$e +oven!nts in t$e joint venture !%ree,ent in t$e +onte9t
of t$e joint venture +o,(!n< !n) t$e (ro(ose) enter(rise for 2$i+$ it $!) "een for,e)4 T$e (!rties to t$e venture $!)
)e(en)e) on t$e ot$erAs (ro(ose) +ontri"ution for t$e su++essfu# un)ert!Cin% of t$e joint enter(rise4 A++or)in%#<> it
$e#) t$!t t$e !%ree,ent %!ve t$e (#!intiff ! ,!nifest +o,,er+i!# interest in s!fe%u!r)in% t$e joint venture +o,(!n<
!%!inst +o,(etition fro, t$e )efen)!nts> in)ivi)u!##< or +o##e+tive#<> for t$e sti(u#!te) (erio) of one <e!r4
T$is )e+ision !((e!rs to sett#e t$e issue of t$e enfor+e!"i#it< of restr!int of tr!)e +#!uses in !%ree,ents to
2$i+$ ! +or(or!te joint venture is ! (!rt<4 Nevert$e#ess> )iffi+u#ties re,!in> t$ou%$ it see,s +#e!r fro, t$e !"ove +!se
t$!t t$e (!rti+i(!nts in ! +or(or!te joint venture +!n enfor+e restr!int of tr!)e +oven!nts inter se 2$i+$ !re +ont!ine) in
!%ree,ents to 2$i+$ t$e< !n) t$e +or(or!te joint venture !re (!rties4 It re,!ins un+ert!in 2$et$er su+$ +#!uses 2i## "e
+onstrue) #i"er!##<> !s in t$e +!se of restri+tive +oven!nts +ont!ine) in (!rtners$i( !%ree,ents> or ,ore restri+tive#<> !s
is t$e +!se of su+$ +#!uses in e,(#o<erEe,(#o<ee +ontr!+ts4
!1%)2$
1
Dawna, B Da, and &o Ltd v de Braconier d3)lphen J1663K IRLR **> CA4
As to t$e si%nifi+!n+e of t$is (oint see /!r!%r!($ 1 J536K et se; !nte 2$ere restr!int of tr!)e +#!uses !re +onsi)ere) (rin+i(!##<
2it$in t$e +onte9t of joint venture (!rtners$i(s4 T$ere ,!<> not2it$st!n)in% t$e !"ove +!se> sti## "e !)v!nt!%es in enfor+in%
restr!int of tr!)e +#!uses 2it$in t$e ,!tri9 of ! (!rtners$i( joint venture4
&
T$is 2!s in !++or)!n+e 2it$ t$e .ouse of Lor)s )e+ision in Esso Petroleum &o Ltd v @arper3s Gara!e 1#tourport6 Ltd J1615K
AC 164 T$e +ourt )i) not !((e!r to ,!Ce referen+e in t$is +onte9t to t$e enfor+e,ent of su+$ +oven!nts in t$e +!se of
(!rtners$i( !n) (!rtners$i( joint ventures4
*
T$is is t$e (rin+i(#e enun+i!te) in t$e +!se of Deacons v Brid!e J165*K AC 380 2$i+$ +on+erne) restr!int of tr!)e +#!uses in !
(!rtners$i( !%ree,ent4 In t$!t +!se Lor) :r!ser of Tu##<"e#ton (in %ivin% effe+t to su+$ +#!uses 2it$in t$e +onte9t of !
(!rtners$i( !%ree,ent) reje+te) t$e use "< !n!#o%< of t$e (rin+i(#es uti#ise) "< t$e +ourts in t$e +onsi)er!tion of t$e
enfor+e!"i#it< of restr!int of tr!)e +#!uses or +oven!nts use) in e,(#o<erEe,(#o<ee !%ree,ents or in ven)orE(ur+$!ser s!#e of !
"usiness !n) %oo)2i## !%ree,ents4 It ,!< "e t$!t ! restr!int of tr!)e +#!use in ! (!rtners$i(Ejoint venture !%ree,ent ,!< "e ,ore
#i"er!##< +onstrue) t$!n !n e;uiv!#ent +#!use in !n !%ree,ent 2$ere t$e ,e)iu, for t$e joint venture enter(rise is ! +o,(!n<4
T$e (osition re,!ins un+#e!r4
0
T$is 2!s !((!rent#< t$e ter, use) "< t$e first inst!n+e ju)%e4
1
It is su",itte) t$!t t$e f!+t t$!t t$e joint venture +o,(!n< $!) not "een for,e) !t t$e ti,e t$!t t$e joint venture !%ree,ent 2!s
+on+#u)e) 2ou#) !((e!r to "e re#ev!nt4 If> !s 2!s inten)e)> t$e venture 2!s to "e +!rrie) on t$rou%$ t$e ,e)iu, of ! +o,(!n<>
it is )iffi+u#t to see 2$i+$ (ro(riet!r< interests t$e (#!intiff enjo<e) in t$e venture> ot$er t$!n !s ! (ros(e+tive s$!re$o#)er> t$!t
t$e restri+tive +oven!nts in t$e joint venture !%ree,ent +ou#) (rote+t4 :urt$er,ore> t$e Court of A((e!# )i) not e9(#!in 2$<
s$!re$o#)ers in ! joint venture s$ou#) $!ve ! (ro(riet!r< interest in t$e enfor+in% of restri+tive +oven!nts 2$i+$ s$ou#) $!ve
"een enfor+e) "< t$e joint venture +o,(!n<> sin+e it 2!s t$e #!tter 2$i+$ e,(#o<e) t$e re#ev!nt (ersonne#4
!1%,#$
E: LOANS AND GUARANTEES
%2. :oans
T$e (!rti+i(!nts to ! joint venture enter(rise ,!< ,!Ce so,e or !## of t$eir +ontri"utions to t$e venture in t$e for, of
#o!ns 2$i+$ ,!< "e issue) on ! for,!# "!sis4 In !n< event> !((ro(ri!te )o+u,ent!tion +ont!inin% t$e ter,s of t$e #o!n>
!n)> 2$ere !((ro(ri!te> +re!tin% se+urit< for t$e,> 2i## $!ve to "e )r!2n u(
1
4 It is in t$e interests of "ot$ t$e in)ivi)u!#
(!rti+i(!nts in ,!Cin% t$e #o!ns to t$e venture> !n) t$e (!rti+i(!nts +o##e+tive#< in re+eivin% t$e #o!ns t$rou%$ t$e
,e)iu, of t$e joint venture +o,(!n<> t$!t t$e< s$ou#) ensure t$!t t$e "usiness of t$e joint venture 2i## "e !"#e to ,eet
t$e +ost of servi+in% t$e #o!ns 2$ere t$e< !re interest'"e!rin% or re;uire (erio)i+ (!<,ents of +!(it!#4 Even t$e
re(!<,ent of +!(it!# on !n interest'free #o!n ,!< (reju)i+e t$e +!(it!# nee)e) "< t$e venture for t$e +!rr<in% on of t$e
"usiness4
1
As to se+urit< for #o!ns see vo# 18 CO=/ANIES /!r!%r!($ 151J181K et se;4
!1%,1$
%2/ 8uarantees
A joint venture 2$i+$ is not +!(it!#'intensive ,!< "e fin!n+e) not "< t$e )ire+t (rovision of ,one<> "ut ,ere#< "< t$e
(rovision of %u!r!ntees> for e9!,(#e in su((ort of its "!nC "orro2in%s or its o"#i%!tions un)er ! #e!se of "usiness
(re,ises4 If t$e joint venture is to "e fin!n+e) in t$is 2!<> t$e o"#i%!tions of t$e (!rti+i(!nts to t$e venture 2it$ res(e+t
to t$e ne+ess!r< %u!r!ntees s$ou#) "e set out in t$e un)er#<in% s$!re$o#)ersA> (!rtners$i( or +onsortiu, !%ree,ent4
.o2ever> t$e !+tu!# ter,s of t$e re#ev!nt %u!r!ntee )o+u,ents ,ust "e for,!#ise)4 T$e (!rties s$ou#) set out> in t$e
un)er#<in% !%ree,ent> t$e +onse;uen+es for ! (!rti+i(!ntAs %u!r!ntee if t$e (!rti+i(!nt #e!ves t$e joint venture
1
4 It ,!<
"e t$!t ! "!nC> !s t$e $o#)er of !n< %u!r!ntees> or t$e #essor in res(e+t of !n< #e!se$o#) (ro(ert< $e#) "< t$e joint
venture 2i## !++e(t furt$er %u!r!ntees fro, t$e re,!inin% (!rti+i(!nts> or t$!t t$e (osition of %u!r!ntor +!n "e fi##e) "<
fin)in% ! ne2 (!rti+i(!nt4 If t$is is not (ossi"#e> t$e )e(!rtin% (!rti+i(!ntAs %u!r!ntee 2i## re,!in in for+e )es(ite t$!t
(!rt<As 2it$)r!2!# fro, t$e venture4 In su+$ ! +!se t$e re,!inin% (!rti+i(!nts ,!< %ive su((ortin% in)e,nities to t$!t
(!rt<
4
1
As to t$e +onse;uen+es for t$e (!rti+i(!ntAs %u!r!ntee in res(e+t of ! joint venture (!rtners$i(> see /ri,e !n) S+!n#!n 'he Law
o. Partnership (1660) +$ 14
T$is is t$e (osition 2it$ re%!r) to ! joint venture (!rtners$i( 2$en one of t$e (!rtners #e!ves t$e venture> !n) t$erefore t$e
(!rtners$i(> irres(e+tive of t$e e9isten+e of %u!r!ntees4
!1%,%$
:: =ANAGE=ENT AND SERVICE AGREE=ENTS
%2" <ana'ement a'reements
%2"11 &ole of mana'in' participant
In ,!n< joint venture +o,(!nies> no (rovision is ,!)e initi!##< for in)e(en)ent ,!n!%e,ent or +#eri+!# servi+es4 It is
+o,,on (r!+ti+e for one of t$e (!rti+i(!nts in t$e joint venture to un)ert!Ce t$e )!<'to')!< ,!n!%e,ent of t$e
enter(rise> su"je+t to t$e overri)in% +ontro# of t$e (!rti+i(!nts !s ! "o)< un)er t$e joint venture !%ree,ent4 In su+$
+!ses it is !)vis!"#e for t$e (!rti+i(!nts to enter into ! ,!n!%e,ent !%ree,ent 2$i+$ sets out (re+ise#< t$e fun+tions
2$i+$ !re to "e +!rrie) out "< t$e re#ev!nt (!rti+i(!nt4 :urt$er,ore> t$e e9tent of> !n) t$e #i,it!tions u(on> t$e
!ut$orit< of t$e ,!n!%in% (!rti+i(!nt
1
,ust !#so "e (res+ri"e) in su+$ !n !%ree,ent4 It is ne+ess!r< to i,(ose u(on t$e
,!n!%in% (!rti+i(!nt !n e9(ress o"#i%!tion to re(ort on $is +on)u+t re#!tin% to t$e ,!n!%e,ent of t$e joint venture to
t$e ot$er +o'(!rti+i(!nts
4 If t$e ,!n!%in% (!rti+i(!nt is to re+eive re,uner!tion for +!rr<in% on t$ese servi+es on

"e$!#f of t$e joint venture> t$is ,ust "e e9(resse) in t$e ,!n!%in% !%ree,ent
&
4
!1%,($
1
:or ! ,!n!%e,ent !%ree,ent see :or, 1 J1305K (ost4 In t$e +!se of ! (!rtners$i( joint venture> ,!tters re#!tin% to t$e !ut$orit<
of t$e ,!n!%in% (!rti+i(!nt (!rtner !re (res+ri"e) in (!rt "< t$e /!rtners$i( A+t 1568 s 0 (& .!#s"ur<As St!tutes (*t$ E)n)
/ARTNERS.I/) !n) t$e #!2 of !%en+<: see vo# &8 /ARTNERS.I/ (1661 Reissue) /!r!%r!($ 31 J6&K et se; !n) /ri,e !n)
S+!n#!n 'he Law o. Partnership (1660) ( 118)4 In su+$ +!ses t$e (!rtners$i( !%ree,ent s$ou#) ,!Ce (rovision for t$e )!<'to'
)!< ,!n!%e,ent of t$e joint venture "< t$e (!rti+i(!nts: see vo# &8 /ARTNERS.I/ (1661 Reissue) :or,s +#!use 8 J*&5K> 1
J0*6K4 See !#so t$e /!rtners$i( A+t 1568 s * 2$i+$ )eter,ines 2$!t +onstitutes or)in!r< "usiness ,!tters 2$i+$ +!n> in t$e
!"sen+e of +ontr!r< (rovision in t$e (!rtners$i( !%ree,ent> "e e9e+ute) "< ! sin%#e (!rti+i(!ntE(!rtner on "e$!#f of t$e
(!rtners$i( joint venture4 Nevert$e#ess> !n< (rovision in ! ,!n!%e,ent !%ree,ent +!n on#< (res+ri"e t$e e9(ress !ut$orit< of t$e
,!n!%in% (!rti+i(!nt to !+t on "e$!#f of !n) to "in) t$e enter(rise4 T$e ,!n!%in% (!rti+i(!nt ,!< "in) t$e enter(rise 2it$ re%!r)
to ! t$ir) (!rt< "e+!use of $is or its i,(#ie)> !((!rent or ostensi"#e !ut$orit<4 7$ere t$e ,!n!%in% (!rti+i(!nt !+ts outsi)e $is or
its e9(ress !ut$orit< (res+ri"e) in t$e ,!n!%e,ent !%ree,ent !n) "< )oin% so in+urs #i!"i#it< "< "in)in% t$e enter(rise> t$e
!%ree,ent s$ou#) (rovi)e for t$!t (!rt< to in)e,nif< t$e joint venture !n) t$e ot$er (!rti+i(!nts for !n< +onse;uenti!# #osses
in+urre)4
In t$e +!se of ! (!rtners$i( joint venture> t$e (!rtners inter se 2i## "e o"#i%e) to )is+#ose !n) to re(ort to one !not$er !n< ,!tters
(ert!inin% to t$e (!rtners$i(4 Su+$ o"#i%!tions 2i## usu!##< "e (res+ri"e) in t$e (!rtners$i( !%ree,ent: see vo# &8
/ARTNERS.I/ (1661 Reissue) /!r!%r!($ **41& J&&5K4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 54
&
T$is is irres(e+tive of t$e for, t$e joint venture t!Ces> t$!t is> ! (!rtners$i( joint venture or ! +or(or!te venture4
!1%,)$
%2"1% 3upport serices
=!n!%e,ent of ! joint venture 2i## re;uire su((ort servi+es in t$e for, of +#eri+!# !n) !),inistr!tive (rovision4 A
,!n!%e,ent !%ree,ent s$ou#) t$erefore (rovi)e for t$e ,!n!%in% (!rti+i(!nt to %r!nt to t$e joint venture !n) !n< of
t$e (!rti+i(!nts ! ri%$t to o++u(< or s$!re its or $is "usiness (re,ises> se+ret!ri!# !n) !++ountin% servi+es !n) t$e use of
offi+e e;ui(,ent
1
4 A#tern!tive#<> su+$ ,!tters !s t$e (rovision of offi+e e;ui(,ent or +ert!in servi+es ,!< "e (rovi)e)
"< ! (!rti+i(!nt in t$e joint venture ot$er t$!n t$e ,!n!%in% (!rti+i(!nt4 In !n< event> in su+$ ! situ!tion it is ne+ess!r<
t$!t t$ere "e +#e!r !%ree,ent "et2een t$e (!rties !s to 2$!t is to "e (rovi)e)> "< 2$o, !n) t$e "!sis on 2$i+$ su+$
e;ui(,ent !n) or servi+es !re to "e (!i) for
4
T$e +onfi)enti!#it< of t$e joint ventureAs !ff!irs s$ou#) !#so "e (rote+te) t$rou%$ (rovision in t$e
,!n!%e,ent !%ree,ent
&
4
1
As to t$e ,!n!%e,ent of (!rtners$i(s see vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($ **41 J&&1K et se; !n) :or,s 05
J0*1KM11 J000K4
As to t$e #!2 !n) (r!+ti+e re#!tin% to su+$ ,!tters 2it$in t$e +onte9t of ! (!rtners$i( see /ri,e !n) S+!n#!n 'he Law o.
Partnership (1660) +$ &4
&
Su+$ +onfi)enti!#it< 2i## fre;uent#< "e (rote+te) in t$e +!se of (!rtners$i( joint ventures "< referen+e to %ener!# (rin+i(#es of
(!rtners$i( #!2 !n) "< ter,s in t$e (!rtners$i( !%ree,ent: See /ri,e !n) S+!n#!n 'he Law o. Partnership (1660)4
!1%,,$
%22 3erice a'reements
In t$e +!se of ! +or(or!te joint venture it ,!< "e ne+ess!r< to se+ure t$e servi+es of +ert!in Ce< (ersonne# su+$ !s !
,!n!%in% )ire+tor if t$e enter(rise is to "e su++essfu#
1
4 Un)er t$e re#ev!nt servi+e !%ree,ents t$e< ,!< "e tr!nsferre)
fro, t$e e,(#o<,ent of one of t$e (!rti+i(!nts in t$e venture to t$e joint enter(rise> or ,!< t$e,se#ves "e one of t$e
(!rti+i(!nts in t$e joint enter(rise4
T$e servi+e !%ree,ent ,!< +onstitute t$e in)ivi)u!#> t$e su"je+t of t$e !%ree,ent> !s !n in)e(en)ent
+ontr!+tor 2it$ re%!r) to t$e joint venture
4 Irres(e+tive of t$e st!tus of !n< (!rt< e,(#o<e) "< ! joint venture un)er !
servi+e !%ree,ent> t$e !%ree,ent s$ou#) seeC to "in) t$e re#ev!nt (ersonne# to t$e !i,s !n) o"je+tives of t$e joint
venture4 An< servi+e !%ree,ent s$ou#) +ont!in (rovisions 2$i+$ )eter,ine t$e fo##o2in%:
6641 t$e !ut$orit< of t$e (ersonne# to "in) t$e enter(rise in !n< )e!#in%s 2it$ t$ir) (!rties
&
H
664 t$e re,uner!tion of t$e (ersonne#H
664& restri+tion of free)o, of (ersonne# to +o,(ete 2it$ t$e joint venture "ot$ )urin% t$e su"sisten+e of t$e
!%ree,ent !n) !fter ter,in!tion of !n< su+$ !%ree,ent
*
H !n)
664* +onfi)enti!#it< (rovisions
0
4
!1%,.$
1
/ersonne# 2it$ (!rti+u#!r te+$ni+!# e9(ertise ,!< nee) to "e en%!%e) "< t$e joint venture t$rou%$ servi+e !%ree,ents> 2$ere
issues su+$ !s +onfi)enti!#it< !n) restr!int of tr!)e +!n "e effe+tive#< !))resse): see :or,s 1 +#!use 3 J131K> 1* +#!use 0
J1356K> 10 +#!use 6 J1511K (ost4
T$ou%$> in t$e +!se of ! +or(or!te joint venture> t$e servi+e !%ree,ent ,!< in+or(or!te +ert!in of t$e !rti+#es set out in t$e
!rti+#es of !sso+i!tion4 :or t$e +onse;uen+es of t$e !)o(tion of su+$ !n !((ro!+$ see /ri,e !n) S+!n#!n 'he Law o. Private
Limited &ompanies (1661) +$ *4 See :or, 1 +#!use 0 J1311K (ost 2$i+$ +onstitutes ! (!rti+i(!tin% +o,(!n< in ! joint
venture !n in)e(en)ent +ontr!+tor in (erfor,in% servi+es to t$e joint venture +o,(!n<4
&
As to t$e e9(ress> i,(#ie) or !((!rent !n) ostensi"#e !ut$orit< of in)ivi)u!#s or (!rties to "in) !n enter(rise see /!r!%r!($ 6
J5*8K et se; !nte4 T$e for,s of !ut$orit< ot$er t$!n e9(ress !ut$orit< ,!< "e i,(#ie) "< t$e st!tus of t$e in)ivi)u!#4 Aut$orit< to
)e!# 2it$ ,!tters 2it$in t$e usu!# +o,(eten+e of in)ivi)u!#s $o#)in% t$e offi+e of !n in)ivi)u!# ,!< "e i##ustr!te) "< t$e +!se of
Panorama Developments 1Guild.ord6 Ltd v Fidelis Furnishin! Fabrics Ltd J1631K @- 311 !t 311> (er Lor) Dennin%> 2$i+$
+on+erne) t$e usu!# !ut$orit< of ! +o,(!n< se+ret!r<4
*
See note & !"ove> :or, 1 +#!uses 64> 64& J131*K !n) :or, 10 +#!use 6 J1511K4 As to t$e #e%!#it< of su+$ (rovisions 2it$in t$e
+onte9t of ! joint venture see /!r!%r!($ 1 J5&3K et se; !nte4
0
Su+$ (rovisions ,!< "e !nti'+o,(etitive !n) su"je+t> 2$ere t$e enter(rise is "!se) or o(er!tin% in t$e EC> to eit$er n!tion!# or
EC +o,(etition #!24 As to EC !n) n!tion!# +o,(etition #!2 in t$e +onte9t of joint ventures see /!r!%r!($s 106 J1811K !n) 1
J1101K et se; !nte4
!1%,/$
(## 3econdment of personnel to the joint enture
T$e f#e9i"i#it< of t$e joint venture !s ! "usiness ,e)iu, #en)s itse#f to t$e te,(or!r< se+on),ent of (ersonne# fro,
one (!rti+i(!nt> to t$e joint venture itse#f4 In su+$ +!ses t$e un)er#<in% s$!re$o#)ersA> (!rtners$i( or +onsortiu,
!%ree,ent s$ou#) set out 2$!t is to "e (!i) "< t$e joint venture to t$e re#ev!nt (!rti+i(!nt in res(e+t of su+$ (ersons4 In
!n< event> se(!r!te !%ree,ents s$ou#) "e entere) into> se+urin% t$e +onfi)enti!#it< of su+$ (ersons !n) %ivin% +ontro#
of t$eir !+tivities to t$e joint venture )urin% t$e (erio) of t$eir se+on),ent4
!1%,"$
G: SU//L? AND DISTRI-UTION AGREE=ENTS
(#1 3upply a'reements
T$e fun)!,ent!# o"#i%!tion of one of t$e (!rties to t$e joint venture ,!< "e to su((#< to t$e enter(rise !n essenti!# r!2
,!teri!#> +o,(onent> or (ro)u+t 2$i+$ 2ou#) not ot$er2ise "e !v!i#!"#e> !t #e!st to t$e ot$er (!rti+i(!nts> "ut 2$i+$ is
ne+ess!r< for t$e su++essfu# o(er!tion of t$e enter(rise4 In su+$ ! situ!tion ! su((#< !%ree,ent s$ou#) "e entere) into
"< t$e re#ev!nt (!rti+i(!nt !n) t$e venture +o,(!n< +#e!r#< )efinin% t$e res(e+tive o"#i%!tions of t$e (!rties in t$is
res(e+t> ensurin% ! +onst!nt su((#< of t$e ,!teri!#s !n)Eor +o,(onents to t$e joint venture on re!son!"#e ter,s
1
4
1
Nevert$e#ess> su+$ !n !%ree,ent ,ust s!tisf< t$e re;uire,ents of "ot$ Unite) Bin%)o, !n) Euro(e!n +o,(etition re%u#!tions:
see /!r!%r!($s 106 J1811K !n) 1 J1101K et se; !nte for ! +onsi)er!tion of t$ese ru#es !s t$e< !((#< to su((#< !%ree,ents4
!1%,2$
(#% Distribution a'reements
One of t$e fun+tions of ! joint venture ,!< "e to )istri"ute !n) ,!rCet (ro)u+ts ,!nuf!+ture) "< one or ,ore of t$e
(!rti+i(!nts4 A#tern!tive#<> t$e situ!tion ,!< o(er!te in reverse> 2it$ ! joint venture +o,(!n< ,!nuf!+turin% (ro)u+ts
2$i+$ it t$en su((#ies to t$e (!rti+i(!nts for )istri"ution !n) ,!rCetin% "< t$e,4 In eit$er of t$ese situ!tions> t$e (!rties
2i## 2is$ to ensure t$!t t$e )istri"utor ,!Ces (ro(er efforts to ,!rCet t$e (ro)u+ts !s ! ;ui) (ro ;uo for t$e
+orres(on)in% su((#< !%ree,ent4 A++or)in%#<> ! for,!# )istri"ution !%ree,ent s$ou#) "e )r!2n u( !n) entere) into
1
4 It
2i## "e st!n)!r) (r!+ti+e for ! )istri"ution !%ree,ent> usu!##< in t$e for, of ! #i+en+e> to +ont!in !n un)ert!Cin% t$!t
t$e #i+ensee use its "est en)e!vours to> inter !#i!> )istri"ute !n) ,!rCet t$e re#ev!nt (ro)u+t
4
!1%.#$
1
Distri"ution !%ree,ents entere) into "< ! joint venture ,!< "e su"je+t to eit$er Unite) Bin%)o, or Euro(e!n +o,(etition #!2:
see /!r!%r!($s 106 J1811K !n) 1 J1101K et se; !nte4 See !#so EC Co,,ission Re%u#!tion 165&E5& t$e "#o+C e9e,(tion
)e!#in% 2it$ e9+#usive )istri"ution !%ree,ents4 An< !%ree,ent )r!fte) 2it$in t$e ter,s of Re%u#!tion 165&E5& 2i## not "e !nti'
+o,(etitive !n) 2i## not "e su"je+t to EC Tre!t< !rt 50(1)4 Re%u#!tion 165&E5& $!s "een e9ten)e) unti# t$e en) of 1666 to
+oin+i)e 2it$ t$e Green /!(er on Verti+!# Restr!ints4 It is envis!%e) t$!t !n< ne2 "#o+C e9e,(tion 2$i+$ re(#!+es t$e (resent
Re%u#!tion 2i## "e )r!fte) in si,i#!r for,4 Re%u#!tion 165&E5& !rt 1 (er,its (res+ri"e) "i#!ter!# e9+#usive )istri"ution
!%ree,ents re#!tin% to %oo)s4 T$e !rti+#e +overs !%ree,ents 2$i+$ +onfer t$e st!tus of e9+#usive )istri"utor u(on t$e (ur+$!ser
of %oo)s4 An< su+$ !%ree,ent +!n e9ten) t$rou%$out t$e EC !re!4 T$e !%ree,ent ,ust "e "i#!ter!#> "ut for t$ese (ur(oses !## t$e
e+ono,i+ entities 2it$in ! +or(or!te %rou(in% or 2$i+$ for, t$e joint venture 2i## "e re%!r)e) !s ! sin%#e enter(rise or
un)ert!Cin% !n) t$erefore outsi)e t$e s+o(e of EC Tre!t< !rt 50(1): C!se C'3&E0/ "iho Europe B" v &ommission 1Parker Pen
Ltd 8ntervenin!6 J1663K A## ER (EC) 11&4 Re%u#!tion 165&E5& !rt sets out (rovisions 2$i+$ if +ont!ine) in !n< !%ree,ent>
2ou#) (ri,! f!+ie infrin%e EC Tre!t< !rt 50(1)> "ut !re "< virtue of t$e !rti+#e %iven e9e,(tion or 2$i+$ )o not infrin%e t$e
!rti+#e "ut !re set out for +ert!int<4 Re%u#!tion 165&E5& !rt & +ont!ins ! D"#!+C'#istA of (rovisions t$!t 2ou#) (revent !n<
!%ree,ent "ein% e9e,(te)4 See !#so EC Co,,ission Re%u#!tion 165*E5&> t$e "#o+C e9e,(tion for e9+#usive (ur+$!sin%
!%ree,ents> !n) EC Co,,ission Re%u#!tion *853E55> t$e "#o+C e9e,(tion for fr!n+$isin% !%ree,ents4
See 'errell v (abie 'odd B &o Ltd (160) 16 R/C &*H !ff) (160&) 38 R/C 63> CA4 :or ! "est en)e!vours +#!use see :or,
+#!use 641 J103K4
!1%.1$
.: LICENCES AND ASSIGN=ENTS O: INTELLECTUAL /RO/ERT? RIG.TS
1: INTRODUCTION
(#( 7ntellectual property ri'hts
1
7$ere ! joint venture +o,(!n<
is to en%!%e in ,!nuf!+turin% or se##in%> it is ver< #iCe#< t$!t t$e o(er!tion of its

"usiness 2i## re;uire it to o"t!in ri%$ts 2it$ re%!r) to (!tents> tr!)e ,!rCs> +o(<ri%$t or Cno2'$o24 Often t$e !"i#it< to
%r!nt t$ese ri%$ts 2i## "e 2it$in t$e (o2er of t$e (!rti+i(!nts in t$e joint venture> "ut so,eti,es t$e< ,ust "e o"t!ine)
fro, t$ir) (!rties4 In !n< event> t$e joint venture +o,(!n< 2i## nee) to re+eive !((ro(ri!te #i+en+es fro, t$e
(ro(rietors of t$ose ri%$ts
&
> or> if t$e ri%$ts !re to "e+o,e t$e (ro(ert< of t$e joint venture> to o"t!in !ssi%n,ents of
t$e,
*
4 :urt$er> it ,!< 2e## "e t$!t t$e o(er!tions of ! joint venture +o,(!n< 2i## itse#f +re!te inte##e+tu!# (ro(ert<
ri%$ts> su+$ !s Cno2'$o2> 2$i+$ t$e (!rti+i(!nts to t$e venture ,!< 2is$ to $!ve t$e ri%$t to use in +ert!in
+ir+u,st!n+es
0
4 In t$!t +!se> t$e un)er#<in% s$!re$o#)ersA !%ree,ent s$ou#) +re!te ! ri%$t for t$e s$!re$o#)ers to t!Ce !
#i+en+e in set for, fro, t$e joint venture +o,(!n< to use t$!t inte##e+tu!# (ro(ert< in !((ro(ri!te +ir+u,st!n+es4
!1%.%$
1
As to t$e issues re#!tin% to t$e )r!ftin% of !ssi%n,ents or #i+en+es of inte##e+tu!# (ro(ert< ri%$ts re#!tin% to ,!nuf!+turin%
te+$ni;ues> (ro)u+ts> Cno2'$o2 or te+$no#o%i+!# i,(rove,ents see vo# 1(1) INTELLECTUAL /RO/ERT? (1663 Reissue)
/!r!%r!($ 16 J11&K et se;4
It is !ssu,e) t$!t t$e joint venture is ! +o,(!n<> 2$i+$ 2i## "e t$e nor,!# situ!tion in t$e +!se of joint ventures en%!%e) in
)istri"ution !rr!n%e,ents4 .o2ever> t$ere is no #e%!# o"je+tion to su+$ joint ventures "ein% eit$er (!rtners$i(s> or +onsorti!4
&
T$e (!rti+i(!nt in ! joint venture 2$o is !#so t$e (ro(rietor of +ert!in inte##e+tu!# (ro(ert< ri%$ts 2i## %ener!##< "e un2i##in% to
!ssi%n su+$ ri%$ts to t$e venture in +!se t$e enter(rise f!i#s4 A #i+en+e of su+$ ri%$ts is ! ,ore f!vour!"#e ,et$o) of se+urin% for
! joint venture t$e ne+ess!r< inte##e+tu!# (ro(ert< it re;uires to fu#fi# its !i,s !n) o"je+tives4
*
-ut see note & !"ove> 2it$ re%!r) to t$e %ener!# un)esir!"#e +onse;uen+es of !ssi%nin% inte##e+tu!# (ro(ert< ri%$ts4
0
An) (ossi"#< in +o,(etition 2it$ t$e +or(or!te joint venture: see :or, 11 +#!use 1 J13*0K4
!1%.($
: TRADE =ARBS
(#) &e'istration of trademar>s
Tr!)e ,!rCs ,!< "e re%istere) un)er t$e Tr!)e =!rCs A+t 166*4 Tr!)e ,!rCs 2$i+$ !re not or +!nnot "e re%istere) +!n
sti## "e (rote+te) "< re+ourse to t$e tort of (!ssin% off4 T$e o2ner of ! tr!)e ,!rC re%istere) un)er t$e A+t $!s
De9+#usive ri%$tsA 2$i+$ !re infrin%e) if !n< ot$er (!rt< ,!Ces use of t$e ,!rC 2it$out t$e re%istere) (ro(rietorAs
+onsent
1
4 T$e (!rti+i(!nts to ! joint venture ,!< 2is$ to !ssi%n or %r!nt ! #i+en+e in res(e+t of !n< tr!)e ,!rCs of
2$i+$ t$e< !re (ro(rietors to t$e joint venture enter(rise> 2$i+$ 2i## usu!##< "e ! +o,(!n< re%istere) un)er t$e
Co,(!nies A+ts4
1
Tr!)e =!rCs A+t 166* s 6(1) (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)4
!1%.)$
(#, Assi'nment of trade mar>s
T$e (rovisions of t$e Tr!)e =!rCs A+t 166* 2$i+$ %overn t$e )e!#in% in (ie t$e !ssi%n,ent !n) #i+ensin% of t$e use of)
tr!)e ,!rCs ref#e+t one of t$e (rin+i(!# (o#i+ies of t$e A+t: t$!t tr!)e ,!rCs !re to "e re%!r)e) !s (erson!# (ro(ert<
1
4

Even ! (en)in% !((#i+!tion for re%istr!tion of ! tr!)e ,!rC 2i## "e re%!r)e) !s (erson!# (ro(ert<> 2it$ t$e resu#t t$!t
)e!#in%s in su+$ ite,s +!n "e re+or)e) un)er t$e !e%is of t$e A+t
4
Un)er t$e 166* A+t> 2$ere ! tr!)e ,!rC is +o'o2ne)> e!+$ (!rt< is entit#e)> t$ou%$ su"je+t to +ontr!r<
!%ree,ent> to !n e;u!# un)ivi)e) s$!re in t$e re%istere) ,!rC
&
4 A re%istere) tr!)e ,!rC is tr!ns,issi"#e "< !ssi%n,ent
or "< !n< ot$er 2!< t$!t (erson!# (ro(ert< is tr!ns,issi"#e
*
4 An< !ssi%n,ent of ! tr!)e ,!rC s$ou#) )eter,ine
(re+ise#< 2$i+$ %oo)s or servi+es re(resente) "< t$e tr!)e ,!rC !re t$e su"je+t of t$e !ssi%n,ent4 :urt$er,ore> t$e
!ssi%n,ent s$ou#) !#so s(e+if< !n< restri+tions on t$e use of t$e tr!)e ,!rC !n)Eor !n< territori!# #i,it!tion
0
4 T$e on#<
for,!#ities for t$e !ssi%n,ent of ! tr!)e ,!rC !re t$!t it "e in 2ritin% !n) si%ne) "< t$e !ssi%nor or t$eir (erson!#
re(resent!tive
1
4
Sin+e ! tr!)e ,!rC is ! s(e+ies of (erson!# (ro(ert<> it is not stri+t#< ne+ess!r< for !n< !ssi%n,ent to +ont!in
!n< e9(ress +oven!nts for tit#e4 Coven!nts for tit#e 2i## "e i,(#ie) if t$e !ssi%n,ent +ont!ins ! ter, su+$ !s D2it$ fu##
tit#e %u!r!nteeA
3
4
!1%.,$
1
/rior to t$e en!+t,ent of t$e Tr!)e =!rCs A+t 166* (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)
t$e %overnin% #e%is#!tion 2!s +ont!ine) in t$e Tr!)e =!rCs A+t 16&54 T$is en!+t,ent i,(ose) !n un)u#< restri+tive re%i,e on
t$e #i+ensin% or !ssi%n,ent of tr!)e ,!rCs4
Tr!)e =!rCs A+t 166* s 34

&
I"i) s &4
*
I"i) s *4
0
I"i) s *()4 Su+$ restri+tions ,!< "e su"je+t to +o,(etition #!2: see /!r!%r!($ 1 J1101K et se; !nte4
1
I"i) s *(&)4 T$e (osition is t$e s!,e for !ssi%n,ents ,!)e "< 2!< of se+urit<: i"i) s *(*)4
3
Or 2$ere !((ro(ri!te 2it$ ! ,ore restri+te) %u!r!ntee 2it$ 2or)s su+$ !s D2it$ #i,ite) tit#e %u!r!nteeA: see L!2 of /ro(ert<
(=is+e##!neous /rovisions) A+t 166* s 1(1)M(&) (&3 .!#s"ur<As St!tutes (*t$ E)n) REAL /RO/ERT?)4
!1%..$
(#. :icensin' of trade mar>s
(#.11 Alternatie to assi'nment
T$e st!tutor< (rovisions %overnin% t$e #i+ensin% of t$e use of tr!)e ,!rCs "efore t$e en!+t,ent of t$e Tr!)e =!rCs A+t
166* 2ere un)u#< restri+tive4 T$e 166* A+t> "< 2!< of +ontr!st> (#!+es no restri+tions on t$e #i+ensin% of re%istere)
tr!)e ,!rCs
1
4 T$e %r!ntin% of ! #i+en+e of ! tr!)e ,!rC to ! joint venture 2$ere one of t$e (!rti+i(!nts to t$e joint
venture is ! (ro(rietor of t$e joint enter(rise is ! vi!"#e !#tern!tive to t$e !ssi%n,ent of t$e res(e+tive ri%$ts in t$e tr!)e
,!rC to t$e venture
4 Li+ensin% in su+$ +!ses s$ou#) en!"#e t$e joint venture to use t$e tr!)e ,!rC effe+tive#<> "ut 2i##
en!"#e t$e (ro(rietor to ret!in ,ore effe+tive +ontro# !n) u#ti,!te o2ners$i( over 2$!t ,!< "e ! v!#u!"#e (ro(ert<4
1
Note> $o2ever> t$e Tr!)e =!rCs A+t 166* s *1(1) (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)
2$i+$ )eter,ines t$!t ! tr!)e ,!rC ,!< "e revoCe)> inter !#i!> if use of t$e tr!)e ,!rC "< t$e #i+ensee> 2it$ t$e +onsent of t$e
(ro(rietor> in re#!tion to t$e %oo)s or servi+es for 2$i+$ t$e ,!rC 2!s re%istere)> is #i!"#e to ,is#e!) t$e (u"#i+> (!rti+u#!r#< 2it$
re%!r) to t$e n!ture> ;u!#it< or %eo%r!($i+!# ori%in of t$e re#ev!nt %oo)s or servi+es4 A++or)in%#<> !n< !ssi%n,ent s$ou#) seeC to
ensure t$!t t$e use of t$e tr!)e ,!rC "< t$e #i+ensee is stri+t#< +ontro##e)4 :or !ssi%n,ents of tr!)e ,!rCs see vo# 1
INTELLECTUAL /RO/ERT? :or,s &8 J101KM& J11K4
T$e (!rti+i(!nt in ! joint venture 2$o is !#so t$e (ro(rietor of +ert!in inte##e+tu!# (ro(ert< ri%$ts 2i## %ener!##< "e un2i##in% to
!ssi%n su+$ ri%$ts to t$e venture in +!se t$e enter(rise f!i#s4 A #i+en+e of su+$ ri%$ts is ! ,ore f!vour!"#e ,et$o) of se+urin% for
! joint venture t$e ne+ess!r< inte##e+tu!# (ro(ert< it re;uires to fu#fi# its !i,s !n) o"je+tives4 See :or, 1* +#!use 1 J1361K (ost4
!1%./$
(#.1% 8eneral or limited licences
A #i+en+e %r!nte) to ! joint venture 2it$ re%!r) to ! tr!)e ,!rC +!n "e %ener!# in its effe+ts or #i,ite) to so,e of t$e
%oo)s or servi+es for 2$i+$ t$e ,!rC $!s "een re%istere)> even 2$ere t$e joint enter(rise ,!< "e t$e ,!nuf!+turer>
)istri"utor or (rovi)er of t$e servi+e4 T$e #i+en+e ,!< restri+t t$e #i+enseeAs use of t$e ,!rC> or #i,it t$e use of t$e
,!rC "< referen+e to territor<4 An< su+$ restri+tions ,ust "e s(e+ifie) in t$e #i+en+e4 T$ere is no st!tutor< (rovision
i,(osin% t$e for, in 2$i+$ ! #i+en+e "e )r!fte)> t$ou%$ ! #i+en+e> to "e effe+tive ,ust "e in 2ritin% !n) si%ne) "< or
on "e$!#f of t$e %r!ntor
1
4 Des(ite t$e !"ove> +onsent for ! (!rt< to use ! re%istere) tr!)e ,!rC +!n "e or!# or even
i,(#ie) fro, t$e +on)u+t of t$e (!rties4 Su+$ !n i,(#i+!tion ,!< "e e!sier to est!"#is$ in t$e +!se 2$ere t$e re#ev!nt
(!rties !re ! (!rti+i(!nt !n) s$!re$o#)er of ! +or(or!te joint venture !s (ro(rietor of t$e tr!)e ,!rC !n) t$e joint
venture +o,(!n<
4
1
See t$e Tr!)e =!rCs A+t 166* s 5() (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)4
T$is !#so !((#ies to ! (!rtners$i( joint venture4

!1%."$
(#.1( 3ub+licences
Su"'#i+ensin% in res(e+t of ! tr!)e ,!rC is no2 (er,itte)
1
4 T$e essenti!# (ro"#e, 2it$ ! su"'#i+en+e is t$!t it is !n
!%ree,ent to 2$i+$ t$e ori%in!# %r!ntor is not ! (!rt<4 A++or)in%#<> t$e su"'#i+ensee 2i## not "e "oun) "< t$e ter,s of
t$e $e!) #i+en+e
4 As re%!r)s t$e %r!ntor> t$is (ro"#e, +!n "e +ir+u,vente) if t$e (ro(rietor of t$e tr!)e ,!rC> 2$en
%r!ntin% ! #i+en+e> )oes so on t$e "!sis t$!t t$e #i+ensee "e+o,es $is or its !%ent> 2it$ t$e (o2er to %r!nt su"'#i+en+es
&
4
1
See t$e Tr!)e =!rCs A+t 166* s 5(*) (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)4
See Dunlop Pneumatic ',re &o Ltd v #el.rid!e B &o Ltd J1610K AC 5*3> .L4
&
See vo# 1 INTELLECTUAL /RO/ERT? :or, &5 J10K4
!1%.2$
(#.1) -5clusie and non+e5clusie licences
T$e Tr!)e =!rCs A+t 166* re+o%nises t$e !"i#it< of t$e (ro(rietor of ! tr!)e ,!rC to %r!nt eit$er so#e> e9+#usive or non'
e9+#usive #i+en+es4 An e9+#usive #i+en+e> 2$i+$ ,!< "e %ener!# or #i,ite) in its s+o(e> !ut$orises t$e #i+ensee to use t$e
tr!)e ,!rC in !++or)!n+e 2it$ t$e ter,s of t$e #i+en+e to t$e e9+#usion of !## ot$er (!rties in+#u)in% t$e %r!ntor
1
4 T$e
e9+#usive #i+en+e $!s so,e si,i#!rit< to !n !ssi%n,ent> !n) it ,!< t$erefore (rovi)e t$!t t$e #i+ensee s$!## $!ve> in
res(e+t of t$e ri%$ts (rovi)e) "< t$e #i+en+e> t$e s!,e ri%$ts !n) re,e)ies !s if t$e #i+en+e $!) "een !n !ssi%n,ent
4
.o2ever> in +!ses of infrin%e,ent "< ! t$ir) (!rt<> t$e #i+ensee +!nnot un)ert!Ce (ro+ee)in%s 2it$out joinin% t$e
(ro(rietor4 T$is s$ou#) not (rove to "e !n insur,ount!"#e (ro"#e, 2$ere t$e #i+ensor !n) #i+ensee !re ! (!rti+i(!nt in !
joint venture !n) t$e enter(rise itse#f4
1
See t$e Tr!)e =!rCs A+t 166* s 6(1) (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)4
I"i) s &1(1)4
!1%/#$
(#/ &e'istration of dealin's in trade mar>s
T$e Tr!)e =!rCs A+t 166* !##o2s t$e re%istr!tion of !## )e!#in%s or tr!ns!+tions in+#u)in% !ssi%n,ents or #i+en+es
,!)e in res(e+t of ! tr!)e ,!rC
1
4 A#t$ou%$ re%istr!tion is vo#unt!r<> it is %ener!##< !)vis!"#e to )o so4 An unre%istere)
tr!ns!+tion is ineffe+tive !%!inst !n< (!rt< 2$o !+;uires ! +onf#i+tin% interest in t$e tr!)e ,!rC in i%nor!n+e of t$e
tr!ns!+tion4 A (!rt< +#!i,in% to "e ! #i+ensee of !n unre%istere) !%ree,ent 2i## not enjo< t$e usu!# ri%$ts !n) re,e)ies
ot$er2ise !v!i#!"#e to ! #i+ensee in +!ses of infrin%e,ent
4 :urt$er,ore> ! #i+ensee 2$o f!i#s to re%ister $is interest in !

tr!)e ,!rC 2it$in si9 ,ont$s of its +re!tion is not entit#e) to )!,!%es or !n !++ount of (rofits 2it$ re%!r) to !n<
infrin%e,ent !fter t$e )!te of t$e tr!ns!+tion !n) "efore t$e tr!ns!+tion is su"se;uent#< re%istere)> un#ess t$!t (!rt< +!n
s!tisf< t$e +ourt t$!t it 2!s not (r!+ti+!"#e to !((#< for re%istr!tion of t$e tr!ns!+tion )urin% t$!t (erio) !n) t$!t
!((#i+!tion 2!s ,!)e !s soon !s (r!+ti+!"#e t$ere!fter
&
4
1
Tr!)e =!rCs A+t 166* s 0 (*5 .!#s"ur<As St!tutes (*t$ E)n) TRADE =ARBS AND TRADE NA=ES)4
I"i) s 0(&)4
&
I"i) s 0(*)4 See EC Coun+i# Re%u#!tion *8E6* (T$e Co,,unit< Tr!)e =!rC Re%u#!tion) ,!)e un)er t$e EC Tre!t< !rt &0
2$i+$ set u( ! Re%ister of Co,,unit< Tr!)e =!rCs "!se) in A#i+!nte> S(!in !n) intro)u+e) ! Co,,unit< Tr!)e =!rC4
!1%/1$
&: /ATENTS
(#" Patents as personal property
An< (!tent> !s ! s(e+ies of (erson!# (ro(ert<> ,!< "e !ssi%ne)
1
4 T$is in+#u)es ! (!tent !((#i+!tion or !n< #i+en+e or
su"'#i+en+e %r!nte) un)er ! (!tent
4 In %ener!#> 2$ere t$e (!tent is +o'o2ne)> su"je+t to t$e (rovisions of t$e /!tent
A+t 1633
&
>

t$e +onsent of !## t$e (!tent o2ners is re;uire) to effe+t !n !ssi%n,ent4
1
As to t$e +o,(etition issues re#!tin% to t$e tr!nsfer of te+$no#o%< see /!r!%r!($ 1 J1101K et se;4 As to EC Co,,ission
Re%u#!tion *8E61 (t$e Te+$no#o%< Tr!nsfer Re%u#!tion) see /!r!%r!($ &8 J155K (ost4
See t$e /!tents A+t 1633 s &8()> (&) (&& .!#s"ur<As St!tutes (*t$ E)n) /ATENTS AND DESIGNS)4 :or t$e %r!ntin% of ! #i+en+e
un)er ! (!tent !s of ri%$t see i"i) s *5> 2$ere t$e (!tent o2ner refuses to %r!nt ! #i+en+e or to %r!nt ! #i+en+e on re!son!"#e
ter,s4 T$e +on+e(t of +o,(u#sor< #i+ensin% is not stri+t#< re#ev!nt to t$e %r!ntin% of #i+en+es !s (!rt of ! +onsensu!# "usiness
!rr!n%e,ent "et2een (!rties4
&
/!tents A+t 1633 ss 5> 1> &34
!1%/%$
(#2 Assi'nment of patents
An !ssi%n,ent of ! (!tent or !((#i+!tion for ! (!tent ,ust "e in 2ritin% !n) si%ne) "< or on "e$!#f of !## t$e (!rties to
t$e tr!ns!+tion
1
4 As in t$e +!se of !ssi%n,ents of tr!)e ,!rCs> it is not ne+ess!r< to in+#u)e in t$e !ssi%n,ent of !n
interest in ! (!tent> e9(ress +oven!nts for tit#e4 Su+$ +oven!nts 2i## "e i,(#ie) "< t$e use of +ert!in 2or)s in t$e
!%ree,ent
4 T$ere is no i,(#ie) 2!rr!nt< in !n< !ssi%n,ent of ! (!tent t$!t t$e (!tent is v!#i)
&
4 .o2ever> !n<
(rovision in !n !ssi%n,ent 2$i+$ (revents t$e !ssi%nee fro, +ontestin% t$e v!#i)it< of t$e (!tent 2i## "e inv!#i)
*
4
It is %oo) !n) (ru)ent (r!+ti+e to re%ister !n< su+$ tr!ns!+tions 2it$ t$e /!tent Offi+e4 An !ssi%nee of !
(!tent s$ou#) "e entere) on t$e re%ister !s (ro(rietor4 T$e !ssi%nee 2i##> $o2ever> t!Ce $is interest in t$e (!tent su"je+t
to !n< #i+en+es of 2$i+$ $e $!s noti+e4 7$ere su+$ interests !re re%istere)> t$e !ssi%nee $!s +onstru+tive noti+e of t$ose
interests
0
4 7$ere t$e !ssi%nor of ! (!tent is ! (!rti+i(!nt in ! joint venture !n) t$e !ssi%nee t$e joint venture enter(rise>
t$en t$e inferen+e of noti+e of (rior interests 2i##> it is su",itte)> "e inferre) 2$ere t$e joint enter(rise is !
(!rtners$i(
1
4 T$e (osition 2it$ re%!r) to noti+e 2$ere t$e !ssi%nor is ! (!rti+i(!nt or s$!re$o#)er to ! +or(or!te joint
venture !n) t$e !ssi%nee t$e joint venture +o,(!n<> re,!ins un+#e!r> !#t$ou%$ it is su",itte) t$!t noti+e of !n< (rior
interests 2i## not "e inferre) 2it$ re%!r) to t$e joint venture +o,(!n< ,ere#< "e+!use t$e !ssi%nor is ! s$!re$o#)er in
t$e !ssi%nee +o,(!n<4
!1%/($
1
/!tents A+t 1633 s &8(1) (&& .!#s"ur<As St!tutes (*t$ E)n) /ATENTS AND DESIGNS)4
Coven!nts for tit#e 2i## "e i,(#ie) if t$e !ssi%n,ent +ont!ins ! ter, su+$ !s D2it$ fu## tit#e %u!r!nteeA or 2$ere !((ro(ri!te !
,ore restri+te) %u!r!ntee 2it$ 2or)s su+$ !s D2it$ #i,ite) tit#e %u!r!nteeA4 See L!2 of /ro(ert< (=is+e##!neous /rovisions) A+t
166* s 1(1)'(&) (&3 .!#s"ur<As St!tutes (*t$ E)n) REAL /RO/ERT?)4
&
See @all v &onder (1503) C-NS 4
*
T$is is !#so t$e +!se 2$ere t$e !%ree,ent is for t$e #i+ensin% of ! (!tent: Re Davidson Rubber &o )!reements J163K C=LR
D04 It s$ou#) "e note) t$!t !%ree,ents to !ssi%n ri%$ts un)er ! (!tent ,!< "e su"je+t to EC +o,(etition ru#es: see /!r!%r!($
1 J1101K et se; !nte4
0
As to +oven!nts for t$e v!#i)it< of (!tents see vo# 1(1) (1663 Reissue) INTELLECTUAL /RO/ERT? /!r!%r!($ 56 J1&1K4
1
See /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
!1%/)$
(1# Duration
T$e ri%$ts in ! (!tent +!n "e t$e su"je+t of ! +onsensu!# #i+en+e
1
4 A #i+ensin% !%ree,ent 2$i+$ re#!tes to ! (!tent 2i##
usu!##< "e s(e+ifie) to #!st for ! ter, of <e!rs4 T$e ,!9i,u, (erio) of su+$ !n !%ree,ent +!nnot in !n< event e9+ee)
t$e #ife of t$e (!tent4 7$ere no (erio) is s(e+ifie)> t$e #i+en+e ,!< "e ter,in!te) "< eit$er (!rt< on %ivin% re!son!"#e
noti+e4 7$!t +onstitutes re!son!"#e noti+e is ! ;uestion of f!+t
4
1
As to t$e n!ture of +onsensu!# #i+en+es %r!nte) in res(e+t of tr!)e ,!rCs see /!r!%r!($ &81 J113K et se; !nte4
See (artin%Baker )ircra.t &o Ltd v &anadian Fli!ht E>uipment Ltd J1600K @- 0014
!1%/,$
*: CO/?RIG.T
(11 *he nature of copyri'ht
Co(<ri%$t> un#iCe ! (!tent or tr!)e ,!rC> is not (rote+te) "< re%istr!tion
1
4 Co(<ri%$t in ! 2orC +!n "e tr!nsferre) fro,
t$e o2ner to ! t$ir) (!rt< "< !ssi%n,ent> "< test!,ent!r< )is(osition> or "< o(er!tion of #!24 Co(<ri%$t> !s in t$e +!se
of tr!)e ,!rCs !n) (!tents> is ! s(e+ies of (erson!# (ro(ert<4 An !ssi%n,ent of +o(<ri%$t> to "e effe+tive in #!2> s$ou#)
"e in 2ritin% !n) si%ne) "< or on "e$!#f of t$e !ssi%nor
4 As for tr!)e ,!rCs !n) (!tents> i,(#ie) +oven!nts for tit#e

2i## "e o(er!tive if t$e !ssi%n,ent +ont!ins ! ter, su+$ !s D2it$ fu## tit#e %u!r!nteeA4
1
As to t$e n!ture !n) for, of +o(<ri%$t see vo# 1 INTELLECTUAL /RO/ERT? /!r!%r!($ &* J1181K et se;4
See t$e Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 s 68(&) (11 .!#s"ur<As St!tutes (*t$ E)n) CO/?RIG.T)4 An or!# !ssi%n,ent
or !n !%ree,ent to !ssi%n +o(<ri%$t in !n< 2orC 2$i+$ !ttr!+ts +o(<ri%$t (rote+tion 2i## t!Ce effe+t !s !n e;uit!"#e !ssi%n,ent
of +o(<ri%$t4
!1%/.$
(1% :icences of copyri'ht 0or>
A #i+en+e +!n "e %r!nte) in res(e+t of ! +o(<ri%$t 2orC4 Su+$ ! #i+en+e +!n "e e9+#usive
1
> non'e9+#usive or so#e
4 In t$e
tr!ns,ission of +o(<ri%$t in ! 2orC it ,!< "e )iffi+u#t to )eter,ine 2$et$er t$e )o+u,ent )e!#in% in t$e tr!nsferen+e of
t$e +o(<ri%$t $!s +re!te) ! #i+en+e or !n !ssi%n,ent4 T$e nee) to )eter,ine !n) s(e+if< 2$!t is "ein% +re!te) "< t$e
re#ev!nt )o+u,ent is of so,e i,(ort!n+e4 7$ere t$ere is !n !ssi%n,ent of +o(<ri%$t> t$e !ssi%nee> (usu!##< t$e joint
venture enter(rise) ,!< t!Ce !+tion in res(e+t of !n< infrin%e,ent of +o(<ri%$t "< ! t$ir) (!rt< 2it$out re+ourse or
referen+e to t$e !ssi%nor (usu!##< one of t$e (!rti+i(!nts to t$e venture)4
1
See t$e Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 s 6(1) (11 .!#s"ur<As St!tutes (*t$ E)n) CO/?RIG.T)4
As to e9+#usive !n) non'e9+#usive #i+en+es see /!r!%r!($ &814* J138K et se; !nte4
!1%//$
(1( Desi'n ri'hts
Re%istere) )esi%n is !n inte##e+tu!# (ro(ert< ri%$t 2$i+$ ,!< e9ist in +ert!in )esi%ns 2$i+$ $!ve !est$eti+ !((e!# !n)
2$i+$ !re !((#ie) to in)ustri!# !n) ,!nuf!+ture) (ro)u+ts4 Su+$ Din)ustri!#A )esi%ns !re (rote+te) "< re%istr!tion un)er
t$e Re%istere) Desi%ns A+t 16*6
1
4 T$e Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 +re!te) ! ne2 for, of )esi%n ri%$t
2$i+$ )oes not re;uire re%istr!tion> !n) 2$i+$ ,!< e9ist in re#!tion to )esi%ns 2$i+$ $!ve ! fun+tion!# !s(e+t> !n)
2$i+$ !re !((#ie) to in)ustri!# or ,!nuf!+ture) (ro)u+ts
4 T$ese for,s of inte##e+tu!# (ro(ert< +onstitute (erson!#

(ro(ert< !n) ,!< t$erefore "e !ssi%ne) or ,!)e t$e su"je+t of ! #i+en+e> in t$e s!,e +ir+u,st!n+es !s for +o(<ri%$t !n)
tr!)e ,!rCs
&
4
1
Re%istere) Desi%ns A+t 16*6 !s !,en)e) "< t$e Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 (&& .!#s"ur<As St!tutes (*t$ E)n)
/ATENTS AND DESIGNS)4
Co(<ri%$t> Desi%ns !n) /!tents A+t 1655 s 1& (&& .!#s"ur<As St!tutes (*t$ E)n) CO/?RIG.T)4
&
Re%istere) )esi%n "e!rs ,!n< si,i#!rities to (!tents !n) is su"je+t to ! "ro!)#< si,i#!r re%i,e of +o,(u#sor< #i+ensin%4 Desi%n
ri%$t $!s so,e si,i#!rit< to +o(<ri%$t> (!rti+u#!r#< !rtisti+ +o(<ri%$t4
!1%/"$
0: TEC.NICAL ASSISTANCE AGREE=ENTS
(1) 3ho0+ho0 a'reements
T$e effe+tive e9(#oit!tion of inte##e+tu!# (ro(ert< ri%$ts !ssi%ne) or #i+ense) to ! joint venture often nee)s t$e su((ort
of te+$ni+!# !ssist!n+e4 T$e joint venture +o,(!n<> (!rtners$i( or +onsortiu, ,!< t$us re;uire not on#< ! #i+en+e or !n
!ssi%n,ent of +ert!in inte##e+tu!# (ro(ert< ri%$ts in or)er to +!rr< out its !i,s !n) o"je+tives> "ut !#so !+tive $e#( in
settin% u( its !+tivities "e+!use t$e o(er!tion !n) e9(#oit!tion of t$e inte##e+tu!# (ro(ert< 2it$in t$e ter,s of t$e #i+en+e
or !ssi%n,ent ,!< "e +o,(#e9 !n) )iffi+u#t4 If t$is is t$e +!se> for,!# te+$ni+!# !ssist!n+e !%ree,ents 2i## "e nee)e) to
+over ,!tters su+$ !s t$e )ivision of e9(ert st!ff in t$e initi!# st!%es of t$e venture> !n) to (rovi)e for t$e tr!inin% of
t$e joint venture +o,(!n<As (ersonne# t$ere!fter4 T$ese !%ree,ents ,!< "e )efine) !s Ds$o2'$o2A !%ree,ents
1
4
1
:or !n !%ree,ent for t$e (rovision of te+$ni+!# servi+es to t$e joint venture "< one of t$e joint venturer see :or, 1* J1351K (ost4
!1%/2$
(1, Bno0+ho0 a'reements
T$e ,!nuf!+ture or su((#< of ! (ro)u+t or servi+e "< ! joint venture usin% !+;uire) inte##e+tu!# (ro(ert< ri%$ts ,!<
!#so re;uire Cno2#e)%e of t$e o(er!tion of e;ui(,ent use) in t$e ,!nuf!+turin% (ro+ess or t$e !n!#<sis of )r!2in%s
!n) (#!ns> for,u#!e> +o,(uter (ro%r!,s> servi+e !n) te+$ni+!# ,!nu!#s> ,!rCetin% !n) ,!nuf!+turin% )!t!> or in
o(er!tin% ;u!#it< +ontro# (ro+e)ures4 T$e !+;uisition of DCno2'$o2A "< t$e joint venture ,!< "e t$e su"je+t of
!%ree,ents ,!)e "et2een t$e (ro(rietor of su+$ Cno2'$o2 !n) t$e joint venture
1
2$i+$ su((#e,ent !n< !ssi%n,ents
or #i+en+es re#!tin% to t$e re#ev!nt !n) +o,(#e,ent!r< inte##e+tu!# (ro(ert<4 Su+$ !%ree,ents ,!< "e )efine) !s DCno2'
$o2 !%ree,entsA> !n) ,!< tr!nsfer "ot$ te+$ni+!# !n) +o,,er+i!# Cno2'$o2 fro, one (!rt< to !not$er4
1
T$e (ro(rietor of su+$ Cno2'$o2 2i## fre;uent#< "e t$e (ro(rietor of t$e +o,(#e,ent!r< inte##e+tu!# (ro(ert< ri%$ts 2$i+$ $!ve
"een !ssi%ne) or #i+ense) +onte,(or!neous#< 2it$ t$e Cno2'$o24
!1%"#$
(1. Aspects of >no0+ho0 a'reements
(1.11 Confidentiality
Bno2'$o2 ,!< "e t$e su"je+t of eit$er ! s!#e !%ree,ent or ! #i+en+e4 Irres(e+tive of t$e for, in 2$i+$ t$e tr!nsfer of
inte##e+tu!# (ro(ert< is effe+te)> t$e re#ev!nt )o+u,ent 2i## +ont!in ter,s 2$i+$ )e!# 2it$ t$e +ru+i!# issue of
+onfi)enti!#it<4 Confi)enti!#it< is +entr!# to t$e +o,,er+i!# v!#ue of t$e Cno2'$o2 tr!nsferre) to t$e tr!nsferee
1
4
1
:or ! +onfi)enti!#it< +#!use see :or, 1* +#!use 0 J1368K (ost4
!1%"1$
(1.1% Non+competition clauses
It is nor,!# (r!+ti+e to set out in ! +ontr!+t for t$e tr!nsfer of DCno2'$o2A> usu!##< 2$ere t$e tr!ns!+tion is "< 2!< of
!n !ssi%n,ent> ! (rovision t$!t t$e ven)or 2i## not +o,(ete 2it$ t$e (ur+$!ser of t$e Cno2'$o2 "< usin% t$!t Cno2'
$o2
1
4 In )eter,inin% 2$et$er su+$ ! +#!use "re!+$es EC Tre!t< Arti+#e 50(1)
> t$e )ur!tion !n) s+o(e of t$e +#!use

2i## "e re#ev!nt4 T$is in+#u)es !n< #i,it!tions i,(ose) 2it$ re%!r) to %eo%r!($i+!# !re! or t$e (ro)u+t ,!rCet
&
4
1
As to t$e #e%!#it< of su+$ +#!uses 2it$in t$e +onte9t of t$e +o,,on #!2 see *orden.elt v (a7im *orden.elt Guns and
)mmunition &o Ltd J156*K AC 0&0> .L4
&
See Re Reuter/B)#F )G (EC Co,,ission De+ision 31E3*&) J1631K C=LR D**4
!1%"%$
(1.1( Competition la0 aspects
7$et$er t$e tr!nsfer of Cno2'$o2 is effe+te) "< s!#e or "< 2!< of #i+en+e> t$e tr!ns!+tion ,ust not infrin%e !n< !s(e+t
of +o,(etition #!24 .o2ever> un#ess t$e Cno2'$o2 !%ree,ent> "e it !n !ssi%n,ent or ! #i+en+e> 2i## $!ve !n
!((re+i!"#e effe+t on inter'st!te tr!)e "et2een ,e,"er st!tes of t$e EC> su+$ ! tr!nsfer s$ou#) not +o,e 2it$in t$e
ter,s of EC Tre!t< Arti+#e 50(1)
1
!s t$e !%ree,ent is un#iCe#< to !ffe+t tr!)e "et2een ,e,"er st!tes
4 If t$e joint
venture is "!se) or o(er!tes in t$e Unite) Bin%)o, it ,!< "e su"je+t to Unite) Bin%)o, +o,(etition #!2
&
4

A++or)in%#<> ! non'+o,(etition +#!use in !n< Cno2'$o2 !%ree,ent ,ust not "e )r!fte) 2i)er t$!n is ne+ess!r< to
se+ure t$e !i,s !n) o"je+tives of t$e re#ev!nt !ssi%n,ent or #i+en+e
*
4
1
T$e s!,e 2ou#) !((#< to +#!uses in Cno2'$o2 !%ree,ents re#!tin% to +onfi)enti!#it<4 See t$e EC Co,,ission Noti+e on
!%ree,ents of ,inor i,(ort!n+e OJ C&3 641463 ( 1& 2$i+$ e9+#u)es +ert!in !%ree,ents fro, t$e !((#i+!tion of EC Tre!t< !rt
50(1)4
&
Unite) Bin%)o, +o,(etition #!2 is su"je+t to revie2 !n) inten)e) refor, so !s to ,irror EC +o,(etition #!2 !n) (r!+ti+e: see
/!r!%r!($ 106 J1811K !nte4
*
T$is is t$e s!,e test !s is !((#ie) in t$e +!se of restr!int of tr!)e +#!uses: see Dawna,0 Da, B &o Ltd v de Braconier d3)lphen
J1663K IRLR **> CA4 :or ! )is+ussion of t$is +!se see /!r!%r!($ 60 J1*5K et se; !nte4
!1%"($
(1.1) Ne0 intellectual property ri'hts
Li+ensin% !%ree,ents for (!tents or Cno2'$o2 s$ou#) usu!##< +ont!in (rovisions 2$i+$ )e!# 2it$ !n< te+$ni+!#
!)v!n+es ,!)e in t$e fie#) of t$e su"je+t ,!tter of t$e !%ree,ent> usu!##< "rou%$t !"out "< t$e #i+enseeAs !+tivities
)urin% t$e su"sisten+e of t$e !%ree,ent4 T$us> ! #i+en+e re#!tin% to inte##e+tu!# (ro(ert< s$ou#) +ont!in ! (rovision
o"#i%in% t$e #i+ensor to #i+en+e !n< future i,(rove,ents !n) )eve#o(,ents in t$e re#ev!nt !rt to t$e #i+ensee !s 2e## !s
! re+i(ro+!# o"#i%!tion on t$e #i+ensee to un)ert!Ce to #i+en+e !n< su+$ te+$ni+!# !)v!n+es "!+C to t$e #i+ensor
1
4
1
Su+$ +#!uses ,ust not "re!+$ +o,(etition #!2: see /!r!%r!($s 106 J1811K !n) 1 J1101K et se; !nte4
!1%")$
1: EC LA7 AND INTELLECTUAL /RO/ERT? RIG.TS
(!) Intro)u+tion
(1/ Competition issues
Cert!in !%ree,ents ,!)e "< ! Unite) Bin%)o, "!se) joint venture> eit$er 2it$ t$ir) (!rties or (!rti+i(!nts to t$e
venture> 2$i+$ re#!te to t$e tr!nsfer or e9(#oit!tion of inte##e+tu!# (ro(ert<> ,!<> "e+!use of t$eir effe+t on +o,(etition
2it$in t$e EC> "e su"je+t> inter !#i!> to EC +o,(etition #!24 .o2ever> 2$ere "#o+C'e9e,(tions !((#< to t$e !%ree,ent>
it 2i## not "e su"je+t to EC Tre!t< Arti+#e 50(1)
1
4 T$e "#o+C e9e,(tions 2$i+$ ,!< !((#< to joint ventures 2$i+$ enter
into su+$ !%ree,ents re#!te to s(e+i!#is!tion> rese!r+$ !n) )eve#o(,ent !n) te+$no#o%< !%ree,ents
4
1
As to t$e n!ture !n) effe+t of t$ese "#o+C e9e,(tions on !%ree,ents %ener!##< see 7$is$ &ompetition Law !n) orah J1661K *
EI/R4
!1%",$
(") S(e+i!#is!tion !%ree,ents
(1" -5emptions for specialisation a'reements
EC Co,,ission Re%u#!tion *13E50
1
%ener!##< e9e,(ts fro, EC Tre!t< Arti+#e 50(1) s(e+i!#is!tion !%ree,ents to
2$i+$ ! joint venture is ! (!rt< 2$ere t$e (ur(ose of t$e !%ree,ent is to +!rr< out t$e joint ,!nuf!+turin% !n) s!#es of
(ro)u+ts !n) +ert!in re;uire,ents for !%%re%!te ,!rCet s$!re !n) turnover !re ,et4 S(e+i!#is!tion !%ree,ents 2i## "e
e9e,(t if t$e !%%re%!te ,!rCet s$!re of t$e (!rti+i(!nts to t$e !%ree,ent in t$e re#ev!nt (ro)u+t(s) )oes not e9+ee)
8L (2$ere t$e !%ree,ent is +on+erne) so#e#< 2it$ ,!nuf!+turin%)> or 18L (2$ere t$e !%ree,ent in+#u)es joint s!#es
of t$e (ro)u+t(s)) !n) t$e !%%re%!te !nnu!# turnover of t$e resu#tin% enter(rise )oes not e9+ee) 1>888, ECUs4
:urt$er,ore> t$e (!rti+i(!nts to t$e joint venture ,ust entrust joint ,!nuf!+ture e9+#usive#< to t$e joint venture4
1
EC Co,,ission Re%u#!tion *13E50 !rt & !s !,en)e) "< Re%u#!tion 101E6&4 Re%u#!tion *13E50 2$i+$ 2!s )ue to e9(ire !t t$e
en) of 1663 $!s "een e9ten)e) unti# t$e en) of 1666: see /!r!%r!($ &8 note 1 J111K !nte4
!1%".$
(+) Rese!r+$ !n) )eve#o(,ent !%ree,ents
(12 -5emptions for research and deelopment a'reements
1
e9e,(ts !%ree,ents to 2$i+$ ! joint venture is ! (!rt< fro, EC Tre!t< Arti+#e
50(1) 2$ere t$e !%ree,ent )e!#s 2it$ rese!r+$ !n) )eve#o(,ent un)ert!Cen in res(e+t of (ro)u+ts or servi+es4
A%ree,ents 2i## "e e9e,(te) un)er Re%u#!tion *15E50 even 2$ere t$e< re#!te to t$e e9(#oit!tion of t$e resu#ts of !n<
rese!r+$ !n) )eve#o(,ent so un)ert!Cen4 7$ere t$e (!rti+i(!nts to t$e !%ree,ent !re +o,(etitors in t$e re#ev!nt fie#)>
t$e +o,"ine) ,!rCet s$!re 2it$ re%!r) to t$e re#ev!nt (ro)u+t or servi+e !t t$e ti,e t$e !%ree,ent is ,!)e ,ust not
e9+ee) t$e 8L !n) 18L t$res$o#)s for s(e+i!#is!tion !%ree,ents
4 .o2ever> un#iCe s(e+i!#is!tion !%ree,ents>

rese!r+$ !n) )eve#o(,ent !%ree,ents !re not su"je+t to !n< turnover #i,it4 T$e (!rti+i(!nts in ! joint venture 2$i+$ is
!#so ! (!rt< to ! rese!r+$ !n) )eve#o(,ent !%ree,ent ,!< +!rr< on (ro)u+tion in t$e s!,e fie#) !s +overe) "< t$e
!%ree,ent> t$ou%$ in)e(en)ent#< of t$e joint venture 2it$out t!Cin% t$e !%ree,ent to 2$i+$ t$e joint venture is ! (!rt<
outsi)e t$e !,"it of Re%u#!tion *15E504 T$e (!rti+i(!nts ,!< !#so en%!%e in in)e(en)ent rese!r+$ !n) )eve#o(,ent in
t$e s!,e fie#) !s (res+ri"e) "< t$e rese!r+$ !n) )eve#o(,ent !%ree,ent to 2$i+$ t$e joint venture is ! (!rt< 2it$out
(reju)i+e to t$e !((#i+!"i#it< of Re%u#!tion *15E50 to t$!t !%ree,ent4
1
EC Co,,ission Re%u#!tion *15E50 !s !,en)e) "< Re%u#!tion 101E6&4 Re%u#!tion *15E50 2!s )ue to e9(ire !t t$e en) of 1663
"ut $!s "een e9ten)e) unti# 1666: see /!r!%r!($ &8 note 1 J111K !nte4
See /!r!%r!($ &15 J151K !nte4

!1%"/$
()) Te+$no#o%< tr!nsfer !%ree,ents
(%# Nature of technolo'y transfer a'reements
Re%u#!tion *8E61
1
(t$e Te+$no#o%< Tr!nsfer Re%u#!tion) !((#ies to t$e #i+ensin% of Unite) Bin%)o, (!tents
to 2$i+$
! joint venture ,!< "e ! (!rt<4 It !#so !((#ies to !%ree,ents for t$e +o,,uni+!tion of Cno2'$o2> 2$i+$ in+#u)es non'
(!tente) te+$ni+!# infor,!tion4 Te+$no#o%< tr!nsfer !%ree,ents !re )efine) for t$e (ur(oses of Re%u#!tion *8E61 !s:
D444! (!tent #i+ensin% !%ree,ent or !n !%ree,ent for t$e +o,,uni+!tion of Cno2'$o2 2$ere"< !n un)ert!Cin%>
su+$ !s ! (!rti+i(!nt in ! joint venture 2$i+$ $o#)s ! (!tent> or is t$e (ro(rietor of Cno2'$o2> (er,its !not$er
un)ert!Cin%> su+$ !s t$e joint venture to e9(#oit t$e (!tent 2$i+$ is #i+ense)> or t$e Cno2'$o2 2$i+$ $!s "een
+o,,uni+!te)> in (!rti+u#!r for t$e (ur(oses of ,!nuf!+ture> use or (uttin% ! (ro)u+t on t$e ,!rCetA
&
4
T$e for,s of inte##e+tu!# (ro(ert< t$!t !re )ee,e) to "e (!tents for t$e (ur(oses of Re%u#!tion *8E61
in+#u)e t$ose for,s of (ro(ert< +overe) "< (#!nt "ree)er +ertifi+!tes> su((#e,ent!r< (rote+tion +ertifi+!tes for
,e)i+in!# (ro)u+ts !n) (er$!(s ,ost i,(ort!nt of !##> to(o%r!($ies of se,i'+on)u+tor (ro)u+ts
*
4
!1%""$
1
EC Co,,ission Re%u#!tion *8E61 re(#!+es EC Co,,ission Re%u#!tions &*6E5* (t$e /!tent Li+ensin% Re%u#!tion) !n) 001E56
(t$e Bno2'.o2 Li+ensin% Re%u#!tion) "ot$ !s !,en)e) "< EC Co,,ission Re%u#!tion 101E6&4 Un)er t$e (revious Re%u#!tions
e9+#usive (!tent #i+en+es (2$i+$ ,!< in+#u)e !n+i##!r< Cno2'$o2) !n) e9+#usive Cno2'$o2 #i+en+es (2$i+$ ,!< in+#u)e (!tent
#i+en+es> 2$et$er or not !n+i##!r<) to 2$i+$ ! joint venture 2!s ! (!rt< 2ere e9e,(te) fro, EC Tre!t< !rt 50(1) if +ert!in +riteri!
2ere s!tisfie)4 T$ese +riteri! 2ere si,i#!r to t$ose (res+ri"e) in t$e EC Co,,ission Re%u#!tions *13E50 (s(e+i!#is!tion
!%ree,ents) !n) *15E50 (rese!r+$ !n) )eve#o(,ent !%ree,ents)4
An) t$e (!tents re%istere) in !n< of t$e ,e,"er st!tes or Co,,unit< !n) Euro(e!n (!tents4
&
*
I"i) !rt 1()4
!1%"2$
(%1 -5empt proisions
EC Co,,ission Re%u#!tion *8E61 e9e,(ts so#e !n) e9+#usive #i+en+es !n) !sso+i!te) e9(ort "!ns fro, EC Tre!t<
Arti+#e 50(1)
1
4 It s(e+ifies t$e (rovisions t$!t 2ou#) r!re#< infrin%e Arti+#e 50(1) if +ont!ine) in ! te+$no#o%< tr!nsfer
!%ree,ent "ut 2$i+$ $!ve "een in+#u)e) in t$e Re%u#!tion for t$e !voi)!n+e of un+ert!int<4 T$e (rin+i(!# (rovisions
re#!te to (ossi"#e o"#i%!tions of t$e #i+ensee !n) #i+ensor !s 2e## !s reserv!tions of +ert!in ri%$ts "< t$e #i+ensor4
T$e #i+ensee +!n "e o"#i%e) un)er t$e Re%u#!tion:
&141 not to )ivu#%e t$e Cno2'$o2 +o,,uni+!te) "< t$e #i+ensorH t$e #i+ensee ,!< "e $e#) to t$is o"#i%!tion !fter t$e
!%ree,ent $!s e9(ire)
H
&14 not to %r!nt su"'#i+en+es or !ssi%n t$e #i+en+e
&
H
&14& to o"serve (ost'ter,in!tion use "!ns
*
H
&14* to o"serve fee)' !n) %r!nt'"!+C (rovisions
0
H
&140 to o"serve ,ini,u, ;u!#it< s(e+ifi+!tions
1
H
&141 to $e#( in t$e enfor+e,ent of ri%$ts +re!te) "< t$e #i+en+e
3
H
&143 to (!< ro<!#ties
5
H
&145 to restri+t e9(#oit!tion of te+$no#o%< to +ert!in fie#)s of !((#i+!tion
6
H
&146 to (!< ! ,ini,u, ro<!#t<
18
H
&1418 to ,!rC t$e (ro)u+t 2it$ t$e #i+ensorAs n!,e or of t$e #i+ense) (!tent
11
H
&1411 not to +onstru+t f!+i#ities for t$ir) (!rties
1
H
&141 to su((#< on#< ! #i,ite) ;u!ntit< of t$e #i+ense) (ro)u+t to ! (!rti+u#!r +usto,er> 2$ere t$e #i+en+e 2!s %r!nte)
so t$!t t$e +usto,er ,i%$t $!ve ! se+on) sour+e of su((#< insi)e t$e #i+ense) territor<
1&
H !n)
&141& to use $is "est en)e!vours to ,!nuf!+ture !n) ,!rCet t$e #i+ense) (ro)u+t
1*
4
T$e #i+ensor +!n "e o"#i%e) to %r!nt t$e #i+ensee !n< ,ore f!vour!"#e ter,s t$!t t$e #i+ensor ,!< %r!nt to !not$er
un)ert!Cin% !fter t$e !%ree,ent is entere) into4
!1%2#$
T$e #i+ensor +!n reserve t$e ri%$t to:
&141* o((ose t$e e9(#oit!tion of t$e te+$no#o%< "< t$e #i+ensee outsi)e t$e #i+ense) territor<
10
H
&1410 ter,in!te t$e !%ree,ent if t$e #i+ensee +ontests t$e se+ret or su"st!nti!# n!ture of t$e #i+ense) Cno2'$o2 or
+$!##en%es t$e v!#i)it< of #i+ense) (!tents 2it$in t$e Co,,on =!rCet "e#on%in% to t$e #i+ensor or un)ert!Cin%s
+onne+te) 2it$ $i, or it
11
H
&1411 ter,in!te t$e #i+en+e !%ree,ent of ! (!tent if t$e #i+ensee r!ises t$e +#!i, t$!t su+$ ! (!tent is not ne+ess!r<
13
H
!n)
&1413 ter,in!te t$e e9+#usivit< of !n< !%ree,ent if t$e #i+ensee +o,(etes 2it$ t$e #i+ensor in res(e+t of rese!r+$ !n)
)eve#o(,ent> (ro)u+tion> or )istri"ution
15
4
!1%21$
1
I"i) !rt > (!r! 1(1)4

&
I"i) !rt > (!r! 1()4
*
I"i) !rt > (!r! 1(&)4
0
I"i) !rt > (!r! 1(*)4
1
I"i) !rt > (!r! 1(0)4
3
I"i) !rt > (!r! 1(1)4
5
I"i) !rt > (!r! 1(3)4
6
I"i) !rt > (!r! 1(5)4
18
I"i) !rt > (!r! 1(6)4
11
I"i) !rt > (!r! 1(11)4
1
I"i) !rt > (!r! 1(1)4
1&
I"i) !rt > (!r! 1(1&)4
1*
I"i) !rt > (!r! 1(13)4
10
I"i) !rt > (!r! 1(1*)4
11
I"i) !rt > (!r! 1(10)4
13
I"i) !rt > (!r! 1(11)4
15
I"i) !rt > (!r! 1(15)4
!1%2%$
(%% Blac>+list proisions
7$ere ! te+$no#o%< tr!nsfer !%ree,ent to 2$i+$ ! joint venture is ! (!rt< +ont!ins +ert!in (rovisions (so'+!##e) "#!+C'
#ist (rovisions)
1
it +!nnot "e e9e,(te) un)er EC Co,,ission Re%u#!tion *8E61 on te+$no#o%< !%ree,ents4 T$ese
(rovisions re#!te to (ri+e restri+tion> ,!rCet !##o+!tion !n) territori!# restr!ints 2$i+$ e9+ee) t$ose ot$er2ise (er,itte)
"< Re%u#!tion *8E61
4 In (!rti+u#!r> t$e (ro$i"ition of (rovisions in !n< te+$no#o%< tr!nsfer !%ree,ent 2$i+$ restri+t
+o,(etition "< (ro$i"itin% t$e #i+ensee fro, usin% !#tern!tive te+$no#o%< s$ou#) "e note)4 An< so'+!##e) stron% fee)
"!+C +#!uses in !n !%ree,ent> 2$ere"< t$e #i+ensee is re;uire) to !ssi%n !n< of $is or its ri%$ts un)er ! te+$no#o%<
tr!nsfer !%ree,ent to t$e #i+ensor is !#so "#!+C'#iste)4
T$ere is !n o((osition (ro+e)ure> 2$ere"< ! (!rt< ,!< notif< !n< !%ree,ent 2$i+$ ;u!#ifies for e9e,(tion
!n) +ont!ins no "#!+C'#iste) (rovisions> "ut 2$i+$ !#so +ont!ins so,e restri+tions on +o,(etition 2$i+$ !re not
e9(ress#< e9e,(te) "< Re%u#!tion *8E614 If t$e Co,,ission )oes not o((ose t$e e9e,(tion 2it$in four ,ont$s of t$e
notifi+!tion> t$e !%ree,ent 2i## "e )ee,e) e9e,(t un)er t$e Re%u#!tion
&
4
1
EC Co,,ission Re%u#!tion *8E61 !rt &4
I"i) !rt 14
&
It is t$ou%$t t$!t t$e use of t$e o((osition (ro+e)ure is #iCe#< to resu#t in !n e9e,(tion un)er EC Co,,ission Re%u#!tion *8E61
!n) not t$e ,ere (ro)u+tion of ! +o,fort #etter (see orah J1661K * EI/R)4 As to t$e n!ture !n) effe+t of +o,fort #etters see
/ri,e> G!#e N S+!n#!n 'he Law and Practice o. +oint "entures (1663) ( 1*04
!1%2($
(%( -5clusion of patent or >no0+ho0 pools
1
e9+#u)es fro, e9e,(tion (!tent or Cno2'$o2 (oo#s> re+i(ro+!# e9+#usive ri%$ts
!n) #i+ensin% !%ree,ents 2it$ +o,(etin% (!rents of ! joint venture> !s 2e## !s (ure s!#es !%ree,ents !n) #i+en+es
2$i+$ in+#u)e ot$er inte##e+tu!# (ro(ert< ri%$ts> un#ess t$ose ri%$ts !re !n+i##!r< to t$e !%ree,ent4
1
!1%2)$
(%) &e'ulation %)#E2. and a'reements bet0een joint enture and parent
EC Co,,ission Re%u#!tion *8E61 2i## !((#< to !%ree,ents ,!)e "et2een ! joint venture !n) one of t$e (!rent
un)ert!Cin%s> 2$ere t$e #!tter %r!nts to t$e venture ! (!tent or Cno2'$o2 #i+en+e4 T$is is t$e +!se (rovi)e) t$e #i+ense)
(ro)u+ts !n) t$e ot$er %oo)s !n) servi+es of t$e (!rti+i(!tin% un)ert!Cin%s 2$i+$ !re +onsi)ere) "< users to "e
inter+$!n%e!"#e or su"stitut!"#e in vie2 of t$eir +$!r!+teristi+s> (ri+e !n) inten)e) use re(resent:
&*41 in t$e +!se of ! #i+en+e #i,ite) to (ro)u+tion not ,ore t$!n 8L of t$e ,!rCet s$!re> 2$ere t$e )istri"ution of
t$e re#ev!nt %oo)s or servi+es is not jointH !n)
&*4 in t$e +!se of ! #i+en+e +overin% (ro)u+tion !n) )istri"ution not ,ore t$!n 18L of t$e ,!rCet s$!re> 2$ere t$e
)istri"ution of t$e re#ev!nt (ro)u+ts or servi+es is joint4
=!rCet s$!re> for t$e !"ove (ur(oses> is )eter,ine) "< referen+e to t$e ,!rCet for t$e #i+ense) (ro)u+ts !n)
!## inter+$!n%e!"#e or su"stitut!"#e %oo)s !n) servi+es4
!1%2,$
(%, Connected underta>in's
Su"'#i+en+es> +ert!in !ssi%n,ents of Cno2'$o2 or (!tents
1
>

!n) #i+ensin% !%ree,ents in 2$i+$ t$e ri%$ts or o"#i%!tions
of t$e #i+ensor or t$e #i+ensee !re !ssu,e) "< un)ert!Cin%s +onne+te) 2it$ t$e,> +!n "e e9e,(te) un)er Re%u#!tion
*8E614
1
EC Co,,ission Re%u#!tion *8E61 !rt 1()4
!1%2.$
(%. 4ithdra0al of benefit of re'ulation
T$e Co,,ission ,!< 2it$)r!2 t$e "enefit of e9e,(tion un)er EC Co,,ission Re%u#!tion *8E61 in res(e+t of !n<
!%ree,ent 2$i+$ in its vie2 )oes not ,erit e9e,(tion
1
4 One of t$e %roun)s 2$i+$ ,!< justif< su+$ !+tion 2$i+$ ,!<
"e (!rti+u#!r#< (ertinent to ! joint venture is 2$ere t$e effe+t of t$e !%ree,ent is to (revent t$e #i+ense) (ro)u+ts t$e
su"je+t of !n !%ree,ent fro, "ein% e9(ose) to effe+tive +o,(etition4 T$is ,!< "e est!"#is$e) in t$e +ir+u,st!n+es
2$ere t$e #i+ense) (ro)u+ts !re (revente) fro, "ein% e9(ose) to effe+tive +o,(etition in t$e #i+ense) territor< fro,
%oo)s or servi+es 2$i+$ !re i)enti+!# or +onsi)ere) "< users to "e inter+$!n%e!"#e or su"stitut!"#e
!n) ,!< in
(!rti+u#!r o++ur 2$ere t$e #i+enseeAs ,!rCet s$!re e9+ee)s *8L
&
4
1
In vie2 of t$eir +$!r!+teristi+s> (ri+e !n) inten)e) use4

&
In t$e ori%in!# )r!ft of t$e Re%u#!tion t$is re;uire,ent 2!s ! %roun) 2$i+$ !uto,!ti+!##< tooC !n !%ree,ent outsi)e t$e
(rote+tion of e9e,(tion4
!1%2/$9!1(1#$
(6) TAF ISSUES AND T.E JOINT VENTURE
A: INTRODUCTION
(%/ Prominence of ta5 issues
T$e joint venture> 2$et$er ! +or(or!te venture> ! (!rtners$i( or ! +onsortiu,> 2i## f!+e t!9 issues4 T$ese issues !re
"rou%$t into (!rti+u#!r (ro,inen+e !t t$ree st!%es in t$e +o,,er+i!# #ife of t$e enter(rise> irres(e+tive of t$e for, of
t$e joint venture: !t t$e for,!tion of t$e venture> )urin% its o(er!tion> !n) on its ter,in!tion
1
4 T$e t!9 i,(#i+!tions for
t$e (!rti+i(!nts in ! (ro(ose) joint venture ,!< "e ! +ru+i!# f!+tor in se#e+tin% t$e t<(e of "usiness stru+ture to o(er!te
t$e enter(rise> !#t$ou%$ it 2ou#) r!re#< "e t$e )e+i)in% f!+tor4 T$e t$ree (rin+i(!# for,s of joint venture !re t$e
+onsortiu,> t$e joint venture +o,(!n< !n) t$e +or(or!te (!rtners$i(
4 T$e t!9 i,(#i+!tions of for,in%> o(er!tin% !n)

ter,in!tin% t$ese joint venture for,s !re )is+usse) in turn4
1
As to t$e t!9 i,(#i+!tions of runnin% ! "usiness> in+#u)in% ! joint venture see 'ile, B &ollison3s $ 'a7 Guide :CC<KC=G
T$is is t$e ,ost +o,,on for, of (!rtners$i( joint venture> !n) is fre;uent#< resorte) to "< t$e (!rti+i(!nts in ! venture so !s to
!voi) t$e (rin+i(!# )is!)v!nt!%e of t$e (!rtners$i( !s ! "usiness ,e)iu, M t$e un#i,ite) joint !n) sever!# #i!"i#it< of t$e
(!rtners for t$e )e"ts !n) o"#i%!tions in+urre) in +!rr<in% on t$e "usiness of t$e (!rtners$i(4 A#t$ou%$ ! #i,ite) #i!"i#it<
+o,(!n< 2i##> !s ! (!rtner> "e #i!"#e to t$e fu## e9tent of its !ssets for (!rtners$i( )e"ts !n) o"#i%!tions> t$e s$!re$o#)ers> !s t$e
effe+tive (!rti+i(!nts in t$e venture> 2i## not4
!1(11$
-: T.E CONSORTIU=
(%" 7ntroduction
One of t$e (ro"#e,s in for,in% !n) o(er!tin% ! (ure#< +ontr!+tu!# joint venture or +onsortiu,
1
is t$!t ! (!rtners$i(
,!< "e inferre) fro, su+$ ! re#!tions$i(> irres(e+tive of t$e !+tu!# intention of t$e (!rties4 T$e t!9 i,(#i+!tions for t$e
(!rties to !n inten)e) +onsortiu, 2$i+$ is !+tu!##< re%!r)e) in #!2 !s ! (!rtners$i( !re +onsi)er!"#e
4 It is i,(ort!nt>
t$erefore> t$!t t$e (!rti+i(!nts in ! +onsortiu, +on)u+t t$eir !ff!irs so !s to ensure t$!t ! (!rtners$i( is not inferre)4
As to t$e n!ture of ! +onsortiu, see /!r!%r!($ 16 J5&K et se; !nte4
As to t$e t!9 i,(#i+!tions of for,in% ! (!rtners$i( joint venture see /!r!%r!($ &05 J1&1&K et se; (ost4 See !#so /ri,e !n) S+!n#!n 'he
Law o. Partnership (1660) +$ 104
!1(1%$
(%2 Aoidin' the implication of partnership
(%211 Business in common
T$e /!rtners$i( A+t 1568
1
(rovi)es t$!t (!rtners$i( is t$e re#!tions$i( 2$i+$ su"sists "et2een (ersons> in+#u)in%
+o,(!nies
> +!rr<in% on ! "usiness 2it$ ! vie2 to (rofit4 A++or)in%#<> t$e (!rti+i(!nts in ! +onsortiu, ,ust ensure t$!t
t$e< )o not +!rr< on> even "< i,(#i+!tion or inferen+e> ! "usiness in +o,,on if t$e< !re to !voi) "ein% su"je+t to t$e
t!9 re%i,e i,(ose) on (!rtners$i(s4 In !))ition> t$e< 2i## "e #i!"#e !s (!rtners joint#< !n) sever!##< for t$e )e"ts !n)
ot$er o"#i%!tions of t$e "usiness4 In or)er to !voi) t$e i,(#i+!tion t$!t t$e< !re +!rr<in% on ! "usiness in +o,,on t$e
(!rti+i(!nts to ! +onsortiu, ,ust +o,(#< 2it$ +ert!in (r!+ti+es in+#u)in% t$e se(!r!tion of (rofit !++ru!#> "usinesses
!n) +ontr!+tu!# #i!"i#it<4 T$ese !re )is+usse) in turn4
1
/!rtners$i( A+t 1568 s 1 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4 See vo# &8 (1661 Reissue) /ARTNERS.I/
/!r!%r!($s 1 J1K> & J*K4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
See *ewstead v Frost J1636K A## ER 16> CA4

!1(1($
(%21% 3eparate profit accrual
An< (rofits e!rne) "< t$e +onsortiu, ,ust !++rue se(!r!te#< to e!+$ of t$e (!rti+i(!nts in t$e enter(rise !n) not joint#<4
E!+$ (!rti+i(!nt is t$en #i!"#e to t!9: in+o,e t!9 in t$e +!se of !n in)ivi)u!#> or +or(or!tion t!9 if it is ! +o,(!n<> on
t$e (rofits $e or it re+eives !s ! (!rti+i(!nt in t$e venture4
!1(1)$
(%21( 3eparate businesses
T$e (!rti+i(!nts in ! +onsortiu, ,ust ensure t$!t none of t$eir "usinesses invo#ve) in t$e venture !re ,er%e)4 In
!))ition> none of t$ose "usinesses ,ust "e joint#< o2ne) "< !n< of t$e (!rties invo#ve) in t$e +onsortiu, nor joint#<
+!rrie) on4 T$is )oes not (revent t$e (!rti+i(!nts in t$e venture fro, $!vin% ! +o,,on set of "usiness o"je+tives !n)
!i,s or +o'o(er!tin% in +!rr<in% out (roje+ts 2$i+$ t$e +onsortiu, is +ontr!+tu!##< o"#i%e) to un)ert!Ce> sin+e t$is is
t$e essen+e of ! +ontr!+tu!# joint venture4 .o2ever> t$e #e%!# !n) "enefi+i!# o2ners$i( of t$e "usinesses 2$i+$
+onstitute t$e joint venture !n) t$eir o(er!tion!# +ontro# ,ust "e se(!r!te4
!1(1,$
(%21) 3eparate contractual liability
T$e (!rti+i(!nts in t$e +onsortiu, ,ust ensure t$!t !n< +ontr!+ts t$!t t$e< ,!Ce !s ! (!rti+i(!nt in t$e venture +#e!r#<
st!te t$!t t$e (!rties !re +ontr!+tin% se(!r!te#< in t$eir res(e+tive se(!r!te +!(!+ities4
!1(1.$
(%21, 3harin' of 'ross returns
If e!+$ (!rt< to t$e +onsortiu, ensures t$!t t$eir res(e+tive "usinesses 2$i+$ for, t$e joint enter(rise !re se(!r!te#<
o2ne) !n) +ontro##e)> !n) t$!t e!+$ +onstituent "usiness "e!rs its o2n +osts in +!rr<in% out its o"#i%!tions un)er t$e
+onsortiu, !%ree,ent> t$en t$e net (rofits of t$e joint enter(rise s$ou#) !++rue to e!+$ of t$e (!rties in !++or)!n+e 2it$
t$e ter,s of t$!t !%ree,ent
1
4 T$e +onsortiu, !%ree,ent +ou#)> $o2ever> (rovi)e t$!t t$e (!rti+i(!nts to t$e venture
s$!re t$e %ross returns of t$e venture> 2it$out turnin% t$e venture into ! (!rtners$i(
4
1
T$e (!rti+i(!nts 2i## "e #i!"#e to in+o,e t!9 or +or(or!tion t!9 on t$e net (rofits of t$e enter(rise )e(en)ent on 2$et$er t$e< !re
in)ivi)u!#s or +or(or!tions4
See t$e /!rtners$i( A+t 1568 s () (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4 See Davis v Davis J156*K 1 C$ &6&4
As to t$e +ir+u,st!n+es in 2$i+$ ! (!rtners$i( 2i## "e inferre) fro, t$e s$!rin% of (rofits fro, !n enter(rise see vo# &8
(1661 Reissue) /ARTNERS.I/ /!r!%r!($ *4* J6K et se;4 See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
!1(1/$
((# =oint operation
T$e +onsortiu, is ! ,e+$!nis, or "usiness ,e)iu, fre;uent#< use) "< (!rties en%!%e) in t$e +o##e+tive ten)erin% for !
(roje+t> usu!##< in t$e +onstru+tion in)ustr<
1
4 T$e (!rti+i(!nts in ! +onsortiu, ,!< +o##e+tive#< ten)er for ! +ontr!+t>
"ut su"se;uent#< +!rr< out (!rti+u#!r (!rts of t$e (roje+t or +ontr!+t !s se(!r!te !n) )istin+t "usinesses4 E!+$ (!rti+i(!nt
in t$e venture 2i## in t$ese +!ses "e!r its o2n +osts in +o,(#etin% its (!rt of t$e (roje+t4 T$e (!rti+i(!nts ,!<
nevert$e#ess !%ree> in t$e +onsortiu, !%ree,ent> to re+eive +o##e+tive#< t$e %ross fees fro, t$e entire (roje+t in t$e
(ro(ortions set out in t$eir !%ree,ent> 2it$out turnin% t$e venture into ! (!rtners$i(4
Assu,in% t$!t t$e (!rti+i(!nts in t$e +onsortiu, !re +o,(!nies> !n) #i!"#e to +or(or!tion t!9> e!+$ (!rt< 2i##
"rin% into !++ount for +or(or!tion t!9 (ur(oses> for t$e re#ev!nt !++ountin% (erio)> t$!t (!rt of t$e fee it re+eive) un)er
t$e (roje+t
4 7$ere t$e +o,(!nies !re re%istere) for VAT> e!+$ (!rt< 2i## !#so !++ount for VAT on su+$ fees4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1(1"$
((1 3ub+contracts
T$e +or(or!te (!rti+i(!nts in ! +onsortiu, ,!<> !s !n !#tern!tive to joint o(er!tion> e9e+ute ! (roje+t t$rou%$ su"'
+ontr!+tin%> 2it$ )ifferent t!9 +onse;uen+es4 One of t$e (!rti+i(!nts to t$e +onsortiu, +ou#) ten)er for t$e entire
(roje+t or +ontr!+t !n)> on "ein% !2!r)e) t$e +ontr!+t> !((oint t$e ot$er (!rti+i(!nt(s) !s su"'+ontr!+tor(s) to +!rr< out
+ert!in (!rts of t$e +ontr!+t4 T$ose (!rti+i(!tin% !s su"'+ontr!+tors 2ou#) "e!r t$eir o2n +osts in +o,(#etin% t$eir (!rts
of t$e (roje+t4 In return> t$e (rin+i(!# +ontr!+tor ,ust "rin% into !++ount t$e entire fee re+eive) un)er t$e +ontr!+t for
t$e re#ev!nt !++ountin% (erio)4 It 2i##> $o2ever> "e !"#e to )e)u+t !n< su"'+ontr!+tin% fees (!i) to t$e ot$er (!rti+i(!nts
in t$e venture !s ! revenue e9(ense in +o,(utin% #i!"i#it< to +or(or!tion t!94 T$e ,!in +ontr!+tor> 2$ere it is re%istere)
for VAT> ,ust !#so !++ount for VAT on t$e entire su, re+eive) un)er t$e +ontr!+t> !#t$ou%$ it ,!< )e)u+t t$e VAT (!i)
to !n< su"'+ontr!+tor on t$e su"'+ontr!+tin% fees !s in(ut t!94
!1(12$
((% Direct ta5ation of participants
T$e t!9 +onse;uen+es for t$e (!rti+i(!nts of for,in% ! +onsortiu, !re ,ini,!#4 T$e (!rties ret!in t$eir e+ono,i+ !n)
fis+!# in)e(en)en+e "e+!use t$ere is no ,er%er of t$e enter(rises (!rti+i(!tin% in t$e venture4 A++or)in%#<> e!+$
(!rti+i(!nt is res(onsi"#e for its o2n t!9 !ff!irs> !n) ,ust ,!Ce its o2n t!9 returns in res(e+t of its o2n se(!r!te
"usiness4 E!+$ (!rti+i(!nt in t$e venture is su"je+t to +or(or!tion t!9> or in+o,e t!9 if t$e (!rti+i(!nt is !n in)ivi)u!# or
! non'+or(or!te (!rtners$i(> on t$e (rofits it re!#ises fro, t$e venture> !n) e!+$ "usiness "e!rs its o2n +osts in e!rnin%
t$!t (rofit4 T$ere is no +o,,on (oo# of re#iefs or e9(enses in+urre) "< t$e venture 2$i+$ +!n "e set off !%!inst ! %#o"!#
fee e!rne) "< t$e venture !s ! +onse;uen+e of +!rr<in% out ! (!rti+u#!r (roje+t4 E!+$ (!rti+i(!nt to t$e +onsortiu,> in
+!rr<in% on its tr!)e or (rofession> 2i## t$erefore +#!i, its o2n revenue e9(en)iture se(!r!te#< !s ! )e)u+tion in t$e
+o,(ut!tion of its tr!)in% (rofits4 In !))ition> e!+$ (!rti+i(!nt to t$e venture 2i## ,!Ce ! se(!r!te +#!i, for +!(it!#
!##o2!n+es in res(e+t of its se(!r!te ;u!#if<in% +!(it!# e9(en)iture4
!1(%#$
((( &esidency issues
Sin+e t$e +onsortiu, is ! (ure#< +ontr!+tu!# enter(rise> it is )iffi+u#t to )eter,ine 2$et$er it $!s ! #o+!tion for t$e
(ur(oses of t!9!tion4 A++or)in%#<> !n< +or(or!tion (!rti+i(!tin% in t$e +onsortiu, 2$i+$ is o(er!tin% in t$e Unite)
Bin%)o, s$ou#) re,!in +$!r%e!"#e to +or(or!tion t!9
1
on t$e (rofits it $!s re!#ise) fro, its invo#ve,ent in t$e
+onsortiu,> even if t$e !+tu!# o(er!tions of t$e joint venture !re +!rrie) on outsi)e t$e Unite) Bin%)o,4 T$is is
)e(en)ent on t$e re#ev!nt "usiness +ontinuin% to +ontro# its o2n !ff!irs in t$e Unite) Bin%)o,
4 A (!rti+i(!nt in su+$ !
+ontr!+tu!# venture is free to set +or(or!tion t!9 #oss re#ief !%!inst !n< (rofits re!#ise) !s ! +onse;uen+e of invo#ve,ent
in t$e +onsortiu,
&
4 T$is +o,(!res f!vour!"#< 2it$ t$e (osition of t$e +or(or!te (!rtners$i( joint venture
*
4
!1(%1$
1
T$e +or(or!tion 2ou#) "e +$!r%e!"#e un)er S+$ D C!se I: In+o,e !n) Cor(or!tion T!9es A+t 1655 s 15(&) (** .!#s"ur<As
St!tutes (*t$ E)n) TAFATION)4
As to t$e +ontro# test in )eter,inin% #i!"i#it< to Unite) Bin%)o, revenue st!tutes see 'ile, B &ollison3s $ 'a7 Guide :CC<KC=
(!r! &*41*4
&
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s &6&(1)> (18) 2$i+$ (er,it ! +o,(!n< 2$i+$ $!s in+urre) ! tr!)in% #oss to ro##
t$!t #oss for2!r) !n) to set it off !%!inst t$e tr!)in% in+o,e of su++ee)in% !++ountin% (erio)s )e(en)ent on t$e +o,(!n<
re,!inin% +$!r%e!"#e to +or(or!tion t!94 T$e #oss in su+$ +!ses is set off !%!inst t$e e!r#iest !v!i#!"#e in+o,e4 See !#so i"i) s
&6&A (!s inserte) "< t$e :in!n+e A+t 1661 s 3&) 2$i+$ (er,its ter,in!# #osses to "e set !%!inst !## (rofits of t$e +o,(!n< !n)
not just tr!)in% in+o,e4 An< unuse) +!(it!# !##o2!n+es 2$i+$ $!ve not "een )e)u+te) in +o,(utin% (rofits +!n "e tre!te) in !
si,i#!r f!s$ion: In+o,e !n) Cor(or!tion T!9es A+t s &6&A(0) (!s inserte) !"ove)4 A +o,(!n< ,!<> un)er t$e !"ove (rovisions>
+!rr< t$e #oss "!+C !n) set it !%!inst (rofits of !n< )es+ri(tion of (re+e)in% !++ountin% (erio)s f!##in% 2$o##< or (!rt#< 2it$in t$e
(re+e)in% t$ree <e!rs4
*
As to t$e t!9 !s(e+ts of t$e +or(or!te joint venture see /!r!%r!($ &&3 J1&1K et se; (ost4
!1(%%$
(() Contribution of assets
Sin+e t$e +onsortiu, !s ! "usiness or%!nis!tion )oes not +onstitute !n entit< 2$i+$ is )istin+t fro, t$e (!rti+i(!nts> !n)
)oes not invo#ve !n< ,er%er of enter(rises> t$ere +!n "e no )is(os!#s of !ssets "< t$e (!rti+i(!nts in t$e +onsortiu,4
A++or)in%#<> t$ere !re no revenue +onse;uen+es 2$ere t$e +onsortiu, o(er!tes> not2it$st!n)in% t$!t +ert!in !ssets of
t$e (!rti+i(!nts !re uti#ise) "< t$e +onsortiu,> "e+!use t$e (!rti+i(!ntsA !ssets re,!in t$eir (ro(ert<4 T$is (osition
s$ou#) "e +ontr!ste) 2it$ t$e situ!tion 2$ere t$e (!rti+i(!nts in ! +or(or!te or +or(or!te (!rtners$i( joint venture
tr!nsfer !ssets to t$ose entities
1
4
1
As to tr!nsfer of !ssets in t$e +or(or!te joint venture see /!r!%r!($ &&3 J1&1K et se; (ost4
!1(%($
((, AA*
Sin+e t$e +onsortiu, is ! (ure#< +ontr!+tu!# entit<> 2$et$er t$e (!rti+i(!nts to t$e venture 2i## "e re;uire) to re%ister
for VAT 2i## )e(en) on t$eir in)ivi)u!# +ir+u,st!n+es
1
4 Conse;uent#<> 2$ere t$e (!rti+i(!nts to ! +onsortiu, !re
su"je+t to VAT> e!+$ (!rt< ,ust se(!r!te#< !++ount for VAT +$!r%e) on !n< fees re+eive) un)er !n< +ontr!+t to 2$i+$
t$e +onsortiu, is or 2!s ! (!rt<
4
1
As to t$e +ir+u,st!n+es in 2$i+$ !n in)ivi)u!# or ! +o,(!n< is #i!"#e to re%ister for VAT see 'ile, B &ollison3s $ 'a7 Guide
:CC<KC= +$ 114
See Greater London &ouncil v &ustoms and E7cise &omrs J165K VATTR 6*4
!1(%)$
((. *ermination
T$e ter,in!tion of ! +onsortiu, $!s no )ire+t t!9 +onse;uen+es for t$e (!rti+i(!nts "e+!use t$e +onsortiu, is not !n
entit< 2$i+$ $!s ! #e%!# e9isten+e in)e(en)ent fro, t$e (!rti+i(!nts4 T$ere is nor,!##< no tr!nsfer of !ssets "et2een t$e
+onsortiu, !n) !n< of t$e (!rti+i(!nts in t$e venture4 If t$e ter,in!tion of t$e +onsortiu, !#so invo#ves t$e ter,in!tion
of t$e "usiness of !n< of t$e (!rti+i(!nts> t$e nor,!# t!9 ru#es %overnin% ter,in!tion 2i## !((#< to t$!t "usiness
)e(en)in% on 2$et$er t$e enter(rise is in+or(or!te) or unin+or(or!te)
1
4
1
As to t$e t!9 ru#es !((#i+!"#e to t$e ter,in!tion of "usinesses see 'ile, B &ollison3s $ 'a7 Guide :CC<KC= +$ 84
!1(%,$
C: T.E COR/ORATE JOINT VENTURE
1: TRANS:ERS O: ASSETS AND STOCB IN TRADE
((/ Char'eable 'ains on asset transfers
A +o,(!n< re%istere) un)er t$e Co,(!nies A+t 1650 2$i+$ is resi)ent in t$e Unite) Bin%)o,> t$!t is 2it$ its
re%istere) offi+e in t$e Unite) Bin%)o,> is su"je+t to +or(or!tion t!9 on its (rofits4 :or t$ese (ur(oses> (rofits in+#u)es
(rofits !risin% fro, tr!)in% !n) invest,ent in+o,e !n) fro, +!(it!# %!ins
1
4 On t$e for,!tion of t$e +or(or!te ve$i+#e
2$i+$ is to +!rr< out t$e joint venture> t$e t!9 2$i+$ is #iCe#< to %ive rise to )iffi+u#ties or (rove t$e ,ost +ost#< to t$e
(!rti+i(!nts is t$e +or(or!tion t!9 on t$e +$!r%e!"#e %!ins 2$i+$ !rise on t$e tr!nsfer of !ssets fro, t$e (!rti+i(!nts to
t$e joint venture +o,(!n<4 Un#iCe ! +onsortiu,> ! +or(or!te joint venture is !n entit< )istin+t fro, t$e (!rti+i(!nt
s$!re$o#)ers 2$o 2i## usu!##< "e +o,(!nies t$e,se#ves4 It fo##o2s> t$erefore> t$!t !n< tr!nsfer of !ssets fro, !n<
(!rti+i(!nt in t$e venture to t$e joint venture +o,(!n<> !s ! st!%e in t$e settin% u( of t$e joint venture ve$i+#e> 2i##
%ener!##< +onstitute )is(os!#s "< t$e (!rti+i(!nts for t!9 (ur(oses4 If t$e tr!nsferre) !ssets $!ve in+re!se) in v!#ue sin+e
t$eir !+;uisition "< t$e re#ev!nt (!rti+i(!nts> t$en +!(it!# %!ins t!9 (ro"#e,s 2i## !rise> 2$i+$ ,!< (rove +ost#< to t$e
re#ev!nt (!rti+i(!nt4 T$e +onsi)er!tion re+eive) "< t$e (!rti+i(!nts in t$e venture 2i## usu!##< "e t$e issue of s$!res in
t$e venture +o,(!n<
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1(1)> (*) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
T$ere ,!< "e !))ition!# (ro"#e,s in su+$ tr!ns!+tions 2$i+$ 2i## !rise fro, t$e re;uire,ent to v!#ue t$e !ssets tr!nsferre) to
t$e venture +o,(!n< or t$e s$!res> in or)er to est!"#is$ t$e #i!"i#it< to +or(or!tion t!94
!1(%.$
((" &eliefs for char'eable 'ains on asset transfers
T$e tr!nsfer of !ssets fro, t$e (!rti+i(!nts in t$e venture to t$e venture +o,(!n< 2i## +onstitute ! )is(os!# of
+$!r%e!"#e !ssets "< t$e (!rti+i(!nts !n) !n !+;uisition "< t$e joint venture +o,(!n<4 An< s$!res re+eive) "< t$e
(!rti+i(!nts in t$e venture in +onsi)er!tion of !n< tr!nsfer of !ssets to t$e venture +o,(!n< 2i## +onstitute +$!r%e!"#e
%!ins
1
4 .o2ever> +ert!in re#iefs ,!< "e !v!i#!"#e 2$i+$ eit$er (ost(one or even e#i,in!te !n< +$!r%e to +or(or!tion t!9
on su+$ ! +$!r%e!"#e %!in4 T$e (rin+i(!# re#iefs t$!t ,!< "e !((#i+!"#e in t$ese +ir+u,st!n+es !re !##o2!"#e #osses>
ro##over re#ief !n) t$e e9e,(tion fro, t$e %rou( e9it +$!r%e for ;u!#if<in% ,er%ers4 T$ese !re )is+usse) in turn4
1
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 5 (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1(%/$
((2 Allo0able losses
On#< +ert!in #osses +!n "e set !%!inst +$!r%e!"#e +!(it!# %!ins4 A set'off !%!inst %ener!# (rofits> !n) not just tr!)in%
in+o,e
1
> of t$e s!,e !++ountin% (erio) !n) t$e t$ree (re+e)in% <e!rs
is (er,itte) un)er t$e In+o,e !n) Cor(or!tion

T!9es A+t 1655
&
4 It (rovi)es t$!t ! +o,(!n< ,!< set t$e re#ev!nt #oss !%!inst its (rofits of 2$!tever )es+ri(tion or
for,> in+#u)in% !n< +!(it!# %!ins 2$i+$ ,!< $!ve !risen !s ! resu#t of t$e tr!nsfer of !ssets "< t$e +o,(!n< to ! joint
venture +o,(!n<> )urin% t$e s!,e !++ountin% (erio) in 2$i+$ t$e +$!r%e!"#e %!in !rose
*
4
T$e +o,(!n< ,!< !#so +!rr< "!+C !n< #oss !n) set it !%!inst !n< su+$ +!(it!# %!in f!##in% 2$o##< or (!rt#<
2it$in t$e (erio) of t$ree <e!rs i,,e)i!te#< (re+e)in% t$e (erio) in 2$i+$ t$e #oss o++urs4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1(*) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
On#< 1 ,ont$s if not on ter,in!tion of tr!)e4

&
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s &6&A !s inserte) "< t$e :in!n+e A+t 1661 s 3&4 Cf t$e #osses t$!t ,!< "e set
!%!inst tr!)in% in+o,e un)er t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s &6&: see /!r!%r!($ &&& note & J1&K !nte4
*
In+o,e !n) Cor(or!tion T!9es A+t 1655 s &6&A !s inserte) (see note !"ove)4
!1(%"$
()# &olloer relief
()#11 Application of rolloer relief
T$e (ur+$!se of !ssets "< !n< "usiness> "e it in+or(or!te)> ! (!rtners$i( or ! so#e tr!)er> 2i## fre;uent#< "e (re+e)e) "<
! )is(os!# of !ssets !n) t$e !((#i+!tion of t$e +onsi)er!tion re+eive) "< t$e "usiness in t$e !+;uisition of t$e
re(#!+e,ent !ssets4 Su+$ )is(os!#s ,!< resu#t in 2$!t 2ou#) usu!##< +onstitute ! +$!r%e!"#e %!in4 .o2ever> 2$ere t$e
+onsi)er!tion re+eive) is use) to !+;uire re(#!+e,ent !ssets> !n< +$!r%e!"#e %!in> ,!< "e ro##e) over !%!inst t$e
!+;uisition (ri+e of t$e re(#!+e,ent !ssets
1
4

T$is for, of re#ief is +o,,on#< Cno2n !s ro##over re#ief4 A#t$ou%$ for
ro##over re#ief to "e !v!i#!"#e> !n< +onsi)er!tion re+eive) on )is(osin% of !n !sset "< ! "usiness ,ust "e !((#ie) in
!+;uirin% t$e re(#!+e,ent !sset> t$e In#!n) Revenue $!s +onfir,e) t$!t> in (rin+i(#e> it $!s no o"je+tion to t$e
!((#i+!tion of ro##over re#ief "ein% !v!i#!"#e 2$ere t$e +onsi)er!tion for !n< )is(os!# of !ssets is t$e issue of s$!res4
T$e Revenue $!s> $o2ever> st!te) t$!t t$e !((#i+!tion of ro##over re#ief in t$e !"ove +ir+u,st!n+es is )e(en)ent on !n
e;uiv!#ent !,ount "ein% !((#ie) in t$e reinvest,ent
4 T$is +overs t$e situ!tion 2$ere !ssets !re tr!nsferre) "< !

+or(or!te (!rti+i(!nt in ! joint venture to t$e joint venture +o,(!n< in e9+$!n%e for t$e issue of s$!res in t$!t
+o,(!n<4
1
#imon3s 'a7 8ntelli!ence 1661 ( 18634

!1(%2$
()#1% &olloer relief and company 'roups
Ro##over re#ief ,!< !#so "e !v!i#!"#e "et2een ,e,"ers of ! %rou( of +o,(!nies4 Re#ief +!n "e +#!i,e) 2$ere t$ere is
!n !+;uisition of !n !sset "< one ,e,"er of t$e %rou( !n) t$e )is(os!# of !n !sset "< !not$er ,e,"er of t$e %rou(
1
4
T$is re#ief +ou#) "e !v!i#!"#e 2$ere ! +o,(!n< in su+$ ! %rou(> in its +!(!+it< !s ! (!rti+i(!nt in ! joint venture>
tr!nsfers !ssets to t$e joint venture +o,(!n< in return for !n issue of s$!res4
1
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 130 !s !,en)e) "< t$e :in!n+e A+t 1660 s *5 (*& .!#s"ur<As St!tutes (*t$
E)n) TAFATION)4 T$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 130 e9ten)s t$e (rovisions re#!tin% to ro##over re#ief !s re%!r)s
%rou(s of +o,(!nies4 /rior to t$e en!+t,ent of t$is (rovision> it $!) "een In#!n) Revenue (r!+ti+e to !##o2 ro##over re#ief 2$ere
! ;u!#if<in% !sset 2!s )is(ose) of "< one +o,(!n< in ! %rou( !n) ! re(#!+e,ent !sset !+;uire) "< !not$er +o,(!n< in t$e
%rou(4 &ampbell &onnell, B &o Ltd v Barnett J166*K STC 08> 18 T!9 C!s &58 $!) +!st )ou"t on t$is (r!+ti+e4 T$e :in!n+e A+t
1660 s *5 restores t$e (osition (rior to t$e &ampbell +!se4 It s$ou#) "e note) t$!t e9tr!'st!tutor< +on+ession D&8 2$i+$ !##o2e)
!ssets $e#) "< ! non'tr!)in% ,e,"er of ! %rou( to ;u!#if< for ro##over re#ief 2$ere t$ose !ssets 2ere use) for t$e (ur(oses of !
tr!)e "< ot$er ,e,"ers of t$e %rou(> in+#u)in% t$e joint venture +o,(!n<> 2!s %iven st!tutor< effe+t "< t$e se+tion4
!1((#$
()1 Fualifyin' mer'er e5emption
It ,!< "e (ossi"#e for +ert!in +or(or!te (!rti+i(!nts in ! +or(or!te joint venture to !voi) +$!r%e!"#e %!ins in t$e settin%
u( of t$e venture ve$i+#e "< for,in% t$e ve$i+#e !++or)in% to t$e ;u!#if<in% ,er%er (rovisions of t$e T!9!tion of
C$!r%e!"#e G!ins A+t 166
1
4 Un)er Se+tion 151 of t$e A+t ! +o,(!n< is e9e,(t fro, t$e %rou( e9it +$!r%e if it #e!ves
! %rou( !s ! resu#t of ! ,er%er 2$ere t$e re#ev!nt tr!ns!+tion 2!s +!rrie) out for "on! fi)e +o,,er+i!# re!sons !n)
t$ere is no t!9 !voi)!n+e ,otive4 T$e %rou( e9it +$!r%e !rises un)er Se+tions 135 !n) 136
of t$e A+t 2$i+$ (rovi)e

t$!t 2$ere ! +o,(!n< #e!ves ! %rou( of +o,(!nies 2it$in si9 <e!rs of $!vin% !+;uire) !n !sset fro, !not$er +o,(!n<
in t$e %rou(> t$e +o,(!n< #e!vin% t$e %rou( is to "e re%!r)e) !s $!vin% )is(ose) of t$e !sset !t ,!rCet v!#ue !t t$e
ti,e it #eft t$e %rou(4 7$ere t$e (rovisions !((#<> t$e +o,(!n< #e!vin% t$e %rou( 2i## "e #i!"#e to ! +$!r%e to
+or(or!tion t!9 on t$e re#ev!nt !sset4
1
T!9!tion of C$!r%e!"#e G!ins A+t 166 s 151 (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) s 136 !s !,en)e) "< t$e :in!n+e A+t 1660 s *64 T$e !,en),ent 2rou%$t "< t$is se+tion 2!s )esi%ne) to (revent ! )evi+e
Cno2n !s t$e Denve#o(e tri+CA4 T$is )evi+e 2!s !i,e) !t !voi)in% !n< +$!r%e to +or(or!tion t!9 un)er t$e se+tion "< $!vin% !
+o,(!n< #e!ve ! +or(or!te %rou( 2it$in si9 <e!rs of !+;uirin% !n !sset "< !n intr!'%rou( no %!inEno #oss tr!nsfer> !n) t$en
$!vin% "ot$ +o,(!nies invo#ve) in t$e tr!ns!+tion #e!ve t$e %rou(> "ut ensurin% t$!t t$e %rou( )i) not #ose effe+tive e+ono,i+
o2ners$i( of t$ose +o,(!nies4 T$e !,en),ent o(er!tes "< effe+tive#< tre!tin% t$e ori%in!# %rou( !n) !n< %rou( for,e) "< t$e
)e'%rou(e) +o,(!nies !s "ein% one !n) t$e s!,e in !((#<in% t$e )e'%rou(in% +$!r%in% (rovisions of t$e T!9!tion of C$!r%e!"#e
G!ins A+t 1664 T$e !rtifi+i!# )e'%rou(in% +ou#) "e !+$ieve) "< uti#isin% t$e servi+es of !n outsi)e fin!n+i!# institution to
su"s+ri"e for s$!res in t$e res(e+tive +o,(!nies 2$i+$ nevert$e#ess +!rr< ne%#i%i"#e e+ono,i+ ri%$ts4
!1((1$
()% *ransfers of stoc> in trade
()%11 Char'es to corporation ta5
T$e (!rti+i(!nts in ! +or(or!te joint venture ,!< !s ! +o,,er+i!# ne+essit<> !n) !s (!rt of t$e for,!tion of t$e venture>
tr!nsfer so,e of t$eir sto+C in tr!)e to t$e joint venture +o,(!n<4 T$e +onsi)er!tion for su+$ ! tr!nsfer ,!< "e !n issue
of s$!res4 In su+$ +!ses it is !)vis!"#e> fro, ! +or(or!tion t!9 (oint of vie2> for t$e (!rties to )eter,ine t$!t t$e v!#ue
of t$e +onsi)er!tion> t$!t is t$e issue) s$!res> is e;u!# to t$e "ooC v!#ue of t$e sto+C in tr!)e4 No in+o,e is e!rne) "<
t$e (!rti+i(!nt +o,(!n< !n) !n< (ossi"i#it< of ! +$!r%e to +or(or!tion t!9 is !voi)e)4
!1((%$
()%1% Aaluation of stoc> in trade
In %ener!#> tr!)in% sto+C on )is(os!# "< ! (!rti+i(!nt in ! joint venture to t$e joint venture +o,(!n< s$ou#) "e v!#ue)
for !++ountin% (ur(oses !t t$e !+tu!# (ri+e re!#ise) on t$e )is(os!#4 Su+$ !n !++ountin% (r!+ti+e ,!< !voi) #i!"i#it< to
+or(or!tion t!9
1
4 .o2ever> t$is ru#e is su"je+t to e9+e(tions4
!1((($
()%1( *ransfer pricin'
T$e :in!n+e A+t 1665 Se+tion 185 re(#!+e) t$e #e%is#!tion +ont!ine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 16554
Un)er Se+tion 185 t$e +ir+u,st!n+es in 2$i+$ tr!nsfer (ri+in% !)just,ents +!n "e ,!)e> 2it$in t$e +onte9t of ! joint
venture> !re )eter,ine) in (!rt "< t$e re#!tions$i( "et2een its ,e,"ers4 Issues of +ontro# !n) !%en+< !re t$erefore
+ru+i!# in )eter,inin% t$e +onsi)er!tion t$!t is su"stitute) in +o,(utin% t$e (rofits of t$e tr!nsferor to +or(or!tion t!9
on !n< tr!ns!+tion4
!1(()$
()%1) Disposal at mar>et alue
T$e +!se of #harke, v Wernher
1
est!"#is$e) t$e (rin+i(#e t$!t 2$ere ! tr!)er )is(oses of tr!)in% sto+C
> ot$er2ise t$!n

in t$e +ourse of tr!)e> t$e enter(rise is )ee,e) to )is(ose of it !t ,!rCet v!#ue> !n) t$!t fi%ure ,ust "e entere) into t$e
!++ounts of t$!t enter(rise> un#ess t$e )is(os!# is ! %enuine +o,,er+i!# tr!ns!+tion
&
4
1
#harke, v Wernher J1601K AC 05> .L4
Or 2$ere ! (!rti+i(!nt in ! joint venture tr!nsfers sto+C in tr!)e to t$e joint venture +o,(!n<4
&
T$is s$ou#) "e t$e situ!tion in t$e +!se of ,ost tr!nsfers of sto+C in tr!)e fro, ! (!rti+i(!nt in ! joint venture to t$e joint venture
+o,(!n<4
!1((,$
()%1, Aalue of consideration
7$ere sto+C in tr!)e is tr!nsferre) on t$e )is+ontinu!n+e of t$e tr!)e of t$e tr!nsferor +o,(!n<> t$e v!#ue of t$!t
+onsi)er!tion is to "e )eter,ine) "< t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 Se+tion 188
1
4 T$is (rovision +ou#)
!((#< for e9!,(#e to t$e for,!tion of ! +or(or!te joint venture> 2$ere one of t$e (!rti+i(!nts is ! +o,(!n< 2it$in !
+or(or!te %rou(in%> !n) is +ontro##e) "< !not$er +o,(!n< in t$!t %rou(4
1
In+o,e !n) Cor(or!tion T!9es A+t 1655 s 188 !s !,en)e) "< t$e :in!n+e A+t 1660 s 1*8 (** .!#s"ur<As St!tutes (*t$ E)n)
TAFATION)4 T$is (rovi)es t$!t on eit$er t$e )is+ontinu!n+e or even ! )ee,e) )is+ontinu!n+e of ! tr!)e> tr!)in% sto+C is
)ee,e) to $!ve "een so#) !t its ,!rCet v!#ue un#ess it is so#) to ! (erson (in+#u)in% ! +o,(!n< or ! joint venture +o,(!n<)
tr!)in% or inten)in% to tr!)e in t$e Unite) Bin%)o,> in 2$i+$ +!se t$e (ro+ee)s !re t!Cen re%!r)#ess of t$e !+tu!# v!#ue of t$e
tr!)in% sto+C4
T$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 188 (1A)M(1G) !s inserte) "< t$e :in!n+e A+t 1660 s 1*8 (rovi)es t$!t if
t$e (!rties !re +onne+te) !n !r,As #en%t$ (ri+e 2i## "e su"stitute)> !#t$ou%$ t$e (!rties ,!< e#e+t> 2it$in t2o <e!rs> to use !
#o2er fi%ure> eit$er t$e tr!)in% sto+CAs !+;uisition v!#ue or> if ,ore> t$e !%ree) s!#e (ri+e4
!1((.$
()( Capital allo0ances
7$ere +!(it!# !##o2!n+es !re (er,itte)> ! +o,(!n< is !##o2e) to 2rite off t$e +ost of !n !sset it $!s !+;uire) for t$e
"usiness !%!inst !n< (rofits of t$e +o,(!n<As tr!)e
1
4 If t$e +o,(!n< su"se;uent#< se##s t$e !sset !t ,ore t$!n t$e t!9
2ritten')o2n v!#ue> t$ere 2i## "e ! "!#!n+in% +$!r%e4 T$e tr!nsfer "< ! (!rti+i(!nt in t$e venture to ! joint venture
+o,(!n< of +!(it!# !ssets 2$i+$ $!ve ;u!#ifie) for +!(it!# !##o2!n+es 2i## %ive rise to +or(or!tion t!94
1
As to t$e n!ture of +!(it!# !##o2!n+es see 'ile, B &ollison3s $ 'a7 Guide :CC<KC= +$ 54
!1((/$
()) *ransfers of intellectual property
A +or(or!te (!rti+i(!nt in ! joint venture ,!< tr!nsfer to t$e joint venture +o,(!n< +ert!in (ro(ert< ri%$ts of ! (erson!#
or in+or(ore!# n!ture4 T$is 2i## usu!##< !rise 2$ere t$e +or(or!te (!rti+i(!nt to t$e venture tr!nsfers to t$e joint venture
+o,(!n< inte##e+tu!# (ro(ert< ri%$ts su+$ !s ! tr!)e ,!rC or ! (!tent4 Su+$ tr!nsfers ,!< %ive rise to ! +$!r%e!"#e
%!in
1
4
1
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 1(1) (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION) 2$i+$ (rovi)es t$!t !##
for,s of (ro(ert< !re !ssets for t$e (ur(oses of +!(it!# %!ins t!94 /ro(ert< is not> $o2ever> furt$er )efine)4 Note t$!t not !##
tr!nsfers of inte##e+tu!# (ro(ert< 2ou#) "e su"je+t to t!9 un)er t$e +$!r%e!"#e %!ins t!9 (CGT) ru#es4 E% t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 s 0* (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION) t!9es t$e s!#e of (!tent ri%$ts !s ! S+$e)u#e D
C!se VI in+o,e +$!r%e s(re!) over si9 <e!rs4
!1(("$
(), *ransfers of unused tradin' losses
A (ro(ose) +or(or!te (!rti+i(!nt in ! joint venture ,!< $!ve unuse) tr!)in% #osses 2$i+$ it ,!< "e !)v!nt!%eous to
tr!nsfer to t$e (ro(ose) joint venture +o,(!n<4 It is (ossi"#e to )o t$is "< t$e tr!nsfer of t$e entire "usiness of t$e
(!rti+i(!nt in t$e joint venture +o,(!n<4 It ,!< "e !)vis!"#e in t$ese +ir+u,st!n+es for t$!t (!rti+i(!nt to for, t$e
venture +o,(!n<4 T$e (!rti+i(!nt t$en t!Ces ! 188L s$!re$o#)in% in t$e for,e) joint venture +o,(!n< in e9+$!n%e for
t$e su"se;uent tr!nsfer of t$e "usiness4 Su"se;uent#<> t$e ot$er (ro(ose) (!rti+i(!nts in t$e joint venture ,!<
+ontri"ute !ssets to t$e joint venture +o,(!n< in return for !n issue of s$!res in t$e +o,(!n<4 T$e +onse;uen+e of t$ese
tr!ns!+tions is t$!t t$e first (!rti+i(!ntAs interest in t$e joint venture +o,(!n< is )i#ute)4 It s$ou#) "e note) t$!t t$e
!"i#it< to +!rr< for2!r) tr!)in% #osses +ou#) "e #ost if> fo##o2in% for,!tion of t$e joint venture +o,(!n<> !n in+o,in%
(!rti+i(!nt or (!rti+i(!nts to t$e venture so#e#< or +o##e+tive#< !+;uire ,ore t$!n ! 08L s$!re$o#)in% in t$e venture
+o,(!n< !n) t$ere is ! +$!n%e in t$e n!ture of t$e tr!)e +!rrie) on "< t$!t +o,(!n<
1
4
1
!1((2$
(). 3tamp duty
T$e settin% u( of ! joint venture +o,(!n< ,!< %ive rise to st!,( )ut<4 T$is ,!< "e (!<!"#e in re#!tion to t$e
)o+u,ents t$!t set u( t$e joint venture enter(rise or 2$i+$ tr!nsfer !ssets "et2een t$e (!rti+i(!nts !n) t$e joint venture
+o,(!n<
1
4 T$ere !re ! nu,"er of te+$ni;ues t$!t +!n "e use) to !voi) or )efer t$is #i!"i#it< for e9!,(#e> e9e+ution of
)o+u,ents offs$ore> !#t$ou%$ t$e In#!n) Revenue ,!< insist on seein% ! st!,(e) !%ree,ent "efore !##o2in% t!9
re#iefs4 A#tern!tive#<> t$e s!#e ,i%$t "e effe+te) "< ! 2ritten offer !n) or!# !++e(t!n+e> so !s to !voi) $!vin% ! 2ritten
!%ree,ent4 .o2ever t$ere ,ust "e ! si%nifi+!nt risC t$!t t$e In#!n) Revenue 2ou#) seeC to st!,( !n< )o+u,ent 2$i+$
is "rou%$t into e9isten+e su"se;uent to t$e +o,(#etion of !n< su+$ !%ree,ent> !n) 2$i+$ seeCs ,ere#< to re+or) t$e
ter,s of t$e or!# !%ree,ent4
1
See t$e St!,( A+t 1561 !n) t$e St!,( Duties =!n!%e,ent A+t 1561 (*1 .!#s"ur<As St!tutes (*t$ E)n) STA=/ DUTIES) 2$i+$
est!"#is$ t$e +#!ss of )o+u,ents for 2$i+$ st!,( )ut< 2i## "e +$!r%e)4 Note in (!rti+u#!r> t$e St!,( A+t 1561 s 06 2$i+$ tre!ts
!%ree,ents tr!nsferrin% +ert!in !ssets !s ! +onve<!n+e !n) so st!,(!"#e4
!1()#$
()/ AA*
T$e tr!ns!+tions +!rrie) out "< ! joint venture +o,(!n< 2i## usu!##< re;uire t$e enter(rise to re%ister for VAT
1
4
.o2ever> 2$ere t$e joint venture +o,(!n< !+;uires t$e "usiness or (!rt of ! "usiness of ! (!rti+i(!nt to t$e venture>
!n) uses t$e !ssets of t$!t enter(rise in o(er!tin% t$e s!,e Cin) of "usiness !s t$!t for,er#< +!rrie) on "< t$!t
(!rti+i(!nt> t$e tr!ns!+tion 2i## "e tre!te) !s ! tr!nsfer of ! "usiness !s ! %oin% +on+ern !n) so outsi)e t$e s+o(e of VAT
if +ert!in +on)itions !re !#so s!tisfie)
4 .o2ever t$e joint venture +o,(!n< 2i## !+;uire t$e ven)orAs VAT #i!"i#it< in
res(e+t of t$e VAT +!(it!# ite,s s+$e,e4 Ot$er #i!"i#ities 2i## re,!in (rovi)e) t$e VAT re%istr!tion nu,"er is not
tr!nsferre)
&
4
1
VAT is +$!r%e!"#e on !n< t!9!"#e su((#< of %oo)s or servi+es in t$e Unite) Bin%)o, ,!)e "< ! t!9!"#e (erson (in+#u)in% !
+o,(!n<) in t$e +ourse or furt$er!n+e of ! "usiness: V!#ue A))e) T!9 A+t 166* s * (*5 .!#s"ur<As St!tutes (*t$ E)n) VALUE
ADDED TAF)4 A (erson "e+o,es #i!"#e to re%ister for VAT (ur(oses if $is "usiness turnover e9+ee)s ! (res+ri"e) t$res$o#)
#i,it: see i"i) s *> S+$ 14
As to t$e )et!i#s re#!tin% to t$e +urrent t$res$o#) #eve#s see 'ile, B &ollison3s $ 'a7 Guide :CC<KC= +$ 114
See t$e VAT (S(e+i!# /rovisions) Or)er 1660E115 !rt 04

&
VAT Re%u#!tions 1660E015 re% 11*(3) !n) t$e V!#ue A))e) T!9 A+t 166* s *6()4
!1()1$
: CONSORTIU= AND GROU/ RELIE:
()" Consortium relief
()"11 :oss relief
T$ere !re +onsi)er!"#e t!9 !)v!nt!%es if ! joint venture +o,(!n< o(er!tes !s (!rt of ! %rou( of +o,(!nies or
+onsortiu, 2it$ one or ,ore of t$e +or(or!te (!rti+i(!nts in t$e joint venture4 7$ere ! joint venture +o,(!n< o(er!tes
2it$in ! +onsortiu,> !n< #osses t$e venture +o,(!n< in+urs )urin% its o(er!tion +!n "e re#ieve) !%!inst t$e (rofits
e!rne) "< t$e +o,(!nies 2$i+$ !re t$e (!rti+i(!nts in t$e venture> %ener!##< in (ro(ortion to t$eir res(e+tive
s$!re$o#)in% in t$e joint venture4
!1()%$
()"1% Connected persons
Consortiu, re#ief is not !##o2e) if !n< (!rti+i(!nt in t$e +or(or!te joint venture> eit$er !#one or to%et$er 2it$ !n<
+onne+te) (erson> +ontro#s or +ou#) +ontro# 30L or ,ore of t$e votin% ri%$ts in t$e joint venture +o,(!n<
1
4 A
+onne+te) (erson is )efine)> for t$ese (ur(oses> !s D!n< t2o or ,ore (ersons !+tin% to%et$er to se+ure or e9er+ise
+ontro# of ! +o,(!n<A
4 Su+$ (ersons 2i## in t$e !"ove +ir+u,st!n+es "e tre!te) in re#!tion to t$!t +o,(!n< !s
+onne+te) 2it$ one !not$er
&
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18 ()(")(iii) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) s 5&64
&
I"i) s 5&64
!1()($
()"1( Aailability of consortium relief
T$e !v!i#!"i#it< of +onsortiu, re#ief for +or(or!te joint ventures 2!s serious#< un)er,ine) in #teele 18nspector o.
'a7es6 v E"& 8nternational *"6
1
G T$e Court of A((e!# $e#) t$!t ! s$!re$o#)ersA !%ree,ent 2$i+$ (rovi)e) for t$e
+onstitution !n) +ontro# of ! joint#< o2ne) +o,(!n< +onstitute) t$e s$!re$o#)ers +onne+te) (ersons
4 T$e +ourt
re!sone) t$!t t$e (!rties 2ere> "< referen+e to t$e !%ree,ent> !+tin% to%et$er to se+ure !n) e9er+ise +ontro# of t$e joint
venture +o,(!n<
&
4
T$is (rin+i(#e 2ou#) "e e;u!##< !((#i+!"#e to !n< +onsortiu, invo#vin% ! joint venture +o,(!n< !n) so,e or
!## of t$e +or(or!te (!rti+i(!nts 2$ere t$e +or(or!te s$!re$o#)ers !s (!rti+i(!nts in t$e venture !%ree) $o2 to
i,(#e,ent (o#i+< for t$e joint venture +o,(!n<4 If !## or so,e of t$e +or(or!te (!rti+i(!nts to ! joint venture +o,(!n<
2$i+$ is (!rt of su+$ ! +onsortiu, !re +onne+te) (ersons 2it$ re%!r) to t$e joint venture +o,(!n<> +onsortiu, re#ief
2i## "e )enie) to t$!t %rou( "e+!use t$e re#ev!nt (rovisions 2ou#) "e infrin%e)
*
4 It 2!s !((!rent fro, t$e #teele +!se
t$!t t$is 2ou#) "e t$e situ!tion !((#i+!"#e to !## joint venture +o,(!nies 2$i+$ 2ere (!rt of ! +onsortiu,4 /rior to t$e
+!se> t$e In#!n) Revenue $!) i%nore) t$e !((#i+!tion of t$e (rin+i(#e of +onne+te) (ersons to joint venture +o,(!nies
!n) t$eir +or(or!te (!rti+i(!nts> "ut t$e )e+ision of t$e Court of A((e!# for+e) t$e Revenue to re'e9!,ine t$e situ!tion4
T$e In#!n) Revenue in)i+!te) t$!t it 2ou#) not seeC to !((#< t$e )e+ision of #teele even 2$ere t$e joint venture
+o,(!n< 2!s su"je+t to ! +o,(re$ensive s$!re$o#)ersA !%ree,ent> su+$ !s t$!t 2$i+$ %overne) t$e +onstitution of t$e
+o,(!n< in t$e #teele +!se
0
4
T$e :in!n+e A+t 1663 Se+tion 15
1
seeCs to reverse t$e effe+ts of t$e #teele +!se4 Its effe+t is t$!t +or(or!te
(!rti+i(!nts in ! +or(or!te joint venture> irres(e+tive of t$e e9isten+e of ! s$!re$o#)ersA !%ree,ent> nee) not "e tre!te)
!s +onne+te) (ersons
3
4
!1())$
1
#teele 18nspector o. 'a7es6 v E"& 8nternational *" 1.ormerl, European "in,ls &orpn 1@oldin!s6 B" J1661K STC 350> CA4
T$e joint venture +o,(!n< 2!s> in f!+t> ! )e!)#o+C +o,(!n< 2$ere neit$er (!rti+i(!nt s$!re$o#)er +ou#) (!ss ! reso#ution
2it$out t$e +on+urren+e of t$e ot$er4
&
T$is $!) "een t$e fin)in% in t$e .i%$ Court: #teele 18nspector o. 'a7es6 v E"& 8nternational *" J1660K STC &14
*
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18 ()(")(iii) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
0
It !,en)s t$e )efinition of +onne+te) (ersons in i"i) s *18(0)4
1
:in!n+e A+t 1663 s 15 (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
3
See =!sters !n) -!## (1663) T!9 J *80'1&'1*4
!1(),$
()2 8roup relief
Consortiu, re#ief is on#< one ,e+$!nis, 2$ere"< tr!)in% #osses !n) ot$er (res+ri"e) re#iefs ,!< "e tr!nsferre) fro,
one Unite) Bin%)o, +o,(!n< to !not$er4 Grou( re#ief (+onsortiu, re#ief "ein% ! for, of %rou( re#ief) is !v!i#!"#e in
res(e+t of ! joint venture +o,(!n<> 2$ere one of t$e (!rti+i(!nts in t$e venture +o,(!n< $!s ! 30L or %re!ter interest
in t$e venture ve$i+#e4 In su+$ +!ses %rou( re#ief is !v!i#!"#e on#< "et2een t$e (!rti+i(!nt 2it$ t$e +ontro##in% interest
in t$e joint venture +o,(!n< !n) t$e +o,(!n< itse#f> !#t$ou%$ !n< re#ief ,!< "e %iven in eit$er )ire+tion4
A joint venture +o,(!n< in t$ese +ir+u,st!n+es is !"#e to surren)er its tr!)in% #osses to t$e (!rti+i(!nt
+o,(!n< 2$i+$ enjo<s ! 30L or %re!ter s$!re$o#)in% in t$e joint venture +o,(!n<4 It +!nnot> $o2ever> surren)er !n<
su+$ #osses to t$e ot$er s$!re$o#)er (!rti+i(!nts4 It ,!< t$erefore "e !((ro(ri!te (r!+ti+e for t$e joint venture
!%ree,ent to (rovi)e for %rou( re#ief surren)ers to "e (ossi"#e in eit$er )ire+tion> !n) "< in)e,nit< to ,!Ce !v!i#!"#e>
!#"eit in)ire+t#<> t$e "enefits of %rou( re#ief in res(e+t of !## (!rti+i(!nts in t$e venture4 Su+$ ! (rovision ,!< "e
!((ro(ri!te "e+!use it is not (ossi"#e for st!tutor< re#iefs to "e tr!nsferre) !s su+$ "et2een (!rties en%!%e) in ! joint
"usiness venture4
!1().$
(,# 8roup and consortium relief compared
T$ere !re )ifferen+es "et2een t$e +on)itions in 2$i+$ ! +or(or!te (!rti+i(!nt in ! +or(or!te joint venture 2$i+$ is !
,e,"er of ! +or(or!te %rou(in% ,!< +#!i, %rou( re#ief !s o((ose) to +onsortiu, re#ief4 7$ere ! +or(or!te (!rti+i(!nt
in ! joint venture $!s !n interest in t$e venture ve$i+#e 2$i+$ f!##s "e#o2 30L> t$e !"i#it< to surren)er #osses "et2een
t$!t ve$i+#e !n) t$e +or(or!te (!rti+i(!nt in t$e venture 2i## "e )e(en)ent on t$e !v!i#!"i#it< of +onsortiu, re#ief4
Consortiu, re#ief is )e(en)ent on t$e joint venture +o,(!n< "ein% resi)ent in t$e Unite) Bin%)o, !n) "ein% o2ne)
"< ! +onsortiu,
1
4 A joint venture +o,(!n< 2i## "e o2ne) "< ! +onsortiu, if 30L or ,ore of t$e votin% s$!res of t$e
+o,(!n< is o2ne) "< +o,(!nies 2$i+$ !re !#so resi)ent in t$e Unite) Bin%)o,> of 2$i+$ e!+$ o2ns !t #e!st 0L of
t$!t +!(it!#4 .o2ever> fro, t$e re+ent +!se of 8&8 plc v &olmer
> it !((e!rs t$!t not !## t$e +o,(!nies in t$e +onsortiu,

nee) to "e resi)ent in t$e Unite) Bin%)o,H t$is re;uire,ent is restri+te) on#< to +o,(!nies 2$i+$ !re eit$er
surren)erin% or +#!i,in% re#ief !s (!rt of t$e +onsortiu,4
In +!ses of %rou( re#ief> t$e joint venture +o,(!n< is entit#e) to surren)er its entire tr!)in% #osses or s(e+ifie)
re#iefs to t$e (!rti+i(!nt s$!re$o#)er 2$o o2ns 30L or ,ore of t$e s$!res in t$e +o,(!n<
&
4 In t$e +!se of +onsortiu,
re#ief> t$e venture +o,(!n<As s(e+ifie) re#iefs 2$i+$ +!n "e surren)ere) !re not so restri+te)4 A (ro(ortion of t$e
venture +o,(!n<As s(e+ifie) re#iefs +!n "e surren)ere) to !n< (!rti+i(!nt +o,(!n< in t$e venture 2$i+$ is resi)ent in
t$e Unite) Bin%)o,
*
> t$ou%$ usu!##< in t$e (ro(ortion to t$e (!rti+u#!r (!rti+i(!ntAs s$!re in t$e venture +o,(!n<4 T$is
is "!se) on "enefi+i!# o2ners$i( of t$e joint venture +o,(!n<As or)in!r< s$!re +!(it!#> !n) is in !++or)!n+e 2it$ t$e
res(e+tive e+ono,i+ interests t$!t e!+$ of t$e re#ev!nt (!rti+i(!nts enjo<s in t$e venture ve$i+#e
0
4
!1()/$
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *1& (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
8&8 plc v &olmer J166&K STC 318> CA4

&
As to t$e (ossi"i#it< of effe+tive#< s$!rin% t$ese #osses "et2een t$e (!rti+i(!nts s$!re$o#)ers "< !%ree,ent "et2een t$e (!rties
see /!r!%r!($ &*6 J1&*1K !nte4
*
See 8&8 plc v &olmer J166&K !"ove4
0
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 S+$ 154
!1()"$
(,1 Anti+aoidance proisions
(,111 7ntroduction
T$e (!rti+i(!nts in ! joint venture +o,(!n< 2$i+$ !re> to%et$er 2it$ t$e joint venture +o,(!n<> ,e,"ers of ! %rou( of
+o,(!nies> ,!< seeC to !voi) t!9 "< seeCin% to !"use t$e %rou( or +onsortiu, re#ief (rovisions !s (res+ri"e) in
revenue st!tutes4 T$e ,e+$!nis,s or tr!ns!+tions t$!t ,!< "e !)o(te) "< su+$ e+ono,i+ entities to !+$ieve t$ese !i,s
,!<> $o2ever> "e +!u%$t "< v!rious !nti'!voi)!n+e (rovisions 2$i+$ )e(rive t$e +or(or!te %rou(in% of t$e "enefits of
%rou( or +onsortiu, re#ief in su+$ +ir+u,st!n+es4 So,e of t$e ,!in (rovisions 2$i+$ !re +ont!ine) in t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 !re )is+usse) su"se;uent#<
1
4
1
See /!r!%r!($ &014 J1&08K et se; (ost4
!1()2$
(,11% Abuse of 'roup or consortium relief
T$e In+o,e !n) Cor(or!tion T!9es A+t 1655 Se+tion *18(1)
1
(rovi)es t$!t if !n< !rr!n%e,ents !re ,!)e 2$ere"< !
joint venture +o,(!n< +ou#) +e!se to "e ! ,e,"er of ! %rou( of +o,(!nies> to 2$i+$ %rou( re#ief is !v!i#!"#e> !n)
"e+o,e ! ,e,"er of !not$er su+$ %rou(> t$e +o,(!n< is re%!r)e) fro, t$!t ti,e !s no #on%er "ein% ! ,e,"er of t$e
first %rou( of +o,(!nies4 T$is (rovision nu##ifies !n< s+$e,es 2$i+$ !tte,(t to tr!nsfer +o,(!nies "et2een %rou(s
so#e#< to en!"#e ! +o,(!n< to "e use)> on ! te,(or!r< "!sis> "< ! +o,(!n< %rou( for !n< tr!)in% #osses !v!i#!"#e for
surren)er4 T$is (rovision +ou#) +#e!r#< "e !((#i+!"#e to ! joint venture +o,(!n< 2$i+$ is (!rt of ! %rou(4
Cert!in f!+tors 2i## "e +onsi)ere) in )eter,inin% 2$et$er ! %rou( of +o,(!nies> of 2$i+$ ! joint venture
+o,(!n< is ! ,e,"er> is un)ert!Cin% ,e!sures to !voi) #i!"i#it< to t!9> !n) seeCin% to uti#ise t$e "enefits of %rou( or
+onsortiu, re#ief 2$ere su+$ re#ief s$ou#) not "e !v!i#!"#e4 Anti'!voi)!n+e (rovisions 2i##> in (res+ri"e)
+ir+u,st!n+es> t!Ce into !++ount not on#< t$e (resent s$!re$o#)in% of ! +or(or!te (!rti+i(!nt s$!re$o#)er in t$e joint
venture +o,(!n<> "ut !#so 2i## $!ve re%!r)> in +ert!in +ir+u,st!n+es> to its s$!re$o#)in% or e+ono,i+ interest in t$e
venture !t so,e in)eter,in!te future )!te
4
1
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18 (1) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) S+$ 154

!1(,#$
(,11( -ffect of share options
T$e !nti'!voi)!n+e (rovisions of t$e In+o,e !n) Cor(or!tion T!9es A+t 1655
1
!re effe+tive in +ounter!+tin% !"uses of
%rou( or +onsortiu, re#ief "< t$e ,e,"ers of ! +or(or!te %rou(4 .o2ever> t$e< !#so ,!Ce it )iffi+u#t to e9e+ute or
ne%oti!te "on! fi)e tr!ns!+tions su+$ !s ter,in!tion !rr!n%e,ents un)ert!Cen in res(e+t of ! joint venture +o,(!n<
2$i+$ is (!rt of ! +or(or!te %rou(4 Su+$ !rr!n%e,ents (rovi)e> inter !#i!> for t$e ter,in!tion of t$e joint venture in
v!rious +ir+u,st!n+es> for e9!,(#e 2$ere t$ere is )e!)#o+C in t$e ,!n!%e,ent of t$e joint venture +o,(!n<> or one of
t$e +or(or!te (!rti+i(!nts in t$e joint venture "e+o,es inso#vent4 T$ese !rr!n%e,ents usu!##< invo#ve v!rious for,s of
s$!re o(tions 2it$ re%!r) to ! joint venture +o,(!n< 2$i+$> if e9er+ise)> 2i## !ffe+t t$e res(e+tive s$!re$o#)in%s !n)
t$erefore t$e e+ono,i+ interests of t$e (!rti+i(!nts in t$e joint venture +o,(!n<
4 A++or)in%#<> 2$ere t$ere is !n o(tion

!rr!n%e,ent in t$e joint venture !%ree,ent> t$e e+ono,i+ interest of t$e res(e+tive (!rti+i(!nts in t$e venture> for t$e
(ur(oses of )eter,inin% t$e !v!i#!"i#it< of %rou( re#ief> 2i## "e ev!#u!te) on t$e "!sis t$!t t$e o(tion !rr!n%e,ent is
e9er+ise)4 T$us> ! +or(or!te (!rti+i(!nt in ! joint venture +ou#) "e (revente) fro, +#!i,in% %rou( re#ief 2$ere it
+urrent#< enjo<s ! 30L interest in t$e venture> "ut> un)er t$e o(tion !rr!n%e,ent> t$!t interest +ou#) "e re)u+e) !t so,e
future )!te4 S+$e)u#e 15 of t$e 1655 A+t ,!< t$en +o,e into effe+t !n) it ,!< "e t$!t ! (!rti+i(!nt s$!re$o#)er is to "e
re%!r)e) !s $!vin% ! s$!re$o#)in% or e+ono,i+ interest in t$e joint venture +o,(!n< to !n e9tent t$!t t$e joint venture
+o,(!n< is no #on%er to "e re%!r)e) !s "ein% (!rt of ! %rou( or +onsortiu,4
!1(,1$
1
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
Su+$ s$!re o(tions !re fre;uent#< "#esse) 2it$ e9oti+ n!,es4 T$e t2o (rin+i(!# for,s of s$!re o(tion !re Russi!n rou#ette !n)
Te9!s s$oot'out4 A Russi!n rou#ette (rovision in ! joint venture !%ree,ent is ! ,e+$!nis, to ter,in!te ! joint venture4 It usu!##<
(rovi)es t$!t ! s$!re$o#)er of t$e joint venture +o,(!n< ,!< serve noti+e on t$e ot$er s$!re$o#)er offerin% to tr!nsfer !## of t$e
first s$!re$o#)erAs s$!res in t$e +o,(!n< to t$e se+on) s$!re$o#)er !t ! (ri+e s(e+ifie) "< t$e first s$!re$o#)er4 In t$ese
+ir+u,st!n+es t$e (ur+$!sin% s$!re$o#)er ,ust eit$er !++e(t t$e offer !n) "u< t$e s$!res !t t$e st!te) (ri+e> or se## !## of $is or
its s$!res !t t$e s!,e (ri+e (er s$!re to t$e s$!re$o#)er 2$o serve) t$e noti+e4 A Te9!s s$oot'out> !s in t$e +!se of Russi!n
rou#ette> is ! (rovision in ! joint venture !%ree,ent 2$i+$ $!s t$e effe+t of ter,in!tin% ! joint venture4 If "ot$ (!rties !re
intereste) in !+;uirin% t$e joint venture +o,(!n< !s so#e s$!re$o#)er> t$e (!rties su",it se!#e) "i)s to ! t$ir) (!rt< (t$e
D!u+tioneerA) !n) t$e (!rt< 2$o ,!Ces t$e $i%$er "i) 2i## (ur+$!se t$e +o,(!n< !t t$e (ri+e "i)4 See :or, &6 J1616K (ost4
!1(,%$
(,11) Arran'ements for joint enture company to be subsidiary of third party
It s$ou#) "e note) t$!t ! joint venture +o,(!n< 2i## not "e re%!r)e) !s "ein% o2ne) "< ! +onsortiu, if t$ere !re
!rr!n%e,ents in t$e joint venture !%ree,ent "< 2$i+$ t$e joint venture +o,(!n< +ou#) "e+o,e ! 30L su"si)i!r< of !
t$ir) +o,(!n<
1
4 T$is !nti'!voi)!n+e (rovision> seeCs to (revent t$e +re!tion of te,(or!r< +onsorti! 2$i+$ $!ve t$e !i,
of tr!nsferrin%> on ! te,(or!r< "!sis> tr!)in% #osses or ot$er s(e+ifie) re#iefs of ! joint venture +o,(!n< to su+$ ! %rou(
of +o,(!nies4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18() (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1(,($
(,11, 7nland &eenue concession
T$e In#!n) Revenue $!s> $o2ever> re+o%nise) t$!t t$e !nti'!voi)!n+e (rovisions in t$e In+o,e !n) Cor(or!tion T!9es
A+t 1655 Se+tion *18 !n) S+$e)u#e 15
1
!re )r!fte) in 2i)er ter,s t$!n is ne+ess!r< to +ounter!+t !"uses4 A++or)in%#<>
t$e Revenue $!s issue) !n e9tr!'st!tutor< +on+ession st!tin% t$!t it )oes not re%!r) t$e t<(e of !rr!n%e,ents +onsi)ere)
!"ove !s infrin%in% t$ose (rovisions
4
1
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *18> S+$ 15 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
See e9tr!'st!tutor< +on+ession C18 (revs) 166&): #imon3s Direct 'a7 #ervice .*44
!1(,)$
&: CA/ITAL GAINS GROU/S
(,% Nature of capital 'ains 'roups
A +!(it!# %!ins %rou( is usu!##< +onstitute) "< ! (rin+i(!# +o,(!n<> 2it$ !## of its su"si)i!ries> in 2$i+$ t$e (rin+i(!#
+o,(!n< $o#)s in res(e+t of e!+$ of t$ose su"si)i!ries !t #e!st 30L of t$e s$!res4 One of t$ese +o,(!nies +ou#) "e !
joint venture +o,(!n< in 2$i+$ t$e (rin+i(!# +o,(!n< is t$e )o,in!nt (!rti+i(!nt
1
4 E!+$ +or(or!te ,e,"er of su+$ !
%rou( ,ust "e resi)ent in t$e Unite) Bin%)o,4 T$e !nti'!voi)!n+e (rovisions !((#i+!"#e to %rou( !n) +onsortiu,
re#ief
> !re !#so !((#i+!"#e to t$e +!(it!# %!ins %rou( 2it$ ,o)ifi+!tions4
T$e (rin+i(!# !)v!nt!%e of "ein% ! ,e,"er of ! +!(it!# %!ins %rou( is t$!t t$e ,e,"ers +!n tr!nsfer +!(it!#
!ssets inter se 2it$out !n i,,e)i!te +$!r%e to +or(or!tion t!9 on t$e +$!r%e!"#e %!ins 2$i+$ !rise on )is(os!#4 T$e
re#ief t!Ces t$e for, of )eferr!# unti# t$e re#ev!nt !sset is so#) or tr!nsferre) to ! (!rt< or +o,(!n< outsi)e t$e %rou(
&
4
In ,ost +!ses> ! +!(it!# %!ins %rou( 2it$in t$e +onte9t of ! joint venture 2i## +onsist of ! +or(or!te (!rti+i(!nt 2$o
enjo<s ! s$!re$o#)in% of 30L or ,ore in t$e joint venture +o,(!n<4
1
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 138(&) (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4 Co,(!nies not
in+#u)e) 2it$in su+$ ! %rou( !re +o,(!nies in 2$i+$ t$e (rin+i(!# +o,(!n< is not "enefi+i!##< entit#e) to !n e+ono,i+ interest
of ,ore t$!n 08L4
As to !nti'!voi)!n+e (rovisions for %rou( !n) +onsortiu, re#ief see /!r!%r!($ &01 J1&*6K et se; !nte4
&
Su+$ ! +or(or!te %rou( 2i## !#so $!ve t$e "enefit of %rou( ro##over re#ief4
!1(,,$
*: DIVIDENDS AND /RO:IT DISTRI-UTION
(,( 8roup income
Interest +!n "e (!i) "< ! joint venture +o,(!n< to t$e (!rti+i(!nt +or(or!te s$!re$o#)ers 2it$out )e)u+tin% in+o,e t!9
if ! %rou( in+o,e e#e+tion is ,!)e "< t$e %rou( !n) +ert!in +on)itions !re ,et
1
4 In+o,e e#e+tion +!n "e ,!)e in t2o
2!<s in res(e+t of ! +or(or!te %rou( to 2$i+$ ! joint venture +o,(!n< is ! ,e,"er
:
&0&41 7$ere t$e joint venture +o,(!n< is o2ne) "< ! +onsortiu, !n) t$e +o,(!n< is resi)ent in t$e Unite) Bin%)o,
!n) is eit$er:
(!) ! tr!)in% +o,(!n<H or
(") ! $o#)in% +o,(!n< of ! tr!)in% +o,(!n<H
!n) t$e +o,(!n< is not ! 30L o2ne) su"si)i!r< of !n< +o,(!n< !n) t$e (!rti+i(!nt +or(or!te
s$!re$o#)ers !re !#so Unite) Bin%)o, resi)ents
&
> !n)
&0&4 7$ere interest is (!i) "< t$e joint venture +o,(!n< to !n< (!rti+i(!nt +or(or!te s$!re$o#)er 2$ere t$e joint
venture +o,(!n< is ! 01L su"si)i!r< of t$e (!rti+i(!nt !s re%!r)s "ot$ s$!re$o#)in% !n) in res(e+t of e+ono,i+
interest4
1
Su+$ e#e+tions !#so !voi)e) (!<,ent of !)v!n+e +or(or!tion t!9 on )ivi)en)s unti# its !"o#ition !t 0 A(ri# 1666 "< t$e :in!n+e
A+t 1665 s &1> S+$ &4
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *3 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
&
Su+$ ! %rou( is !#so su"je+t to !nti'!voi)!n+e (rovisions: see /!r!%r!($ &01 J1&*6K et se; !nte4 T$ese (rovisions !re )esi%ne) to
ensure t$!t t$e !"ove re#ief is not !v!i#!"#e 2$ere t$e +onsortiu, is ! te,(or!r< !rr!n%e,ent +re!te) for t$e (ur(ose of
!ttr!+tin% %rou( in+o,e re#ief4
!1(,.$
(,) Distribution of profits
A joint venture +o,(!n< 2i## )istri"ute t$e (rofits of t$e enter(rise to t$e (!rti+i(!nts "< t$e (!<,ent of )ivi)en)s4 As
in t$e +!se of !## +o,(!nies resi)ent in t$e Unite) Bin%)o,> t$e (!<,ent of ! )ivi)en) to s$!re$o#)ers "efore 1 A(ri#
1666 +ou#) %ive rise to ! #i!"i#it< to !)v!n+e +or(or!tion t!9
1
4 T$is $!) to "e (!i) "< t$e joint venture +o,(!n< 2$en
t$e )ivi)en) is (!i)> 2$et$er or not t$e +o,(!n< 2!s #i!"#e to (!< +or(or!tion t!9 in t$e re#ev!nt t!9 <e!r4 .o2ever>
t$ere 2!s no #i!"i#it< to !)v!n+e +or(or!tion t!9 on (!<,ent of ! )ivi)en) to t$e e9tent t$!t t$e +o,(!n< $!) !v!i#!"#e
fr!nCe) invest,ent in+o,e
> or t$e )ivi)en) 2!s (!i) un)er ! %rou( in+o,e e#e+tion4

1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1* (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION) "ut note t$!t !)v!n+e
+or(or!tion t!9 2!s not (!<!"#e in +ert!in +ir+u,st!n+es4 As to t$e !"o#ition of !)v!n+e +or(or!tion t!9 see /!r!%r!($ &0& note
1 J1&01K !nte4
I"i) s &5(1)4 An< ;u!#if<in% )istri"ution !n) !n< t!9 +re)it +onstitute) fr!nCe) invest,ent in+o,e4
!1(,/$
0: TER=INATION O: COR/ORATE JOINT VENTURE
(,, *ransfer of assets
T$e ter,in!tion of ! joint venture +o,(!n< ,!< t!Ce v!rious for,s> r!n%in% fro, vo#unt!r< 2in)in% u(
1
to t$e
2in)in% u( of t$e +o,(!n< un)er !n inso#ven+< (ro+e)ure
4 .o2ever> t$e vo#unt!r< en)in% of t$e joint venture "< t$e

(!rti+i(!nts to t$e venture 2i## inv!ri!"#< invo#ve t$e tr!nsfer of !ssets "< t$e joint venture +o,(!n<> usu!##< to t$e
+or(or!te (!rti+i(!nts> !n) t$e +orres(on)in% )is(os!# "< t$e #!tter of t$eir interests in t$e +o,(!n<4 T$e tr!nsfer of
!ssets "et2een t$e (!rties to ! +or(or!te joint venture 2i## %ive rise to issues of +!(it!# %!ins !n)> t$erefore> +or(or!tion
t!9
&
4
1
See t$e Inso#ven+< A+t 1651 s 5* (* .!#s"ur<As St!tutes (*t$ E)n) -ANBRU/TC? AND INSOLVENC?)4
I"i) ss 113M1384
&
As to +or(or!tion t!9 see /!r!%r!($ &&3 J1&1K et se; !nte4
!1(,"$
(,. Disposal of shares in joint enture company
T$e ter,in!tion of ! +or(or!te joint venture 2i## usu!##< invo#ve t$e (!rti+i(!nts in )is(osin% of t$eir s$!res in t$e
+o,(!n<4 T$e )is(os!# "< ! +or(or!te (!rti+i(!nt 2$i+$ is resi)ent in t$e Unite) Bin%)o, of its s$!res in ! joint
venture +o,(!n< ,!< %ive rise to ! +$!r%e!"#e %!in !n) t$erefore to +or(or!tion t!9
1
4
In !))ition> t$e joint venture +o,(!n<> in tr!nsferrin% its !ssets to t$e (!rti+i(!nts> ,!< !#so %ive rise to !
#i!"i#it< to +or(or!tion t!94 Des(ite t$e f!+t t$!t t$e (!rti+i(!nts in t$e venture !n) t$e joint venture +o,(!n< !re
se(!r!te #e%!# (ersons> in (r!+ti+!# ter,s t$e )is(os!# of s$!res in t$e joint venture +o,(!n< "< t$e (!rti+i(!nts !n) t$e
tr!nsfer "< t$e joint venture +o,(!n< of its !ssets to t$e (!rti+i(!nts 2i## +onstitute ! )ou"#e t!9!tion event for t$e
(!rti+i(!nts4 T$e joint venture +o,(!n< +!n !voi) or !,e#ior!te t$is (ro"#e, "< (!<in% ! (re'2in)in% u( )ivi)en) to
t$e +or(or!te (!rti+i(!nts
4 Divi)en)s (!i) "< one +o,(!n< 2$i+$ is resi)ent in t$e Unite) Bin%)o, to !not$er su+$
+o,(!n< 2i## usu!##< es+!(e #i!"i#it< to +or(or!tion t!9
&
4
1
Li!"i#it< to +or(or!tion t!9 in t$ese +ir+u,st!n+es is su"je+t to e9+e(tions: see /!r!%r!($ &&5 J1&3K et se; !nte4
Su+$ ! )ivi)en) s$ou#) "e t$e ,!9i,u, (er,itte) un)er t$e Co,(!nies A+t 1650 ss 1&> 51 (5 .!#s"ur<As St!tutes (*t$ E)n)
CO=/ANIES)4
&
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 85 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION): see /!r!%r!($ &0* J1&03K
!nte4
!1(,2$
(,/ Pre+termination diidends
(,/11 Aalue+shiftin'
T$e (!<,ent of ! (re'ter,in!tion )ivi)en) ,!< %ive rise to t!9 (ro"#e,s4 T$e (r!+ti+e of re)u+in% t$e v!#ue of
su"si)i!r< +o,(!nies or ! joint venture +o,(!n< "efore t$eir 2in)in% u( or s!#e 2!s ! st!n)!r) fe!ture of Unite)
Bin%)o, t!9 (r!+ti+e4 T$e (r!+ti+e 2!s to stri( out of ! su"si)i!r< or joint venture +o,(!n< "efore s!#e or 2in)in% u(
unre!#ise) %!ins in t$e v!#ue of its +$!r%e!"#e !ssets t$rou%$ t$e ,e+$!nis, of t!9'free intr!'%rou( )ivi)en) out of
!rtifi+i!##< +re!te) (rofits4
!1(.#$
(,/1% *a5ation of Char'eable 8ains Act 122%
T$e (r!+ti+e of Dv!#ue's$iftin%A is no2 su"je+t to re%u#!tion4 T$e T!9!tion of C$!r%e!"#e G!ins A+t 166 Se+tion &8
1

s!fe%u!r)s or)in!r< )ivi)en) (!<,ents 2it$in ! %rou( of +o,(!nies4 It )oes not (en!#ise ! %rou( of +o,(!nies>
in+#u)in% ! $o#)in% +o,(!n<> for e9tr!+tin% (rofits fro, ! su"si)i!r<> t$rou%$ t$e )ivi)en) (!<,ents> "efore t$e s!#e or
2in)in% u( of t$!t +o,(!n<> if t$ere !re (rofits su((ortin% t$e )ivi)en) (!<,ent !n) t!9 $!s "een (!i) on t$e,4 T$e
se+tion seeCs to (ro$i"it !n) (en!#ise s+$e,es "et2een +o,(!nies 2it$in ! %rou( 2$i+$ e9tr!+t %!ins fro, (rofits
2$i+$ $!ve not "orne t!9
4
7$ere Se+tion &8 of t$e 166 A+t !((#ies to !n< tr!ns!+tion effe+te) "< ! +or(or!te %rou(in%> su+$ !s on t$e
s!#e of ! su"si)i!r< +o,(!n<> or ! joint venture +o,(!n< 2$i+$ is to "e ter,in!te)> !n< +$!r%e!"#e %!ins t$us re!#ise)
,!< "e in+re!se) for t$e (ur(oses of )eter,inin% #i!"i#it< to +or(or!tion t!9
&
4 T$ou%$ t$e T!9!tion of C$!r%e!"#e
G!ins A+t 166 refers to !sso+i!te) +o,(!nies 2it$in t$e +onte9t of Se+tion &8> t$is ,e!ns t$!t t$e +o,(!nies ,ust "e
,e,"ers of t$e s!,e +or(or!te %rou(in% 2$i+$ ,!< in+#u)e ! joint venture +o,(!n<
*
4 T$e se+tion t$erefore !((#ies
2$ere t$ere is ! )is(os!# of !n !sset "< ! +o,(!n< (in+#u)in% ! joint venture +o,(!n<)> t$e v!#ue of t$e !sset )is(ose)
of $!s "een si%nifi+!nt#< re)u+e) !n) ! t!9 free "enefit se+ure) for t$e joint venture +o,(!n< or +or(or!te %rou(in%4
T$e effe+t of t$e (rovision is to in+re!se t$e +onsi)er!tion for 2$i+$ t$e !sset is tre!te) !s so#) "< t$e re#ev!nt +o,(!n<
in t$e +or(or!te %rou( or ot$er2ise )is(ose) of> 2$ere v!#ue $!s "een s$ifte) out of t$e !sset4
1
T!9!tion of C$!r%e!"#e G!ins A+t 166 s &8 (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
See .C Offi+i!# Re(ort> St!n)in% Co,,ittee G> +o# 0654

&
T$e +$!r%e!"#e %!ins ,!< "e in+re!se) "< !n !,ount 2$i+$ is just !n) re!son!"#e: T!9!tion of C$!r%e!"#e G!ins A+t 166 s
&8(0)> (1) !s !,en)e) "< t$e :in!n+e A+t 1661 S+$ 8 (!r! *34
*
I"i) ss &&(6)> (18)> 1384
!1(.1$
(,/1( Capital 'ains 'roups and alue shiftin'
T$e T!9!tion of C$!r%e!"#e G!ins A+t 166 !#so !((#ies to !n< re)u+tion in t$e v!#ue of ! su"si)i!r< +o,(!n< 2$i+$ is
so#) or ot$er2ise )is(ose) of "< ! +or(or!te %rou(in%> in+#u)in% ! joint venture +o,(!n<> !risin% fro, t$e (!<,ent of
inter'%rou( )ivi)en)s %ener!te) "< t$e re#ev!nt +o,(!n<As +$!r%e!"#e (rofits
1
4 It 2i## t$erefore !((#< in +!ses 2$ere
!n< )ivi)en) (!i) "et2een +o,(!nies 2it$in ! +or(or!te %rou( is !ttri"ut!"#e to D+$!r%e!"#eA (rofits of t$e +o,(!n< to
"e so#)4 T$is #!tter re;uire,ent si,(#< ,e!ns t$!t t$e )istri"ut!"#e (rofits !re +$!r%e!"#e (rofits to t$e e9tent t$!t t$e<
!re (rofits !risin% on ! )is(os!# +!u%$t "< t$e se+tion
4
Se+tions &8 !n) &1 of t$e 166 A+t +!nnot !((#< to situ!tions 2$ere )ivi)en)s !re (!i) "< ! ,e,"er of !
+!(it!# %!ins %rou(
&
4 T$is in+#u)es )ivi)en)s (!i) "< ! joint venture +o,(!n< to !not$er +o,(!n< in t$e %rou( in +!ses
2$ere t$e #!tter o2ns 30L of t$e s$!res in t$e joint venture +o,(!n<4 :urt$er,ore> t$e (re'ter,in!tion or )is(os!#
)ivi)en) 2ou#) nee) to "e (!i) e9+#usive#< to t$e (!rti+i(!nt in t$e joint venture +o,(!n<
*
4
1
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s &1 (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION) 2$i+$ "rin%s t$ese
re)u+tions 2it$in t$e ter,s of i"i) s &84
I"i) s &1(&)(!)> (")4

&
As to t$e n!ture of ! +!(it!# %!ins %rou( see /!r!%r!($ &0 J1&00K !nte4
*
T$e In#!n) Revenue ,!< re%!r) t$e !"ove (rovisions !s not "ein% !((#i+!"#e to +!ses 2$ere )ivi)en)s !re (!i) "< ! joint
venture +o,(!n< "efore its ter,in!tion 2$i+$ is ! ,e,"er of ! +onsortiu, to !not$er ,e,"er of t$!t +onsortiu,: see #imon3s
'a7 8ntelli!ence 166* ( 11*4
!1(.%$
D: COR/ORATE /ARTNERS.I/S
(," 7ntroduction
/!rtners$i(s !s ! ,e)iu, for joint ventures !re ! fis+!##< tr!ns(!rent ,e)iu,4 In t$is re%!r)> t$e< )iffer fro, !
+or(or!te joint venture4 In t$e +!se of ! (!rtners$i( joint venture> t$e enter(rise !n) t$e in+o,e !risin% fro, t$e
enter(rise !re o2ne) "< !n) !++rue )ire+t#< to t$e (!rti+i(!nts !s joint o2ners of t$e "usiness4 T$erefore> ! joint
venture (!rtners$i( 2$i+$ +onsists entire#< of +or(or!te (!rtners )iffers in no 2!< fro, !n< ot$er for, of joint venture
(!rtners$i(4 T$e so'+!##e) +or(or!te (!rtners$i(
1
> "e+!use of its n!ture> is t$erefore su"je+t to ! )ifferent t!9 re%i,e
fro, t$!t of ! +or(or!te joint venture4 T$is is (!rti+u#!r#< t$e +!se 2it$ re%!r) to t$e (!rti+i(!nts in t$e venture4
1
T$is ter, is !#so !((#ie) to (!rtners$i(s 2$i+$ +onsist of "ot$ +or(or!te !n) in)ivi)u!# (!rtners "ut> for t$ese (ur(oses> it refers
to ! +or(or!te (!rtnerE(!rti+i(!nt on#<4
!1(.($
(,2 Formation of corporate partnership joint entureGthe contribution of assets
T$e +ontri"ution "< ! +or(or!te (!rtner of !n !sset to t$e (!rtners$i( joint venture 2i## +onstitute ! )is(os!# "< it of !
s$!re in t$e !sset4 In !++or)!n+e 2it$ %ener!# (rin+i(#es of (!rtners$i( #!2> !n< su+$ )is(os!# is to "e re%!r)e) !s ! (!rt
)is(os!# of t$e !sset in e9+$!n%e for ! s$!re in t$e !ssets 2$i+$ $!ve "een +ontri"ute) "< t$e ot$er (!rtners to t$e
(!rtners$i( enter(rise4 In )eter,inin% t$e s$!re in t$e (!rtners$i( !sset )is(ose) of "< t$e +or(or!te (!rtner to t$e
(!rtners$i(> for t$e (ur(oses of +or(or!tion t!9 #i!"i#it<> referen+e 2i## "e to t$e re#ev!nt (!rtnerAs interests in t$e joint
venture (!rtners$i(4
An< su+$ )is(os!#s "< ! +or(or!te (!rtner to t$e (!rtners$i( 2i## (otenti!##< %ive rise to +$!r%e!"#e %!ins !n)
t$erefore #i!"i#it< to +or(or!tion t!94 As in t$e +!se of t$e tr!nsfer of !ssets "< ! +or(or!te (!rti+i(!nt to ! joint venture
+o,(!n< on t$e #!tterAs for,!tion> +ert!in re#iefs ,!< "e !v!i#!"#e to ! +or(or!te (!rtner tr!nsferrin% !ssets to t$e
(!rtners$i( joint venture4 T$ese re#iefs ,!< eit$er )efer or e#i,in!te t$e +$!r%e to +or(or!tion t!9
1
4 .o2ever> t$e
In#!n) Revenue !((#ies t$e s!,e re#iefs for +$!n%es in (rofit s$!rin% r!tios in t$e +!se of (!rtners$i( ,er%ers
4
1
As to t$e !((#i+!tion of t$ese re#iefs 2it$ re%!r) to +or(or!tion t!9 (!<!"#e "< t$e (!rties to ! +or(or!te joint venture 2$o
tr!nsfers !ssets to t$e joint venture ve$i+#e> see /!r!%r!($ &&5 J1&3K et se; !nte4
In !++or)!n+e 2it$ t$e In#!n) Revenue st!te,ent of (r!+ti+e S/ D1 (!r!s *> 6 #imon3s Direct 'a7 #ervice .&4*4
!1(.)$
(.# Corporation ta5 on income
T$e (!rti+i(!nts in ! +or(or!te (!rtners$i( joint venture ,!< effe+t +ert!in tr!ns!+tions 2$i+$ invo#ve t$e tr!nsfer of
non'+!(it!# !ssets fro, t$ose (!rties to t$e (!rtners$i( venture4 Su+$ tr!ns!+tions ,!< %ive rise to ! +$!r%e!"#e %!in4
C$!r%es to +or(or!tion t!9 on in+o,e +!n t$erefore !rise 2$ere ! +or(or!te (!rti+i(!nt in t$e venture tr!nsfers tr!)in%
sto+C to t$e (!rtners$i( venture4 T$e +ir+u,st!n+es in 2$i+$ ! +$!r%e!"#e %!in 2i## !rise in t$ese +!ses $!s "een
+onsi)ere) in t$e +onte9t of t$e +or(or!te joint venture
1
4
1
See /!r!%r!($ &* J1&&K et se; !nte4 Note !#so t$!t t$e (rin+i(#e in #harke, v Wernher J1601K AC 05> .L !n) t$e tr!nsfer
(ri+in% (rovisions of t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 338 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION) ,!< "e
!((#i+!"#e to sto+C tr!nsfers "et2een t$e (!rti+i(!nts to ! +or(or!te (!rtners$i( joint venture !n) t$e venture4
!1(.,$
(.1 Capital allo0ances
T$e +ontri"ution "< ! (!rti+i(!nt in ! +or(or!te joint venture (!rtners$i( of +!(it!# !ssets to t$e enter(rise 2$i+$ $!ve
;u!#ifie) for +!(it!# !##o2!n+es ,!< !#so %ive rise to ! +$!r%e!"#e %!in
1
4 T$is is t$e s!,e situ!tion en+ountere) in +!ses
2$ere t$e tr!nsfer of su+$ !ssets is ,!)e "et2een ! +or(or!te (!rti+i(!nt !n) ! +or(or!te joint venture4
1
As to t$e n!ture of +!(it!# !##o2!n+es see /!r!%r!($ &*& J1&&3K et se; !nte4
!1(..$
(.% 7ntellectual property
T$e +ontri"ution of inte##e+tu!# (ro(ert< ri%$ts> su+$ !s (!tents or tr!)e ,!rCs> "< ! (!rti+i(!nt in t$e +or(or!te
(!rtners$i( joint venture to t$e venture ,!< %ive rise to ! +$!r%e!"#e %!in
1
4
1
As to t$e t!9 i,(#i+!tions of su+$ tr!nsfers 2it$in t$e +onte9t of +or(or!te joint ventures see /!r!%r!($ &** J1&&5K !nte4
!1(./$
(.( 3tamp duty
An< tr!ns!+tion effe+te) "et2een t$e (!rties to ! +or(or!te (!rtners$i( joint venture in 2$i+$ (ro(ert< ri%$ts !re
tr!nsferre) ,!< %ive rise to st!,( )ut<
1
4
1
As to st!,( )ut< in t$e +onte9t of t$e +or(or!te joint venture see /!r!%r!($ &*1 J1&*8K !nte4
!1(."$
(.) AA* re'istration
E!+$ of t$e (!rti+i(!nts in ! +or(or!te (!rtners$i( joint venture ,!< "e #i!"#e to VAT on !n< tr!ns!+tions 2$i+$ t$e<
!n) t$e venture un)ert!Ce
1
4 A#t$ou%$ it is (ersons> not "usinesses (er se> 2$o !re su"je+t to re%istr!tion> s(e+i!#
(rovision is ,!)e for (!rtners$i(s in+#u)in% +or(or!te (!rtners$i(s4 T$e V!#ue A))e) T!9 A+t 166*
(rovi)es t$!t t$e

re%istr!tion of (ersons +!rr<in% on ! "usiness in (!rtners$i( or +!rr<in% on in (!rtners$i( !n< ot$er !+tivities for 2$i+$
t$e< !+;uire %oo)s fro, ot$er ,e,"er st!tes ,!< "e in t$e n!,e of t$e fir,
&
4 It st!tes t$!t no !++ount is to "e t!Cen of
!n< +$!n%e in t$e (!rtners$i(> in )eter,inin% 2$et$er %oo)s or servi+es !re su((#ie) to or "< t$ese (ersons or !re
!+;uire) "< t$e, fro, !not$er ,e,"er st!te4
T$e !"ove (rovisions )o not (re+#u)e t$e T!9 Co,,issioners fro, insistin% t$!t e!+$ +or(or!te (!rtner
re%isters for VAT (ur(oses !s !n in)ivi)u!# entit<> !#t$ou%$ it see,s t$!t su+$ ! (o2er is r!re#< e9er+ise)4 In %ener!#>
t$e (!rtners$i(> in+#u)in% ! +or(or!te (!rtners$i( joint venture> 2i## "e re%istere) for VAT in t$e fir,As n!,e4 S(e+i!#
(rovision is !#so ,!)e for t$e su",ission of +ert!in )et!i#s to t$e VAT Co,,issioners
*
4
:or re%istr!tion (ur(oses ! (!rtners$i(> in+#u)in% ! +or(or!te (!rtners$i( joint venture> is tre!te) !s !
+ontinuin% "usiness4 T$erefore> !n< +$!n%e in t$e ,e,"ers$i( of t$e (!rtners$i( is )isre%!r)e)> !#t$ou%$ !n< +$!n%e
,ust "e notifie) to t$e +o,,issioners
0
4 A (!rtner 2i## t$erefore +ontinue to "e re%!r)e) !s ! (!rtner for VAT (ur(oses
not2it$st!n)in% retire,ent fro, t$e (!rtners$i(> unti# notifi+!tion to t$e +o,,issioners
1
4
!1(.2$
1
As to t$e +ir+u,st!n+es in 2$i+$ ! (!rt< ,!< "e #i!"#e to re%ister for VAT (ur(oses see /!r!%r!($ &*3 J1&*1K !nte4
V!#ue A))e) T!9 A+t 166* s *0 (*5 .!#s"ur<As St!tutes (*t$ E)n) VALUE ADDED TAF)4
&
See t$e /!rtners$i( A+t 1568 s *(1) (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4
*
A (!rtners$i(> in+#u)in% ! +or(or!te (!rtners$i( joint venture ,ust su",it for, VAT to t$e VAT Co,,issioners4 T$e for,
2$i+$ ,ust "e !nne9e) to t$e notifi+!tion of #i!"i#it< to re%ister for VAT 2$i+$ t$e (!rtners$i( for2!r)s to t$e +o,,issioners
s$o2s t$e n!,e !n) !))ress (or in t$e +!se of ! +or(or!te (!rtner t$e re%istere) offi+e) of e!+$ (!rtner4 It ,ust "e!r e!+$ of t$eir
si%n!tures (or in t$e +!se of ! +or(or!te (!rtner t$e si%n!ture of t2o )ire+tors or ! )ire+tor !n) t$e +o,(!n< se+ret!r<)4 See t$e
Co,(!nies A+t 1650 s &1A (5 .!#s"ur<As St!tutes (*t$ E)n) CO=/ANIES)4 See !#so t$e VAT Re%u#!tions 1660E0154
0
See t$e V!#ue A))e) T!9 A+t 166* s *0()H VAT Re%u#!tions 1660E0154 See !#so &ustoms and E7cise &omrs v Evans J165K
STC &*4
1
See t$e V!#ue A))e) T!9 A+t 166* s *0()> (*)4
!1(/#$
(., *radin' profits and losses
Un#iCe ! +or(or!te joint venture> ! +or(or!te (!rtners$i( joint venture is not su"je+t to +or(or!tion t!9 on t$e (rofits
e!rne) "< t$e enter(rise4 E!+$ +or(or!te (!rtner is #i!"#e to +or(or!tion t!9 on> or is entit#e) to re#ief 2it$ re%!r) to> its
(ro(ortion!te s$!re of eit$er t$e tr!)in% (rofits or #osses of t$e enter(rise4 :urt$er,ore> t$ere is no joint !ssess,ent nor
joint #i!"i#it< to +or(or!tion t!9 on t$e (rofits e!rne) "< ! +or(or!te (!rtners$i( joint venture4 Not2it$st!n)in% t$e
!"ove> t$e +or(or!te (!rtners$i( joint ventureAs tr!)in% (rofit or #oss 2i## "e +!#+u#!te) for t$e (ur(ose of !ssessin% t$e
+or(or!tion t!9 of t$e (!rtners> !t #e!st initi!##<> !s if t$e (!rtners$i( 2ere ! +or(or!tion4 :o##o2in% t$is +o,(ut!tion>
t$e resu#tin% t!9 #i!"i#it< (or 2$ere !((ro(ri!te #oss) 2i## "e )ivi)e) "et2een t$e +or(or!te (!rtners in !++or)!n+e 2it$
t$eir interests in t$e (!rtners$i( joint venture4 T$ese interests 2i## "e )eter,ine) "< t$e (!rtners$i(Ejoint venture
!%ree,ent4
7$ere t$e +or(or!te (!rtners$i( joint venture is +ontro##e) fro, outsi)e t$e Unite) Bin%)o,> e!+$ +or(or!te
(!rtner 2$i+$ is resi)ent in t$e Unite) Bin%)o, 2i## "e su"je+t to +or(or!tion t!9 on its s$!re of !n< in+o,e 2$i+$ is
%ener!te) fro, !"ro!)
1
4 An< #osses in+urre) "< t$e joint venture !"ro!) +!n on#< "e offset !%!inst !n< future (rofits of
t$e s!,e tr!)e4
1
As to t$e t!9!tion of intern!tion!# joint ventures see /!r!%r!($ &38 J1&51K et se; (ost4
!1(/1$
(.. Capital 'ains and losses
T$e !((#i+!tion of +!(it!# %!ins t!9 to ! (!rtners$i(> in+#u)in% ! +or(or!te (!rtners$i( joint venture> !n) its tr!ns!+tions
is fr!u%$t 2it$ )iffi+u#t<4 In (!rt> t$is is )ue to t$e f!i#ure of t$e #e%is#!ture to )istin%uis$ "et2een (!rtners$i( (ro(ert<
!n) ! (!rtnerAs s$!re in t$e (!rtners$i(4 T$e In#!n) Revenue $!s sou%$t to !voi) t$is )iffi+u#t<H it $!s (ro)u+e) !
st!te,ent of (r!+ti+e 2$i+$ sets out t$e (rin+i(#es "< 2$i+$ it seeCs to !((#< +!(it!# %!ins t!9> !n)> in t$e +!se of
+or(or!te (!rtners$i(s> +or(or!tion t!9 to (!rtners$i(s
1
4 /!rtners$i( )e!#in%s> in+#u)in% )e!#in%s of +or(or!te
(!rtners$i( joint ventures> !re tre!te) !s "ein% ,!)e "< t$e (!rtners !n) not "< t$e (!rtners$i(
4
1
See In#!n) Revenue st!te,ent of (r!+ti+e S/ D1> #imon3s Direct 'a7 #ervice .&4*4
!1(/%$
(./ Disposal of assets
7$ere t$e +or(or!te (!rtners$i( joint venture )is(oses of !n !sset> e!+$ (!rtner in t$e venture is re%!r)e)> for t$e
(ur(oses of #i!"i#it< to +or(or!tion t!9> !s o2nin% ! s$!re in t$e )is(ose) !sset4 T$e ru#es for )eter,inin% t$e s$!re of
t$e +$!r%e!"#e %!in to "e !s+ri"e) to t$e +or(or!te (!rtners !re )eter,ine) "< t$e (!rtners$i(Ejoint venture !%ree,ent4
7$ere t$e !%ree,ent is si#ent 2it$ res(e+t to !n< (!rti+u#!r !sset 2$i+$ $!s "een )is(ose) of "< t$e (!rtners$i(> !n<
#i!"i#it< to +!(it!# %!ins t!9 or +or(or!tion t!9 2i## "e !ssesse) "< referen+e to t$e (rofit s$!rin% !rr!n%e,ents enjo<e)
"< t$e +or(or!te or non'+or(or!te (!rtners4 T$is (!rti+u#!r ,et$o) of )eter,inin% #i!"i#it< to +!(it!# %!ins t!9 )oes not
t!Ce into !++ount ! +or(or!te (!rtnerAs +ontri"ution to t$e +!(it!# of t$e +or(or!te (!rtners$i( joint venture4 It ,!<
t$erefore "e !)vis!"#e for t$e (!rtners$i(Ejoint venture !%ree,ent to (rovi)e ! ,e!ns of )eter,inin% "ot$ t$e
(ro(ortion!# ri%$t to s$!re in t$e sur(#us +re!te) "< t$e )is(os!# of ! (!rtners$i( !sset !n) t$e +onse;uenti!# #i!"i#it< to
+!(it!# %!ins t!9 !n)> in t$e +!se of ! +or(or!tion> #i!"i#it< to +or(or!tion t!94 T$is ,!< "e )one "< referen+e to t$e
(ro(ortion in 2$i+$ t$e +or(or!te (!rtner $!s +ontri"ute) to t$e +!(it!# of t$e joint venture enter(rise4
!1(/($
(." Chan'e in profit sharin' ratios
An< +$!n%e in t$e (rofit s$!rin% r!tios in t$e joint venture (!rtners$i( 2i## !#so invo#ve ! )is(os!#> or !t #e!st ! (!rt
)is(os!#> "< e!+$ +or(or!te (!rtner of t$e +!(it!# !ssets in t$e (!rtners$i( venture4 In su+$ +!ses t$e (!rtners 2i## eit$er
%!in or suffer ! re)u+tion in t$e s$!res t$e< enjo< in t$e (!rtners$i( !ssets4 In %ener!#> t$e In#!n) Revenue !((#ies !
)eferr!# re#ief in t$ese +!ses
1
4
1
See In#!n) Revenue st!te,ent of (r!+ti+e S/ D1 (!r! *> #imon3s Direct 'a7 #ervice .&4*4 As to t$e n!ture of re#iefs in t$e +!se
of +!(it!# %!ins t!9 see /!r!%r!($ &&5 J1&3K !nte4
!1(/)$
(.2 *ermination of corporate partnership joint entures
T$e )isso#ution of ! +or(or!te (!rtners$i( joint venture )iffers in no 2!< fro, t$e )isso#ution of !n< (!rtners$i(
1
4 T$e
)istri"ution "< ! +or(or!te (!rtners$i( joint venture of t$e (!rtners$i( !ssets to t$e (!rtners on t$e )isso#ution of t$e
venture invo#ves e!+$ (!rtner 2$ose s$!re in !n !sset is re)u+e) "ein% re%!r)e) !s )is(osin% of t$!t s$!re for t$e
(ur(oses of +or(or!tion t!9
4 7$ere ! (!rtner in t$e !"ove +ir+u,st!n+es enjo<s ! %!in !risin% fro, ! )is(os!#> !n)
re+eives t$e !sset on 2$i+$ t$e %!in $!s !risen> t$e In#!n) Revenue 2i## in (r!+ti+e o(er!te ! re#ief "< 2!< of )eferr!#>
2$ere"< t$e %!in is not tre!te) !s ! +$!r%e!"#e %!in> "ut inste!) is )e)u+te) fro, t$e (!rtnerAs "!se +ost in t$e !sset
&
4
T$e ter,in!tion of ! +or(or!te (!rtners$i( joint venture ,!< %ive rise to "ot$ st!,( )ut< !n) VAT
*
4
1
As to t$e 2!<s in 2$i+$ ! (!rtners$i( ,!< "e )isso#ve) see vo# &8 (1661 Reissue) /ARTNERS.I/ /!r!%r!($ 1*1 J136K et se;4
See !#so /ri,e !n) S+!n#!n 'he Law o. Partnership (1660) +$ 14
T$ere is> of +ourse> ! +orres(on)in% !+;uisition "< t$e ot$er (!rtners4

&
See In#!n) Revenue st!te,ent of (r!+ti+e S/ D1 (!r! &> #imon3s Direct 'a7 #ervice .&4*4
*
As to t$e o(er!tion of t$ese t!9es in t$e +onte9t of t$e +or(or!te joint venture see /!r!%r!($ &*1 J1&*8K et se; !nte4
!1(/,$9!1(",$
(18) TAFATION O: INTERNATIONAL JOINT VENTURES
A: INTRODUCTION
(/# 7n0ard and out0ard joint entures
An i,(ort!nt !s(e+t of t$e joint venture is t$!t it is ! "usiness ,e)iu, e,inent#< suite) to t$e +!rr<in% out of
tr!nsn!tion!# enter(rises or (roje+ts4 Intern!tion!# joint ventures
1
,!< t!Ce t2o (rin+i(!# for,s for t$e (ur(oses of t!9
issues: t$e< ,!< "e Din2!r) joint venturesA or Dout2!r) joint venturesA4 In2!r) joint ventures !re ventures 2$i+$ !re
su"st!nti!##< "!se) in t$e Unite) Bin%)o, "ut 2$ere ! nu,"er of (!rti+i(!nts ,!< "e forei%n'"!se) enter(rises4 An
out2!r) joint venture is ! venture 2$i+$ is "!se) in ! forei%n juris)i+tion> "ut 2$i+$ $!s (!rti+i(!nts 2$i+$ !re Unite)
Bin%)o,'"!se)4
1
As to t$e t!9 issues re#!tin% to intern!tion!# joint ventures see Dor!n 'a7ation o. &orporate +oint "entures (*t$ E)n> 1661)> 7!<
(E)) 'ransactionsL 'a7ation o. +oint "entures (166*)4
!1(".$
(/1 Choice of location
(/111 Bey considerations
If t$e joint venture is set u( to o(er!te or tr!)e (rin+i(!##< in ! %iven territor<> t$e venture +!n nevert$e#ess "e
stru+ture) so t$!t it ,!< +on)u+t !s(e+ts of its enter(rise in )ifferent juris)i+tions4 :or inst!n+e> t$e joint venture ,!<
o(er!te in t$e Unite) Bin%)o,> "ut t$e o(er!tion of t$e enter(rise ,!< "e fin!n+e) "< (!rti+i(!nts 2$i+$ !re "!se)
outsi)e t$e Unite) Bin%)o,4 Cert!in inte##e+tu!# (ro(ert< ri%$ts +ru+i!# to t$e o(er!tion of t$e venture ,!< "e o2ne)
"< ! (!rti+i(!nt to t$e venture 2$i+$ is "!se) !"ro!) !n) 2$i+$ $!s #i+ense) t$ose ri%$ts to t$e venture
1
4

T$is i##ustr!tes
t$!t t$e se#e+tion of ! juris)i+tion in 2$i+$ t$e intern!tion!# venture is to "e "!se) +!nnot !n) s$ou#) not "e )o,in!te)
"< t!9 +onsi)er!tions !#one4 T$us> ! joint venture for,e) to e9(#oit or e9(!n) into ! ,!rCet in ! (!rti+u#!r st!te 2i##
nee) to "e "!se) in t$!t +ountr<> irres(e+tive of its t!9 re%i,e4
1
As to t$e ,et$o)s "< 2$i+$ inte##e+tu!# (ro(ert< ri%$ts ,!< "e #i+ense) or !ssi%ne) to ! joint venture see /!r!%r!($ &8 J11 K
et se; !nte4
!1("/$
(/11% *a5+efficient schemes
It 2ou#) "e ! ,is+on+e(tion to !ssu,e t$!t t$e settin% u( of !n intern!tion!# joint venture so t$!t its +entre of o(er!tion
is "!se) in ! D$i%$ t!9A juris)i+tion is !#2!<s to "e !voi)e)4 7$ere ,ore t$!n one of t$e (!rti+i(!nts in t$e joint venture
!re o(er!tin% in t$e s!,e t!9 juris)i+tion> t$ere ,!< "e t$e o((ortunit< to use t!9'effi+ient s+$e,es 2$i+$ (er,it t$e
tr!nsfer of #osses "et2een t$e enter(rises un)er %rou( or +onsortiu, re#ief (rovisions
1
4 It is fre;uent#< (ossi"#e> 2$ere
t$e joint venture is "!se) in ! $i%$ t!9 juris)i+tion> to e9tr!+t in ! t!9'effi+ient 2!< revenue %ener!te) "< t$e venture to
t$e (!rti+i(!nts in t$e venture 2$o !re "!se) outsi)e t$e juris)i+tion4 T$is ,!< "e> for e9!,(#e> "< t$e (!<,ent of
interest on #o!ns su((#ie) to t$e venture "< (!rti+i(!nts o(er!tin% outsi)e t$e re#ev!nt juris)i+tion4 In !))ition> fees for
t$e use of inte##e+tu!# (ro(ert< ri%$ts #i+ense) to t$e joint venture "< (!rti+i(!nts o(er!tin% outsi)e t$e re#ev!nt
juris)i+tion ,!< (rove t!9'effi+ient4 T$e !"ove !re e9!,(#es 2$i+$ i##ustr!te t$!t t$e o(er!tion of !n intern!tion!# joint
venture in ! $i%$ t!9 juris)i+tion is not ne+ess!ri#< !n unsoun) "usiness str!te%<
4
1
As to %rou( or +onsortiu, re#ief in t$e Unite) Bin%)o, see /!r!%r!($ &*5 J1&*K et se; !nte4
=!n< territories offer fin!n+i!# in+entives for enter(rises 2$i+$ !re for,e) un)er t$eir n!tion!# #!24 Su+$ in+entives ,!< offset
!n< )is!)v!nt!%es for ! "usiness )ue to t$e o(er!tion of ! $i%$ t!9 re%i,e in t$ose st!tes4
!1(""$
-: IN7ARD JOINT VENTURES
1: JOINT VENTURE CO=/AN? RESIDENT IN T.E UNITED BINGDO=
(!) Distri"utions in %ener!# !n) t!9 +re)its
(/% *a5ation of joint enture company resident in the Hnited Bin'dom
T$e intern!tion!# joint venture ,!< o(er!te t$rou%$ ! +o,(!n< 2$i+$ is resi)ent in t$e Unite) Bin%)o, 2it$ so,e of
t$e (!rti+i(!nt s$!re$o#)ers "ein% forei%n enter(rises resi)ent !"ro!)4 T$e #i!"i#it< to +or(or!tion t!9 of t$e resi)ent
Unite) Bin%)o, +o,(!n< )iffers in no 2!< fro, !n< ot$er Unite) Bin%)o, +o,(!n<4 It s$ou#) "e note) t$!t !s t$e
joint venture +o,(!n< is ! se(!r!te #e%!# entit<> t$e (!rti+i(!nts in t$e venture 2$o !re "!se) overse!s !re not to "e
re%!r)e) !s +!rr<in% on ! tr!)e or (rofession in t$e Unite) Bin%)o,4 T$is ,e!ns t$!t !n< tr!)in% #osses in+urre) "< t$e
joint venture +o,(!n< 2i## not "e !v!i#!"#e to set !%!inst (rofits or %!ins of t$e forei%n'"!se) +or(or!te (!rti+i(!nts in
t$eir o2n juris)i+tions
1
4
1
T$is 2i## not "e t$e +!se 2it$ re%!r) to +or(or!te (!rti+i(!nts "!se) in t$e EC> if t$e EC Co,,issionAs (ro(ose) )ire+tive on
tr!)in% #osses is i,(#e,ente)4 T$e inten)e) effe+t of t$e )ire+tive is t$!t ! joint venture +o,(!n<As tr!)in% #osses ,!< "e
e#i%i"#e for surren)er to !## (!rti+i(!nts 2$o !re "!se) in t$e EC4
!1("2$
(/( Distribution of profits
T$e joint venture +o,(!n< "!se) in t$e Unite) Bin%)o, !s t$e "usiness ve$i+#e for !n intern!tion!# in2!r) joint
venture )istri"utes its (rofits (rin+i(!##< "< 2!< of )ivi)en) to its (!rti+i(!nt s$!re$o#)ers> in+#u)in% its forei%n'"!se)
(!rti+i(!nts4 Su"je+t to t$e %rou( in+o,e (rovisions
1
> !n) t$e !v!i#!"i#it< of fr!nCe) invest,ent in+o,e su+$
)istri"utions "efore 1 A(ri# 1666> re;uire) t$e +o,(!n< to ,!Ce ! (!<,ent of !)v!n+e +or(or!tion t!94 T$is t!9
resu#te) in ! t!9 +re)it on t$is t<(e of )istri"ution to 2$i+$ Unite) Bin%)o, resi)ent s$!re$o#)ers !n) ! s,!## +!te%or<
of non'resi)ent s$!re$o#)ers> in+#u)in% (!rti+i(!nt s$!re$o#)ers in ! joint venture +o,(!n<>

2ere entit#e)4
1
As to %rou( in+o,e (rovisions see /!r!%r!($ &*5 J1&*K et se; !nte4 T$e :in!n+e A+t 1665 s &1> S+$ & !"o#is$e) !)v!n+e
+or(or!tion t!9 in re#!tion to !++ountin% (erio)s "e%innin% on or !fter 1 A(ri# 16664
!1(2#$
(/) *a5 credits and the oerseas participant
A t!9 +re)it +ou#) not %ener!##< "e +#!i,e) "< ! non'Unite) Bin%)o, resi)ent +or(or!te (!rti+i(!ntEs$!re$o#)er in
res(e+t of )istri"utions re+eive) fro, ! +or(or!te joint venture "!se) in t$e Unite) Bin%)o,
1
4 .o2ever> +re)it +ou#)
"e +#!i,e) "< !n overse!s (!rti+i(!nt in ! Unite) Bin%)o, +or(or!te joint venture> in t$e !"ove +ir+u,st!n+es> 2$ere
t$ere 2!s ! )ou"#e t!9 tre!t< in for+e "et2een t$e Unite) Bin%)o, !n) t$e +ountr< in 2$i+$ t$e re#ev!nt (!rti+i(!nt
2!s "!se)4 In su+$ +!ses t$e joint venture +o,(!n< 2!s !##o2e) to (!< t$e +re)it )ire+t to t$e (!rti+i(!nt overse!s
s$!re$o#)er4 T$is )is+$!r%e) t$e joint venture +o,(!n<As #i!"i#it< to !)v!n+e +or(or!tion t!9
4
7$ere !n overse!s (!rti+i(!nt in ! +or(or!te joint venture "!se) in t$e Unite) Bin%)o, 2!s entit#e) to ! t!9
+re)it on )istri"utions re+eive) fro, t$e venture> it 2!s +$!r%e!"#e on t$e su, of t$e )istri"ution (t$!t is> t$e )ivi)en)
!n) t$e +re)it) !s Unite) Bin%)o, sour+e in+o,e4 .o2ever> t$e #i!"i#it< in t$ese +!ses 2!s restri+te) "< t$e ter,s of
t$e re#ev!nt )ou"#e t!9 tre!t< to ! fi9e) (er+ent!%e 2$i+$ is Cno2n !s D2it$$o#)in% t!9A4
7$en ! joint venture +o,(!n< "!se) in t$e Unite) Bin%)o, ,!)e ! )istri"ution to !n overse!s
(!rti+i(!ntEs$!re$o#)er 2$o is not entit#e) to ! t!9 +re)it> !)v!n+e +or(or!tion t!9 2!s nevert$e#ess )ue fro, t$e joint
venture +o,(!n<
&
4 If t$e overse!s (!rti+i(!nt in t$e joint venture 2!s ! +o,(!n<> !n< )istri"ution re+eive) fro, t$e
Unite) Bin%)o,'"!se) joint venture +o,(!n< )i) not +onstitute fr!nCe) invest,ent
*
in+o,e "ut 2!s +#!ssifie) !s
S+$e)u#e :
0
in+o,e4 T$e overse!s (!rti+i(!nt 2!s t$erefore #i!"#e to in+o,e t!9 on t$e )istri"ution un)er S+$e)u#e :4
T$is is> $o2ever> su"je+t to t$e (rovisions of !n< re#ev!nt )ou"#e t!9 tre!t<4 If t$e joint venture +o,(!n< "!se) in t$e
Unite) Bin%)o, $!) t$e fin!n+i!# +!(!+it< to !++o,,o)!te its !)v!n+e +or(or!tion t!9 #i!"i#ities> "e+!use it $!)
suffi+ient in+o,e 2$i+$ is su"je+t to !n) not !#re!)< re#ieve) fro, +or(or!tion t!9> t$en t$e +or(or!tion t!9 on t$e
Unite) Bin%)o,'"!se) joint venture +o,(!n< (rofits +onstitute) t$e on#< t!9 "orne "< t$e overse!s (!rti+i(!nt in t$e
venture4
!1(21$
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss &1'& (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
See t$e Dou"#e T!9!tion Re#ief (T!9es on In+o,e) (Gener!#) (Divi)en)) Re%u#!tions 163&E&13 re% 4 A)v!n+e +or(or!tion t!9
2!s !"o#is$e) "< t$e :in!n+e A+t 1665 s &1> S+$ & in re#!tion to !++ountin% (erio)s "e%innin% on or !fter 1 A(ri# 16664
&
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1*(1)4 See note !"ove4
*
7$en t$e re+i(ient 2!s ! +o,(!n< "!se) in t$e Unite) Bin%)o,> t$e )istri"ution in+#u)in% t$e +re)it +onstitute) fr!nCe)
invest,ent in+o,e: i"i) s &5(1)4
0
I"i) s 84
!1(2%$
(/, Non+6ualifyin' distributions
T2o for,s of )istri"ution "< ! Unite) Bin%)o,'"!se) joint venture +o,(!n< )i) not +onstitute ;u!#if<in%
)istri"utions> !n) !++or)in%#< no !)v!n+e +or(or!tion t!9 2!s (!<!"#e> nor 2ere t!9 +re)its !v!i#!"#e to t$e re+i(ients4
T$ese )istri"utions 2ere:
&3041 t$e issue of "onus re)ee,!"#e s$!res !n) "onus se+uritiesH !n)
&304 t$e issue of !n< s$!re +!(it!# or se+urit< "< t$e joint venture +o,(!n< 2$i+$ it $!) )ire+t#< or in)ire+t#<
re+eive) fro, !not$er +o,(!n< in t$e for, of "onus re)ee,!"#e s$!res or se+urities
1
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss *()> 86()(+) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4 See !#so i"i)
s &*(0)'(6)4
!1(2($
(/. Claimin' net ta5 credits
An overse!s (!rti+i(!nt in ! +or(or!te joint venture "!se) in t$e Unite) Bin%)o, +ou#) +#!i, t$e net t!9 +re)it )ue to it
fro, t$e Ins(e+tor of :orei%n Divi)en)s4 .o2ever> if !((ro(ri!te !rr!n%e,ents
1
$!) "een ,!)e "et2een t$e
(!rti+i(!nt !n) t$e joint venture +o,(!n<> t$e net t!9 +re)it +ou#) "e (!i) )ire+t#< "< t$e joint venture +o,(!n< to t$e
overse!s (!rti+i(!nt4 An< su+$ (!<,ent +ou#) "e set !%!inst t$e +o,(!n<As #i!"i#it< to !)v!n+e +or(or!tion t!9 for t$e
re#ev!nt t!9 <e!r4
1
See t$e Dou"#e T!9!tion Re#ief (T!9es on In+o,e) (Gener!#) (Divi)en)) Re%u#!tions 163&E&13 re% 4
!1(2)$
(// Proposed -C directie on tradin' losses
If t$e (ro(os!# for !n EC )ire+tive on tr!)in% #osses
1
2ere eventu!##< i,(#e,ente)> ! +o,(!n< "!se) in !n EC ,e,"er
st!te 2ou#) "e !##o2e) to )e)u+t !n< #osses in+urre) "< ! su"si)i!r< +o,(!n< !#so "!se) in t$e EC fro, its o2n (rofits
e!rne) in t$e re#ev!nt juris)i+tion 2$i+$ !re su"je+t to t!94 T$e (ro(ose) )ire+tive 2ou#) !#so +over ! joint venture
+o,(!n< "!se) in t$e Unite) Bin%)o, in 2$i+$ !not$er EC'"!se) +o,(!n< is ! s$!re$o#)erE(!rti+i(!nt4 A su"si)i!r<
for t$e !"ove (ur(oses is ! +o,(!n< in 2$i+$ t$e (!rent o2ns !t #e!st 30L of its s$!res
4
1
See /!r!%r!($ &3 note 1 J1&56K !nte4
T$e (ro(os!# (rovi)es t$!t ,e,"er st!tes ,!< )eter,ine t$!t ! #o2er ,ini,u, $o#)in% ,!< "e suffi+ient to +onstitute !
+o,(!n< ! su"si)i!r< for t$e (ur(oses of t$e !((#i+!tion of !n< #osses )ire+tive4
!1(2,$
(/" Forei'n income diidends
A joint venture +o,(!n< "!se) in t$e Unite) Bin%)o, ,!< re+eive ! su"st!nti!# (er+ent!%e of its revenue fro, forei%n
in+o,e )ivi)en)s or ot$er non'Unite) Bin%)o, e!rnin%s4 T$ese e!rnin%s 2ou#) $!ve "een su"je+t to t!9 in t$e
re#ev!nt juris)i+tion4 T$e joint venture +o,(!n<> 2$en re,ittin% its (rofits "< 2!< of )ivi)en) to !n< overse!s
(!rti+i(!nts> 2ou#) "efore 1 A(ri# 1666 !ttr!+t !))ition!# t!9 "< 2!< of !)v!n+e +or(or!tion t!9 "ut t$e :in!n+e A+t
166*> S+$e)u#e 11 (er,itte) forei%n in+o,e )ivi)en)s )e+#!re) "< ! Unite) Bin%)o,'"!se) +o,(!n< (in+#u)in% !
joint venture +o,(!n<) to overse!s s$!re$o#)ers out of non'Unite) Bin%)o, e!rnin%s to "e (!i) free of 2it$$o#)in%
t!9 or !)v!n+e +or(or!tion t!94 T$e s+$e,e 2!s inten)e) to en+our!%e intern!tion!# joint venture (!rtners to use !
Unite) Bin%)o, joint venture ve$i+#e4 Un#iCe ,!n< ot$er Euro(e!n juris)i+tions> t$ere is no +!(it!# )ut< (!<!"#e in
fu##< +!(it!#isin% ! Unite) Bin%)o,'"!se) joint venture +o,(!n<4 It 2!s $o(e) t$!t t$ese (rovisions 2ou#) (rove
(!rti+u#!r#< !ttr!+tive to (!rties fro, t$e USA> J!(!n !n) t$e :!r E!st 2$o 2ere +onsi)erin% +on)u+tin% o(er!tions "<
2!< of ! joint venture in Euro(e4
!1(2.$
(/2 *a5ation of forei'n income diidends
T$e :in!n+e A+t 166*
1
+re!te) ! ne2 re%i,e re%!r)in% t$e t!9!tion of forei%n in+o,e )ivi)en)s4 T$e re%i,e 2!s
e#e+tive !n) t$e e#e+tion +ou#) on#< "e ,!)e "< t$e +o,(!n< (!<in% t$e )ivi)en)4 A)v!n+e +or(or!tion t!9 $!) to "e
(!i) "< ! Unite) Bin%)o,'"!se) joint venture +o,(!n< on t$e )istri"ution> "efore 1 A(ri# 1666> of ! )ivi)en) to
overse!s (!rti+i(!nts> un#ess t$e +o,(!n< ;u!#ifie) !s !n intern!tion!# $e!);u!rters +o,(!n<4 .o2ever> !)v!n+e
+or(or!tion t!9 +ou#) "e re+#!i,e) if !n e#e+tion for forei%n in+o,e )ivi)en) tre!t,ent $!) "een ,!)e> to t$e e9tent
t$!t forei%n (rofits 2ere )istri"ute)4 7$ere t$e e#e+tion $!) "een ,!)e t$e )ivi)en) )istri"ute) +!rrie) no t!9 +re)it
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss *1A'*1? !s inserte) "< t$e :in!n+e A+t 166* S+$ 11 (!r! 1 (**
.!#s"ur<As St!tutes (*t$ E)n) TAFATION)4 See !#so t$e :in!n+e A+t 1663 s 554
As to t$is ne2 t!9 re%i,e %ener!##< see 'ile, B &ollison3s $ 'a7 Guide :CC<%C=4 -< t$e :in!n+e (No ) A+t 1663 t$e In+o,e
!n) Cor(or!tion T!9es A+t 1655 ss *1A'*1? !s inserte) (see note 1) s$!## +e!se to $!ve effe+t !s fro, 1 A(ri# 1666> !n) for
+o,(!n< !++ountin% (erio)s "e%innin% on or !fter 1 A(ri# 16664
!1(2/$
("# -C Commission ParentE3ubsidiary Directie
T$e EC Co,,ission /!rent ESu"si)i!r< Dire+tive
1
(rovi)es t$!t t$ere 2ou#) "e no #i!"i#it< to 2it$$o#)in% t!9 2$ere
)ivi)en)s 2ere (!i) "< ! Unite) Bin%)o, +o,(!n< in+#u)in% ! joint venture +o,(!n< to +or(or!te s$!re$o#)ers "!se)
in ! )ifferent ,e,"er st!te> "ut on#< 2$ere t$e re+i(ient +o,(!n< o2ns ,ore t$!n 0L of t$e votin% s$!res in t$e
+o,(!n< (!<in% t$e )ivi)en)4 .o2ever> t$e )ire+tive $!s no effe+t on Unite) Bin%)o, +o,(!nies> !s t$e Unite)
Bin%)o, )oes not i,(ose 2it$$o#)in% t!94
1
EC Co,,ission Dire+tive 68E*&0 !s !,en)e)4
!1(2"$
("1 Capital 'ains
An overse!s (!rti+i(!nt in ! +or(or!te joint venture "!se) in t$e Unite) Bin%)o, is> in %ener!#> !"#e to )is(ose of its
s$!res on t$e 2in)in% u( of t$e enter(rise 2it$out in+urrin% #i!"i#it< to +or(or!tion t!9 on !n< +$!r%e!"#e %!ins4 T$is is
su"je+t to !nti'!voi)!n+e (rovisions
1
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 38&> 331 (** .!#s"ur<As St!tutes (*t$ E)n) (TAFATION) !n) /!r!%r!($ &01
J1&*6K et se; !nte4
!1(22$
("% Conse6uences of debt financin'
It is fin!n+i!##< (ru)ent for ,!n< overse!s (!rti+i(!nts in ! joint venture +o,(!n< "!se) in t$e Unite) Bin%)o, to fun)
t$e enter(rise t$rou%$ )e"t4 7$ere su+$ !n enter(rise is fun)e) entire#< or su"st!nti!##< "< e;uit<> t$e (rofits e!rne) "<
t$e enter(rise !re su"je+t> in fu##> to +or(or!tion t!9 !n) t$e (!rti+i(!nt is usu!##< su"je+t to t!9 2it$in its n!tion!#
juris)i+tion on ! resi)u!# "!sis !fter t$e o(er!tion of )ou"#e t!9 re#ief4 .o2ever> 2$ere ! Unite) Bin%)o,'"!se)
+or(or!te joint venture is fin!n+e) "< its overse!s (!rti+i(!nts t$rou%$ )e"t> t$e interest (!<!"#e on t$e )e"t is
)e)u+ti"#e for +or(or!tion t!9 (ur(oses4 T$e overse!s (!rti+i(!nt in t$e venture is on#< su"je+t to )o,esti+ t!9 to t$e
e9tent of t$e interest +$!r%e)4
!1)##$
(") Interest (!<,ents
("( 7nterest payments as distribution
7$ere interest is (!i) !"ove ! +ert!in t$res$o#) "< ! Unite) Bin%)o,'"!se) +or(or!te joint venture to its overse!s
(!rti+i(!nts> it is non')e)u+ti"#e !n) is re%!r)e) for t!9 (ur(oses !s ! )istri"ution4 T$is !rises in t2o +ir+u,st!n+es
n!,e#<: (1) 2$ere t$e +onsi)er!tion %iven "< t$e joint venture +o,(!n< to its overse!s s$!re$o#)ers re(resents ,ore
t$!n ! re!son!"#e +o,,er+i!# return for t$ose (!rti+i(!nts to t$e venture
1
!n) () 2$ere it ,!< "e !ttri"ute) to Dt$in
+!(it!#is!tionA4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 86()()) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1)#1$
(") *hin capitalisation
Interest is tre!te) !s "ein% !ttri"ute) to t$in +!(it!#is!tion if t$e fo##o2in% +on)itions !re ,et
1
:
&5*41 T$e interest ,ust "e (!i) "< t$e joint venture +o,(!n< in res(e+t of se+urities issue) "< t$!t +o,(!n<> "ut $e#)
"< !not$er +o,(!n<4 T$is re;uire,ent is s!tisfie) in t$e +!se of t$e Unite) Bin%)o,'"!se) joint venture
+o,(!n< 2$ere so,e of t$e s$!re$o#)erE(!rti+i(!nts !re +or(or!tions "!se) overse!s4 T$e joint venture
+o,(!n< ,ust> in t$e !"ove +ir+u,st!n+es> "e ! 30L su"si)i!r< of t$e overse!s +o,(!n<> or "ot$ t$e joint
venture +o,(!n< !n) t$e overse!s +o,(!n< ,ust "ot$ "e 30L su"si)i!ries of ! t$ir) +o,(!n<H !n)
&5*4 T$e 2$o#e or !n< (!rt of t$e )istri"ution ,ust re(resent !n !,ount 2$i+$ 2ou#) not $!ve f!##en to "e (!i) "<
t$e joint venture +o,(!n< to t$e overse!s $o#)in% +o,(!n<> if t$e res(e+tive +o,(!nies $!) "een +o,(!nies
"et2een 2$o, (!(!rt fro, t$e se+urities in ;uestion) t$ere 2ou#) "e no re#!tions$i(> !rr!n%e,ent or ot$er
+onne+tion4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 86()()!) !s inserte) "< t$e :in!n+e A+t 1660 s 53(1) (** .!#s"ur<As St!tutes
(*t$ E)n) TAFATION)4 See !#so t$e In#!n) RevenueAs (ress re#e!se of 6 Nove,"er 166* !n) #imon3s 'a7 8ntelli!ence 166* (
1*634
!1)#%$
(", Applyin' the concept of thin capitalisation
T$e (rovisions intro)u+e) "< t$e :in!n+e A+t 1660 re(#!+e) e!r#ier !tte,(ts "< t$e #e%is#!ture to )e!# 2it$ t$e
(ro"#e,s of t$in +!(it!#is!tion
1
4 In +onsi)erin% t$e !((#i+!tion of t$e re#ev!nt ru#es> it is t$e !,ount of t$e interest
(!<,ent !n) not t$e r!te of interest +$!r%e) 2$i+$ is t$e re#ev!nt +onsi)er!tion4 :urt$er,ore> ! joint venture +o,(!n<
is re%!r)e) !s t$in#< +!(it!#ise) if it $!s ! $i%$ r!tio of )e"t to e;uit<4 T$e ne2 (rovisions re#!tin% to t$in +!(it!#is!tion
2i## tre!t interest !s ! )istri"ution 2$ere t$e $i%$ !,ount of )e"t 2ou#) not $!ve "een (resent $!) t$e joint venture
+o,(!n< !n) its $o#)in% +o,(!n< not enjo<e) t$eir (!rti+u#!r re#!tions$i(4 A++or)in%#<> on#< t$e e9+ess over 2$!t
2ou#) $!ve "een t$e !,ount of interest is tre!te) !s ! )istri"ution
4
1
E% t$e In+o,e !n) Cor(or!tion T!9es A+t s 86()(e)(iv)>(v) !s re(e!#e) "< t$e :in!n+e A+t 1660 s 53() (** .!#s"ur<As St!tutes
(*t$ E)n) TAFATION)4 T$is (rovision> un#iCe t$e (resent #e%is#!tion> re;uire) t$e furt$er !((#i+!tion of ! )ou"#e t!9 tre!t<4
See t$e In+o,e !n) Cor(or!tion T!9es A+t s 86()()!)4

!1)#($
(". *hin capitalisation and payments to oerseas enterprises
T$e (rovisions re#!tin% to t$in +!(it!#is!tion !re %ener!##< !((#i+!"#e to joint venture +o,(!nies 2$i+$ !re "!se) in t$e
Unite) Bin%)o, 2$ere t$e (!rti+i(!nts !re (rin+i(!##< "!se) overse!s
1
4 T$e< )o not !((#< to !n< (!rt of ! (!<,ent "<
t$e joint venture +o,(!n< to its overse!s (!rti+i(!nts 2$i+$ re(resents t$e re(!<,ent of +!(it!#
4
1
T$is is t$e effe+t of t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) s 86()()!)4
!1)#)$
("/ &easonableness of interest payments
("/11 Bey factors
T$e Ce< to !((#<in% t$e (rovisions on )istri"utions of interest
1
to ! Unite) Bin%)o,'"!se) +or(or!te joint venture
su++essfu##< is to )eter,ine t$e !,ount of interest t$e joint venture +o,(!n< 2ou#) $!ve (!i) on its )e"ts> !n) t$e
#eve# of its in)e"te)ness> if t$e +onne+tion "et2een t$e +o,(!n< !n) its overse!s (!rti+i(!nts $!) not e9iste)4 7$ere
t$e #eve#s of interest (!i) "< ! Unite) Bin%)o,'"!se) joint venture +o,(!n< to overse!s +or(or!te (!rti+i(!nts !re !t
!((ro(ri!te #eve#s +o,,ensur!te 2it$ !n !r,As #en%t$ tr!ns!+tion> t$e< !re not #iCe#< (to t$!t e9tent) to "e re%!r)e) !s
)istri"utions4 T$is )eter,in!tion ,!< "e ,!)e "< referen+e to t$e ter,s of t$e re#ev!nt #e%is#!tion> to%et$er 2it$ !n<
!((#i+!"#e )ou"#e t!9 tre!ties> 2$i+$ !re> $o2ever> to "e !((#ie) su"je+t to ,o)ifi+!tions i,(ose) "< t$e #e%is#!tion
4
T$e %ener!# effe+t of !((#<in% t$ese (rovisions invo#ves t$e )r!2in% of inferen+es 2$ere t$ere !re ot$er +or(or!te
(!rti+i(!nts in t$e +or(or!te venture !n) 2$et$er or not t$ese enter(rises $!ve ! re#ev!nt +onne+tion 2it$ t$e joint
venture +o,(!n<4 Su+$ ! +onne+tion> or #!+C of it> 2it$ t$e joint venture +o,(!n< ,!< "e est!"#is$e) "< +onsi)erin%>
inter !#i!> t$e s$!re$o#)in% t$!t !n< su+$ +o,(!n< $!s in t$e joint venture ve$i+#e
&
4 Anot$er f!+tor (ertinent to
est!"#is$in% ! +onne+tion "et2een ! +o,(!n< ot$er t$!n !n overse!s +or(or!te (!rti+i(!nt !n) ! Unite) Bin%)o,'
"!se) joint venture +o,(!n< is 2$et$er t$e t2o enter(rises !re (!rt of ! Unite) Bin%)o, +or(or!te %rou(in%4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 86()()!) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) s 585A !s inserte) "< t$e :in!n+e (No ) A+t 166 s 04 See !#so t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 86(5A)'
(5D) !s inserte) "< t$e :in!n+e A+t 1660 s 53(&)4
&
T$us> su+$ ! +o,(!n< 2i## $!ve no re#ev!nt +onne+tion 2it$ t$e joint venture for t$e (ur(oses of t$e #e%is#!tion if it $!s #ess t$!n
! 01L s$!re$o#)in% in t$e joint venture +o,(!n<4
!1)#,$
("/1% Assessin' 0hether interest constitutes a distribution
T$e f!+tors use) to !ssess t$e re!son!"#eness of t$e interest (!i) ,!< "e t!Cen into !++ount in )eter,inin% t$e
!((ro(ri!te #eve# or e9tent of t$e over!## in)e"te)ness of t$e Unite) Bin%)o,'"!se) joint venture +o,(!n<4 T$e< ,!<
!#so "e +onsi)ere) in )e+i)in% 2$et$er> in vie2 of its re#!tions$i( 2it$ ot$er +or(or!te entities> it ,i%$t "e nor,!# !n)
e9(e+te) +o,,er+i!# (r!+ti+e for t$e joint venture +o,(!n< to "e (!rt< to ! #o!n> or to t$e tr!ns!+tions 2it$ its
overse!s (!rti+i(!nts 2$i+$ +re!te) t$e in)e"te)ness or resu#te) in t$e issuin% of t$e re#ev!nt se+urities4 T$e r!te of
interest !n) ot$er ter,s !((#i+!"#e to !n< (!rti+u#!r #o!n !re !#so re#ev!nt
1
4 T$ese f!+tors !re t$us (ertinent to
)eter,inin% 2$et$er t$e interest (!i) "< ! joint venture +o,(!n< to its overse!s (!rti+i(!nts +onstitutes ! )istri"ution4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 86(5-) !s inserte) "< t$e :in!n+e A+t 1660 s 53(&) (** .!#s"ur<As St!tutes
(*t$ E)n) TAFATION)4
!1)#.$
("" Difficulties of thin capitalisation proisions
T$e !((#i+!tion of t$e r!t$er )is+ursive> +o,(#e9 !n) so,e2$!t !"str!+t (rovisions on t$in +!(it!#is!tion 2i## (rove
)iffi+u#t in (r!+ti+e4 It 2ou#) see, t$!t referen+e to In#!n) Revenue (r!+ti+e "efore t$e en!+t,ent of t$e :in!n+e A+t
1660 ,i%$t (rove of %re!ter use4 :ro, t$e e!r#ier (r!+ti+e it see,e) t$!t ! )e"t e;uit< r!tio not e9+ee)in% 1:1 +ou#) "e
re%!r)e) "< t$e In#!n) Revenue !s sus(e+t> un#ess t$e re#ev!nt enter(rise +ou#) est!"#is$ t$!t it $!) suffi+ient interest
+over4 A )e"t e;uit< r!tio !"ove 1:1 2!s ,ost #iCe#< to "e ;uestione) "< t$e Revenue
1
4
1
If t$e (ro(ose) EC Dire+tive on Interest !n) Ro<!#t< /!<,ents (CO=(68)031) is i,(#e,ente)> t$e Unite) Bin%)o, 2i## "e
re;uire) to e9e,(t interest (!i) "< ! Unite) Bin%)o, joint venture +o,(!n< to !n< Dre#!te)A +o,(!n< 2$i+$ is "!se) in t$e EC4
A re#!te) +o,(!n<> for t$e !"ove (ur(oses 2i## $!ve> inter !#i!> to $o#) !t #e!st 0L of t$e joint ventureAs s$!re +!(it!# or votin%
ri%$ts4 See B/=G 'he $se o. @,brid Financial 8nstruments in &ross%Border 'ransactions ( 8&4
!1)#/$
(+) Tr!nsfer (ri+in%
("2 *ransfer pricin' le'islation
T$e tr!nsfer (ri+in% (rovisions of t$e :in!n+e A+t 1665
1
,!< !((#< to t$e tr!ns!+tions "et2een ! Unite) Bin%)o,'
"!se) joint venture +o,(!n< !n) !n< of its overse!s +or(or!te (!rti+i(!nts4 .o2ever> 2$ere t$e (ri+e +$!r%e) or (!i)
in res(e+t of t$ese tr!ns!+tions $!s "een !)juste) for t$e (ur(oses of +or(or!tion t!9> t$ere is no (rovision for !
+orres(on)in% !)just,ent to "e ,!)e in res(e+t of !n< overse!s +or(or!te (!rti+i(!nt for t$e (ur(oses of t$e re#ev!nt
forei%n t!9 #i!"i#it<4 T$is ,!< %ive rise to (ro"#e,s of )ou"#e t!9!tion4 Re#ief ,!< "e !v!i#!"#e in t$ese +ir+u,st!n+es
"< virtue of t$e OECD =o)e# ConventionAs
,utu!# !%ree,ent (ro+e)ure for ,!Cin% t$e re;uire) +orres(on)in%

!)just,ents in (ri+es4 :urt$er,ore> t$e EC Convention on t$e e#i,in!tion of )ou"#e t!9!tion of !sso+i!te) enter(rises
&

(rovi)es for ! ,utu!# !%ree,ent !n) !r"itr!tion (ro+e)ure for t$e !)just,ent of (ri+es4
1
:in!n+e A+t 1665 s 185 2$i+$ re(#!+es t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 338'33&)4 As to t$e !((#i+!tion of t$ese
(rovisions 2it$in t$e +onte9t of (ure#< Unite) Bin%)o,'"!se) joint ventures: see /!r!%r!($ &*4& J1&&*K et se; !nte4
OECD =o)e# T!9 Convention on In+o,e !n) on C!(it!# 166 !rt 6()4
&
EC Convention on t$e e#i,in!tion of )ou"#e t!9!tion in +onne+tion 2it$ t$e !)just,ent of (rofits of !sso+i!te) enter(rises4
!1)#"$
: JOINT VENTURE CO=/AN? AS AN INVEST=ENT OR .OLDING CO=/AN?
(2# 7nterest and char'es on income
(2#11 &elief for interest
A Unite) Bin%)o,'"!se) joint venture +o,(!n< ,!< "e !n invest,ent enter(rise
1
for its overse!s (!rti+i(!nts4 It ,!<
!#so fu#fi# t$e fun+tion of ! %rou( $o#)in% +o,(!n<4 Su+$ joint venture +o,(!nies !re usu!##< entit#e) to re#ief !%!inst
#i!"i#it< to +or(or!tion t!9 in res(e+t of interest (!i) to fin!n+e t$eir "usinesses> "ut on#< to t$e e9tent t$!t t$e interest
;u!#ifies for re#ief un)er t$e In+o,e !n) Cor(or!tion T!9es A+t 1655
4 A++or)in% to t$e A+t> )istri"utions> 2$et$er

;u!#if<in% or not> !re not )e)u+ti"#e in +o,(utin% t$e (rofits of t$e +o,(!n<
&
4 7$ere !n< re#ief for ! +$!r%e on in+o,e
!v!i#!"#e to ! Unite) Bin%)o,'"!se) joint venture +o,(!n< e9+ee)s its (rofits> t$e e9+ess +$!r%es ,!< "e surren)ere)
t$rou%$ +onsortiu, or %rou( re#ief
*
4
!1)#2$
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 1&8 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) s &&3()(")4 Cf t$e (osition 2$ere t$e joint venture +o,(!n< 2$et$er resi)ent in t$e Unite) Bin%)o, or not +!rries on !
tr!)e> t$e (rofits of 2$i+$ !re +$!r%e!"#e un)er S+$e)u#e D> C!se I or V: In+o,e !n) Cor(or!tion T!9es A+t 1655 s 154
&
I"i) s &&3()4
*
As to t$e +ir+u,st!n+es in 2$i+$ +onsortiu, or %rou( re#ief ,!< "e !v!i#!"#e see /!r!%r!($ &*5 J1&*K et se; !nte4
!1)1#$
(2#1% &elief for char'es on income
7$ere +$!r%es on in+o,e re,!in unre#ieve) in !n< !++ountin% (erio)> )es(ite "ein% offset !%!inst t$e joint venture
+o,(!n<As (rofits> or $!vin% "een surren)ere)> t$e< ,!< "e +!rrie) for2!r) !n) )e)u+te) !%!inst t$e (rofits of t$e ne9t
!++ountin% (erio) !s ! ,!n!%e,ent e9(ense4 .o2ever> +ert!in +on)itions ,ust "e s!tisfie)4 T$e joint venture +o,(!n<
,ust "e "!se) in t$e Unite) Bin%)o, for t$e re#ev!nt (erio)s !n) re,!in !n invest,ent +o,(!n<> !n) t$e +$!r%es on
in+o,e ,ust $!ve "een (!i) 2$o##< !n) e9+#usive#< for t$e (ur(oses of t$e joint venture +o,(!n<As "usiness
1
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 30(&)> 1&8 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1)11$
&: JOINT VENTURE /ARTNERS.I/ 7IT. OVERSEAS COR/ORATE /ARTNERS
(21 *reatment of oerseas partners
T$ere !re t!9 i,(#i+!tions of o(er!tin% ! fis+!##< tr!ns(!rent joint venture> t$!t is> ! (!rtners$i( un)er t$e /!rtners$i(
A+t 1568> in t$e Unite) Bin%)o, 2$ere t$ere !re forei%n +or(or!te (!rtners4 As !n En%#is$ (!rtners$i( joint venture
$!s no se(!r!te #e%!# (erson!#it< )istin+t fro, t$e (!rties 2$o !re its ,e,"ers> t$e #!tter )erive t$eir (rofits fro, t$e
enter(rise )ire+t#<4 T$e forei%n (!rti+i(!nts in su+$ ! venture !re to "e re%!r)e) !s +!rr<in% on t$e tr!)e or enter(rise of
t$e joint venture in t$e Unite) Bin%)o,
1
4 It is usu!##< t$e +!se t$!t ! forei%n +or(or!te (!rtner in ! Unite) Bin%)o,'
"!se) (!rtners$i( joint venture +!rries on its o(er!tions in +onne+tion 2it$ t$e venture in t$e Unite) Bin%)o, t$rou%$
!n !%ent or "r!n+$ offi+e4 :or t$ese (ur(oses> !n !%ent ,!< "e !((ointe) fro, one of t$e (!rtners to t$e venture "!se)
in t$e Unite) Bin%)o,4 An overse!s (!rti+i(!nt in ! Unite) Bin%)o, (!rtners$i( joint venture !s ! (!rtner is #i!"#e
2it$out #i,it for t$e )e"ts !n) o"#i%!tions of t$e enter(rise4
1
Note t$!t in t$e +!se of Dre,.us v 8R& (166) 1* TC 018> CA> +on+ernin% t2o in)ivi)u!#s resi)ent in :r!n+e 2$o 2ere (!rtners
in ! sociMtM en nom collecti.> it 2!s $e#) t$!t t$e (rofits on t$!t (!rt of t$e tr!)e of t$e sociMtM 2$i+$ 2!s e!rne) in t$e Unite)
Bin%)o, 2!s to "e !##otte) to t$e sociMtM !n) not t$e (!rtners "e+!use t$e sociMtM en nom collecti. enjo<e) ! se(!r!te #e%!#
(erson!#it< )istin+t fro, its ,e,"ers4
!1)1%$
(2% *radin' in or 0ith the Hnited Bin'dom
In t$e +!se of ! Unite) Bin%)o,'"!se) joint venture (!rtners$i(> it is i,(ort!nt to )eter,ine 2$et$er !n< forei%n
+or(or!te (!rtners inten) to tr!)e DinA or D2it$A t$e Unite) Bin%)o,4 T$is is ! ;uestion of f!+t !n) 2i## )e(en) on t$e
+ir+u,st!n+es of t$e joint venture !n) t$e n!ture of its +o,,er+i!# !+tivities
1
4 If ! (!rtners$i( joint venture +onsists of
"ot$ Unite) Bin%)o,'"!se) !n) overse!s +or(or!te (!rtners> t$en t$e #!tter ,!< "e re%!r)e) !s tr!)in% in t$e Unite)
Bin%)o,4 7$ere su+$ ! venture !t !n< ti,e )oes not $!ve !n !+tive (!rtner "!se) in t$e Unite) Bin%)o,> t$en t$e
overse!s (!rtners ,!< "e re%!r)e) !s tr!)in% 2it$ t$e Unite) Bin%)o,4
If t$e (rofits of ! (!rtners$i( joint venture 2$i+$ !++rue to !n overse!s (!rtner !re re%!r)e) !s !risin% fro,
t$e #!tter +!rr<in% on ! tr!)e in t$e Unite) Bin%)o,> t$en su+$ (rofits !re su"je+t to Unite) Bin%)o, in+o,e or
+or(or!tion t!9
4 7$ere !n overse!s'"!se) +o,(!n< is re%!r)e) !s tr!)in% 2it$ t$e Unite) Bin%)o,> (rofits 2$i+$
!++rue to t$e enter(rise !s ! +onse;uen+e of t$!t tr!)e !re not su"je+t to +or(or!tion t!94 7$ere !n overse!s +or(or!te
(!rtner of ! Unite) Bin%)o,'"!se) (!rtners$i( joint venture ,!Ces use of ! "r!n+$ offi+e or !%ent> t$e (rofits !++ruin%
to it fro, t$e tr!)e of t$e joint venture is su"je+t to +or(or!tion t!94 Ot$er2ise> it ,!< "e su"je+t !s ! (!rtner to in+o,e
t!94
1
T$e test is (rin+i(!##< +on+erne) 2it$ )eter,inin% 2$ere t$e +o,,er+i!# o(er!tions> fro, 2$i+$ t$e (rofits of t$e enter(rise
!rise> t!Ce (#!+e4
In+o,e !n) Cor(or!tion T!9es A+t 1655 s 15(1)(!)(iii) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1)1($
(2( Double ta5 treaties
T$ere ,!< "e ! )ou"#e t!9 tre!t< in o(er!tion "et2een t$e Unite) Bin%)o,> 2$ere ! joint venture (!rtners$i( is "!se)>
!n) t$e juris)i+tion in 2$i+$ ! +or(or!te (!rtner is resi)ent4 In t$ese +ir+u,st!n+es> 2$ere t$ere is ! (rovision in t$e
tre!t< re#!tin% to "usiness (rofits
1
> t$e (rofits !++ruin% to t$e forei%n +o,(!n< fro, t$e joint venture !re su"je+t to
Unite) Bin%)o, t!9 on#< if t$e +o,(!n< is re%!r)e) !s +!rr<in% on ! "usiness t$rou%$ ! D(er,!nent est!"#is$,entA in
t$e Unite) Bin%)o,
4 If ! forei%n enter(rise )oes +!rr< on ! "usiness 2it$in t$e +onte9t of ! Unite) Bin%)o, joint
venture t$rou%$ ! (er,!nent est!"#is$,ent> t$e (rofits !++ruin% to it !s ! +onse;uen+e ,!< "e su"je+t to Unite)
Bin%)o, t!94 A++or)in%#<> 2$ere ! Unite) Bin%)o,'"!se) joint venture (!rtners$i( 2it$ forei%n resi)ent (!rtners
+!rr< on t$e enter(rise t$rou%$ t$e !%en+< of ! Unite) Bin%)o,'"!se) (!rtner> t$is 2i## resu#t in t$e (!rtners$i( joint
venture $!vin% ! (er,!nent est!"#is$,ent in t$e Unite) Bin%)o,
&
4
1
T$is (rovision is "!se) on t$e OECD =o)e# T!9 Convention on In+o,e !n) on C!(it!# 166 !rt 34
T$is +on)ition ,!< "e (res+ri"e) in t$e re#ev!nt tre!t<4 T$e =o)e# T!9 Convention 166 !rt 0 )efines t$e ter, D(er,!nent
est!"#is$,entA !s in+#u)in% ! fi9e) (#!+e of "usiness t$rou%$ 2$i+$ t$e "usiness of ! joint venture is 2$o##< or (!rt#< +!rrie) on4
T$is 2i## in+#u)e !n< !%ent of t$e enter(rise4
&
T$is 2i## "e "e+!use t$e (!rtners$i( 2i## $!ve ! fi9e) (#!+e of "usiness in t$e Unite) Bin%)o, or "e+!use t$e enter(rise !n) its
,e,"ers fu#fi# t$e ter,s !n) +on)itions of ! )ou"#e t!9 tre!t<4
!1)1)$
(2) *a5ation of branch or a'ency
7$ere ! non'resi)ent +o,(!n< +!rries on ! tr!)e or "usiness t$rou%$ t$e ,e)iu, of ! (!rtners$i( joint venture "!se)
in t$e Unite) Bin%)o, "< 2!< of ! "r!n+$ or !%ent> t$e overse!s +o,(!n< is su"je+t to +or(or!tion t!9 on t$e
2or#)2i)e tr!)in% (rofits of t$e "r!n+$ or !%en+<4 .o2ever> su+$ ! "r!n+$ offi+e or !%en+< )oes not entit#e t$e non'
resi)ent +o,(!n< to +#!i, t$e "enefits of %rou( re#ief
1
4 T$e "r!n+$ offi+e or t$e !%en+< +!nnot +#!i, %rou( re#ief !s it
is !v!i#!"#e on#< to Unite) Bin%)o, resi)ent +o,(!nies4
A Unite) Bin%)o,'"!se) +o,(!n< 2$i+$ is ! (!rti+i(!nt in ! joint venture !#so "!se) in t$e Unite) Bin%)o,
is %ener!##< !"#e to +#!i, !##o2!"#e e9(enses !%!inst its (rofits 2$i+$ it $!s in+urre) 2$o##< !n) e9+#usive#< for t$e
(ur(oses of +!rr<in% out its tr!)e or "usiness4 A non'resi)ent +o,(!n< o(er!tin% !s ! (!rti+i(!nt in ! joint venture
(!rtners$i( in t$e Unite) Bin%)o, t$rou%$ ! "r!n+$ offi+e or !%en+< ,!< nee)> t$erefore> to !((ortion (!rt of its tot!#
(rofits 2$i+$ +!n "e !s+ri"e) to t$e "r!n+$ offi+e or !%en+<> to%et$er 2it$ !n !((ortion,ent of t$e e9(enses in+urre)
"< t$e +o,(!n< in o(er!tin% its "r!n+$ offi+e or !%en+<
4
1
As to t$e n!ture !n) !((#i+!tion of %rou( re#ief see /!r!%r!($ &*5 J1&*K et se; !nte4
Su+$ ,!tters !re fre;uent#< t$e su"je+t of re%u#!tion 2$ere ! )ou"#e t!9 tre!t< is in o(er!tion4 See e%> t$e OECD =o)e# T!9
Convention on In+o,e !n) on C!(it!# 166 !rt 3()M(*)4 It s$ou#) !#so "e note) t$!t> !#t$ou%$ re#ief fro, +or(or!tion t!9 is on#<
!v!i#!"#e to ! Unite) Bin%)o, resi)ent +o,(!n<> su+$ re#ief ,!< "e !v!i#!"#e to ! non'resi)ent +o,(!n< if t$ere is in o(er!tion
! )ou"#e t!9 tre!t< 2$i+$ +ont!ins ! Dnon')is+ri,in!tionA !rti+#e "!se) on t$e =o)e# Convention !rt *(&)4
!1)1,$
(2, *a5 adanta'es of operatin' a branch office or a'ency
T$ere ,!< "e t!9 !)v!nt!%es in !n overse!s +o,(!n< o(er!tin% !s ! (!rti+i(!nt in ! (!rtners$i( joint venture "!se) in
t$e Unite) Bin%)o, t$rou%$ ! "r!n+$ or !%en+<4 T$e non'resi)ent +o,(!n< ,!< use t$e (rofits or #osses of t$e "r!n+$
or !%en+< for t!9 (ur(oses 2it$in t$e $o,e juris)i+tion4 7$ere ! )ou"#e t!9 tre!t< is in o(er!tion 2$i+$ +ont!ins !n
!rti+#e re#!tin% to uni#!ter!# t!9 re#ief
1
> Unite) Bin%)o, (rofits e!rne) "< t$e "r!n+$ offi+e or !%en+< ,!< "e +re)ite)
!%!inst t!9 #i!"i#it< in t$e juris)i+tion of t$e overse!s +o,(!n<4 T$is is su"je+t to t$e t!9 !ut$orities in t$e juris)i+tion
of t$e overse!s +o,(!n< re%!r)in% t$e joint venture ve$i+#e in t$e Unite) Bin%)o, !s ! fis+!##< tr!ns(!rent enter(rise
4
T$e in!"i#it< of ! non'resi)ent +o,(!n< to +#!i, +ert!in re#iefs !v!i#!"#e to Unite) Bin%)o,'"!se) +o,(!nies ,!<>
$o2ever> "e !,e#ior!te) "ut not ne+ess!ri#< entire#< e#i,in!te) "< Dnon')is+ri,in!tionA !rti+#es in )ou"#e t!9 tre!ties
&
4
1
T$is !rti+#e is "!se) on t$e OECD =o)e# T!9 Convention on In+o,e !n) on C!(it!# 166 !rt &-4 It ,!< !#so "e t$e +!se t$!t
t$e juris)i+tion in 2$i+$ t$e overse!s +o,(!n< o(er!tes t$!t #e%is#!tion (rovi)es for uni#!ter!# re#ief4 7it$out su+$ (rovisions>
t$e (rofits of t$e "r!n+$ offi+e or !%en+< 2ou#) "e su"je+t to t!9 in "ot$ t$e Unite) Bin%)o, !n) in t$e juris)i+tion of t$e
overse!s +o,(!n<4
See Dre,.us v 8R& (166) 1* TC 018> CA4

&
See #un Li.e )ssurance &o o. &anada v Pearson J165*K STC *11H R v 8R& J1661K STC 31H C!se 38E5&: E& &ommission v
France J1651K ECR 3&> ECJ4
!1)1.$
(2. &epatriation of profits
7$ere ! "r!n+$ offi+e or !%en+< of !n overse!s +or(or!te (!rti+i(!nt in ! Unite) Bin%)o,'"!se) joint venture
)is+$!r%es its #i!"i#it< to +or(or!tion t!9 on (rofits e!rne) in t$e Unite) Bin%)o, to t$e #o+!# t!9 !ut$orities> no furt$er
Unite) Bin%)o, t!9 #i!"i#it< is in+urre) on t$e re,itt!n+e of (rofits to t$e re#ev!nt overse!s +o,(!n<4
!1)1/$
(2/ Financin' the partnership joint enture
=!n< Unite) Bin%)o,'"!se) (!rtners$i( joint ventures 2$i+$ +onsist of "ot$ Unite) Bin%)o, !n) overse!s +or(or!te
(!rti+i(!nts !re fre;uent#< fin!n+e) "< )e"t
1
4 T$us> (rofits e!rne) "< ! (!rtners$i( joint venture "!se) in t$e Unite)
Bin%)o, fin!n+e) "< )e"t !re su"je+t to Unite) Bin%)o, t!9> !n)> su"je+t to t$e o(er!tion of ! )ou"#e t!9 tre!t<> !n<
overse!s (!rti+i(!nt is #i!"#e to t!9 in t$e overse!s juris)i+tion on ! resi)u!# "!sis4 Re#ief on !n< interest (!i) "< t$e
enter(rise s$ou#) "e +onfine) to interest in+urre) "< t$e joint venture (!rtners$i(4 No re#ief is !v!i#!"#e in res(e+t of
!nnu!# interest (!i) to !n overse!s #en)er 2$o is !#so ! (!rti+i(!nt in t$e venture
4
1
As to t$e (rin+i(!# t!9 +onse;uen+es of t$e )e"t fin!n+in% of ! Unite) Bin%)o,'"!se) +or(or!te joint venture see /!r!%r!($ &5
J1*88K !nte4
T$is is su"je+t to t$e o(er!tion of ! )ou"#e t!9 tre!t< 2$i+$ +ont!ins ! non')is+ri,in!tion !rti+#e: see /!r!%r!($ &6* note
J1*10K !nte4
!1)1"$
(2" *ransfer pricin'
T$e tr!nsfer (ri+in% (rovisions
1
!((#< to ! (!rtners$i( joint venture !n) its (!rti+i(!nts 2it$ re%!r) "ot$ to t$ose "!se)
in t$e Unite) Bin%)o, !n) to t$ose "!se) overse!s4
1
See t$e :in!n+e A+t 1665 s 185 2$i+$ re(#!+es t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 338M33&> 5*84 As to t$e o(er!tion
of tr!nsfer (ri+in% (rovisions see /!r!%r!($ &*4& J1&&*K !nte4
!1)12$
C: OUT7ARD JOINT VENTURES
1: OVERSEAS COR/ORATE JOINT VENTURE
(22 *a5ation of profits
7$ere !n overse!s +or(or!te joint venture
1
> in 2$i+$ ! Unite) Bin%)o,'"!se) +o,(!n< is ! (!rti+i(!nt> is +ontro##e)
!n) ,!n!%e) in !n overse!s juris)i+tion !n) )oes not tr!)e in t$e Unite) Bin%)o,> eit$er t$rou%$ ! "r!n+$ offi+e or
!%en+<> it is not su"je+t to Unite) Bin%)o, +or(or!tion t!9 on its (rofits4 If t$is is t$e +!se> t$en t$e joint venture is
su"je+t to t!9!tion on#< in t$e juris)i+tion in 2$i+$ it is resi)ent4
1
:or t$ese (ur(oses> t$e joint venture +o,(!n< ,!< +!rr< on ! tr!)e or !n invest,ent "usiness> or ,!< "e ! $o#)in% +o,(!n< for
! forei%n tr!)in% %rou(4
!1)%#$
)## *hin capitalisation
A +or(or!te (!rti+i(!nt in !n overse!s +or(or!te joint venture 2i## en+ounter> to%et$er 2it$ its +o'(!rti+i(!nts> t$e
(ro"#e, of 2$et$er to fin!n+e t$e venture t$rou%$ )e"t4 7$ere t$e overse!s juris)i+tion $!s ! r!te of +or(or!tion t!9
#o2er t$!n t$e r!te of +or(or!te in+o,e t!9> t$en )e"t fin!n+in% ,!< "e fis+!##< !)v!nt!%eous4 T$e (!rti+i(!nts in t$e
+or(or!te venture s$ou#) "e !2!re of t$e (ossi"#e !((#i+!tion of t$in +!(it!#is!tion ru#es in t$!t juris)i+tion
1
4
1
As to t$e n!ture of t$in +!(it!#is!tion ru#es in t$e +onte9t of t$e Unite) Bin%)o,'"!se) +or(or!te joint ventures: see /!r!%r!($
&5* J1*8K et se; !nte4
!1)%1$
)#1 Diidends
A Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in !n overse!s +or(or!te joint venture 2i## "e #i!"#e to +or(or!tion t!9
un)er S+$e)u#e D> C!se V
1
on )ivi)en)s re+eive) fro, t$e venture4 An< su+$ )istri"utions !re #iCe#< to "e su"je+t to
t!9 in t$e overse!s juris)i+tion !n) ,!< "e +o##e+te) in t$!t juris)i+tion "< 2!< of 2it$$o#)in% t!9
4 It s$ou#) "e note)

t$!t t$e o(er!tion of ! )ou"#e t!9 tre!t< ,!< re)u+e t$e r!te of 2it$$o#)in% t!9
&
4
In t$e +!se of )ivi)en)s re+eive) "< ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt of !n overse!s joint
venture> t$e usu!# re#iefs fro, +or(or!tion t!9 !((#<
*
4 T$e ,ost i,(ort!nt of t$ese is )ou"#e t!9 re#ief !s ! +re)it
!%!inst !n< forei%n 2it$$o#)in% t!9 on t$e )ivi)en)s> !n) in ,!n< +!ses for ! +orres(on)in% (!rt of t$e forei%n
+or(or!te in+o,e t!9 in+urre) "< t$e venture on t$e (rofits of t$e enter(rise
0
> !n) 2$i+$ ,!< "e )efine) !s un)er#<in%
t!94 7$ere re#ief "< 2!< of +re)it is !v!i#!"#e to ! Unite) Bin%)o,'"!se) (!rti+i(!nt in t$e re#ev!nt overse!s joint
venture> t$e +or(or!tion t!9 )ue in t$e Unite) Bin%)o, is +!#+u#!te) "< referen+e to t$e )ivi)en) (!i) to%et$er 2it$ t$e
forei%n 2it$$o#)in% !n) un)er#<in% t!9
1
4
!1)%%$
1
As to t$e n!ture of 2it$$o#)in% t!9 see /!r!%r!($ &3* J1&61K !nte4

&
EC Co,,ission Dire+tive 68E*&0 !rt 0(1) $!s> to !## intents !n) (ur(oses> !"o#is$e) 2it$$o#)in% t!9 for inter',e,"er st!te
tr!nsfers4
*
As to re#iefs fro, +or(or!tion t!9 see /!r!%r!($ &3* J1&61K !nte4
0
Out of 2$i+$ t$e )ivi)en) is (!i) to t$e Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in t$e venture4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 360(1) (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1)%($
)#% Double ta5 treaty
T$e !v!i#!"i#it< of )ou"#e t!9 re#ief ,!< "e e9ten)e) "< t$e o(er!tion of t$e (rovisions of ! )ou"#e t!9 tre!t<4 A tre!t<
,!< t$us (rovi)e for un)er#<in% t!9 to "e t!Cen into !++ount in )eter,inin% 2$et$er> !n) to 2$!t e9tent +re)it ,!< "e
!##o2e) !%!inst t!9 )ue in t$e Unite) Bin%)o, on )ivi)en)s (!i) "< t$e overse!s joint venture to ! Unite) Bin%)o,'
resi)ent +or(or!te (!rti+i(!nt in t$e venture
1
4 In su+$ +!ses t$e t!9 to "e t!Cen into !++ount ,!< "e +!#+u#!te) "<
referen+e to t$e !,ount of t$e forei%n t!9 "orne on t$e Dre#ev!nt (rofitsA !s is (ro(er#< !ttri"ut!"#e to t$e (ro(ortion of
t$e re#ev!nt (rofits !s re(resente) "< t$e !+tu!# )ivi)en) (!i)
4
Even in t$e !"sen+e of ! )ou"#e t!9 tre!t<> uni#!ter!# re#ief ,!< "e !v!i#!"#e on ! "ro!)#< si,i#!r "!sis (to t$!t
note) !"ove) "< virtue of t$e o(er!tion of t$e In+o,e !n) Cor(or!tion T!9es A+t 1655
&
> 2$i+$ ,!< sti## "e !v!i#!"#e
even if t$e Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt $!s ! $o#)in% of #ess t$!n 18L in t$e overse!s +or(or!te joint
venture4
!1)%)$
1
T$e tre!t< ,!< (rovi)e t$!t re#ief is )e(en)ent on t$e Unite) Bin%)o, (!rti+i(!nt enjo<in% ! ,ini,u, s$!re$o#)in% in t$e
overse!s +or(or!te joint venture4 Re+ent tre!ties $!ve (rovi)e) (see In#!n) Revenue Le!f#et IR 1) t$!t re#ief for un)er#<in% t!9 is
!v!i#!"#e (rovi)e) t$!t t$e Unite) Bin%)o, resi)ent (!rti+i(!nt in t$e overse!s venture is ! +o,(!n< 2$i+$ eit$er:
(!) +ontro#s )ire+t#< or in)ire+t#<H or
(") is ! su"si)i!r< of ! +o,(!n< 2$i+$ so +ontro#s !t #e!st 18L of t$e votin% (o2er in t$e overse!s +or(or!te joint
venture4
A +o,(!n< for t$e !"ove (ur(oses is ! su"si)i!r< of !not$er if t$!t ot$er +ontro#s )ire+t#< or in)ire+t#< not #ess t$!n 08L of t$e
votin% (o2er in t$e first +o,(!n<: In+o,e !n) Cor(or!tion T!9es A+t 1655 s 36 (** .!#s"ur<As St!tutes (*t$ E)n)
TAFATION)4
In+o,e !n) Cor(or!tion T!9es A+t 1655 s 366(1)4 :or t$e !"ove (ur(oses Dre#ev!nt (rofitsA ,e!ns +o,,er+i!# or !++ountin%
(rofits4
&
I"i) s 368(1)4
!1)%,$
)#( *a5 plannin'
T$ere ,!< "e fis+!# !)v!nt!%es in ! Unite) Bin%)o,'"!se) +o,(!n< en%!%in% in !n overse!s venture t$rou%$ t$e
,e)iu, of ! +or(or!te joint venture> r!t$er t$!n t$rou%$ ! fis+!##< tr!ns(!rent enter(rise4 T$is is (!rti+u#!r#< so 2$ere
t$ere is ! )ou"#e t!9 tre!t< in o(er!tion 2it$ (rovisions on t!9 +re)its
1
4 T$e effe+t of su+$ t!9 +re)its %ener!##< is to
entit#e t$e Unite) Bin%)o,'resi)ent +or(or!te (!rti+i(!nt in t$e overse!s venture to ! t!9 +re)it e;u!# to 08L of t$e t!9
+re)it to 2$i+$ ! #o+!##< resi)ent (erson 2ou#) "e entit#e)> su"je+t to ! )e)u+tion e;u!# to 0L of t$e !%%re%!te of t$e
)ivi)en) !n) t$e one'$!#f t!9 +re)it4 T$e %ener!# effe+t of su+$ t!9 +re)its is t$erefore to re)u+e t$e #eve# of #o+!#
+or(or!te t!9 in+urre) "< t$e Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in t$e overse!s +or(or!te joint venture4 No
su+$ re)u+tion is !v!i#!"#e for ! Unite) Bin%)o, +o,(!n< 2$i+$ is ! (!rti+i(!nt in ! fis+!##< tr!ns(!rent overse!s
enter(rise or 2$i+$ o(er!tes overse!s t$rou%$ ! "r!n+$ or !%en+<4 Des(ite t$e !"ove> t$ere ,!< "e !)v!nt!%es in !
Unite) Bin%)o,'"!se) +o,(!n< initi!##< +!rr<in% out !n enter(rise !"ro!) t$rou%$ ! "r!n+$ offi+e or !%en+<4 Su+$ !
str!te%< en!"#es #osses in+urre) in settin% u( t$e "usiness to "e re#ieve) "ot$ in t$e overse!s territor< !n) in t$e Unite)
Bin%)o,4
1
E% t$e Dou"#e T!9!tion Re#ief (T!9es on In+o,e) (It!#<) Or)er 1668E068 !rt 184
As to t$e o(er!tion of ! )ou"#e t!9 tre!t< see /!r!%r!($ *8 J1**K !nte4
!1)%.$
)#) Capital 'ains
It ,!< "e (ossi"#e> !#t$ou%$ t$is is +#e!r#< )e(en)ent on t$e t!9 re%i,e in o(er!tion in t$e overse!s territor<> for !
Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt to )is(ose of its s$!re$o#)in% in !n overse!s joint venture +o,(!n< on t$e
ter,in!tion of t$e venture 2it$out in+urrin% #i!"i#it< to +!(it!# %!ins t!94
!1)%/$
)#, Adance corporation ta5
T$e (ossi"i#it< of ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in !n overse!s +or(or!te joint venture in+urrin%
sur(#us !)v!n+e +or(or!tion t!9 2!s ! ,!tter 2$i+$ nee)e) to "e +onsi)ere)4 7$ere t$e )ivi)en)s t$e +o,(!n<
re+eive) fro, t$e venture 2ere forei%n in+o,e )ivi)en)s
1
> t$en t$e )ivi)en)s 2ere not re%!r)e) !s ! fr!nCe) (!<,ent>
!n)> !++or)in%#<> t$e fr!nCe) invest,ent in+o,e ru#es )i) not !((#<
4 T$ere 2!s no o"#i%!tion on t$e +o,(!n<

re+eivin% t$e forei%n in+o,e )ivi)en) to !++ount for !)v!n+e +or(or!tion t!9 on !n< su+$ )ivi)en) 2$i+$ it (!i) in !n<
!++ountin% (erio)> e9+e(t to t$e e9tent t$!t su+$ re+ei(ts e9+ee)e) t$e forei%n in+o,e )ivi)en) )istri"ution ,!)e "<
t$e +o,(!n<
&
4 A)v!n+e +or(or!tion t!9 $!) to "e (!i) on !n< su+$ e9+ess
*
4

Converse#<> 2$ere t$e Unite) Bin%)o,'
"!se) +o,(!n< re+eive) !n e9+ess of forei%n in+o,e )ivi)en)s re+eive) over t$ose (!i) to its o2n overse!s
s$!re$o#)ers> t$en t$e e9+ess +ou#) "e +!rrie) for2!r) !n) set off !%!inst !n< future #i!"i#it< to !)v!n+e +or(or!tion t!9
on forei%n in+o,e )ivi)en)s (!i) in su"se;uent (erio)s4 T$ese ru#es )i) not !((#< to ! +o,(!n< 2$i+$ 2!s !n
intern!tion!# $e!);u!rters +o,(!n<
0
4
A Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in !n overse!s +or(or!te joint venture> !s in t$e +!se of !n<
+o,(!n< resi)ent in t$e Unite) Bin%)o,> +ou#) set !%!inst its #i!"i#it< to !)v!n+e +or(or!tion t!9 for !n< ;u!rter t$e
t!9 +re)it e#e,ent in !n< fr!nCe) invest,ent in+o,e eit$er re+eive) in t$!t ;u!rter or +!rrie) fro, ! (revious ;u!rter4
Su+$ !n enter(rise +ou#) !#so +!rr< "!+C !n) set off !n< sur(#us !)v!n+e +or(or!tion t!9 !%!inst t$e +or(or!tion t!9
#i!"i#it< of !++ountin% (erio)s 2it$in t$e si9 <e!rs 2$i+$ (re+e)e) t$e <e!r in 2$i+$ t$e sur(#us !)v!n+e +or(or!tion
t!9 !rose
1
4 If t$e sur(#us !)v!n+e +or(or!tion t!9 2!s not fu##< re#ieve)> )es(ite +!rr<in% "!+C> it +ou#) "e ro##e)
for2!r) in)efinite#< to su"se;uent !++ountin% (erio)s> !n) +ou#) t$erefore "e use) to fr!nC (!<,ents in t$ose <e!rs
3
4 A
sur(#us 2$i+$ +ou#) not "e re#ieve) +ou#) !#so "e surren)ere) to ! su"si)i!r< !s !n !#tern!tive to +!rr<in% for2!r)4 It
s$ou#) "e note) t$!t sur(#us !)v!n+e +or(or!tion t!9 surren)ere) in t$is 2!< +ou#) not "e +!rrie) "!+C "< t$e
su"si)i!r<
5
4
!1)%"$
1
As to t$e n!ture of forei%n in+o,e )ivi)en)s see /!r!%r!($ &35 J1&63K et se; !nte4
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *1E !s inserte) "< t$e :in!n+e A+t 166* S+$ 11 (!r! 1 (** .!#s"ur<As St!tutes (*t$
E)n) TAFATION)4 T$is (rovision $!s "een re(e!#e) "< t$e :in!n+e A+t (No ) 1663: see /!r!%r!($ &36 note J1&63K !nte4 T$is
t!9 re%i,e 2i## no #on%er !((#< to +or(or!tions 2it$ re%!r) to !n< !++ountin% (erio) "e%innin% !fter A(ri# 16664
&
In+o,e !n) Cor(or!tion T!9es A+t 1655 s *1: (re(e!#e) see note !"ove)4
*
I"i) s *1: (re(e!#e) see note !"ove)4
0
I"i) s *1:(*) (re(e!#e) see note !"ove)4
1
I"i) s &6(&)4 T$is (rovision is re(e!#e) "< t$e :in!n+e A+t 1665 S+$ & in re#!tion to !++ountin% (erio)s "e%innin% on or !fter 1
A(ri# 16664
3
I"i) s &6(*) (see note 1 !"ove)4
5
See #imon3s 'a7 8ntelli!ence 1661 ( 11&54
!1)%2$
)#. ?peratin' throu'h a forei'n intermediate holdin' company
)#.11 Adanta'es
T$ere ,!< "e !)v!nt!%es for ! Unite) Bin%)o,'"!se) +o,(!n< in o(er!tin% !n overse!s +or(or!te joint venture
t$rou%$ ! forei%n inter,e)i!te +o,(!n<4 T$is t<(e of +o,(!n< ,ust "e "ot$ resi)ent in !n) +ontro##e) fro, t$e
re#ev!nt forei%n juris)i+tion4 T$e t!9 re%i,e in t$!t juris)i+tion ,ust (rovi)e for e9e,(tion re#ievin% )ivi)en)s fro,
!n) %!ins on t$e )is(os!# of overse!s s$!re$o#)in%s fro, #o+!# t!94 :urt$er,ore> t$e juris)i+tion in 2$i+$ t$e +or(or!te
joint venture is "!se) s$ou#) e9e,(t fro, 2it$$o#)in% t!9> )ivi)en)s to +o,(!nies> in+#u)in% !n< forei%n inter,e)i!te
+o,(!n<> resi)ent in t$!t juris)i+tion
1
4
T$e use of ! forei%n inter,e)i!te $o#)in% +o,(!n< in o(er!tin% !n overse!s +or(or!te joint venture ,!<
t$erefore offer !)v!nt!%es4 T$us> it ,!< "e t$e +!se t$!t t$e +o,"ine) r!tes of 2it$$o#)in% t!9 on )ivi)en)s fro, t$e
+or(or!te joint venture to t$e inter,e)i!te $o#)in% +o,(!n<> !n) fro, t$!t enter(rise to t$e Unite) Bin%)o,'"!se)
+or(or!te (!rti+i(!nt in t$e venture> is #ess t$!n t$e r!te of 2it$$o#)in% t!9 t$!t 2ou#) !rise on ! )ivi)en) (!i) )ire+t#<
"< !n overse!s +or(or!te joint venture to ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in t$e venture4 T$is 2ou#) "e !
)esir!"#e situ!tion 2$ere t$e +o,"ine) r!te of +or(or!tion t!9 !n) 2it$$o#)in% t!9 in t$e juris)i+tion 2$ere t$e joint
venture is resi)ent e9+ee)s t$e e;uiv!#ent r!te of +or(or!tion t!9 in t$e Unite) Bin%)o,4 T$is is ! str!te%< #ess #iCe#< to
"e !)o(te) 2$ere t$e (!rties !re "!se) in t$e EC 2$ere t$e EC Co,,ission /!rentESu"si)i!r< Dire+tive
is o(er!tive4
1
As to t$e n!ture of 2it$$o#)in% t!9 see /!r!%r!($ &3* J1&61K !nte4 T$is ,!< !rise fro, t$e o(er!tion of ! )ou"#e t!9 tre!t< or
t$e EC Co,,ission Dire+tive 68E*&0 !s !,en)e)4 As to t$e effe+t of t$is )ire+tive see /!r!%r!($ &58 J1&65K !nte4
EC Co,,ission Dire+tive 68E*&0 !s !,en)e)4

!1)(#$
)#.1% <i5er companies
T$ere is ! furt$er (ossi"#e !)v!nt!%e of usin% !n inter,e)i!te $o#)in% +o,(!n< for ! Unite) Bin%)o,'"!se)
(!rti+i(!nt in !n overse!s joint venture 2$ere t$e Unite) Bin%)o, +o,(!n< $!s ot$er overse!s interests !n)
invest,ents4 :orei%n t!9 +re)its ,!< in su+$ +!ses "e !ver!%e) "et2een t$e overse!s )ivi)en)s !n) re+ei(ts> ensurin%
t$!t t$e +re)its !re not 2!ste) !n) !re use) to ,!9i,u, !)v!nt!%e4 T$e inter,e)i!te $o#)in% +o,(!n< is t$e ve$i+#e
2$ere"< su+$ !ver!%in% +!n "e !+$ieve)4 A## t$e overse!s invest,ents or interests of t$e Unite) Bin%)o,'"!se)
+o,(!n< +!n t$erefore "e $e#) or veste) in t$e inter,e)i!te $o#)in% +o,(!n< 2$i+$ resu#ts in t$e D,i9in%A of t$e
in+o,e %ener!te) "< t$ese interests or invest,ents4
!1)(1$
)#/ Capital 'ains on termination of oerseas enture
7$en !n overse!s'"!se) +or(or!te joint venture is ter,in!te)> ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt ,!< "e
su"je+t to +!(it!# %!ins t!9 on t$e )is(os!# of its s$!re$o#)in% in t$e venture4 If #i!"i#it< to +or(or!tion t!9 is effe+tive#<
e#i,in!te) "< t$e o(er!tion of ! )ou"#e t!9 tre!t<> t$e )is(os!# s$ou#) not %ive rise to !n< t!9 issues4 7$ere t$ere is no
tre!t< in o(er!tion> on#< t$e net (ro+ee)s of t$e )is(os!# !fter t$e (!<,ent of +or(or!tion t!9 2ou#) "e !v!i#!"#e to t$e
(!rti+i(!nt for re'invest,ent in ! ne2 enter(rise4 .o2ever> in su+$ +!ses> in or)er to re)u+e #i!"i#it< to +or(or!tion t!9>
t$e Unite) Bin%)o,'"!se) +o,(!n< ,!< "e for+e) to uti#ise re#iefs 2$i+$ +ou#) "e use) in ot$er ,ore fis+!##<
effe+tive 2!<s4 -< usin% ! forei%n inter,e)i!te $o#)in% +o,(!n<> !ssu,in% t$!t t$ere is no #o+!# t!9> it is (ossi"#e t$!t
!## t$e re+eive) (ro+ee)s of t$e )is(os!# 2i## "e !v!i#!"#e> t$rou%$ t$e forei%n inter,e)i!te +o,(!n<> for re'invest,ent
in ot$er forei%n ventures4 T$e t!9 !)v!nt!%e in t$ese +ir+u,st!n+es is )eferr!# of t!9> not t!9 !voi)!n+e> !s t$e u#ti,!te
)is(os!# or #i;ui)!tion of t$e inter,e)i!te $o#)in% +o,(!n< 2i## %ive rise to +or(or!tion t!9 #i!"i#it< 2$i+$ 2i## in+#u)e
t$e )eferre) %!ins 2$i+$ !rose on t$e ter,in!tion of t$e overse!s venture4
!1)(%$
)#" *ransfer pricin'
T$e tr!nsfer (ri+in% (rovisions re#!tin% to tr!ns!+tions or !%ree,ents effe+te) "et2een (!rties 2$o !re (!rti+i(!nts in
!n in2!r) +or(or!te joint venture !re e;u!##< !((#i+!"#e to t$e (!rti+i(!nts in !n out2!r) +or(or!te joint venture
1
4
1
As to tr!nsfer (ri+in% (rovisions for ! +or(or!te joint venture see /!r!%r!($ &56 J1*85K !nte4
!1)(($
)#2 Non+resident Dclose companies 9 anti+aoidance proisions
An overse!s +or(or!te joint venture or ! forei%n inter,e)i!te +o,(!n< ,!< !++rue +$!r%e!"#e %!ins4 Su+$ %!ins ,!<
not nor,!##< "e !((ortione) !n) +$!r%e) to !n< +or(or!te (!rti+i(!ntEs$!re$o#)er 2$i+$ is "!se) in t$e Unite)
Bin%)o,4 T$is (rin+i(#e is su"je+t> $o2ever> to !n e9+e(tion4 -< t$e T!9!tion of C$!r%e!"#e G!ins A+t 166
1
2$ere
t$e overse!s +o,(!n<> in+#u)in% !n overse!s +or(or!te joint venture> 2ou#) "e ! +#ose +o,(!n<
"ut for "ein% non'

resi)ent> !n< %!in !++ruin% to t$e +o,(!n< is !ttri"ute) to ! s$!re$o#)erE(!rti+i(!nt 2$o is resi)ent in t$e Unite)
Bin%)o, or or)in!ri#< resi)ent4 T$is !((#ies on#< if t$e Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt $!s !n interest
&
in
e9+ess of 0L in t$e overse!s +or(or!te joint venture
*
4 T$e !ttri"ution of !n< +$!r%e!"#e %!in +!nnot "e !voi)e) "<
(#!+in% !n inter,e)i!te +o,(!n< to 2$i+$ !n< su+$ %!in !++rues "et2een t$e Unite) Bin%)o,'"!se) (!rti+i(!nt !n)
t$e overse!s venture
0
4
1
T!9!tion of C$!r%e!"#e G!ins A+t 166 s 1& (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
A +#ose +o,(!n< is ! +o,(!n< 2$i+$ is resi)ent in t$e Unite) Bin%)o, !n) 2$i+$ is +ontro##e) "< five or #ess (!rti+i(!tors> or
!n< nu,"er of (!rti+i(!tors 2$o !re )ire+tors of t$e +o,(!n<> if over $!#f of t$e net !ssets of t$e +o,(!n< +ou#) "e )istri"ute)
to t$ose )ire+tors> or to five or fe2er (!rti+i(!tors> on t$e notion!# 2in)in% u( of t$e +o,(!n<: see t$e In+o,e !n) Cor(or!tion
T!9es A+t 1655 s *1* (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4 A +o,(!n< ot$er2ise ;u!#if<in% !s ! +#ose +o,(!n< 2i##
not so ;u!#if< if it is ! su"si)i!r< of ! non'+#ose +o,(!n<: i"i) s *1*(0)4
&
See t$e T!9!tion of C$!r%e!"#e G!ins A+t 166 s 1&(1&)4
*
I"i) s 1&(*)4
0
I"i) s 1&(6)4 -< t$is (rovision t$e In#!n) Revenue is %iven st!tutor< (o2er to !ttri"ute !n< %!in u( t$rou%$ !n< nu,"er of
inter,e)i!te +o,(!nies to t$e re!# s$!re$o#)er4
!1)()$
)1# Double ta5ation proisions
/rovisions in ! )ou"#e t!9 tre!t< ,!< #essen or e#i,in!te t$e +$!r%e to t!9 un)er t$e T!9!tion of C$!r%e!"#e G!ins A+t
166 on %!ins of overse!s +o,(!nies 2$i+$ 2ou#) "e +#ose +o,(!nies
1
4 :or e9!,(#e t$e OECD =o)e# Convention

(rovi)es t$!t !n< +$!r%e!"#e %!ins !++ruin% fro, t$e )is(os!# of !ssets
&
!re +$!r%e!"#e to t!9 on#< in t$e territor< of
2$i+$ t$e enter(rise 2$i+$ ,!Ces t$e )is(os!# is resi)ent4
1
T!9!tion of C$!r%e!"#e G!ins A+t 166 s 1& (*& .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
OECD =o)e# T!9 Convention on In+o,e !n) on C!(it!# 166 !rt 1&(*)4
&
Ot$er t$!n i,,ov!"#e (ro(ert< !n) t$e !ssets of ! (er,!nent est!"#is$,ent situ!te) in t$e ot$er +ontr!+tin% st!te4
!1)(,$
)11 Controlled forei'n companies
)1111 Definition of control
T$e In+o,e !n) Cor(or!tion T!9es A+t 1655
1
(rovi)es t$!t ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in !n
overse!s +or(or!te joint venture is su"je+t to +or(or!tion t!9 "< referen+e to t$e !((ortione) (rofits e!rne) "< t$e
+or(or!te venture
4 T$is re,!ins t$e +!se even 2$ere t$e s$!res in t$e overse!s venture !re $e#) "< !n inter,e)i!te
forei%n $o#)in% +o,(!n< !n) not )ire+t#< "< t$e Unite) Bin%)o,'"!se) (!rti+i(!nt in t$e venture4 .o2ever> t$ese
(rovisions on#< !((#< in +!ses 2$ere t$e overse!s +or(or!te venture is +ontro##e) "< enter(rises resi)ent in t$e Unite)
Bin%)o, !n) t$e venture is su"je+t to ! #o2er #eve# of t!9 in t$e juris)i+tion in 2$i+$ it is resi)ent4 :or t$e !((#i+!tion
of t$e !"ove (rovisions> t$e 1655 A+t )efines D+ontro#A of ! +o,(!n< 2i)e#< in+#u)in% )ire+t or in)ire+t +ontro#>
to%et$er 2it$ !sso+i!tes> over ! ,!jorit< of s$!re +!(it!# or votin% (o2er> or entit#e,ent to t$e ,!jorit< of t$e in+o,e>
or on 2in)in% u(> ! ,!jorit< of t$e !ssets
&
4
1
In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 3*3M301 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
T$is 2ou#) !#so !((#< to ! forei%n inter,e)i!te $o#)in% +o,(!n<4

&
In+o,e !n) Cor(or!tion T!9es A+t 1655 ss *11> 301(&)(!)4
!1)(.$
)111% -5emptions from re'ulations for controlled forei'n companies
In vie2 of t$e e+ono,i+ (o2er !n) siIe of ,!n< intern!tion!# joint venture +o,(!nies> it is un#iCe#< t$!t ! Unite)
Bin%)o, +or(or!te (!rti+i(!nt 2ou#) +ontro# t$e overse!s joint venture 2it$in t$e ter,s !n) for t$e (ur(oses of t$e
!"ove (rovisions4 :urt$er,ore> even 2$ere ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt in !n overse!s joint venture
)oes +ontro# t$e enter(rise> eit$er so#e#< or 2it$ ot$er (ersons resi)ent in t$e Unite) Bin%)o,> it is #iCe#< t$!t ! "on!
fi)e intern!tion!# joint venture !n) its Unite) Bin%)o, +or(or!te (!rti+i(!nts 2i## not "e su"je+t to t$e !"ove
(rovisions for one of t$e fo##o2in% re!sons:
*11441T$e overse!s joint venture +o,(!n< (ursues !n D!++e(t!"#e )istri"ution (o#i+<A
1
4
*1144T$e overse!s joint venture +o,(!n< is en%!%e) in De9e,(t !+tivitiesA
4 Su+$ !n enter(rise 2ou#) "e en%!%e) in

De9e,(t !+tivitiesA if it $!s ! "usiness est!"#is$,ent in t$e juris)i+tion in 2$i+$ it is resi)ent> its "usiness !ff!irs
in t$e juris)i+tion !re effe+tive#< ,!n!%e) t$ere> !n) t$e enter(rise eit$er +!rries on ! "on! fi)e tr!)e 2it$ t$ir)
(!rties in t$e juris)i+tion> or is ! ;u!#if<in% $o#)in% +o,(!n<4
*1144& T$e (ur(ose of t$e tr!ns!+tions !n) t$e overse!s joint venture +o,(!n< 2ere not to re)u+e Unite) Bin%)o,
t!9 "< )ivertin% (rofits fro, t$e Unite) Bin%)o,
&
4
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 S+$ 0 /t I (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
I"i) S+$ 0 /t II4

&
I"i) s 3*5(&)> S+$ 0 /t IV4
!1)(/$
: T.E COR/ORATE /ARTNERS.I/
)1% *a5 implications for Hnited Bin'dom+based partner
T$e Unite) Bin%)o,'"!se) +or(or!te (!rtner in ! +or(or!te (!rtners$i( 2$i+$ is #o+!te) overse!s )erives its (rofits
fro, +o,,er+i!# !+tivities essenti!##< +!rrie) on !"ro!)> !n) usu!##< t$rou%$ ! "r!n+$ or !%en+< in t$e re#ev!nt forei%n
juris)i+tion4 A Unite) Bin%)o,'"!se) +or(or!te (!rtner in t$ese +ir+u,st!n+es is #i!"#e to +or(or!tion t!9 on its
in+o,e 2$erever it !rises
1
4 7$ere t$e in+o,e re+eive) "< t$e +or(or!te (!rtner is )erive) fro, ! joint venture 2$i+$ is
+ontro##e) fro, !"ro!)> t$e +$!r%e is un)er S+$e)u#e D> C!se V
4 It is +#e!r fro, !ut$orit< t$!t it is e9+e(tion!# for !

Unite) Bin%)o, +o,(!n< to "e !ssesse) un)er C!se V> even 2$ere t$e +o,(!n<As tr!)e is +!rrie) on !"ro!)> !s t$e
tr!)e 2i## usu!##< "e +ontro##e) fro, t$e Unite) Bin%)o,4 .o2ever> in t$e +!se of !n overse!s +or(or!te joint venture
(!rtners$i(> it ,!< "e e!sier to est!"#is$ t$!t t$e enter(rise is +ontro##e) fro, overse!s
&
4
1
T$e s!,e (rin+i(#es !((#< to ! joint venture +o,(!n< 2$i+$ )erives its in+o,e fro, overse!s sour+es4
In+o,e !n) Cor(or!tion T!9es A+t 1655 s 15 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4 See !#so &ol>uhoun v Brooks
(1556) 1* A(( C!s *6& .L> O!ilvie v itton (1685) 0 TC &&54
&
On t$e "!sis> inter !#i!> t$!t t$e (o#i+< of t$e enter(rise is for,u#!te) overse!s "< )e+isions t!Cen in ,eetin%s $e#) overse!s> or
even "< t$e f!+t t$!t t$e ,!jorit< of t$e ,e,"ers of t$e joint venture (!rtners$i( !re #o+!te) outsi)e t$e Unite) Bin%)o,4
!1)("$
)1( Double ta5ation
)1(11 Double ta5 treaty applicable
A +or(or!tion "!se) in t$e Unite) Bin%)o, 2$i+$ is ! ,e,"er of ! +or(or!te (!rtners$i( joint venture "!se) overse!s
is su"je+t to +or(or!tion t!9 on its s$!re of t$e (rofits of t$e enter(rise
1
4 T$is ,!< %ive rise to (ro"#e,s of )ou"#e
t!9!tion 2it$ re%!r) to forei%n +or(or!tion t!9 or in+o,e t!9 in+urre) "< t$e +or(or!te (!rtner in t$e forei%n
juris)i+tion in res(e+t of its s$!re of t$e (rofits e!rne) "< t$e enter(rise !n) 2$i+$ !re to "e re,itte) to t$!t (!rtner in
t$e Unite) Bin%)o,4 7$ere t$ere is ! )ou"#e t!9 tre!t< in for+e "et2een t$e Unite) Bin%)o, !n) t$e juris)i+tion in
2$i+$ t$e joint venture (!rtners$i( o(er!tes> t$ere ,!< "e (rovision for t!9 (!<!"#e un)er t$e t!9 re%i,e in 2$i+$ t$e
venture o(er!tes to "e !##o2e) !s ! t!9 +re)it !%!inst t!9 (!<!"#e in t$e Unite) Bin%)o,4
1
Usu!##< t$rou%$ t$e o(er!tion of !n !%ent or "r!n+$ of t$e +or(or!te (!rtner in t$e re#ev!nt juris)i+tion4
!1)(2$
)1(1% No double ta5 treaty aailable
7$ere in t$e !"ove +ir+u,st!n+es t$ere is no )ou"#e t!9 tre!t< in o(er!tion> +re)it for t!9 (!i) un)er t$e forei%n t!9
re%i,e> in so f!r !s it +orres(on)s to Unite) Bin%)o, +or(or!tion t!9 !n) is +o,(ute) on tr!)in% in+o,e in t$!t
territor<> ,!< t$en "e !##o2e) !s uni#!ter!# re#ief !%!inst t$e +or(or!tion t!9 (!<!"#e "< ! Unite) Bin%)o, +or(or!te
(!rtner in t$e venture on t$e s!,e in+o,e
1
4 T$e In#!n) Revenue ,!int!ins ! #ist of t!9es in forei%n juris)i+tions 2$i+$
it re%!r)s !s "ein% e;uiv!#ent to Unite) Bin%)o, +or(or!tion t!94
1
See t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 ss 368(*)> (1)> 36M581 (** .!#s"ur<As St!tutes (*t$ E)n) TAFATION)4
!1))#$
)1) 7ntellectual property
7$ere ! Unite) Bin%)o,'"!se) +or(or!te (!rtner is ! ,e,"er of !n overse!s'"!se) +or(or!te joint venture
(!rtners$i(> !n< ro<!#ties> 2$i+$ it re+eives in res(e+t of inte##e+tu!# (ro(ert< ri%$ts 2$i+$ it tr!nsferre) to t$e venture>
+onstitute tr!)in% in+o,e4 Su+$ in+o,e ,!< "e re%!r)e)> for t$e (ur(oses of ! forei%n t!9 +re)it> !s !risin% in t$e
juris)i+tion in 2$i+$ t$e +or(or!te (!rtners$i( joint venture is "!se) !n) 2$ere t$e forei%n t!9 #i!"i#it< 2ou#) !rise
1
4
An e#e+tion ,!< "e ,!)e "< t$e Unite) Bin%)o, +or(or!te (!rtner in su+$ +!ses to $!ve t$e forei%n t!9 )e)u+te) fro,
t$e forei%n in+o,e !++ruin% to it r!t$er t$!n +re)ite) !%!inst Unite) Bin%)o, +or(or!tion t!94
1
See e9tr!'st!tutor< +on+ession -5 (166*)MDou"#e t!9!tion re#ief: in+o,e +onsistin% of ro<!#ties !n) DCno2'$o2A (!<,ents:
#imon3s Direct 'a7 #ervice )ivision .*44
!1))1$
)1, Adanta'es of conductin' forei'n enterprises throu'h a corporate partnership joint enture
T$ere ,!< "e ! su"st!nti!# t!9 !)v!nt!%e for ! Unite) Bin%)o, +o,(!n< to en%!%e in ! forei%n'"!se) enter(rise
t$rou%$ t$e ,e)iu, of ! (!rtners$i( joint venture "!se) in t$e re#ev!nt juris)i+tion4 T$e Unite) Bin%)o,'"!se)
+or(or!te (!rtner ,!< use t$e servi+es of !n !%ent or "r!n+$ offi+e in t$e forei%n juris)i+tion in or)er to +!rr< out its
!+tivities +onne+te) 2it$ t$e joint venture4 In t$ese +ir+u,st!n+es !n< tr!)in% #osses in+urre) "< t$e forei%n "r!n+$ or
!%ent !re %ener!##< e#i%i"#e for re#ief "ot$ for t$e (ur(oses of Unite) Bin%)o, +or(or!tion t!9 #i!"i#it< !n) !n<
e;uiv!#ent to +or(or!tion t!9 #i!"i#it< in t$e forei%n juris)i+tion4 T$is s$ou#) "e +ontr!ste) 2it$ t$e situ!tion 2$ere !
Unite) Bin%)o,'"!se) +o,(!n< suffers tr!)in% #osses in+urre) in +onne+tion 2it$ t$e o(er!tion of !n overse!s
+or(or!te joint venture of 2$i+$ t$e Unite) Bin%)o, +o,(!n< is ! s$!re$o#)erE(!rti+i(!nt4
A +o,(!n< "!se) in t$e Unite) Bin%)o, is not %ener!##< !"#e to +#!i, re#ief on tr!)in% #osses in+urre) "< !n
overse!s joint venture +o,(!n< in 2$i+$ t$e Unite) Bin%)o, +o,(!n< is ! s$!re$o#)erE(!rti+i(!nt4 A++or)in%#<> it
,!< "e fis+!##< !)v!nt!%eous> 2$ere #osses !re e9(e+te) fro, settin% u( !n overse!s joint venture in 2$i+$ ! Unite)
Bin%)o, +o,(!n< is to "e ! (!rti+i(!nt> to for, t$e venture !s ! +or(or!te (!rtners$i(
1
> 2it$ t$e Unite) Bin%)o,
+o,(!n< to tr!)e in t$e forei%n juris)i+tion !n) in +onne+tion 2it$ t$e joint venture t$rou%$ ! "r!n+$ or !%en+<
4
1
At #e!st in its e!r#iest st!%es> 2it$ t$e (ossi"i#it< of in+or(or!tion su"se;uent#<4
If t$e (ro(ose) Euro(e!n Co,,ission )ire+tive on tr!)in% #osses is i,(#e,ente)> ! Unite) Bin%)o,'"!se) +or(or!te (!rti+i(!nt
in !n overse!s +or(or!te joint venture 2i## (2it$in t$e ter,s of t$e )ire+tive) "e !"#e to +#!i, re#ief on #osses in+urre) "< t$e
venture: see /!r!%r!($ &3 J1&56K !nte4
!1))%$
D: T.E CONSORTIU=
)1. 7nternational ta5 conse6uences of the consortium
T$e +onsortiu,
1
> "ein% ! (ure#< +ontr!+tu!# entit<> )oes not invo#ve t$e +re!tion of !n in)e(en)ent "o)< or #e%!#
(erson> or even ! (!rtners$i( 2it$in t$e ter,s of t$e /!rtners$i( A+t 15684 A++or)in%#<> su+$ !n enter(rise $!s no
#o+!tion !n) t$e (rovisions +onsi)ere) !"ove +!nnot !((#< to t$is for, of joint venture4 .o2ever> t$e in)e(en)ent
"o)ies 2$o for, t$e +onsortiu, in +!rr<in% out t$eir res(e+tive e+ono,i+ ro#es 2it$in t$e enter(rise ,!<> in t$eir
in)e(en)ent +!(!+ities> +!rr< on !+tivities 2$i+$ $!ve ! +ross'"or)er i,(!+t4 T$us> ! non'Unite) Bin%)o,'"!se)
(!rti+i(!nt in t$e venture ,!<> 2it$in t$e +onte9t of t$e +onsortiu,> +!rr< on ! tr!)e in t$e Unite) Bin%)o,> or !
Unite) Bin%)o, resi)ent venturer ,!< +!rr< on ! tr!)e overse!s4 In t$ese +ir+u,st!n+es t$e (rovisions re#!tin% to
intern!tion!# t!9!tion of "usiness enter(rises out#ine) !"ove 2i## "e re#ev!nt to t$ese "o)ies4
1
As to t$e n!ture of t$e +onsortiu, see /!r!%r!($ 50 J6&8K !nte4
!1))($9!1,##$
(C) Forms an! Prece!ents
1
=oint enture companyGchec>list of issues for consideration
1
1 Principal documents
S$!re$o#)ersA !%ree,ent !n) !rti+#es of !sso+i!tion4
Note: Ot$er !n+i##!r< )o+u,ents ,!< 2e## "e re;uire)Gsee (!r!%r!($ 0 J108&K "e#o24
% Parties
41 Are !## (ro(ose) s$!re$o#)ers to "e (!rt< to s$!re$o#)ers !%ree,entQ
4 7i## (!rent %u!r!ntees "e re;uire)Q
4& 7i## t$e joint venture +o,(!n< itse#f "e ! (!rt<Q Consi)er i,(#i+!tions of Russell v *orthern Bank
Development &orporation Ltd
!1,#1$
( Conditions; re'ulatory and other approals etc
&41 Are !n< t!9 +#e!r!n+es> #i+en+es> re%u#!tor< !((rov!#s> t$ir) (!rt< +onsents or re%istr!tion for,!#ities
re;uire)Q
&4 Are +o,(etition !ut$oritiesA +#e!r!n+es or notifi+!tions nee)e) (e% t$e :!ir Tr!)in% A+t> Coun+i# Re%u#!tion
*81*E56 (,er%ers)> notifi+!tion un)er !rt 51 et+Q)
&
&4& Are !n< +on)itions (re+e)ent (2$et$er re#!tin% to fore%oin% ,!tters or not) nee)e)Q O"#i%!tions to s!tisf<Q
DDro( )e!)A )!teQ
) Business
*41 /ro(ose) !+tivities of joint venture +o,(!n< to "e )efine)Q
*4 S(e+ifi+ (roje+t or on'%oin%Q
*4& To "e +onfine) 2it$in %eo%r!($i+!# #i,its et+Q
*4* O"#i%!tion of (!rties to (ro,ote !n) )eve#o( "usiness of joint venture +o,(!n< !n)> if so> 2it$ 2$!t #i,itsQ
Consi)er 2$et$er (!rties !re to "e (revente) fro, +o,(etin% 2it$ t$e "usiness of t$e joint venture +o,(!n< !n) t$e
+o,(etition !n) Restri+tive Tr!)e /r!+ti+es A+t issues t$is r!isesGsee !#so (!r!%r!($ 11 J1081K "e#o24
!1,#%$
, Contribution of the parties to the joint enture
*
041 7$!t $!ve t$e (!rties !%ree to (rovi)e to t$e joint ventureQ
04 Contri"ution of !ssets or "usinessQ Inte##e+tu!# (ro(ert< ri%$ts or te+$no#o%< tr!nsferQ Se+on),ent of
e,(#o<eesQ Su((#< or )istri"ution !%ree,entsQ /rovision of !++o,,o)!tion> f!+i#ities et+Q 7$!t e#seQ
04& On 2$!t ter,sQ Nee) to (rovi)e !## re#ev!nt ter,s usu!##< in se(!r!te D!n+i##!r<A !%ree,ents to "e entere)
into "et2een re#ev!nt (!rt< !n) joint venture +o,(!n<4
04* Contri"ution of !ssets or s$!res et+Q S!,e +onsi)er!tions s$ou#) !((#< on "e$!#f of joint venture +o,(!n<
!s if it 2!s !+;uirin% su+$ !ssets fro, ! t$ir) (!rt< (e% 2!rr!nties or in)e,nities> )ue )i#i%en+e et+)4
040 7i## t!9 or st!,( )ut< +onsi)er!tions effe+t ,et$o) of +ontri"ution of !ssetsQ If so> ,ost effe+tive ,et$o) of
su+$ +ontri"ution4
041 C!n !## +ontri"utions of !ssets "e ,!)e +onte,(or!neous#<Q If not> s$ou#) !v!i#!"i#it< of !## or s(e+ifi+
!ssets for +ontri"ution "e ! +on)ition (re+e)ent to t$e est!"#is$,ent of t$e joint venture +o,(!n<Q
043 V!#u!tion of +ontri"utorAs !ssetsG.o2 v!#ue)Q .o2 2i## v!#ue of !ssets !ffe+t +ontri"utors fun)in%
o"#i%!tionQ
045 Do !n< !ssets et+ re;uire t$ir) (!rt< !((rov!# (rior to +ontri"utionQ
046 Does t$e joint venture +o,(!n< nee) se(!r!te #e%!# !)vi+eQ
!1,#($
. Finance
0
141 A,ount !n) res(e+tive (ro(ortions of initi!# invest,ent re;uire) fro, s$!re$o#)ersQ
14 Are +ontri"utions in +!s$ or in Cin)Q If in Cin)> "ui#) in (ossi"#e st!,( )ut< +ost4
14& Are +ontri"utions to "e in return for s$!res or #o!nsQ Or)in!r< #o!ns> se+ure) #o!nsGor su"or)in!te) )e"tQ
Re(!<,ent (rovisions !n) ot$er ter,sQ Converti"#e into s$!resQ On 2$!t ter,sQ
14* If fin!n+in% is "< 2!< of #o!ns> !n) one or ,ore of t$e s$!re$o#)ers is non'UB resi)ent> +onsi)er if interest is
)e)u+ti"#eH !#so +onsi)er i,(!+t on re;uire,ents for +o,(!n< to "e ! t!9 +onsortiu,4
140 Ti,in% of +ontri"utionsQ Con)ition!# +ontri"utionsQ An< +onsents re;uire)Q
141 An< o"#i%!tions on s$!re$o#)ers to ,!Ce !))ition!# fin!n+e !v!i#!"#e> !n< #i,it (e% ti,e> !,ount) to t$!t
o"#i%!tionQG2i## !))ition!# fin!n+e "e on ! r!te (ro r!t! to t$e ori%in!# invest,ent or ot$er2iseQ
143 An< )ef!u#t or )i#ution (rovisions if !n< fin!n+e +o,,it,ent not ,etQ
145 Ne2 s$!res to "e offere) to s$!re$o#)ers in (ro(ortion to e9istin% s$!re$o#)in%sQ
146 Is !n< t$ir) (!rt< fin!n+e "ein% o"t!ine)Q
1418 .o2 2i## it "e se+ure) (e% +$!r%es over !ssets> %u!r!ntees of s$!re$o#)ers or t$eir (!rent +o,(!niesH if t$ere
is ! %u!r!ntee "< !n overse!s (!rent +o,(!n<> +onsi)er i,(!+t of ne2 UB tr!nsfer (ri+in% t!9 ru#es4)Q
/ 3hareholdin's
1
341 7$!t !re res(e+tive (!rtiesA s$!re$o#)in% interests to "eQ 08E08 or notQ
34 Is e!+$ (!rt< to $!ve ! se(!r!te +#!ss of s$!resQ If so 2$!t ri%$ts !n) restri+tions !re to "e !tt!+$e) to t$e,Q
34& S$!re$o#)er ,eetin%sG;uoru,> noti+e> #o+!tionQ
34* Votin%Gsi,(#e ,!jorit< or 2ei%$te) votin%Q
!1,#)$
" Board of directors
541 .o2 ,!n< )ire+torsQ
54 .o2 !re )ire+tors to "e !((ointe) !n) re,ove)Q In (!rti+u#!r +!n e!+$ s$!re$o#)er !((oint !n) re,ove !
%iven nu,"er of )ire+torsQ
54& 7$!t ot$er !((oint,ent !n) re,ov!# ,e+$!nis, is t$ereQ C!n or s$ou#) s$!re$o#)ers entren+$ t$eir )ire+tor
!((oint,ent !n) re,ov!# ri%$ts (e% t$rou%$ +#!ss ri%$ts)
54* Votin% (si,(#e or s(e+i!# ,!jorit<> veto> 2ei%$te) votin%)Q
540 C$!ir,!n> )oes $e $!ve ! +!stin% voteQ Rot!tionQ A((oint,entQ
541 A),inistr!tive ,!tters e% fre;uen+< of ,eetin%s> #o+!tionQ ;uoru,Q ,ini,u, noti+eQ !%en)! of ,eetin%sQ
A#tern!tesQ
543 Tre!t,ent of reserve) ,!tters (see (!r!%r!($ 6 J1080K "e#o2)Q
2 <atters re6uirin' unanimous approal or special majority
/
A non'e9$!ustive +$e+C#ist of +onsi)er!tions is !s fo##o2s:G
641 issue of ne2 s$!res ((er$!(s ot$er t$!n (ro'r!t!)Q
64 tr!nsfer of s$!res !t !## or 2it$in ! s(e+ifie) (erio)Q
64& !),ission of !n< ne2 s$!re$o#)er or De;uit< interestAQ
64* !#ter!tion of +onstitution!# )o+u,ents or n!,e of joint venture +o,(!n<Q
640 #o!ns> "orro2in%s> ,ort%!%es> %u!r!ntees (!"ove s(e+ifie) #i,its)Q
641 ,!Cin% of #o!nsQ
643 str!te%i+ "usiness (#!ns or o(er!tin% "u)%etsQ
645 +!(it!# e9(en)iture +o,,it,entsQ
646 !+;uisition> )is(os!# or #e!sin% of ,!teri!# !ssets> "usiness or s$!resQ
6418 for,!tion of su"si)i!ries or joint ventures> (rofit s$!rin% !rr!n%e,ents et+ 2it$ t$ir) (!rtiesQ
6411 +$!n%e of "usiness !n) %eo%r!($i+!# e9(!nsionQ
641 +o,,en+in% or sett#in% ,!teri!# #iti%!tionQ
641& +$!n%e of !++ountin% (o#i+ies or !((oint,ent !n) re,ov!# of !u)itorsQ
641* ,!Ce !n< +#!i,> )is+#!i,er> surren)er> e#e+tion or +onsent (of ! ,!teri!# n!ture) for t!9 (ur(oses4
6410 e,(#o<,ent !n) re,ov!# of senior ,!n!%e,entQ #on%'ter, servi+e !%ree,entsQ
6411 +onsu#t!n+< !n) ,!n!%e,ent !%ree,entsQ
6413 (ension (rovisionQG%r!ntin% ! (o2er of !ttorne<Q
6415 2!iver or f!i#ure to enfor+e ri%$ts of t$e joint venture +o,(!n< un)er !n< !n+i##!r< +ontr!+tsQ
6416 entr< "< joint venture +o,(!n< into ot$er ,!teri!# +ontr!+tsQ
648 )e!#in%s "et2een joint venture +o,(!n< !n) !n< s$!re$o#)er (ot$er t$!n tr!)in% on !r,s #en%t$ ter,s in t$e
or)in!r< +ourse of "usiness)Q e% in)e,nities> (ri+in% !n) tr!)in% ite,s4
641 )e+#!r!tion of )ivi)en)s or ot$er )istri"utions> re(!<,ents of #o!ns or #o!n +!(it!#> re(ur+$!se of s$!resQ
64 e9+#usive !%en+< or )istri"ution !%ree,entsQ
64& inte##e+tu!# (ro(ert< #i+en+esQ
64* +$!n%e of +$e;ue si%nin% !ut$oritiesQ
640 2in)in% u( or !),inistr!tionQ
!1,#,$
1# Accountin' matters and diidend policy
1841 O"#i%!tions of (!rties to (ro+ure ,!inten!n+e of (ro(er "ooCs !n) re+or)sQ
184 O"#i%!tions to )istri"ute ,!n!%e,ent !++ounts or !##o2 !++ess to "ooCs !n) re+or)sQ
184& /rovisions for (re(!r!tion !n) !%ree,ent of !nnu!# "usiness (#!n !n) (ro$i"ition of e9(en)iture outsi)e of
(#!nQ
184* Divi)en) (o#i+< (+o,,it,ent or intention on#<)Q E9+e(tion!# +ir+u,st!n+esQ
1840 A((oint,ent of !u)itors> +$oi+e of !++ountin% (erio) !n) !)o(tion of !++ountin% (o#i+iesQ
1841 +$oi+e of !++ountin% referen+e )!te4
11 3hareholder restrictions
1141 O"#i%!tion not to +o,(ete 2it$ joint venture +o,(!n< "usinessQ Territori!# s+o(eQ
114 O"#i%!tion to refer or)ers 2it$in t$e s+o(e of t$e "usiness of joint venture +o,(!n<Q
114& O"#i%!tion to ,!int!in +onfi)enti!#it< in res(e+t of joint venture +o,(!n<As !ff!irs !n) te+$no#o%< !n)Eor of
ot$er s$!re$o#)ersQ
1% -mployment matters
141 Are e,(#o<ees to "e e,(#o<e) "< t$e joint venture +o,(!n< or t$e joint venturersQ
14 Is t$ere ! TU/E tr!nsfer eit$er !t t$e outset or on ter,in!tion of t$e joint ventureQ
14& .o2 is +onfi)enti!# infor,!tion to "e (rote+te)Q Are restri+tive +oven!nts !((ro(ri!teQ
14* Is t$ere ! ,e+$!nis, for !((oint,ent to !n) re,ov!# fro, joint venture +o,(!n< for !n< e,(#o<ees 2$o !re
!#so to $o#) offi+eQ
140 7$o is to "e!r #i!"i#ities for t$e e,(#o<ees )urin% !n) on ter,in!tion of e,(#o<,ent or se+on),entQ
141 Are t$ere VAT issues !risin% out of t$e su((#< of servi+esQ
!1,#.$
1( *a5 matters
5
T$e s$!re$o#)ersA !%ree,ent +o,,on#< )e!#s 2it$ t$e fo##o2in% issues:G
1&41 Lo+!tion of +entr!# ,!n!%e,ent !n) +ontro# !n) resi)en+e of joint venture +o,(!n<Q
1&4 Grou( re#ief or +onsortiu, re#ief for #ossesQ 7$!t effe+t )o t$e ter,in!tion (rovisions $!ve on t$e joint
venture +o,(!n<As st!tus !s ! +onsortiu, +o,(!n<Q
1&4& A)v!n+e) +or(or!tion t!9
6
!n) 2it$$o#)in% t!9 (if !n<) on )ivi)en)s fro, joint venture +o,(!n<Q
1&4* T!9 +onse;uen+es of fin!n+in% t$rou%$ )e"t or e;uit< (see (!r!%r!($ 1 J108*K !"ove)Q
1&40 St!,( )ut< +osts
1&41 VAT
1&43 Duties !n) t!9es (!<!"#e on tr!nsfer of !ssets into joint venture +o,(!n<4
!1,#/$
1) *ransfer of shares
18
/rovisions of t$e s$!re$o#)ersA !%ree,ent !n) !rti+#es ,ust "e +onsistent !n) "et2een t$e, )e!# 2it$ t$e fo##o2in%
issues:
1*41 Are restri+tions on tr!nsfer or (re'e,(tion (rovisions on s$!re tr!nsfers to "e in+#u)e)
11
Q
1*4 /ri+e of s$!resQ T$ir) (!rt< (ri+e or v!#u!tion (ro+e)ureQ .o2 v!#ue) !n) "< 2$oQ
1*4& S$!re$o#)ers to $!ve ri%$t to se## s$!res in joint venture +o,(!n< to t$ir) (!rt< if (re'e,(tion ri%$t not t!Cen
u(Q
1*4* S$ou#) D"rin% !#on%A "e in+#u)e) (ie tr!nsferor to use $is "est en)e!vours to re;uire t$ir) (!rt< (ur+$!ser to
"u< t$e ot$er (!rt< or (!rtiesA interest on no #ess f!vour!"#e ter,s)Q S$ou#) t$e ,inorit< "e o"#i%e) to !++e(t
su+$ !n offer if ! +ert!in (er+ent!%e of t$e s$!re$o#)ers 2is$ to )o soQ
1*40 :ree)o, to ,!Ce intr!'%rou( tr!nsfersQ
1*41 Tr!nsfers to f!,i#< ,e,"ersQ (In)ivi)u!#s on#<)
1*43 An< ,ini,u, (erio) for (ro$i"itin% s!#es to t$ir) (!rtiesQ
1*45 7i## !n< ne2 s$!re$o#)er "e re;uire) to "e+o,e ! (!rt< to t$e joint venture !%ree,entQ
1*46 An< s(e+ifi+ (ut or +!## o(tions to "e in+#u)e) !t outsetQ If so !t 2$!t (ri+e for,u#!tionQ N- o(tions $!ve
s(e+ifi+ t!9 +onse;uen+es4
1*418 Tr!nsferee to "e o"#i%e) to !ssu,e #o!ns> %u!r!ntees or ot$er o"#i%!tions of tr!nsferor (in+#u)in% t$ose in t$e
s$!re$o#)ers !%ree,ent)Q
1*411 Effe+t on !n+i##!r< !%ree,entsQ S$ou#) t$e< ter,in!te or +ontinueQ Effe+t on joint venture +o,(!n<
"usiness if t$e< ter,in!teQ
1*41 C$!n%e of joint venture +o,(!n< n!,e if e9istin% s$!re$o#)er se##s s$!resQ
!1,#/$
1, &esolution of disputes
1
1041 7$en )oes ! )is(ute !riseQ
104141 In ! 08E08 +o,(!n< 2$enever t$ere is D)e!)#o+CA in )e+ision ,!Cin% or on#< in +ert!in
+ir+u,st!n+esQ
10414 In ,inorit< (rote+tion joint venture +o,(!n<> 2$en ,inorit< ri%$t of veto is use) on+eQ Or on
,ore t$!n one o++!sionQ
10414& In !n< ot$er joint venture +o,(!n< 2$enever !n< (!rt< +!nAt !%ree !n< issue or on s(e+ifi+ ,!tters
on#<Q
10414* 7$en ! ;uoru, is not (resent !t ! "o!r) ,eetin% on t2o or ,ore +onse+utive o++!sionsQ
104 Reso#ution of )is(uteG+ontinu!tion of joint venture:
10441 C$!ir,!nAs +!stin% voteQ
1044 In)e(en)ent non'e9e+utive )ire+tors of joint venture +o,(!n< (or s$!re$o#)ers) to )e+i)e
,!n!%e,ent )e!)#o+CQ
1044& Referen+e to +$!ir,!n of (!rtiesQ
1044* Le%!# )is(ute to %o to !r"itr!tion or +ourtsQ After D+oo#in% offA (erio)Q
10440 Reso#ution of +o,,er+i!# )is(utesQ Diffi+u#ties of reso#utionQ T$ir) (!rt< to "e !((ointe)
,e)i!tor or ju)%eQ /ro+e)ure> "in)in% )e+ision et+Q
104& Reso#ution of )is(uteGter,in!tion of joint venture:
104&41 Ri%$t of D!%%rieve)A (!rt< (to "e i)entifie)) to "u< s$!res fro, or se## its s$!res to ot$er (!rt<Q On
2$!t ter,sQ
104&4 Ri%$t to re;uire #i;ui)!tion of joint venture +o,(!n<Q
104&4& DTe9!s S$ootoutA (ri%$t of (!rties to offer on $i%$est se!#e) "i) "!sis for "usiness of joint venture
+o,(!n< on #i;ui)!tion or for t$e ot$erAs s$!res)Q
104&4* DRussi!n Rou#etteA (ie eit$er (!rt< +!n serve noti+e offerin% eit$er to se## to or "u< out ot$er
s$!re$o#)er !t %iven (ri+e or ter,s !n) re+i(ient t$en $!s ri%$t to !++e(t (or e#e+t to t$e )o
o((osite) on s!,e (ri+e or ter,s)Q
T$is #!tter o(tion is usu!##< on#< !((#i+!"#e in 08E08 +o,(!nies4
!1,#"$
1. *ermination
1&
1141 DAuto,!ti+A ter,in!tion:
114141 U(on !## s$!res in joint venture +o,(!n< "ein% $e#) "< one (!rt< (fo##o2in% tr!nsfers ,!)e in
!++or)!n+e 2it$ )o+u,ent!tion)Q
11414 U(on 2in)in%'u( of joint venture +o,(!n<Q
11414& After en) of fi9e) (erio) (if !n<)Q
11414* U(on ter,in!tion of ! (!rti+u#!r !n+i##!r< !%ree,entQ
114140 Are t$ere !n< ot$er +ir+u,st!n+es in 2$i+$ ter,in!tion s$ou#) !uto,!ti+!##< o++ur (e% #oss of
#i+en+e or re%u#!tor< !((rov!#> )estru+tion of ! (!rti+u#!r !sset et+)Q
114141 See In#!n) Revenue +on+ession (ESC C 18) !n) St!te,ent of /r!+ti+e (S/&E6&) in re#!tion to t$e
"re!Cin% of ! t!9 +onsortiu,)4
114 DVo#unt!r<A ter,in!tion:
11441 In t$e event of ,!teri!# "re!+$ (not re,e)ie)) "< ot$er (!rt<Q
1144 In t$e event of inso#ven+< of ot$er (!rt<Q
1144& In t$e event of ! +$!n%e of D+ontro#A of t$e ot$er (!rt<Q
1144* In !n< ot$er +ir+u,st!n+esQ
!1,#2$
1/ Conse6uences of termination
1*
1341 Ri%$t to se## s$!res to or !+;uire s$!res fro, D)ef!u#tin%A (!rt<Q On 2$!t ter,sG(ri+e> (!<,ent of
outst!n)in% #o!ns> re#e!se of %u!r!ntees et+ of tr!nsferrin% s$!re$o#)erQ
134 DRussi!n Rou#etteA or DTe9!s S$ootoutA (see (!r!%r!($ 1*4& J1083K !"ove)Q
134& Effe+t on !n+i##!r< !%ree,ents (see (!r!%r!($ 0 J108&K !"ove)Q 7i## t$e< ter,in!teQ Effe+t on !n+i##!r<
!%ree,ents 2it$ D)ef!u#tin%A s$!re$o#)ersQ Effe+t on s$!re v!#u!tion for,u#! if i,(ort!nt #i+en+es or
!sso+i!te) !%ree,ents ter,in!te u(on one (!rt< #e!vin%Q
134* Ri%$t to re;uire 2in)in% u(Q
1340 Ri%$ts of s$!re$o#)ers u(on )isso#utionH )istri"ution of !ssets> outst!n)in% +ontr!+ts> ri%$ts to joint venture
+o,(!n<As inte##e+tu!# (ro(ert<ECno2 $o2Q
1" 8eneral
1541 Assi%n,ent of ri%$ts !n) )utiesQ
154 Reso#ution of +onf#i+t "et2een s$!re$o#)ersA !%ree,ent !n) !rti+#esQ
154& O"#i%!tion to (ro+ure ;uoru, !t "o!r) !n) s$!re$o#)er ,eetin%sQ
154* Ri%$ts of (!rties (or t$eir )ire+tor re(resent!tives) to vote on ,!tters t$e< !re Dintereste)A inQ
1540 A,en),ents to t$e !%ree,ent
1541 Confi)enti!#it<
1543 /u"#i+ !nnoun+e,ents
1545 Sever!"i#it<
1546 No (!rtners$i(Q
15418 Ot$er "oi#er(#!teQ
15411 A%ree,ent of for+e ,!jeure +#!useQ
!1,1#$
12 :a0 and jurisdiction
1641 /ro(er #!2Q
164 Courts or !r"itr!tionQ
164& Su",ission to juris)i+tion or !r"itr!tionQ
164* A%ent for servi+e of (ro+essQ
1640 If !r"itr!tion> 2$i+$ ru#es to !((#<Q Nu,"er !n) +$oi+e of !r"itr!torsQ /ro+e)ureQ -in)in% )e+isionQ
1
T$is #ist is for %ui)!n+e on#< !n) is not e9$!ustive4 Its (ur(ose is to i##ustr!te t$e sorts of +onsi)er!tions 2$i+$ nee) to "e "orne
in ,in) !n) on 2$i+$ instru+tions 2i## nee) to "e sou%$t in or)er to )r!ft ! s$!re$o#)ers !%ree,ent !n) !rti+#es of !sso+i!tion for
! joint venture +o,(!n<4
Russell v *orthern Bank Development &orpn Ltd J166K & A## ER 111> J166K 1 7LR 055> .L4
&
It is i,(ort!nt to est!"#is$ !t t$e outset 2$!t re%u#!tor< or +o,(etition !((rov!#s or notifi+!tions !re %oin% to "e nee)e) !n)
in)ee) 2$et$er t$ere 2i## "e !n< re%istr!tion re;uire,ent un)er t$e Restri+tive Tr!)e /r!+ti+es A+t 16314 As to +o,(etition #!2
see /!r!%r!($ 106 J1811K et se; !nte4
*
It is essenti!# to +onsi)er ter,in!tion (rovisions in !n+i##!r< !%ree,ents +!refu##< in +onjun+tion 2it$ t$ose in t$e s$!re$o#)ersA
!%ree,ent !n) +onsi)er $o2 e!+$ 2i## or ,!< !ffe+t t$e ot$er4
0
T$e t<(e of fin!n+e s$o2n 2i## "e inf#uen+e) "< f!+tors su+$ !s e!se of re(!<,ent> +re)itor (er+e(tion> t!9 +onse;uen+es> nee)
to o"t!in t$ir) (!rt< fin!n+in% et+4 T$e (!rties 2i## often 2!nt t$eir o2n fin!n+in% to "e re(!i) (ro r!t! or !t t$e s!,e ti,e4
!1,11$
1
Consi)er fun)!,ent!# )ifferen+e "et2een ! 08E08 joint venture +o,(!n< !n) !n< ot$erGt$is 2i## "e ref#e+te) in ! nu,"er of
(rovisions e% ,inorit< (rote+tion or not> "o!r) stru+ture> nee) for )e!)#o+C reso#ution> !n) i,(!+t of +ert!in t<(es of ter,in!tion
(rovision e% DRussi!n Rou#etteA4 Consi)er 2$et$er t$e joint venture +o,(!n< is ! su"si)i!r< un)ert!Cin% of eit$er or "ot$ of t$e
(!rties for %rou( !++ountsE+onso#i)!tion (ur(oses !n) t$e +onse;uen+es4
3
It ,!< not "e ne+ess!r< to s(e+if< !n< of t$ese in ! true 08E08 D)e!)#o+Ce)A joint venture +o,(!n<4 In ot$er joint ventures it ,!<
not "e ne+ess!r< to $!ve !n< of t$ese if t$e< +ou#) in !n< event "e "#o+Ce) un)er #!2 %iven t$e siIe of its ,inorit< s$!re$o#)in%
(e% 041L "#o+Cs !## s(e+i!# reso#utions !n<2!<4
5
T$ese 2i## nee) to "e +onsi)ere) !t t$e ver< outset !s (!rt of stru+turin% of joint venture4
6
A)v!n+e +or(or!tion t!9 is to "e !"o#is$e) !s fro, 1 A(ri# 16664
18
Consi)er t$e t!9 i,(#i+!tions of su+$ (rovisionsGe% 2i## t$e< (revent ! re;uire) t!9 +onsortiu, st!tus fro, "ein% !+$ieve)Q
11
To "e effe+tive t$is ,!< nee) to e9ten) to +$!n%e of +ontro# of joint venture s$!re$o#)er4
1
T$is ! Ce< +#!use4
1&
Ter,in!tion is si,(#e in ! t2o'(!rt< joint venture4 7$!t )oes it ,e!n in ! ,u#ti'(!rt< joint ventureQ 7i## t$ere "e !
+ontinu!tion "et2een re,!inin% (!rties if one (!rt< #e!ves or notQ
1*
T$ese (rovisions 2i## )e(en) on $o2 t$e joint venture 2!s ter,in!te) !n) 2$et$er vo#unt!ri#< or !uto,!ti+!##< !n) 2$et$er
t$ere !re +ontinuin% (!rties or not4
!1,1%$
%
A'reement for establishment and operation of a joint enture companyGminority protection; but no special
class ri'hts in articles
1
T.IS AGREE=ENT is ,!)e t$eTTTT )!< ofTTTT -ET7EEN:
(1) 1name o. .irst /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (DFA) !!n)$
() 1name o. second /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (D?A) !!n)
(&) 1name o. third /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (DRA)$4
7.EREAS:
(A) 1name6 Li,ite) is ! +o,(!n< #i,ite) "< s$!res !n) in+or(or!te) in En%#!n) 2it$ nu,"er TTT un)er t$e
Co,(!nies A+t 1650 !n) $!s !t t$e )!te of t$is !%ree,ent !n !ut$orise) s$!re +!(it!# of OTTT )ivi)e) into
TTT or)in!r< s$!res of O1 e!+$ of 2$i+$ !$ s$!res $!ve "een issue) !n) !re fu##< (!i) u(> "enefi+i!##<
o2ne) "< F !n) re%istere) in t$e n!,e of F or !its 1or6 $is$ no,inees4 T$e (resent )ire+tors of t$e Co,(!n<
!re 1name6 !n) 1name6
4
(-) T$e (!rties (ro(ose t$!t 1name6 Li,ite) s$ou#) "e use) !s t$eir joint venture ve$i+#e to 1speci., proposed
business or purpose o. the /oint compan,64
(C) A++or)in%#< t$e (!rties $!ve !%ree) to su"s+ri"e for s$!res in 1name6 Li,ite) !n) to enter into +ert!in
+o,,it,ents !n) to re%u#!te t$e e9er+ise of t$eir ri%$ts in re#!tion to su+$ joint +o,(!n< in t$e ,!nner
$erein!fter !((e!rin%4
!1,1($
NO7 IT IS AGREED !s fo##o2s:
1 Definitions and interpretation
141 In t$is !%ree,ent un#ess t$e +onte9t ot$er2ise re;uires:
(A) Dt$e Co,(!n<A ,e!ns t$e +o,(!n< s(e+ifie) or referre) to in re+it!# (A) !"oveH
(-) Dt$e -o!r)A ,e!ns t$e "o!r) of )ire+tors of t$e Co,(!n< or t$e )ire+tors (resent !t ! )u#<
+onvene) ,eetin% of t$e )ire+tors !t 2$i+$ ! ;uoru, is (resentH
(C) Dfin!n+i!# <e!rA ,e!ns !n< !++ountin% referen+e (erio) of t$e Co,(!n<H
(D) D%rou( ,e,"erA s$!## "e!r t$e s!,e ,e!nin% !s in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655
se+tion *81
&
H
(E) ! D,!jorit<A of t$e (!rties $ereto ,e!ns su+$ nu,"er of t$e, !s for t$e ti,e "ein% !re t$e $o#)ers
of s$!res in t$e Co,(!n< to%et$er +onferrin% not #ess t$!n TTL of t$e tot!# nu,"er of votes
e9er+is!"#e !t ! %ener!# ,eetin% of t$e Co,(!n<H
(:) Dsu"si)i!r<A !n) D$o#)in% +o,(!n<A s$!## "e!r t$e s!,e res(e+tive ,e!nin%s !s in t$e Co,(!nies
A+t 1650 se+tion 3&1H
(G) D+ontro#A or D+ontro##e)A s$!## "e )eter,ine) "< referen+e to t$e (rovisions of !t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 se+tion *11$
*
!n) ! D+$!n%e of +ontro#A 2$en !((#ie) to !n< (!rt< s$!##
"e )ee,e) to $!ve o++urre) if !n< (erson or (ersons 2$o +ontro# su+$ (!rt< !t t$e )!te of
e9e+ution of t$is !%ree,ent (or t$e )!te su+$ (!rt< "e+o,es "oun) "< t$e ter,s of t$is !%ree,ent
(if #!ter)) su"se;uent#< +e!se to +ontro# it or if !n< (erson or (ersons su"se;uent#< !+;uire +ontro#
of itH !n)
(.) referen+es to D(!rt<A !n) D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is
!%ree,ent4
!1,1)$
14 Referen+es to st!tutor< (rovisions s$!## "e +onstrue) !s referen+es to t$ose (rovisions !s res(e+tive#<
!,en)e) or re'en!+te) or !s t$eir !((#i+!tion is ,o)ifie) "< ot$er (rovisions (2$et$er "efore or !fter t$e )!te
of t$is !%ree,ent) fro, ti,e to ti,e !n) s$!## in+#u)e !n< (rovisions of 2$i+$ t$e< !re re'en!+t,ents
(2$et$er 2it$ or 2it$out ,o)ifi+!tion)4
14& An< )o+u,ent referre) to !s "ein% Din t$e !%ree) for,A s$!## ,e!n ! )o+u,ent in ! for, !%ree) "< t$e
(!rties !t t$e )!te of t$is !%ree,ent !n) initi!##e) "< or on t$eir "e$!#f for i)entifi+!tion (ur(oses4
14* Referen+es to +#!uses !n) s+$e)u#es !re to t$e +#!uses !n) s+$e)u#es of t$is !%ree,ent4
140 T$e $e!)in%s !re inserte) for +onvenien+e on#< !n) s$!## not !ffe+t t$e +onstru+tion of t$is !%ree,ent4
!1,1,$
% Constitution and share subscription
41 :ort$2it$ u(on t$e e9e+ution of t$is !%ree,ent:
(A) F s$!## (ro+ure t$!t !n e9tr!or)in!r< %ener!# ,eetin% of t$e Co,(!n< is )u#< +onvene) !n) $e#) !t
s$ort noti+e !n) t$!t t$e s(e+i!# reso#ution set out in t$e !%ree) for, ,!rCe) DAA is (ro(ose) !n)
(!sse) !t t$!t ,eetin%> t$e ne2 o"je+ts referre) to in (!r!%r!($ () of t$e reso#ution "ein% t$ose
+ont!ine) in +#!use & of t$e ,e,or!n)u, of !sso+i!tion in t$e !%ree) for, ,!rCe) D-A> !n) t$e
ne2 !rti+#es of !sso+i!tion referre) to in (!r!%r!($ (&) of t$e reso#ution "ein% t$ose in t$e !%ree)
for, ,!rCe) DCAH !n)
(-) su"je+t to !n) fort$2it$ u(on t$e reso#ution ,entione) in +#!use 41(A) !"ove "ein% (ro(ose) !n)
(!sse):
(1) F s$!## (ro+ure t$!t 1name6 !n) 1name6 s$!## (su"je+t to t$e, res(e+tive#< +onsentin% so
to !+t) "e !((ointe) !s !))ition!# )ire+tors of t$e Co,(!n<H !n)
() F> ?> !n) R s$!## su"s+ri"e in +!s$ !!t (!r$ for ne2 or)in!r< s$!res of O1 e!+$ in t$e
Co,(!n< !s fo##o2s (F 2!ivin% !n< ri%$t of (re'e,(tion $o2soever !risin% 2$i+$ it
,i%$t $!ve in res(e+t of t$e su"s+ri(tions):
Name Number of shares
F 1number6
? 1number6
R 1number6
!n) t$e (!rties s$!## (ro+ure t$!t ! ,eetin% of t$e -o!r) is $e#) !t 2$i+$ !## t$e s$!res
s(e+ifie) !"ove s$!## "e !##otte) to F> ? !n) R res(e+tive#< !n) re%istere) in t$eir n!,es
in t$e nu,"ers res(e+tive#< su"s+ri"e) "< t$e, +re)ite) !s fu##< (!i) !!t (!r$ !%!inst
i,,e)i!te (!<,ent of t$e re#ev!nt su"s+ri(tion ,one<4
4 :ort$2it$ fo##o2in% t$e )ue (erfor,!n+e of t$e (rovisions of +#!use 41 !"ove t$e (!rties s$!## (ro+ure t$!t:
(A) t$e re%istere) offi+e of t$e Co,(!n< s$!## "e +$!n%e) to 1address6H
(-) t$e !u)itors of t$e Co,(!n< s$!## "e 1names6H
(C) t$e Co,(!n<As !++ountin% referen+e )!te s$!## "e +$!n%e) to 1date6 !+o,,en+in% on 1date6 (so t$!t
its first !++ountin% referen+e (erio) s$!## "e fro, its )!te of in+or(or!tion to 1date6 ("ot$ )!tes
in+#usive))$H !!n)$
(D) t$e "!nCers to t$e Co,(!n< s$!## "e 1name o. bank6 of 1branch6!H !n)
(E) 1name6 s$!## "e !((ointe) se+ret!r< in (#!+e of 1name6$4
!1,1.$
( Directors and board meetin's
0
&41 At !## ti,es 2$i#st t$is !%ree,ent re,!ins in for+e t$e (!rties s$!## (ro+ure t$!t t$e nu,"er of )ire+tors s$!##
"e not #ess t$!n 1number6 !n) t$!t (su"je+t !s ot$er2ise e9(ress#< (rovi)e) in t$is !%ree,ent) e!+$ of t$e
(!rties s$!## "e entit#e) to $!ve !((ointe) !n) to $!ve re,ove) u( to t$e res(e+tive nu,"er of )ire+tors
s(e+ifie) in t$e fo##o2in% (rovisions of t$is +#!use4
&4 !Su"je+t !s (rovi)e) in +#!use &41 "e#o2$ !t !## ti,es 2$i#st it re,!ins ! s$!re$o#)er in t$e Co,(!n< F s$!##
"e entit#e) to $!ve !((ointe) u( to 1number6 )ire+tors of t$e Co,(!n< !t !n< ti,e !n) to $!ve !n< )ire+tor so
!((ointe) re,ove)4 :or t$is (ur(ose 1name6 !n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!## "e
)ee,e) to $!ve "een !((ointe) !s )ire+tors of t$e Co,(!n< !t t$e re;uest of F4
&4& !Su"je+t !s (rovi)e) in +#!use &41 "e#o2$ !t !## ti,es 2$i#st it re,!ins ! s$!re$o#)er in t$e Co,(!n< ? s$!##
!((ointe) re,ove)4 :or t$is (ur(ose 1name6 !n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!## "e
)ee,e) to $!ve "een !((ointe) !s )ire+tors of t$e Co,(!n< !t t$e re;uest of ?4
!1,1/$
&4* !Su"je+t !s (rovi)e) in +#!use &41 "e#o2$ !t !## ti,es 2$i#st it re,!ins ! s$!re$o#)er in t$e Co,(!n< R4 s$!##
!((ointe) re,ove)4 :or t$is (ur(ose 1name6!n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!## "e )ee,e)
to $!ve "een !((ointe) !s )ire+tors of t$e Co,(!n< !t t$e re;uest of R4
&40
(A) S!ve for t$e s(e+ifi+ !((oint,ents )ee,e) to "e ,!)e (ursu!nt to +#!uses &4> &4& or &4* !"ove>
!n< e9er+ise "< !n< (!rt< of t$e (o2er of !((oint,ent or re,ov!# +onferre) on it (ursu!nt to t$e
fore%oin% (rovisions s$!## "e in 2ritin% !n) s$!## "e serve) u(on t$e ot$er (!rt< or (!rties to%et$er
2it$ ! +o,(#ete) for, of s$!re$o#)ersA reso#ution in 2ritin% su"st!nti!##< in t$e ter,s of t$e !%ree)
for, ,!rCe) DDA si%ne) "< t$e (!rt< %ivin% t$e noti+e (!n) e!+$ of its no,inees) 2$i+$ e!+$ of t$e
(!rties re+eivin% it (!n) e!+$ of t$eir res(e+tive no,inees) s$!## t$en fort$2it$ si%n !n) )e#iver to
t$e re%istere) offi+e of t$e Co,(!n< ,!rCe) for t$e !ttention of t$e se+ret!r<
1
4
(-) If !n< (!rt< to 2$o, t$e s$!re$o#)ersA reso#ution referre) to in su"'+#!use &40(A) is sent or !n< of
its no,inees s$!## )e#!< si%nin% t$e reso#ution !n)Eor )e#iverin% it to t$e re%istere) offi+e of t$e
Co,(!n<> e!+$ su+$ (!rt< (on "e$!#f of itse#f !n) (!s it 2!rr!nts !n) re(resents) !s ! )u#<
!ut$orise) !%ent of e!+$ of its no,inees) irrevo+!"#<:
(1) !((oints !n< ot$er (!rt< to si%n ! furt$er +o(< of t$e s$!re$o#)ersA reso#ution on "e$!#f of
itse#f !n) e!+$ of its no,ineesH !n)
() !ut$orises !n< ot$er (!rt< to )e#iver t$e reso#ution to t$e re%istere) offi+e of t$e
Co,(!n< ,!rCe) for t$e !ttention of its se+ret!r<4
!1,1"$
!&41
(A) If !n< of t$e (!rties referre) to in +#!use!s$ !&4 1or6 &4& 1or6 &4*$ +e!ses !t !n< ti,e !n) for !n<
re!son !fter t$e s$!re su"s+ri(tions ,!)e (ursu!nt to +#!use 41(-) !"ove to "e t$e "enefi+i!#
o2ner of !t #e!st TTL in no,in!# v!#ue of t$e issue) or)in!r< s$!re +!(it!# of t$e Co,(!n< for
t$e ti,e "ein%> t$e entit#e,ent of t$!t (!rt< un)er t$e re#ev!nt +#!use to $!ve )ire+tors !((ointe)
(!n) re,ove)) s$!## "e v!rie) !s fo##o2s:
(1) !t !## ti,es 2$i#st t$e (!rt< re,!ins t$e "enefi+i!# o2ner of !t #e!st TTL in no,in!#
v!#ue of t$e issue) or)in!r< s$!re +!(it!# of t$e Co,(!n< for t$e ti,e "ein%> t$!t (!rt<As
entit#e,ent un)er +#!use !&4 1or6 &4& 1or6 &4*$ s$!## "e to $!ve u( to 1number6 )ire+tors
on#< !((ointe) !t !n< ti,e (!n) to re,ove !n< )ire+tor so !((ointe))H
() !t !## ti,es 2$i#st t$!t (!rt< re,!ins t$e "enefi+i!# o2ner of !t #e!st !one or)in!r<$ s$!re
("ut #ess t$!n TTL in no,in!# v!#ue of t$e issue) or)in!r< s$!re +!(it!# of t$e
Co,(!n< for t$e ti,e "ein%) t$!t (!rt<As entit#e,ent un)er +#!use !&4 1or6 &4& 1or6 &4*$
s$!## "e to $!ve u( to 1number6 )ire+tor!s$ on#< !((ointe) !t !n< ti,e (!n) to re,ove !n<
)ire+tor so !((ointe))H
(-) If !n< of t$e (rovisions of +#!use &41(A) "e+o,e !((#i+!"#e in t$e +!se of !n< (!rti+u#!r (!rt<> t$e
(!rties s$!## i,,e)i!te#< (ro+ure t$!t t$e offi+e of !## or !n< )ire+tors (revious#< !((ointe) "< t$!t
(!rt< (ursu!nt to +#!use &4> &4& or &4* !n) t$en sti## in offi+e s$!## "e i,,e)i!te#< v!+!te) (!n)
s$!## "e tre!te) for t$is (ur(ose !s if t$e< $!) "een re,ove) "< t$!t (!rt< in !++or)!n+e 2it$ its
entit#e,ent un)er t$e !((#i+!"#e +#!use i,,e)i!te#< "efore t$e (!rti+u#!r !((#i+!tion of t$e
(rovisions of +#!use &41(A) "e+!,e effe+tive) /ROVIDED t$!t not$in% +ont!ine) in t$is +#!use
&41(-) s$!## restri+t t$e ri%$t of !n< (!rt< to $!ve re'!((ointe) !n< )ire+tor or )ire+tors 2$ose
offi+e s$!## "e v!+!te) un)er t$is +#!use (rovi)e) !#2!<s t$!t t$e nu,"er of )ire+tors (ro(ose) "<
su+$ (!rt< to "e so !((ointe) s$!## not e9+ee) its entit#e,ent un)er t$e !((#i+!"#e +#!use &4 or &4&
or &4* !s t$en v!rie) "< t$e !((#i+!tion of +#!use &41(A)$
3
4
!1,12$
&43 Un#ess ot$er2ise !%ree) t$e (!rties s$!## (ro+ure t$!t "o!r) ,eetin%s "e +onvene) !n) $e#) !t #e!st 1number6
ti,es ! <e!r !n) t$!t ! 2ritten !%en)! s(e+if<in% t$e ,!tters to "e r!ise) !t !n< "o!r) ,eetin% of t$e
Co,(!n< s$!## "e sent to !## )ire+tors (or t$eir !#tern!tes) entit#e) to re+eive noti+e of !n< su+$ ,eetin%
to%et$er 2it$ t$e noti+e +onvenin% t$e ,eetin% or not #ess t$!n !3 1or as re>uired6$ )!<s (rior to t$e )!te of
t$e ,eetin%4 It is furt$er !%ree) t$!t (un#ess> in !n< (!rti+u#!r +!se> t$e (!rties s$!## ot$er2ise !%ree in
2ritin%) no reso#ution re#!tin% to !n< "usiness ,!< "e (ro(ose) or (!sse) !t !n< "o!r) ,eetin% un#ess t$e
n!ture of t$e "usiness is s(e+ifie) in t$e !%en)!4
) Business of the Company
*41 T$e "usiness of t$e Co,(!n< s$!## un#ess !n) unti# ot$er2ise )eter,ine) un)er +#!use 3 "e +onfine) to
1insert details64
*4 T$e "usiness s$!## "e +!rrie) on "< t$e Co,(!n< itse#f or t$rou%$ "r!n+$es or su"si)i!r< +o,(!nies
est!"#is$e) in !t$e Unite) Bin%)o,$ or e#se2$ere !n) t$e Co,(!n< s$!## est!"#is$ su+$ offi+es or ot$er
(re,ises !s t$e -o!r) ,!< )e+i)e4
!1,%#$
, 3pecific obli'ations of the parties
"
1insert details6
. Finance for the Company
141 :in!n+e for t$e "usiness of t$e Co,(!n< s$!## "e (rovi)e) initi!##< "< t$e +!s$ su"s+ri(tions for t$e s$!res
referre) to in +#!use !"ove !n) t$ere!fter "< #o!ns fro, F> ? !n) R> on su+$ ter,s !s t$e< ,!< !%ree 2it$
t$e -o!r) !n)Eor "< #o!ns fro, t$e Co,(!n<As "!nCers
6
4
!14 An< furt$er fin!n+e s$!## on#< "e (rovi)e) in ! ,!nner 2$i+$:
(A) +o,(#ies 2it$ t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 se+tion *1&(5)H !n)
(-) )oes not resu#t in t$e Co,(!n< "ein% t$in#< +!(it!#ise) for Unite) Bin%)o, t!9 (ur(oses4$
18
!1,%1$
/ Conduct of the joint enture
!341 7$i#e t$is !%ree,ent re,!ins in for+e> t$e (!rties s$!## (ro+ure t$!t e9+e(t 2it$ t$e +onsent of !!## 1or6 "ot$
1or6 ! ,!jorit<$ of t$e,:
(A) t$e %ener!# n!ture of t$e "usiness of t$e Co,(!n< !n) its su"si)i!ries (if !n<) s$!## not "e +$!n%e)
fro, t$!t )es+ri"e) in +#!use * !"oveH
(-) no +$!n%e s$!## "e ,!)e in t$e !ut$orise) or issue) s$!re or #o!n +!(it!# of t$e Co,(!n< nor s$!##
!n< o(tion or ri%$t to su"s+ri"e "e %r!nte) to !n< (erson over !n< s$!re or #o!n +!(it!# of t$e
Co,(!n< !n) no se+urities +onverti"#e into su+$ s$!re or #o!n +!(it!# s$!## "e issue) !s!ve t$!t
t$ere s$!## "e (er,itte) !n issue of or)in!r< s$!res 2$i+$ is ,!)e (ursu!nt to ! Dri%$ts issueA !s
)efine) "e#o2$H
(C) no !#ter!tion s$!## "e ,!)e in t$e ,e,or!n)u, or !rti+#es of !sso+i!tion of t$e Co,(!n< or t$e
ri%$ts !tt!+$in% to !n< +#!ss of s$!res t$ereinH
(D) no reso#ution s$!## "e (!sse) for t$e 2in)in%'u( of t$e Co,(!n< nor s$!## !n< of t$e (!rties (resent
or +!use to "e (resente) !n< (etition for t$e 2in)in%'u( or !),inistr!tion of t$e Co,(!n< (un#ess
in eit$er +!se t$e Co,(!n< s$!## "e+o,e inso#vent)H
(E) no ne2 e;uit< interest in t$e Co,(!n< s$!## "e +re!te) or +onferre) on !n< (erson (in+#u)in% !n<
of t$e (!rties $ereto) in+#u)in% "ut not #i,ite) to !n< !rr!n%e,ents for s$!rin% in+o,e or (rofits
!n) !n< ot$er interest 2$et$er in t$e for, of s$!res> +onverti"#e se+urities or #o!n sto+C or +!(it!#
+onverti"#e into s$!resH
!1,%%$
(:) t$e Co,(!n< s$!## not:
(1) !+;uire> 2$et$er "< for,!tion or ot$er2ise> !n< su"si)i!r< nor effe+t or (er,it t$e
)is(os!# or )i#ution of its interest> )ire+t#< or in)ire+t#< in !n< su"si)i!r<H
() se##> tr!nsfer> #e!se> #i+en+e or in !n< 2!< )is(ose of !## or ! ,!teri!# (!rt of its "usiness>
un)ert!Cin% or !ssets> 2$et$er "< ! sin%#e tr!ns!+tion or series of tr!ns!+tions re#!te) or
not (ot$er2ise t$!n in t$e or)in!r< +ourse of t$e Co,(!n<As "usiness)H
(&) "orro2 !n< su,s !e9+e(t fro, t$e Co,(!n<As "!nCers in t$e or)in!r< !n) usu!# +ourse
of "usiness !n)$ in !%%re%!te in e9+ess of OTTT !t !n< ti,eH
(*) un)ert!Ce in !n< fin!n+i!# <e!r or (!rt !n< sin%#e ite, or series of ite,s of +!(it!#
e9(en)iture (in+#u)in% fin!n+e #e!ses "ut e9+#u)in% o(er!tin% #e!ses !s res(e+tive#<
)efine) in SSA/ 1) invo#vin% !n !%%re%!te #i!"i#it<:
(!) )urin% t$!t fin!n+i!# <e!r in e9+ess of !OTTT 1or6 t$e su,s (rovi)e) for
+!(it!# e9(en)iture in t$e -usiness /#!n referre) to in C#!use 5 for t$!t <e!r$
!n)Eor
(") )urin% t$!t !n) !## future fin!n+i!# <e!rs in e9+ess of OTTTH
(0) enter into !n< o(er!tin% #e!se (!s )efine) in SSA/ 1) eit$er !s #essor or #essee of !n<
(ro(ert<> (#!nt or e;ui(,ent of ! )ur!tion e9+ee)in% !0 1or as re>uired6$ <e!rs or
invo#vin% !%%re%!te (re,iu, !n) !nnu!# rent!# (!<,ents for t$e o(er!tin% #e!se in
;uestion in e9+ess of OTTTH
(1) f!+tor or )is+ount !n< "ooC )e"ts of t$e Co,(!n<H
(3) ,!Ce !n< #o!n or !)v!n+e or ot$er2ise %ive +re)it (ot$er t$!n +re)it %iven in t$e nor,!#
+ourse of t$e Co,(!n<As "usiness) to !n< (erson e9+e(t for t$e (ur(ose of ,!Cin%
)e(osits 2it$ its "!nCersH
(5) %ive !n< %u!r!ntee> "on) or in)e,nit< in res(e+t of or to se+ure t$e #i!"i#ities or
o"#i%!tions of !n< (erson (ot$er t$!n ! 2$o##< o2ne) su"si)i!r< of t$e Co,(!n<)H
(6) +re!te or issue !n< )e"enture> ,ort%!%e> +$!r%e or ot$er se+urit< over !n< !ssets of t$e
Co,(!n< !(e9+e(t for t$e (ur(ose of se+urin% su,s "orro2e) "< t$e Co,(!n< fro, its
"!nCers in t$e or)in!r< !n) usu!# +ourse of "usiness)$H
(18) !+;uire !n< s$!re or #o!n +!(it!# of !n< "o)< +or(or!te (in+#u)in% t$!t of t$e Co,(!n< or
!n< su"si)i!r<) or enter into !n< (!rtners$i( or (rofit s$!rin% !rr!n%e,ent 2it$ !n<
(ersonH
!(11) )e+#!re or (!< !n< )ivi)en) or ot$er )istri"ution in res(e+t of !n< s$!re +!(it!# of t$e
Co,(!n<H$
!1,%($
(1) enter into or ,!Ce !n< ,!teri!# +$!n%e to !n< +ontr!+t or tr!ns!+tion 2it$
(!) !n< of t$e (!rties or t$eir res(e+tive su"si)i!ries or $o#)in% +o,(!nies (e9+e(t
!s e9(ress#< !ut$orise) in t$is !%ree,ent) or
(") !n< ot$er (ersons e9+e(t on nor,!# !r,As #en%t$ +o,,er+i!# ter,sH
(1&) enter into !n< !%en+< or )istri"ution !%ree,ent 2$i+$ is e9(resse) to +ont!in !n<
e#e,ent or e9+#usivit< !s re%!r)s !n< (ro)u+ts or servi+es )e!#t in or !s to t$e !re! of t$e
!%ree,entH
(1*) enter into !n< #i+en+e or ot$er si,i#!r !%ree,ent re#!tin% to inte##e+tu!# (ro(ert< to "e
#i+ense) to or "< t$e Co,(!n< !2$i+$ is ot$er2ise t$!n in t$e or)in!r< +ourse of
"usiness$
(10) enter into or ,!Ce !n< ,!teri!# +$!n%e to !n< +ontr!+t of e,(#o<,ent 2it$ !n< )ire+tor
or senior ,!n!%er of t$e Co,(!n< (2$!tever $is tit#e or jo" )es+ri(tion)H
(11) enter into !n< +ontr!+t of e,(#o<,ent or for t$e (rovision of servi+es to t$e Co,(!n< "<
!n< s(e+ifie) in)ivi)u!# 2$i+$ +!nnot "e ter,in!te) on #ess t$!n !1 1or as re>uired6$
,ont$sA noti+e> 2it$out (!<,ent of +o,(ens!tionH
(13) intro)u+e !n< e9e+utive or e,(#o<ee sto+C or s$!re o(tion or (rofit s$!rin% or "onus
s+$e,e of !n< n!tureH
(15) en%!%e !n< ne2 e,(#o<ee !t ! s!#!r< in e9+ess of OTTT ! <e!r> in+re!se re,uner!tion
of !n e,(#o<ee to ! s!#!r< in e9+ess of OTTT ! <e!r or )is,iss !n< e,(#o<ee 2it$ !
s!#!r< in e9+ess OTTT! <e!rH
(16) enter into !n< !%ree,ent for +onsu#t!n+< or ,!n!%e,ent servi+es 2$i+$ 2i##> or is #iCe#<
to> resu#t in t$e Co,(!n< "ein% ,!n!%e) ot$er2ise t$!n "< its )ire+tors or 2$i+$
invo#ves ! +onsi)er!tion e9+ee)in% OTTT ! <e!rH
!(8) +$!n%e t$e !u)itors of t$e Co,(!n< or effe+t !n< si%nifi+!nt +$!n%e in t$e !++ountin%
(rin+i(#es !n) (r!+ti+es for t$e ti,e "ein% !)o(te) "< t$e Co,(!n<H$
(1) +$!n%e t$e n!,es or t$e s+o(e of !ut$orit< of t$e (ersons !ut$orise) to si%n +$e;ues or
ot$er fin!n+i!# instru,ents on "e$!#f of t$e Co,(!n<H
!() !)o(t or !,en) on+e !)o(te) !n< -usiness /#!n referre) to in +#!use 54H$
11
(G) no !+t or event s$!## o++ur in re#!tion to !n< su"si)i!r< of t$e Co,(!n< 2$i+$ is !n!#o%ous to !n)
$!s ! su"st!nti!##< si,i#!r effe+t to !n< of t$e ,!tters referre) to in su"'+#!uses 341(:)(1)M()>
ot$er t$!n su"'+#!use 341(:)(11)4
!1,%)$
!34 In +#!use 341 t$e e9(ression DSSA/ 1A s$!## ,e!n t$e St!te,ent of St!n)!r) A++ountin% /r!+ti+e No41 !s
issue) "< or on "e$!#f of t$e Institute of C$!rtere) A++ount!nts in En%#!n) !n) 7!#es !s !n) in t$e for,
e9istin% !t t$e )!te of e9e+ution of t$is !%ree,ent4$
34& :or t$e (ur(oses of +#!use 341 D! ri%$ts issueA s$!## ,e!n !n offer ,!)e "< t$e Co,(!n< to !## its
s$!re$o#)ers 2$ere"< e!+$ is invite) to su"s+ri"e for t$e nu,"er of or)in!r< s$!res 2$i+$ "e!rs t$e s!,e
(ro(ortion to t$e tot!# nu,"er of s$!res t$e su"je+t of t$e offer to !## s$!re$o#)ers !s t$e (ro(ortion 2$i+$ t$e
nu,"er of or)in!r< s$!res $e#) "< e!+$ s$!re$o#)er i,,e)i!te#< (rior to t$e offer "e!rs to !## t$e or)in!r<
s$!res of t$e Co,(!n< t$en in issue> !n) t$e (ri+e (er s$!re !n) ot$er ter,s offere) to e!+$ s$!re$o#)er !re
t$e s!,e> (rovi)e) t$!t su+$ or)in!r< s$!res !re offere) for su"s+ri(tion !t !! (ri+e (er s$!re !((rove) "< !
,!jorit< of t$e (!rties 1or6 ! (ri+e (er s$!re 2$i+$ is +ertifie) "< t$e !u)itors for t$e ti,e "ein% of t$e
Co,(!n< !s re(resentin% ! f!ir o(en ,!rCet +onsi)er!tion for t$e s$!res offere) !n) in so +ertif<in% t$e
!u)itors s$!## !+t !s e9(erts !n) not !s !r"itr!tors !n) t$e (!rties s$!## (ro+ure t$!t t$eir fees !n) e9(enses
s$!## "e "orne "< t$e Co,(!n<$4
!If !n< of t$e (!rties to t$is !%ree,ent s$!## not !++e(t t$e offer ,!)e to $i, in 2$o#e or in (!rt> t$e
re,!inin% s$!res s$!## "e offere) on t$e ori%in!# ter,s to t$ose of t$e (!rties 2$o !++e(te) t$eir offers in fu##
on t$e ter,s t$!t in t$e event of +o,(etition "et2een t$e, t$e s$!res +on+erne) s$!## "e issue) to t$e, in t$e
s!,e (ro(ortions !s t$eir $o#)in%s of or)in!r< s$!res in t$e Co,(!n< "e!r to one !not$er$4 !S$ou#) t$e
furt$er offers resu#t in !n< s$!res t$e su"je+t of t$ose offers not "ein% !##o+!te) to !n< of t$e (!rties> t$e<
!%ree t$!t t$e s!,e ,!< "e offere) for su"s+ri(tion "< (ersons ot$er t$!n t$e (!rties !!++e(t!"#e to ! ,!jorit<
of t$e (!rties$ !t t$e s!,e su"s+ri(tion (ri+e !n) ot$er ter,s !s t$e< 2ere offere) to t$e (!rties> !n) t$e
(!rties s$!## join in (ro+urin% ever< issue f!##in% to "e ,!)e on !++e(t!n+e of !n< offer> (rovi)e) t$!t +#!use
1541 is first +o,(#ie) 2it$ "< e!+$ (erson ot$er t$!n t$e (!rties 2$o !++e(ts t$e s!,e$4
!1,%,$
" Accountin' matters and diidend policy
541 T$e (!rties s$!## (ro+ure t$!t:
(A) t$e Co,(!n< s$!## !t !## ti,es ,!int!in !++ur!te !n) +o,(#ete !++ountin% !n) ot$er fin!n+i!#
re+or)s in !++or)!n+e 2it$ t$e re;uire,ents of !## !((#i+!"#e #!2s !n) %ener!##< !++e(te)
!++ountin% (rin+i(#es !((#i+!"#e in t$e Unite) Bin%)o,H
(-) !,ont$#< 1or as re>uired6$ ,!n!%e,ent !++ounts !!n) re(orts$ +ont!inin% su+$ infor,!tion !s e!+$
(!rt< s$!## re!son!"#< re;uire s$!## "e (re(!re) !n) )es(!t+$e) "< t$e Co,(!n< to t$e (!rties
2it$in !&8 )!<s 1or as re>uired6$ of t$e en) of t$e !,ont$ 1or as re>uired6$ in ;uestionH !n)
(C) e!+$ (!rt< !n) its res(e+tive !ut$orise) re(resent!tives s$!## "e !##o2e) !++ess !t !## re!son!"#e
ti,es to e9!,ine t$e "ooCs !n) re+or)s of t$e Co,(!n<4
!54
(A) T$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## (re(!re !n !nnu!# "usiness (#!n (t$e D-usiness
/#!nA) 2$i+$ s$!## in+#u)e t$e fo##o2in%:
(1) !n esti,!te of t$e 2orCin% +!(it!# re;uire,ents of t$e Co,(!n< in+or(or!te) 2it$in !
+!s$ f#o2 st!te,ent !to%et$er 2it$ !n in)i+!tion of t$e !,ount (if !n<) 2$i+$ it is
+onsi)ere) (ru)ent to ret!in out of t$e (revious fin!n+i!# <e!rAs )istri"ut!"#e (rofits to
,eet su+$ 2orCin% +!(it!# re;uire,ents$H
() ! (roje+te) (rofit !n) #oss !++ountH
(&) !n o(er!tin% "u)%et (in+#u)in% esti,!te) +!(it!# e9(en)iture re;uire,ents) !n) "!#!n+e
s$eet fore+!stH
(*) ! revie2 of t$e (roje+te) "usinessH !n)
(0) ! su,,!r< of "usiness o"je+tives4
(-) T$e first -usiness /#!n in res(e+t of t$e fin!n+i!# <e!r en)in% 1date6 s$!## "e !in t$e !%ree) for,
,!rCe) DEA or (re(!re) 2it$in !&8 )!<s 1or as re>uired6$ of t$e )!te of t$is !%ree,ent$4 -usiness
/#!ns in res(e+t of su"se;uent fin!n+i!# <e!rs s$!## "e su",itte) for !((rov!# "< t$e -o!r) not #!ter
t$!n !18 )!<s 1or as re>uired6$ "efore t$e +o,,en+e,ent of t$e fin!n+i!# <e!r in ;uestion4$
!54& Su"je+t to +ir+u,st!n+es (rev!i#in% !t t$e re#ev!nt ti,e in+#u)in%> in (!rti+u#!r> t$e 2orCin% +!(it!#
re;uire,ents of t$e Co,(!n<> it is t$e intention of t$e (!rties t$!t t$e Co,(!n< s$!## )istri"ute "< 2!< of
)ivi)en) in res(e+t of e!+$ fin!n+i!# <e!r (rovi)e) t$e s!,e 2i## not +ontr!vene t$e Co,(!nies A+t 1650
!not #ess t$!n TTL of t$e (ost t!9 !+onso#i)!te)$ (rofits of t$e Co,(!n< !!n) its su"si)i!ries$ for t$!t
fin!n+i!# <e!r or !## of its (rofits !s !re t$en !v!i#!"#e for )istri"ution$4$
1
!1,%.$
2 Promotion of Companys business
641 E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts 2it$ e!+$ ot$er to use !## re!son!"#e en)e!vours to (ro,ote
!n) )eve#o( t$e "usiness of t$e Co,(!n< to t$e "est !)v!nt!%e in !++or)!n+e 2it$ %oo) "usiness (r!+ti+e
!n) t$e $i%$est et$i+!# st!n)!r)s4
!64 E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts 2it$ e!+$ ot$er t$!t for !s #on% !s it is ! (!rt< to t$is
!%ree,ent !n) for t$e fo##o2in% (erio) of !* ,ont$s 1or as re>uired6$ it s$!## not !n) s$!## (ro+ure t$!t no
+o,(!n< o2ne) or +ontro##e) "< it s$!## (e9+e(t !s t$e $o#)er of not ,ore t$!n 0L of t$e s$!res +!rr<in%
unrestri+te) votin% ri%$ts in !n< +o,(!n< 2$ose s$!res !re #iste) on !n< re+o%nise) Sto+C E9+$!n%e) "e
en%!%e) +on+erne) or intereste) eit$er )ire+t#< or in)ire+t#< !n) 2$et$er on its or $is o2n "e$!#f or on "e$!#f
of or in !sso+i!tion 2it$ ot$ers or in !n< +!(!+it< 2$!tsoever in +!rr<in% on in +o,(etition 2it$ t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< !n<2$ere 2it$in 1state area6 t$e "usiness of 1state business64$
!1,%/$
!64& E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts t$!t for !s #on% !s it is ! (!rt< to t$is !%ree,ent !n) for t$e
fo##o2in% (erio) of !* ,ont$s 1or as re>uired6$ it s$!## not !n) s$!## (ro+ure t$!t no +o,(!n< o2ne) or
+ontro##e) "< it !n) no (erson on its "e$!#f s$!## in re#!tion to !n< %oo)s or servi+es su((#ie) "< t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< +!nv!ss> so#i+it t$e +usto, of or en)e!vour to enti+e !2!< fro,
t$e Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< !n< (erson> fir, or +o,(!n< 2$i+$ $!s !t !n< ti,e )urin%
t$e 1 ,ont$s "efore t$e ter,in!tion of t$is !%ree,ent "een ! +usto,er of or in t$e $!"it of )e!#in% 2it$ t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< in re#!tion to su+$ %oo)s or servi+es4$
!64*
(A) T$e restri+tions +ont!ine) in +#!uses 64 !n) 64& res(e+tive#< !re +onsi)ere) re!son!"#e "< t$e
(!rties "ut in t$e event t$!t !n< su+$ restri+tion s$!## "e foun) to "e voi) "ut 2ou#) "e v!#i) if
so,e (!rt or (!rts of it 2ere )e#ete) or t$e (erio) or !re! of !((#i+!tion re)u+e)> t$e (!rties !%ree
t$!t su+$ restri+tion s$!## !((#< 2it$ su+$ ,o)ifi+!tion !s ,!< "e ne+ess!r< to ,!Ce it v!#i) !n)
effe+tive4
(-) An< (rovision of t$is !%ree,ent> or of !n< !%ree,ent or !rr!n%e,ent of 2$i+$ it for,s (!rt> "<
virtue of 2$i+$ su+$ !%ree,ent or !rr!n%e,ent is su"je+t to re%istr!tion un)er t$e Restri+tive Tr!)e
/r!+ti+es A+t 1631 s$!## on#< t!Ce effe+t t$e )!< !fter (!rti+u#!rs of su+$ !%ree,ent or !rr!n%e,ent
$!ve "een furnis$e) to t$e Dire+tor Gener!# of :!ir Tr!)in% (ursu!nt to se+tion * of t$!t A+t4$
1&
!1,%"$
1# Confidentiality
1841 E!+$ of t$e (!rties s$!## !t !## ti,es use its "est en)e!vours to Cee( +onfi)enti!# (!n) to (ro+ure t$!t its
res(e+tive e,(#o<ees !n) !%ents s$!## Cee( +onfi)enti!#) !n< +onfi)enti!# infor,!tion 2$i+$ it or t$e< ,!<
!+;uire in re#!tion to t$e Co,(!n< !n) its su"si)i!ries or in re#!tion to t$e +#ients> "usiness or !ff!irs of ever<
ot$er (!rt< or of t$e Co,(!n< or of !n< of t$e Co,(!n<As su"si)i!ries !n) s$!## not use or )is+#ose su+$
infor,!tion e9+e(t 2it$ t$e +onsent of ever< ot$er (!rt< or of t$e Co,(!n< or its re#ev!nt su"si)i!r< (!s
!((ro(ri!te) or in !++or)!n+e 2it$ t$e or)er of ! +ourt of +o,(etent juris)i+tion or> in t$e +!se of infor,!tion
re#!tin% to t$e Co,(!n< or !n< of its su"si)i!ries> for t$e !)v!n+e,ent of t$e "usiness of t$e Co,(!n< or t$e
re#ev!nt su"si)i!r<4
184
(A) T$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!##> !n) s$!## (ro+ure t$!t its su"si)i!ries s$!##> use !##
re!son!"#e en)e!vours to ensure t$!t t$e offi+ers> e,(#o<ees !n) !%ents of e!+$ of t$e, s$!##
o"serve ! si,i#!r o"#i%!tion of +onfi)en+e in f!vour of t$e (!rties to t$is !%ree,ent4
(-) T$e o"#i%!tions of e!+$ of t$e (!rties +ont!ine) in +#!use 1841 s$!## +ontinue 2it$out #i,it in (oint
of ti,e "ut s$!## +e!se to !((#< to !n< infor,!tion +o,in% into t$e (u"#i+ )o,!in !ot$er2ise t$!n
"< "re!+$ "< !n< su+$ (!rt< of its o"#i%!tions +ont!ine) in +#!use 1&$ (rovi)e) !#2!<s t$!t not$in%
+ont!ine) in t$is +#!use 18 s$!## (revent !n< (!rt< fro, )is+#osin% !n< su+$ infor,!tion to t$e
e9tent re;uire) in or in +onne+tion 2it$ #e%!# (ro+ee)in%s !risin% out of t$is !%ree,ent or !n<
,!tter re#!tin% to or in +onne+tion 2it$ t$e Co,(!n<4
(C) :or t$e (ur(oses of t$is +#!use 18 t$e e9(ression D(!rt<A s$!## in+#u)e t$e su"si)i!r< +o,(!nies of
!n< (!rt< !n) !n< ot$er +o,(!n< +ontro##e) "< t$!t (!rt< !n) t$e e,(#o<ees or !%ents of t$!t (!rt<
!n) of its su"si)i!r< or +ontro##e) +o,(!nies4
!1,%2$
!11 *a5 matters
1)
1141
(A) T$e +entr!# ,!n!%e,ent !n) +ontro# of t$e Co,(!n< s$!## "e e9er+ise) in t$e Unite) Bin%)o, !n)
t$e (!rties s$!## use t$eir res(e+tive "est en)e!vours to ensure t$!t t$e Co,(!n< is tre!te) "< !##
re#ev!nt !ut$orities !s "ein% resi)ent for t!9!tion (ur(oses in t$e Unite) Bin%)o,4
(-) E!+$ of t$e (!rties to t$is !%ree,ent 2!rr!nts !n) un)ert!Ces t$!t:
(1) it is !n) 2i## re,!in resi)ent on#< in t$e Unite) Bin%)o, for t!9 (ur(osesH !n)
() it 2i## (ro+ure t$!t !n< +o,(!n< to 2$i+$ !## or !n< of its s$!res !re tr!nsferre) s$!## "e
in ! (osition v!#i)#< to %ive !n) s$!## %ive t$e 2!rr!nt< !n) un)ert!Cin% +ont!ine) in t$is
+#!use 1141(-)4
(C) Not2it$st!n)in% t$e ,e,or!n)u, of !sso+i!tion !n) t$e !rti+#es of !sso+i!tion of t$e Co,(!n<>
!n) t$e ot$er (rovisions of t$is !%ree,ent> !t !## ti,es (rior to t$e ter,in!tion of t$is !%ree,ent no
s$!res ,!< "e tr!nsferre) !n) no furt$er s$!res ,!< "e issue) or !##otte) if !s ! resu#t of su+$
tr!nsfer> issue or !##ot,ent ,ore t$!n 0L of t$e issue) or)in!r< s$!re +!(it!# of t$e Co,(!n< (!s
)efine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 se+tion 5&) 2ou#) "e $e#) "< (ersons not
"ein% +o,(!nies resi)ent on#< in t$e Unite) Bin%)o,4
!1,(#$
114
(A) In res(e+t of e!+$ !++ountin% (erio) of t$e Co,(!n<> 2it$in t$e ,e!nin% of t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 se+tion 1> e!+$ of t$e (!rties ,!< !t !n< ti,e re;uire (in 2$i+$ +!se
t$e (!rties s$!## t$en (ro+ure) t$!t its re#ev!nt (ro(ortion ()efine) "e#o2) of t$e Co,(!n<As tr!)in%
#osses !n) ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e surren)ere) to it (or !not$er
+o,(!n< t$!t s$!## "e its %rou( ,e,"er 2$ere t$!t ot$er +o,(!n< is entit#e) to re+eive t$e #osses
(ursu!nt to t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 se+tion *8) on ter,s t$!t t$e re+i(ient
s$!## (un#ess t$e (!rties ot$er2ise !%ree) (!< to t$e Co,(!n< ! su, e;u!# to 188L of t$e !,ount
"< 2$i+$ t$e re+i(ientAs !u)itors for t$e ti,e "ein% +ertif< t$!t t$e re+i(ientAs t!9 #i!"i#it< is
re)u+e) !s ! resu#t of re+eivin% t$e !,ount so surren)ere)4 An< su+$ (!<,ent s$!## "e ,!)e !t t$e
)!te 2$en t$e re+i(ientAs t!9 #i!"i#it< !%!inst 2$i+$ re#ief is to "e +#!i,e) 2ou#) ot$er2ise $!ve
f!##en )ue for (!<,ent4 If !n< (!rt of !n< !,ount so surren)ere) s$!## not "e !##o2e) to t$e
re+i(ient "< 2!< of re#ief fro, t!9 t$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## refun) to t$e
re+i(ient fort$2it$ t$e !,ount (!i) "< t$e re+i(ient in res(e+t of t$!t (!rt4 :or t$e (ur(oses of t$is
+#!use 11> t$e e9(ression Dre#ev!nt (ro(ortionA 2$en !((#ie) to !n< (!rt< (or !n< %rou( ,e,"er of
! (!rt<) s$!## ,e!n t$e (ro(ortion t$!t t$e no,in!# v!#ue of t$e or)in!r< s$!res in t$e Co,(!n<
"enefi+i!##< o2ne) "< t$e (!rt< "e!rs to t$e tot!# no,in!# v!#ue of t$e entire issue) or)in!r< s$!re
+!(it!# of t$e Co,(!n<4
(-) In res(e+t of e!+$ !++ountin% (erio) of t$e Co,(!n<> 2it$in t$e ,e!nin% of t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 se+tion 1> e!+$ of t$e (!rties ,!< re;uire t$e Co,(!n< to !++e(t t$e
surren)er of tr!)in% #osses !n) ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion fro, t$!t (!rt< or
fro, !n< ot$er +o,(!n< 2$i+$ is ! %rou( ,e,"er of it on ter,s t$!t t$e Co,(!n< s$!## (un#ess t$e
(!rties ot$er2ise !%ree) (!< to t$e re#ev!nt surren)erin% +o,(!n< ! su, e;u!# to 188L of t$e
!,ount "< 2$i+$ t$e Co,(!n<As !u)itors for t$e ti,e "ein% +ertif< t$!t t$e Co,(!n<As t!9 #i!"i#it<
is re)u+e) !s ! resu#t of re+eivin% t$e !,ount so surren)ere)4 E!+$ (!rt< s$!## on#< "e entit#e) to
re;uire t$e Co,(!n< to !++e(t t$e surren)er fro, it (or its %rou( ,e,"er) of its re#ev!nt
(ro(ortion of t$e tot!# tr!)in% #osses or ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion !v!i#!"#e for
surren)er "< !## t$e (!rties (or t$eir %rou( ,e,"ers) to t$e Co,(!n< !n) +!(!"#e of "ein% uti#ise)
"< t$e Co,(!n<4 An< su+$ (!<,ent s$!## "e ,!)e !t t$e )!te 2$en t$e Co,(!n<As t!9 #i!"i#it<
!%!inst 2$i+$ re#ief is to "e +#!i,e) 2ou#) ot$er2ise f!## )ue for (!<,ent4 If !n< (!rt of t$e
!,ount so surren)ere) s$!## not "e !##o2e) to t$e Co,(!n< "< 2!< of re#ief fro, t!9!tion t$e
surren)erin% +o,(!n< s$!## refun) to t$e Co,(!n< fort$2it$ t$e !,ount (!i) "< t$e Co,(!n< in
res(e+t of t$!t (!rt not !##o2e)
10
4
(C) T$e (!rties s$!## (ro+ure t$!t !## +onsents re;uire) "< #!2 for t$e surren)er or !++e(t!n+e of tr!)in%
#osses or ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e %iven "< t$e Co,(!n< !n)Eor t$e
!((ro(ri!te (!rt<E(!rties or t$eir %rou( ,e,"er(s) 2it$in t$e re;uisite (erio)4
(D) An< refun) to "e (!i) (ursu!nt to +#!uses 114(A) or 114(-) s$!## "e (!i) to%et$er 2it$ !n !,ount
e;u!# to t$e interest )ue to t$e In#!n) Revenue in re#!tion to t$e t!9 (!<!"#e !s ! resu#t of t$e
)is!##o2!n+e of !n< !,ount surren)ere)4 T$e o"#i%!tion to (!< interest s$!## "e #i,ite) to t$!t
!,ount of interest !+tu!##< )ue to t$e In#!n) Revenue on t$e !ssu,(tion t$!t t$e !))ition!# t!9 !n)
!n< interest on it is in f!+t (!i) to t$e In#!n) Revenue 2it$in 5 )!<s of t$e re+i(ient +o,(!n<
infor,in% t$e surren)erin% +o,(!n< of t$e !,ount of t$e )is!##o2!n+e !n) t$e surren)erin%
+o,(!n< in f!+t (!<in% t$e re+i(ient +o,(!n< t$e ,one< )ue 2it$in t$e s!i) 5 )!< (erio)
11
4
(E) In t$e event of !n< )is(ute "et2een t$e (!rties !s to !n< ,!tter referre) to in t$is +#!use 11
(in+#u)in% "ut not #i,ite) to t$e !,ount of %rou( re#ief to "e surren)ere) to or "< t$e Co,(!n<> t$e
!,ount of !n< t!9 #i!"i#it< s!ve) !s ! resu#t of ! surren)er of %rou( re#ief or t$e )!te on 2$i+$ su+$
t!9 2ou#) ot$er2ise $!ve f!##en )ue for (!<,ent)> t$e ,!tter s$!## "e referre) for )eter,in!tion to
!n in)e(en)ent fir, of !++ount!nts !((ointe) "< !%ree,ent "et2een t$e (!rties (or> f!i#in% su+$
!%ree,ent> "< t$e /resi)ent for t$e ti,e "ein% of t$e Institute of C$!rtere) A++ount!nts in En%#!n)
!n) 7!#es)> 2$i+$ fir, s$!## !+t !s !n e9(ert !n) not !s !n !r"itr!tor> !n) 2$ose )e+ision s$!## "e
"in)in% on t$e (!rties s!ve in t$e +!se of ,!nifest error4 T$e +osts of su+$ in)e(en)ent fir, of
!++ount!nts s$!## "e "orne "< t$e (!rties !s t$e fir, )ire+ts4
!1,(1$
!114& T$e (!rties s$!##:
(A) (ro+ure t$e su",ission joint#< 2it$ t$e Co,(!n< of ! %rou( in+o,e e#e+tion to t$e In#!n) Revenue
for t$e (ur(oses of t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 se+tion *3H !n)
(-) e9e+ute !n) )o su+$ ot$er )o+u,ents !n) t$in%s !s s$!## "e ne+ess!r< fro, ti,e to ti,e to en!"#e
t$e Co,(!n< to e#e+t to (!<:
(1) )ivi)en)s fro, t$e Co,(!n< to its s$!re$o#)ers or !n< of t$e, 2it$out (!<,ent of
!)v!n+e +or(or!tion t!9H !n)
() !nnu!# interest !n)Eor ro<!#t< (!<,ents "et2een t$e Co,(!n< !n) its s$!re$o#)ers or !n<
of t$e, 2it$out )e)u+tin% in+o,e t!94$
13
114*
(A) T$e Co,(!n< s$!## re%ister for VAT (ur(oses "ut s$!## not !((#< to .= Custo,s !n) E9+ise to "e
! ,e,"er of ! %rou( re%istr!tion for VAT (ur(oses ot$er t$!n ! re%istr!tion +o,(risin% t$e
Co,(!n< !n) !n< of its su"si)i!ries
15
4
(-) 7$ere !n< t!9!"#e su((#< for VAT (ur(oses is ,!)e un)er or in +onne+tion 2it$ t$is !%ree,ent "<
one (!rt< (or "< t$e Co,(!n<) to t$e ot$er (or to t$e Co,(!n<)> t$e (!<er s$!## in !))ition to !n<
(!<,ent re;uire) for t$!t su((#< (!<> u(on (resent!tion of ! v!#i) VAT invoi+e> su+$ VAT !s is
+$!r%e!"#e in res(e+t of it4
1% 3hare transfers
S!ve !s ot$er2ise e9(ress#< (rovi)e) in t$is !%ree,ent> !no 1or6 neit$er$ (!rt< s$!## )urin% t$e ter, of t$is !%ree,ent
eit$er se##> tr!nsfer> +$!r%e> en+u,"er> %r!nt o(tions over or ot$er2ise )is(ose of> or of !n< #e%!# or "enefi+i!# interest
in> !n< of t$e s$!res no2 o2ne) or su"se;uent#< !+;uire) "< it in t$e Co,(!n< un)er or (ursu!nt to t$is !%ree,ent or
"< virtue of its s$!re$o#)in% in t$e Co,(!n< !e9+e(t 2it$ t$e (rior 2ritten +onsent of t$e ot$er (!rt< (2$i+$ ,!< "e
2it$$e#) for !n< re!son or 2it$out %ivin% !n< re!son) !n) in +o,(#i!n+e 2it$ t$e (rovisions of t$e !rti+#es of
!sso+i!tion of t$e Co,(!n< (rovi)e) t$!t t$e (rovisions of +#!use 1541 !re +o,(#ie) 2it$$
16
4
!1,(%$
1( Deadloc> resolution
1insert provisions as re>uired6
8
1) *ermination
1*41 T$is !%ree,ent s$!## +ontinue in fu## for+e !n) effe+t unti# ter,in!te) in !++or)!n+e 2it$ t$e (rovisions of
t$is +#!use 1*4 Ter,in!tion s$!## not !ffe+t !n< (rovision of t$is !%ree,ent e9(resse) to $!ve effe+t !fter
ter,in!tion or !n< ri%$ts 2$i+$ !n< (!rt< ,!< $!ve !%!inst !n< ot$er (!rt< su"sistin% !t t$e ti,e of
ter,in!tion
1
4
1*4 An< of t$e (!rties s$!## "e entit#e) to ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% !("ut not !fter
68 )!<s of t$e event in ;uestion first +o,in% to t$e !ttention of t$e (!rt< entit#e) to %ive t$e noti+e)$ if !n< of
t$e events set out "e#o2 s$!## o++ur4 T$e noti+e s$!## "e serve) u(on t$e (!rt< to 2$i+$ t$e event or events
re#!te !or in t$e +!se of ! noti+e serve) un)er su"'+#!use 1*4(D) ,!< "e serve) on ever< (!rt< 2$o $o#)s !t
t$e ti,e of t$e noti+e !n< of t$e s$!res (revious#< $e#) "< t$e in)ivi)u!# 2$ose servi+es $!ve +e!se)$> !n)
+o(ies of t$e noti+e s$!## "e %iven to !## ot$er (!rties to t$is !%ree,ent (if !n<)4 T$e effe+t of t$e noti+e s$!##
"e to ter,in!te t$is !%ree,ent !s "et2een t$e (!rt< serve) !n) t$e re,!inin% (!rt< or (!rties> "ut t$is
!%ree,ent s$!## +ontinue in fu## for+e !n) effe+t !s "et2een t$e re,!inin% (!rties if ,ore t$!n one> "ut not if
ot$er2ise4 T$e re#ev!nt events !re:
(A) !n< (!rt< s$!## +o,,it !!n< 1or6 ! ,!teri!#$ "re!+$ of !n< of its o"#i%!tions un)er t$is !%ree,ent
!n) s$!## f!i# to re,e)< t$e "re!+$> if +!(!"#e of re,e)<> 2it$in &8 )!<s !fter "ein% %iven noti+e "<
!n< ot$er (!rt< to )o soH or
(-) !n< (!rt<> "ein% ! +o,(!n<> s$!## %o into #i;ui)!tion 2$et$er +o,(u#sor< or vo#unt!r< (e9+e(t for
t$e (ur(oses of ! "on! fi)e re+onstru+tion or !,!#%!,!tion 2it$ t$e +onsent of t$e ot$er !(!rt< 1or6
(!rties$> su+$ +onsent not to "e unre!son!"#< 2it$$e#)) or !n< (!rt< s$!## $!ve !n !),inistr!tor
!((ointe)> or s$!## $!ve ! re+eiver> !),inistr!tive re+eiver or ,!n!%er !((ointe) over !n< (!rt of
its !ssets or un)ert!Cin%H or
!1,(($
(C) !n< (!rt< ("ein% !n in)ivi)u!#) s$!## "e !)ju)%e) "!nCru(t or s$!## )ie or "e+o,e ! (!tient for t$e
(ur(oses of !n< st!tute re#!tin% to ,ent!# $e!#t$
H or
(D) !n< (!rt< ("ein% !n in)ivi)u!#) s$!## +e!se for !n< re!son to ,!Ce $is su"st!nti!##< fu## ti,e
servi+es !v!i#!"#e to t$e Co,(!n< !n)Eor !n< su"si)i!r< of t$e Co,(!n<
&
H !or
(E) t$ere s$!## "e !n< +$!n%e in t$e +ontro# of !n< (!rt<4$
*
!1*4& An< of t$e (!rties ,!< !t !n< ti,e !fter 1date6 ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e
ot$er (!rties4 T$e effe+t of t$e noti+e s$!## "e to ter,in!te t$is !%ree,ent !s "et2een t$e (!rt< servin% t$e
noti+e !n) t$e re,!inin% (!rties "ut t$is !%ree,ent s$!## +ontinue in fu## for+e !n) effe+t !s "et2een t$e
re,!inin% (!rties (if ,ore t$!n one "ut not ot$er2ise)4$
1*4* T$is !%ree,ent s$!## ter,in!te ("ut s$!## +ontinue "et2een t$e ot$er (!rties if ,ore t$!n one "ut not
ot$er2ise) if> !t !n< ti,e !s ! resu#t of ! tr!nsfer of s$!res ,!)e in !++or)!n+e 2it$ t$is !%ree,ent
(in+#u)in%> 2it$out #i,it> +o,(#i!n+e 2it$ t$e (rovisions of +#!use 141) t$!t (!rt< $o#)s no s$!res in t$e
+!(it!# of t$e Co,(!n<4
1*40 T$is !%ree,ent s$!## ter,in!te fort$2it$ if !n effe+tive reso#ution is (!sse) to 2in) u( t$e Co,(!n< or if !
#i;ui)!tor is ot$er2ise !((ointe)
0
4
!1,()$
1, Conse6uences of notices under clause!s 1( and$ 1)
1041 If !n< (!rt< or (!rties s$!## serve ! noti+e of ter,in!tion un)er +#!use 1* t$!t (!rt< or t$ose (!rties
(in)ivi)u!##< or> if ,ore t$!n one> to%et$er Dt$e Ter,in!torA) s$!## "e entit#e) "< t$!t noti+e to re;uire t$e
re+i(ient(s) of t$e noti+e (Dt$e Ter,in!teeA) eit$er:
(A) (in t$e +!se of ! noti+e serve) un)er +#!uses 1*4(A)> (D) or (E) or +#!use 1*4& on#<) to (ur+$!se !##
("ut not so,e on#<) of t$e Ter,in!torAs s$!res in t$e Co,(!n<> or
(-) to se## to t$e Ter,in!tor (!n) if ,ore t$!n one e;u!##< or in su+$ ot$er (ro(ortions !s t$e< ,!<
!%ree) !## ("ut not so,e on#<) of t$e Ter,in!teeAs s$!res in t$e Co,(!n<
in eit$er +!se !t ! (ri+e )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of +#!use 104 "e#o2
1
4
U(on t$e e9er+ise of !n< su+$ ri%$t t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e "oun) to
res(e+tive#< se## or (ur+$!se u(on t$e ter,s set out "e#o24 If> in ! v!#i) ter,in!tion noti+e> t$e (o2er of s!#e
or (ur+$!se is not e9er+ise) "< t$e Ter,in!tor t$en> in t$e +!se of ! noti+e serve) un)er +#!use 1*4& on#<> t$e
Ter,in!tee ,!< 2it$in &8 )!<s of t$e Ter,in!torAs noti+e serve ! +ounter noti+e re;uirin% t$e Ter,in!tor
(!n) (if ,ore t$!n one) !## of t$e,) to se## to !n< one or ,ore of t$e, !## ("ut not so,e on#<) of t$e
Ter,in!torAs s$!res in t$e Co,(!n<> in 2$i+$ +!se t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e
res(e+tive#< "oun) to se## !n) (ur+$!se t$e s$!res on t$e ter,s set out "e#o2 "ut ot$er2ise t$e (!rties s$!##
(ro+ure t$!t t$e Co,(!n< s$!## "e i,,e)i!te#< 2oun) u(
3
4
!1,(,$
104 T$e (ur+$!se (ri+e of t$e s$!res to "e "ou%$t !n) so#) (ursu!nt to +#!use 1041 !"ove !(or> if !((#i+!"#e>
+#!use 1&)$ s$!## "e t$e f!ir v!#ue of t$e, !s !%ree) "et2een t$e (!rties to t$e s!#e !n) (ur+$!se or> in )ef!u#t
of !%ree,ent 2it$in 10 )!<s !fter t$e servi+e of t$e noti+e of ter,in!tion !(or in t$e +!se of +#!use 1& 2it$in
10 )!<s !fter servi+e of ! +o(< of t$e )e!)#o+C reso#ution noti+e "< t$e )ire+tors (ursu!nt to +#!use 1&)$> su+$
su, !s s$!## "e +ertifie) "< t$e !u)itors (!t t$e re;uest of !n< su+$ (!rt<) for t$e ti,e "ein% of t$e Co,(!n<
to "e t$e f!ir v!#ue of t$e s$!res on t$e )!te 2$en t$e ter,in!tion noti+e 2!s serve)4 In so +ertif<in% t$e
!u)itors !re irrevo+!"#< instru+te) to v!#ue t$e s$!res to "e "ou%$t !n) so#) !s t$e s!,e (ro(ortion of t$e
,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e on t$!t )!te !s t$e re#ev!nt s$!re$o#)in% "e!rs to t$e 2$o#e issue)
or)in!r< s$!re +!(it!# of t$e Co,(!n< on t$!t )!te> "ut ot$er2ise t$e< s$!## t!Ce into !++ount !##
+ir+u,st!n+es t$!t s$!## see, to t$e, re#ev!nt4 !In ! +!se 2$ere t$e s$!res to "e "ou%$t !n) so#) !re o2ne)
"< ! (!rt< u(on 2$o, ! ter,in!tion noti+e un)er +#!use 1*4(A) $!s "een serve) t$e !u)itors s$!## )eter,ine
t$e ,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e "ot$ in t$e #i%$t of t$e "re!+$ +on+erne) !n) on t$e "!sis t$!t
t$e "re!+$ $!) not "een +o,,itte) !n) if t$e first of t$ose v!#u!tions is #o2er t$!n t$e se+on)> t$e 2$o#e
!,ount of t$e re)u+tion in t$e v!#ue of t$e Co,(!n< s$!## "e !ttri"ute) to t$e s$!res of t$e (!rt< in "re!+$>
so t$!t !$e 1or6 it$ s$!## re+eive !n !,ount 2$i+$ is t$e (ro(ortion of t$e se+on) v!#u!tion !ttri"ut!"#e to
t$ose s$!res ,inus t$e 2$o#e !,ount of t$e re)u+tion4$
5
In so !+tin% t$e !u)itors !re instru+te) to !+t !s
e9(erts !n) not !s !r"itr!tors !n) t$eir )e+ision s$!## (s!ve in res(e+t of ,!nifest error) "e fin!# !n) "in)in%
on t$e (!rties to t$e s!#e !n) (ur+$!se for !## (ur(oses !n) t$eir fees !n) e9(enses s$!## "e "orne in e;u!#
s$!res "< !## of t$e (!rties4
!1,(.$
104& Co,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to t$e (rovisions of +#!use 1041 !(or> if !((#i+!"#e>
+#!use 1&)$ s$!## t!Ce (#!+e !t t$e re%istere) offi+e of t$e Co,(!n< !t !18488 !, 1or as re>uired6$ on t$e
!se+on) 1or as re>uired6$ "usiness )!< !fter t$e (ri+e (!<!"#e $!s "een !%ree) or )eter,ine) in !++or)!n+e
2it$ t$e (rovisions of +#!use 104 (or su+$ ot$er ti,e !n)Eor (#!+e !s t$e (!rties to t$e s!#e !n) (ur+$!se ,!<
!%ree) !n) in res(e+t of 2$i+$ t$e (rovisions of +#!uses 104*> 1040> 1041 !n) 1043 s$!## t$en $!ve effe+t4
104* At !n< +o,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to !eit$er$ +#!use !1& or$ 10 of t$is !%ree,ent
in return for ! "!nCersA )r!ft )r!2n on ! Lon)on +#e!rin% "!nC (or su+$ ot$er ,e!ns of (!<,ent 2$i+$ is
!%ree) "< t$e se##er) for t$e fu## !,ount of t$e (ur+$!se ,one< for t$e s$!res "ein% "ou%$t !n) so#)
()eter,ine) in !++or)!n+e 2it$ t$e res(e+tive (rovisions of +#!use !1& or$ 10 !(!s !((#i+!"#e)$ !n) su+$ ot$er
!,ounts !s !re referre) to in +#!use 1040 "e#o2> t$e se##er(s) s$!## )e#iver to t$e (ur+$!ser(s) )u#< e9e+ute)
s$!re tr!nsfers for t$e s$!res "ein% so#) in f!vour of t$e (ur+$!ser(s) (in !++or)!n+e 2it$ t$eir res(e+tive
entit#e,ents) or !s t$e< ,!< )ire+t to%et$er 2it$ t$e re#!tive s$!re +ertifi+!te(s) t$erefor (or !n !++e(t!"#e
in)e,nit< in #ieu of t$e,)4 An< s$!res so#) un)er or (ursu!nt to t$e !"ove (rovisions s$!## "e so#) free of !##
#iens +$!r%es !n) en+u,"r!n+es !n) to%et$er 2it$ !## ri%$ts t$en or su"se;uent#< !tt!+$in% to t$e, !n) t$e
se##er s$!## se## t$e s!,e 2it$ fu## tit#e %u!r!ntee !"ut s$!## not "e o"#i%e) to enter into !n< ot$er %u!r!ntees
2!rr!nties or in)e,nities$4
!1,(/$
!1040 If !n< (!rt< or (!rties (in)ivi)u!##< or (if ,ore t$!n one) to%et$er Dt$e Out%oin% /!rt<A) s$!## e#e+t or "e+o,e
"oun) to tr!nsfer !## its s$!res in t$e Co,(!n< to !n< ot$er (!rt< or (!rties un)er or (ursu!nt to t$e !"ove
(rovisions of +#!use !1& or$ 10 su+$ ot$er (!rt< or (!rties s$!## u(on or i,,e)i!te#< (rior to +o,(#etion of
su+$ tr!nsfer (ro+ure:
(A) t$e i,,e)i!te re#e!se of !## %u!r!ntees (if !n<) %iven "< t$e Out%oin% /!rt< in f!vour or for t$e
"enefit of t$e Co,(!n< un)er or (ursu!nt to +#!use 1 (!n) (en)in% su+$ re#e!se s$!## in)e,nif<
!n) Cee( t$e Out%oin% /!rt< fu##< !n) effe+tive#< in)e,nifie) fro, !n) !%!inst !## +#!i,s !risin%
un)er t$e,) !n)
(-) t$e i,,e)i!te re(!<,ent to t$e Out%oin% /!rt< of !## ,one< !)v!n+e) to t$e Co,(!n< un)er or
(ursu!nt to +#!use 1 "< t$e Out%oin% /!rt< "< 2!< of #o!n or #o!n sto+C !n) t$en outst!n)in% (if
!n<) to%et$er 2it$ !## interest (if !n<) )o2n to t$e )!te of !+tu!# (!<,ent (!s 2e## "efore !s !fter
ju)%e,ent)4$
!1041 If !n< (!rt< s$!## +e!se to "e ! s$!re$o#)er in t$e Co,(!n<> !n) t$e +or(or!te n!,e of t$e Co,(!n< or !n<
(!rt of it +ont!ins !n< 2or) or 2or)s t$e s!,e !s or si,i#!r to t$e +or(or!te n!,e or !n< )istin+tive (!rt of
t$e +or(or!te n!,e of t$!t s$!re$o#)er> t$e re,!inin% (!rt< or (!rties s$!## (ro+ure t$!t 2it$in &8 )!<s of t$e
(!rt< +e!sin% to "e ! s$!re$o#)er t$e +or(or!te n!,e of t$e Co,(!n< s$!## "e +$!n%e) so !s to e9+#u)e t$!t
2or) or t$ose 2or)s4$
6
1043 !C#!use 1& !n) t$is +#!use 10 )o 1or6 T$is +#!use 10 )oes$ not !#ter !n< (rovision or (rovisions +ont!ine) in
t$e !rti+#es of !sso+i!tion of t$e Co,(!n< restri+tin% t$e tr!nsfer of s$!res4 .o2ever> t$e (!rties s$!##
e9er+ise !## votin% !n) ot$er ri%$ts !v!i#!"#e to t$e, to ensure t$e i,(#e,ent!tion of t$e fore%oin% (rovisions
of !+#!use 1& !n)$ t$is +#!use 10> !n) !n< (rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion of t$e Co,(!n<
restri+tin% tr!nsfers of s$!res !re 2!ive) or sus(en)e) to !##o2 s!#es !n) (ur+$!ses to (ro+ee) !s (rovi)e)
!"ove !n) t$e (!rties s$!## (ro+ure t$e re%istr!tion of !n< su+$ tr!nsfer of !n< s$!res in t$e Co,(!n<
!++or)in%#<
&8
4
!1,("$
!1. 4arranties
F 2!rr!nts !n) re(resents to ? !n) R t$!t i,,e)i!te#< (rior to t$e e9e+ution of t$is !%ree,ent:
(A) t$e (!rti+u#!rs re#!tin% to t$e Co,(!n< set out in re+it!# (-) !re true !n) !++ur!te in !## res(e+tsH
(-) t$e Co,(!n<:
(1) $!s not tr!)e)H
() $!s no !ssets> +ontr!+ts> or e,(#o<ees or in)e"te)ness or !n< ot$er #i!"i#ities 2$et$er
!+tu!# or +ontin%ent> ;u!ntifie) or un;u!ntifie)> )is(ute) or un)is(ute) or ot$er2iseH
(&) $!s not )e+#!re) !n< )ivi)en)s or ot$er )istri"utionsH
(*) $!s not (re(!re) !n< !++ountsH !n)
(0) $!s +o,(#ie) 2it$ !## re#ev!nt re;uire,ents of t$e Co,(!nies A+t 16504$
&1
!1,(2$
1/ 3upremacy and 'eneral coenants
1341 If !n< (rovisions of t$e ,e,or!n)u, or !rti+#es of !sso+i!tion of t$e Co,(!n< !t !n< ti,e +onf#i+t 2it$ !n<
of t$e (rovisions of t$is !%ree,ent> t$e (rovisions of t$is !%ree,ent s$!## (rev!i# "< t$e ,e!ns set out in t$e
fo##o2in% senten+e4 T$e (!rties s$!## 2$enever ne+ess!r<> in+#u)in% in t$e +!se referre) to in t$e (re+e)in%
senten+e> e9er+ise !## votin% !n) ot$er ri%$ts !n) (o2ers !v!i#!"#e to t$e, to (ro+ure t$e !#ter!tion of t$e
,e,or!n)u, or !rti+#es of !sso+i!tion or "ot$ to t$e e9tent ne+ess!r< to (er,it t$e Co,(!n< !n) its !ff!irs
to "e +!rrie) out !s (rovi)e) in t$is !%ree,ent4 :or t$e !voi)!n+e of )ou"t> t$e ,e,or!n)u, !n) !rti+#es of
!sso+i!tion of t$e Co,(!n< )o not +onf#i+t !n) !re not to "e tre!te) !s +onf#i+tin% 2it$ !n< (rovision of t$is
!%ree,ent "< 2$i+$ t$e (!rties !%ree to (ro+ure t$!t !n<t$in% "e or "e not )one4
134 E!+$ of t$e (!rties s$!## e9er+ise !## votin% ri%$ts !n) ot$er (o2ers of +ontro# !v!i#!"#e to t$e, in re#!tion to
t$e Co,(!n< !n) t$eir "enefi+i!# s$!re$o#)in%s in it so !s to (ro+ure (so f!r !s e!+$ is res(e+tive#< !"#e "<
t$e e9er+ise of t$ose ri%$ts !n) (o2ers) t$!t !t !## ti,es )urin% t$e ter, of t$is !%ree,ent t$e (rovisions
+on+ernin% t$e stru+ture !n) or%!nis!tion of t$e Co,(!n< !n) t$e re%u#!tion "< t$e (!rties of its !ff!irs set
out in t$is !%ree,ent !re )u#< o"serve) !n) %iven fu## for+e !n) effe+t !n) !## !+tions re;uire) of t$e (!rties
un)er t$is !%ree,ent !re +!rrie) out in ! ti,e#< ,!nner4 7it$out (reju)i+e to t$e %ener!#it< of t$e fore%oin%
e!+$ (!rt< s$!## (ro+ure t$!t e!+$ of its no,inees 2$o !re s$!re$o#)ers in t$e Co,(!n< !n) (su"je+t to t$eir
fi)u+i!r< )uties) e!+$ of t$e )ire+tors !((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use
or & !"ove or "ot$ s$!## e9e+ute !n) )o !## su+$ !+ts !n) t$in%s !n) %ive !n) +onfer !## su+$ (o2ers !n)
!ut$orities !s t$e< 2ou#) $!ve "een re;uire) to e9e+ute> )o> %ive or +onfer $!) t$e< "een ! (!rt< to t$is
!%ree,ent !n) $!) +oven!nte) in t$e s!,e ter,s !s t$e (!rt< for 2$i+$ t$e< !re ! no,inee (if ! s$!re$o#)er)
or 2$i+$ !((ointe) t$e, (if ! )ire+tor)4
!134& Not2it$st!n)in% !n< ot$er (rovision of t$is !%ree,ent if !n< (!rt< !(or !n< ot$er (erson +onne+te) 2it$ !
(!rt<)$ s$!## "e in )is(ute 2it$ or s$!## $!ve ! +onf#i+t of interest 2it$ t$!t of t$e Co,(!n<> t$e (!rt< in its
+!(!+it< !s s$!re$o#)er s$!## not )o !n<t$in%> !n) s$!## (ro+ure t$!t t$e )ire+tor or )ire+tors !((ointe) or
)ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use & !"ove s$!## not )o !n<t$in% or o,it to )o
!n<t$in%> 2$i+$ 2ou#) or "e #iCe#< to (revent t$e Co,(!n< fro, e9er+isin% or fro, )e+i)in% 2$et$er or not
to e9er+ise su+$ ri%$ts !s it ,!< $!ve in res(e+t of t$e ,!tter or !%!inst t$e (!rt< !(or (erson +onne+te) 2it$
it)$ in ;uestion4$
!1,)#$
1" 8eneral
1541 E!+$ of t$e (!rties s$!## (ro+ure t$!t it s$!## "e ! +on)ition of t$e s!#e> tr!nsfer or ot$er )is(osition of !n<
s$!res in t$e Co,(!n< for t$e ti,e "ein% #e%!##< or "enefi+i!##< o2ne) "< !$i, 1or6 it$> or of !n< interest in
t$e,> in f!vour of !n< (erson (Dt$e Tr!nsfereeA) 2$o is not ! (!rt< to t$is !%ree,ent t$!t t$e s!#e> tr!nsfer or
ot$er )is(osition ("ein% one 2$i+$ is ot$er2ise (er,itte) un)er or (ursu!nt to t$e (rovisions of +#!use 141
!"ove) s$!## not "e effe+te) un#ess t$e Tr!nsferee (!n) !n< ot$er (erson 2$o 2i## in +onse;uen+e of t$e
tr!nsfer or ot$er )is(os!# $!ve !n< "enefi+i!# interest in t$e s$!res +on+erne)) s$!## first enter into !n
un)ert!Cin% 2it$ !## t$e ot$er (!rties to t$is !%ree,ent !!n) 2it$ !## ot$er (ersons 2$o !re for t$e ti,e "ein%
"oun) "< t$is !%ree,ent !n) 2i## re,!in so !fter t$e s!#e> tr!nsfer or ot$er )is(osition$> 2$ere"< t$e
Tr!nsferee !%rees to "e "oun) !n) to +o,(#< 2it$ !## t$e (rovisions of t$is !%ree,ent "in)in% u(on $is
tr!nsferor (ot$er t$!n !n< 2$i+$ i,(ose ! (erson!# o"#i%!tion u(on $is tr!nsferor 2$i+$ is not !#so
un)ert!Cen "< e!+$ of t$e ot$er (!rties to t$is !%ree,ent !n) !n< 2!rr!nties %iven "< $is tr!nsferor)4 T$e
un)ert!Cin% s$!## "e in t$e for, (!s ne!r#< !s +ir+u,st!n+es 2i## (er,it) set out in t$e s+$e)u#e "e#o2 !n) t$e
(!rties s$!## !#so (ro+ure t$!t no s$!res of t$e Co,(!n< s$!## "e issue) e9+e(t u(on t$e +on)ition t$!t t$e
(erson to 2$o, t$e s$!res !re to "e issue) !n) !n< (erson 2$o 2i##> fo##o2in% t$e issue> $!ve !n< "enefi+i!#
interest in t$e s$!res issue)> s$!## !#so enter into su+$ !n un)ert!Cin%4
154 T$e (erson!# re(resent!tives of !n< )e+e!se) (!rt< !n) !## ot$er su++essors to t$e (!rties to t$is !%ree,ent>
to%et$er 2it$ e!+$ (erson enterin% into !n un)ert!Cin% in t$e for, re;uire) "< +#!use 1541 s$!## !uto,!ti+!##<
"e+o,e entit#e) to t$e "enefit of t$is !%ree,ent !s if $e 2!s n!,e) in it in (#!+e of t$e (!rt< 2$o ori%in!##<
$e#) t$e s$!res in 2$i+$ $e is intereste) !n) !## referen+es to ! (!rt< to t$is !%ree,ent or Dt$e (!rtiesA or !n<
si,i#!r e9(ression s$!## fro, su+$ )!te "e +onstrue) !++or)in%#<4
!1,)1$
154& A (!rt< to t$is !%ree,ent or !n< su++essor or (er,itte) !ssi%n of ! (!rt< 2$o +e!ses to "e #e%!##< !n)
"enefi+i!##< entit#e) to !n< s$!res of t$e Co,(!n< !n) 2$o $!s +o,(#ie) 2it$ +#!use 1541 !n) !## ot$er
!((#i+!"#e (rovisions of t$is !%ree,ent re#!tin% to t$e tr!nsfer of t$e s$!res (in+#u)in%> 2it$out #i,it> +#!use
141) s$!## (su"je+t !s (rovi)e) in +#!use 1*41) +e!se to "e "oun) "< t$is !%ree,ent> 2it$ t$e e9+e(tion of
+#!uses !64>$ !64&>$ !64*>$ 18 !n) 114
154* T$is !%ree,ent s$!## "e +!(!"#e of "ein% !,en)e) "< !n instru,ent e9e+ute) "< !## t$e (!rties for t$e ti,e
"ein%4
1540 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t (o2er or re,e)< veste) in !n< (!rt< un)er
or (ursu!nt to t$is !%ree,ent s$!## +onstitute ! 2!iver "< t$!t (!rt< of t$!t or !n< ot$er ri%$t (o2er or
re,e)<4
1541 Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties (or !n< of t$e,)
nor +onstitute !n< (!rt< or (!rties t$e !%ent of t$e ot$er (!rt< or (!rties or ot$er2ise entit#e !n< (!rt< to $!ve
!ut$orit< to "in) !n< ot$er (!rt< or (!rties for !n< (ur(ose
&
4
1543 E!+$ (!rt< s$!## "e!r its o2n +osts of or in +onne+tion 2it$ t$e (re(!r!tion !n) e9e+ution of t$is !%ree,ent4
1545 No (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
st!te,ent or )is+#osure +on+ernin% t$is !%ree,ent or !n< of t$e tr!ns!+tions +onte,(#!te) in it 2it$out t$e
(rior 2ritten +onsent of t$e ot$er (!rt< or (!rties !(e9+e(t !s re;uire) "< t$e Sto+C E9+$!n%e 2$en t$e (!rt<
s$!## first su((#< ! +o(< of t$e st!te,ent> re#e!se or )is+#osure to t$e ot$er (!rt< or (!rties !n) s$!##
in+or(or!te !n< !,en),ents or !))itions re!son!"#< re;uire) "< !$i, 1or6 it$ or t$e,$4
!1,)%$
1546 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ it or referre)
to in it) +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to t$e su"je+t ,!tter of it !n)
su(erse)es !## (rior !%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to t$!t su"je+t ,!tter4
No v!ri!tion of t$is !%ree,ent s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of !
)u#< !ut$orise) re(resent!tive of e!+$ of t$e (!rties> "ut su"je+t to +#!use 154*4
15418 If !n< ter,> +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e #!2> st!tute or
re%u#!tion it s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n) effe+t !n) t$is
!%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if t$!t ter,> +on)ition or (rovision $!) not ori%in!##< "een
+ont!ine) in t$is !%ree,ent4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< su+$ )e#etion t$e (!rties
s$!## ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n) s!tisf!+tor< !#tern!tive
(rovision in (#!+e of t$e (rovisions so )e#ete)4
15411 T$is !%ree,ent ,!< "e e9e+ute) in !n< nu,"er of +ounter(!rts or )u(#i+!tes e!+$ of 2$i+$ s$!## "e !n
ori%in!#> "ut t$e +ounter(!rts or )u(#i+!tes s$!## to%et$er +onstitute one !n) t$e s!,e !%ree,ent4
1541 Ti,e s$!## "e of t$e essen+e for t$e (ur(oses of !n< (rovision of t$is !%ree,ent4
!1,)($
12 Notices
1641 An< noti+e to "e %iven "< !n< (!rt< to t$is !%ree,ent s$!## "e in 2ritin% !n) s$!## "e )ee,e) )u#< serve) if
)e#ivere) (erson!##< or sent "< f!9 or "< (re(!i) re%istere) (ost (!ir,!i# in t$e +!se of !n !))ress for servi+e
outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or (!s t$e +!se ,!< "e) or f!9 nu,"er of t$!t
(!rt< set o((osite its n!,e "e#o2:
F 1insert address and .a7 number6
? 1insert address and .a7 number6
R 1insert address and .a7 number6
or !t !n< ot$er !))ress (or f!9 nu,"er) t$e (!rt< to "e serve) ,!< $!ve notifie) (in !++or)!n+e 2it$ t$e
(rovisions of t$is +#!use) for t$e (ur(oses of t$is !%ree,ent4
164 An< noti+e sent "< f!9 s$!## "e )ee,e) serve) 2$en )es(!t+$e) !n) !n< noti+e serve) "< (re(!i) re%istere)
(ost s$!## "e )ee,e) serve) *5 $ours !fter (ostin% to !n !))ress in t$e Unite) Bin%)o, or> 2$ere serve) "<
!ir,!i#> !0 )!<s 1or as re>uired6$ !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,4 In (rovin% t$e
servi+e of !n< noti+e it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s (ro(er#< st!,(e)>
!))resse) !n) (#!+e) in t$e (ost or )e#ivere) or #eft !t t$e +urrent !))ress if )e#ivere) (erson!##< !n)> in t$e
+!se of ! f!9> t$!t t$e f!9 2!s )u#< )es(!t+$e) to t$e f!9 nu,"er of t$e !))ressee %iven !"ove or
su"se;uent#< notifie) for t$e (ur(oses of t$is !%ree,ent4
!1,))$
%# :a0 and jurisdiction
841 T$is !%ree,ent s$!## "e %overne) "<> !n) +onstrue) in !## res(e+ts in !++or)!n+e 2it$> En%#is$ #!24
84 In re#!tion to !n< #e%!# !+tion or (ro+ee)in%s to enfor+e t$is !%ree,ent or !risin% out of or in +onne+tion 2it$
t$is !%ree,ent (D(ro+ee)in%sA) e!+$ of t$e (!rties irrevo+!"#< su",its to t$e juris)i+tion of t$e En%#is$ +ourts
!n) 2!ives !n< o"je+tion to (ro+ee)in%s in t$ose +ourts on t$e %roun)s of venue or on t$e %roun)s t$!t t$e
(ro+ee)in%s $!ve "een "rou%$t in !n in+onvenient foru,4
84& T$ese su",issions s$!## not !ffe+t t$e ri%$t of !n< (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!##
t$e t!Cin% of (ro+ee)in%s in !n< juris)i+tion (re+#u)e !n< (!rt< fro, t!Cin% (ro+ee)in%s in !n< ot$er
juris)i+tion4
!84* 1.orei!n part,6 irrevo+!"#< !((oints 1process a!ent66 of 1address6 !s its (ro+ess !%ent to re+eive on its "e$!#f
servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n)4 Servi+e s$!## "e )ee,e) +o,(#ete) on )e#iver< to t$e
(ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If for !n< re!son t$!t
(ro+ess !%ent +e!ses to "e !"#e to !+t !s (ro+ess !%ent> or no #on%er $!s !n !))ress in En%#!n)> 1.orei!n
part,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e ot$er (!rt< or (!rties !n) to
)e#iver to !$i, 1or6 it$ or t$e, ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent 2it$in &8
)!<s4$
!840 1.orei!n part,6 irrevo+!"#< +onsents to !n< (ro+ess in !n< (ro+ee)in%s !n<2$ere "ein% serve) in !++or)!n+e
2it$ t$e (rovisions of t$is !%ree,ent re#!tin% to t$e servi+e of noti+es4 Su+$ servi+e s$!## "e+o,e effe+tive
&8 )!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is !%ree,ent s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n<
ot$er ,!nner (er,itte) "< #!24$
&&
!1,),$
AS 7ITNESS et+
SC.EDULE
:or, of un)ert!Cin% re;uire) on tr!nsfer of s$!res
T.IS DEED is ,!)e t$e TTT )!< of TTTT -ET7EEN
(1) 1name6 of 1address6 (Dt$e Ne2 S$!re$o#)erA)H !n)
() T$e (ersons 2$ose n!,es !n) !))resses !((e!r in t$e s+$e)u#e "e#o2 (Dt$e E9istin% S$!re$o#)ersA)4
7.EREAS
(A) 1recite date and parties to /oint venture a!reement6 (Dt$e Joint Venture A%ree,entA)
(-) 1recite an, previous deeds adherin! to the /oint venture a!reement and an, releases .rom it6
(C) T$e Ne2 S$!re$o#)er $!s "e+o,e entit#e) to !! tr!nsfer of 1or6 "e issue) 2it$$ 1state number and class6
or)in!r< s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<
(D) It is ! ter, of t$e Joint Venture A%ree,ent t$!t no !tr!nsfer 1or6 issue$ of s$!res in t$e Co,(!n< s$!## "e
effe+te) un#ess t$e !tr!nsferee 1or6 t$e (erson to 2$o, su+$ s$!res !re to "e issue)$ s$!## $!ve first entere)
into ! )ee) in t$e for, of t$is )ee)4
NO7 T.IS DEED 7ITNESSES t$!t t$e Ne2 S$!re$o#)er +oven!nts 2it$ e!+$ of t$e E9istin% S$!re$o#)ers t$!t !2it$
effe+t fro, t$e )!te of t$is )ee)$ t$e Ne2 S$!re$o#)er 2i## "e "oun) "< !n) 2i## o"serve !n) (erfor, t$e ever<
(rovision of t$e Joint Venture A%ree,ent !"< 2$i+$ 1name o. out!oin! part,6 2!s "oun)$ in ever< 2!< !s if t$e Ne2
S$!re$o#)er $!) "een n!,e) in it !s ! (!rt< to it 2it$ t$e e9+e(tion of +#!uses 1insert numbers o. an, clauses which
contain personal obli!ations or warranties64
IN 7ITNESS et+
T.E SC.EDULE
1insert names and addresses o. e7istin! shareholders6
1si!nature 1or common seal6 o. the *ew #hareholder6
1si!natures o. witnesses6
1si!natures o. or on behal. o. the parties6
!1,).$
1
-efore usin% t$is (re+e)ent> +onsi)er!tion s$ou#) "e %iven to !## (ossi"#e !#tern!tive for,s of joint venture (e% (!rtners$i(s)> !n)
!)vi+e on t$e +or(or!te> t!9 !n) ot$er +onse;uen+es of t$e )ifferent stru+tures s$ou#) "e o"t!ine)4 Even on+e ! +or(or!te joint
venture ve$i+#e $!s "een !%ree) u(on> t$ere 2i## "e +or(or!te> t!9 !n) ot$er issues re#ev!nt to t$e tr!ns!+tion 2$i+$ 2i## not
ne+ess!ri#< "e )o+u,ente) in t$e joint venture !%ree,ent> "ut 2$i+$ nevert$e#ess s$ou#) "e +onsi)ere) "efore (re(!rin% t$e
joint venture !%ree,ent4 See :or, 1 J1081K !nte4
In +ert!in +ir+u,st!n+es it ,i%$t "e !((ro(ri!te for t$e entire !%ree,ent to "e ,!)e +on)ition!# on +ert!in fun)!,ent!#
t$in%s or (re'+on)itions $!((enin% e% t$e !2!r) of ! (!rti+u#!r +ontr!+t to t$e +o,(!n< or t$e %r!nt of ! (!rti+u#!r #i+en+e et+G
see :or, 1 J168K (ost4
:or t$e !rti+#es of !sso+i!tion inten)e) for use 2it$ t$is (re+e)ent see :or, * J1183K (ost4
T$is for, (resu((oses t$!t !n e9istin% +o,(!n< is "ein% use) !s t$e joint venture ve$i+#e4 :or !n !#tern!tive set of re+it!#s !n)
+#!use !((#i+!"#e for ! +o,(!n< not <et in+or(or!te) see :or,s 8 J1533K !n) :or, 1 J1535K (ost4
&
T$is )efinition is re;uire) on#< for t$e (ur(ose of t$e +onsortiu, re#ief (rovisions in +#!use 11 J10&8K (see note 10 "e#o2)4
!1,)/$
*
Note t$!t t$e )efinition of D+ontro#A in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *11 (*M** .!#s"ur<As St!tutes (*t$ E)n)
TAFATION) is ver< 2i)e !n) often resu#ts in ,ore t$!n one (erson $!vin% +ontro# of t$e s!,e +o,(!n<4 C!re s$ou#) "e t!Cen
to ensure in e!+$ inst!n+e 2$ere +ontro# is referre) to in t$e !%ree,ent t$!t t$is 2i)e )efinition ref#e+ts 2$!t is inten)e)
+o,,er+i!##<4 :or e9!,(#e> if t$e s *11 +ontro# test !((#ies to t$e +$!n%e of +ontro# (rovisions> t$en t$ese (rovisions 2i## !((#<
2$enever one of t$e ,u#ti(#e +ontro##ers +$!n%es4 In ,!n< +!ses> it ,!< "e ,ore !((ro(ri!te to use t$e n!rro2er )efinition
+ont!ine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 5*84
0
It is (ossi"#e to !voi) t$is so,e2$!t +o,(#e9 +#!use "< )ivi)in% t$e s$!re +!(it!# into or)in!r< s$!res of )ifferent +#!sses> one
for e!+$ (!rt< !n) t$en ens$rinin% t$e ri%$t to !((oint )ire+tors !s +#!ss ri%$ts of e!+$ se(!r!te +#!ss4 .o2ever> t$is !#so ent!i#s
su"st!nti!# !,en),ent to t$e !rti+#es of !sso+i!tionGsee :or, 11 +#!use J1513K (ost !n) :or, 15 J15*3K (ost4
1
Re%u#!tion 0& of T!"#e A 2$i+$ is in+or(or!te) in t$e !rti+#es of !sso+i!tion to "e use) in +onjun+tion 2it$ t$is for, (see :or, *
J1183K (ost) entit#es t$e s$!re$o#)ers of t$e +o,(!n< to (!ss reso#utions in 2ritin% si%ne) "< !## s$!re$o#)ers4 It s$ou#) "e note)
t$!t "e+!use s$!res $e#) "< e!+$ (!rt< !re not )ivi)e) into )ifferent +#!sses t$e !((oint,ent (!n) re,ov!#) "< ! s$!re$o#)er of
Dits o2nA )ire+tors re;uires t$e si%n!ture of !## s$!re$o#)ers4 Note !#so t$!t it is ne+ess!r< t$!t t$e !rti+#es of !sso+i!tion of t$e
+o,(!n< s$ou#) (er,it t$e !((oint,ent !n) re,ov!# of )ire+tors "< or)in!r< reso#ution> !s )o t$e )r!ft !rti+#es of !sso+i!tion
!tt!+$e) (see :or, * J1183K (ost)4
!1,)"$
3
C#!use &41 J1016K +!n "e )e#ete) if it is not inten)e) t$!t t$e res(e+tive ri%$ts of t$e (!rties to !((oint )ire+tors 2i## "e re)u+e)
or +urt!i#e) if t$eir res(e+tive s$!re$o#)in%s !re re)u+e)4
5
In ,ost !%ree,ents e!+$ of t$e (!rties !ssu,es s(e+ifi+ o"#i%!tions in re#!tion to t$e joint +o,(!n<4 T$ese ,i%$t in+#u)e t$e
tr!nsfer of s(e+ifi+ !ssets or ri%$ts to t$e Co,(!n< or t$e #i+ensin% or %r!nt of t$e ri%$t to use su+$ !ssets or ri%$ts (e% $ive'
)o2n of !ssets> te+$no#o%< or inte##e+tu!# (ro(ert< #i+en+e or (re,ises #e!se or #i+en+e !%ree,ent) or (er$!(s t$e (rovision of
(ersonne#4 E!+$ joint venture is> in t$is res(e+t> uni;ue !n) t$is +#!use 2i## !++or)in%#< re;uire in)ivi)u!# Dt!i#orin%A to ,eet t$e
re;uire,ents of e!+$ +!se4
It is +o,,on for t$e (!rti+i(!nts of t$e joint venture to +ontri"ute e9istin% !ssets or ! "usiness to t$e joint venture ve$i+#e4
7$ere t$is !,ounts tot $e s!#e of t$e !sset or "usiness t$e +ontr!+t re#ev!nt +ontr!+t or +onve<!n+e ,!< "e +$!r%e!"#e to st!,(
)ut< in res(e+t of st!,(!"#e !ssets> for inst!n+e> %oo)2i##> "ooC )e"ts> inte##e+tu!# or re!# (ro(ert<4 In su+$ +!ses it 2i## "e
ne+ess!r< to +onsi)er t$e "est ,et$o) of ,iti%!tin% t$e #i!"i#it< un)er t$e St!,( A+t 1561 s 06 "efore (re(!rin% t$e joint venture
!%ree,ent4
6
It is ;uite +o,,on for s$!re$o#)ers to (rovi)e #o!ns> #o!n +!(it!# !n)Eor %u!r!ntees or ot$er +o,,it,ents for #o!ns o"t!ine) "<
t$e +o,(!n< fro, t$ir) (!rties4 It 2i## "e i,(ort!nt to s(e+if< (re+ise#< 2$!t t$ese +o,,it,ents !re4 /ossi"#e for,s of +#!uses
!re set out "e#o2 in :or,s J1551K> & J155*K !n) * J1550K (ost> !#t$ou%$ !n< nu,"er of v!ri!tions is (ossi"#e in (r!+ti+e4
18
T$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *1&(5) (rovi)es t$!t for !n !++ountin% (erio) ! ,e,"erAs s$!re in ! +onsortiu,
s$!## "e #i,ite) to 2$i+$ever is t$e #o2est in t$!t (erio) ofG
(i) t$e (er+ent!%e of t$e or)in!r< s$!re +!(it!# of t$e surren)erin% or +#!i,!nt +o,(!n< 2$i+$ is "enefi+i!##< o2ne) "<
t$!t ,e,"erH
(ii) t$e (er+ent!%e to 2$i+$ t$!t ,e,"er is "enefi+i!##< entit#e) of !n< (rofits !v!i#!"#e for )istri"ution to e;uit< $o#)ers
of t$e surren)erin% or +#!i,!nt +o,(!n<H !n)
(iii) t$e (er+ent!%e to 2$i+$ t$!t ,e,"er 2ou#) "e "enefi+i!##< entit#e) of !n< !ssets of t$e surren)erin% or +#!i,!nt
+o,(!n< !v!i#!"#e for )istri"ution to its e;uit< $o#)ers on ! 2in)in% u(4
T$in +!(it!#is!tion 2i## on#< "e re#ev!nt 2$ere one of t$e s$!re$o#)ers is resi)ent in ! juris)i+tion outsi)e t$e UB4 T$!t
s$!re$o#)er ,!< 2is$ to in+#u)e +#!use 14 J101K to (revent ! situ!tion !risin% 2$ere"< interest (!<,ents re+eive) fro, t$e
+o,(!n< +ou#) "e re'+$!r!+terise) !s )istri"utions4 7it$ t$e !"o#ition of !)v!n+e +or(or!tion t!9 fro, 1 A(ri# 1666> t$is
(rovision ,!< "e+o,e #ess i,(ort!nt4 .o2ever> !n< re#!9!tion in t$is !re! 2i## "e offset "< t$e in+re!se) In#!n) Revenue fo+us
on tr!nsfer (ri+in% !n) t$e nee) to seeC tre!t< +onsent to (!< interest %ross> !n) s(e+ifi+ t!9 !)vi+e s$ou#) "e sou%$t on t$ese
issues in ! joint venture invo#vin% one or ,ore non'UB resi)ent (!rties4
!1,)2$
11
T$is #ist is> of +ourse> not e9$!ustive !n) so,e of t$e restri+tions ,!< not !#2!<s "e !((ro(ri!te in +ert!in +!ses4 It s$ou#) "e
re+o%nise) t$!t> for e9!,(#e> "< in+#u)in% re%u#!r "usiness )e+isions su+$ !s t$e !++ounts> "usiness (#!n> )ivi)en) (o#i+< et+4 !
ri%$t of veto is effe+tive#< "ein% %iven 2$i+$ ,i%$t en!"#e one or ,ore ,inorit< (!rties in ! ,u#ti'(!rt< joint venture to )i+t!te
su+$ (o#i+< )e+isions "< frustr!tin% t$e )e+isions of t$e ,!jorit<4 In t$ese +ir+u,st!n+es it ,i%$t "e !((ro(ri!te to in+#u)e so,e
for, of D)e!)#o+CA reso#ution (ro+e)ure4 See note 8 "e#o24
1
It 2i## "e !((re+i!te) t$!t !s )r!2n t$is is !n e9(ression of intention on#< !n) not ! "in)in% +o,,it,ent4
1&
Restri+tions of t$is t<(e on t$e (!rt of t2o or ,ore (!rties re;uire +!refu# +onsi)er!tion of t$e !((ro(ri!te +o,(etition #!2
+onse;uen+es4
1*
Consortiu, re#ief is ! re#!9!tion fro, t$e nor,!# UB ru#e t$!t t!9 tr!)in% #osses +!n on#< "e surren)ere) intr!'%rou( if t$ere is !
30L +o,,on o2ners$i(4 If t$e +o,(!n< is o2ne) "< ! +onsortiu,> one of t$e "enefits is t$!t su+$ #osses (!n) +ert!in ot$er t!9
re#iefs) +!n "e surren)ere) (ro'r!t! to or fro, t$e s$!re$o#)ers "< or to t$e +o,(!n<4 A furt$er "enefit of ! +onsortiu, is t$!t
interest !n) !nnu!# (!<,ents +!n "e (!i) 2it$out )e)u+tion of in+o,e t!9 !n) )ivi)en)s +!n "e (!i) free of !)v!n+e +or(or!tion
t!9 un)er %rou( in+o,e e#e+tions (see note 13 "e#o2)4
To ;u!#if< !s ! +onsortiu,> t2o or ,ore UB resi)ent +o,(!nies ,ust o2n !t #e!st 30L of t$e or)in!r< s$!re +!(it!# of t$e
+o,(!n<> 2it$ e!+$ o2nin% not #ess t$!n 0L of t$e or)in!r< s$!re +!(it!#4 T$e !"i#it< to surren)er or +#!i, #osses et+ is !#so
e9ten)e) to t$e +o,(!n<As 68L tr!)in% su"si)i!ries4 Consortiu, re#ief ,!< !#so "e !v!i#!"#e to +ert!in +o,(!nies in t$e s!,e
30L %rou( !s t$e +onsortiu, ,e,"ers4 I,(ort!nt )efinitions !n) inter(ret!tion (rovisions !re +ont!ine) in t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 ss *8M*1&> S+$ 154 Note t$!t if ! s$!re$o#)er $o#)s its s$!res !s tr!)in% sto+C> it +!nnot +#!i,
+onsortiu, re#ief "ut t$is )oes not "re!C t$e +onsortiu,4
T$e (rovisions in +#!use 11 J10&8K !re )esi%ne) to ensure t$!t t$e +o,(!n< is tre!te) !s UB t!9 resi)ent !n) t$!t t$e
re;uire,ents to o"t!in +onsortiu, re#ief !n) to ,!Ce %rou( in+o,e e#e+tions !re ,et4 Det!i#e) t!9 !)vi+e s$ou#) !#2!<s "e
t!Cen on t$e effe+t of +#!use 114
If +onsortiu, re#ief is not i,(ort!nt to t$e tr!ns!+tion (e% "e+!use one or ,ore of t$e (!rties !re non'UB resi)ent !n) $o#)
,ore t$!n 0L of t$e +o,(!n<As s$!re +!(it!#> so t$!t +onsortiu, re#ief 2ou#) not "e !v!i#!"#e in !n< event)> t$en +#!uses
1141(-) !n) (C) J10&8K !n) 114 J10&1K +ou#) "e )e#ete)4 In (r!+ti+e t$is is un#iCe#< to "e t$e +!se> "e+!use 2$ere t$ere is ! joint
venture "et2een ! UB +o,(!n< !n) ! forei%n entit< 2it$ t$e UB +o,(!n< "rin%in% #o+!# e9(ertise> t$e UB +o,(!n< 2i##
nor,!##< insist t$!t t$e forei%n joint venturer invests in t$e joint venture vi! ! UB su"si)i!r<4 In t$ese +ir+u,st!n+es> t$e forei%n
joint venturer 2i## re;uire !)vi+e on> inter !#i!> fin!n+in% its invest,ents in t$e joint venture> )ivi)en) !n) interest re(!tri!tion
!n) +!(it!# %!ins t!9 ,iti%!tion on )is(os!#4
If t$ere is no +onsortiu, !n) no (!rt< o2ns !t #e!st 01L of t$e s$!re +!(it!# of t$e +o,(!n<> t$en %rou( in+o,e e#e+tions
(see note 13 "e#o2) 2i## not "e !v!i#!"#e !n) +#!uses 1141(A) J10&8K !n) 114& J10&K +ou#) !#so "e )e#ete)4
!1,,#$
10
C#!use 114(A) J10&1K (rovi)es for t$e +o,(!n< to surren)er its #osses et+ to t$e s$!re$o#)ers> in return for ! (!<,ent to t$e
+o,(!n< of t$e !,ount of t!9 s!ve) "< t$e surren)er4 As )r!fte)> e!+$ s$!re$o#)er +!n re;uire t$e +o,(!n< to ,!Ce ! surren)er
of t$e !((ro(ri!te (ro(ortion of its #osses et+ (even if> for e9!,(#e> t$e ot$er s$!re$o#)ers 2ou#) (refer t$e +o,(!n< to uti#ise
t$ese #osses et+ in !not$er 2!<)4 T$is ,!< not "e !((ro(ri!te in !## +!ses !n) so,eti,es t$is (rovision is !,en)e) so t$!t
surren)ers +!n on#< "e ,!)e on+e t$e +o,(!n< $!s no furt$er use for t$e #osses et+ (ot$er t$!n "< +!rr<in% t$e, for2!r)) or
2it$ t$e +onsent of t$e ot$er s$!re$o#)ers4
C#!use 114(-) J10&1K (rovi)es for t$e s$!re$o#)ers to surren)er t$eir #osses et+ to t$e +o,(!n< in return for ! (!<,ent "<
t$e +o,(!n< of t$e !,ount of t!9 s!ve) "< t$e surren)er4 As )r!fte)> t$e s$!re$o#)ers +!n re;uire t$e +o,(!n< to !++e(t su+$
surren)ers in (riorit< to !n< ot$er t!9 re#iefs t$e +o,(!n< ,!< $!ve to s$e#ter its t!94 A%!in> t$is ,!< not "e !((ro(ri!te in !##
+!ses !n) so,eti,es t$is (rovision is !,en)e) so t$!t t$e +o,(!n< is on#< o"#i%e) to !++e(t su+$ surren)ers on+e !n< ot$er t!9
re#iefs !v!i#!"#e to it $!ve "een uti#ise)> or 2it$ t$e +onsent of t$e ot$er s$!re$o#)ers4
7$ere t$e !++ountin% referen+e )!tes of t$e s$!re$o#)ers of t$e +o,(!n< !re t$e s!,e> t$!t )!te 2i## nor,!##< !#so "e
+$osen !s t$e !++ountin% referen+e )!te of t$e +o,(!n<4 .o2ever> 2$ere t$e s$!re$o#)ers $!ve )ifferent !++ountin% referen+e
)!tes> +onsi)er!tion s$ou#) "e %iven to t$e ,ost !((ro(ri!te )!te for t$e +o,(!n<As !++ountin% referen+e (erio) !s +onsortiu,
re#ief is %iven !++or)in% to t$e +o,(!n<As !++ountin% (erio)4
A s<ste, of +or(or!tion t!9 (!<,ent "< inst!#,ents is "ein% intro)u+e) fro, A(ri# 1666 for #!r%e +o,(!nies ("ro!)#<>
+o,(!nies or %rou(s 2it$ t!9!"#e (rofits in e9+ess of O140 ,i##ion ! <e!r)4 On+e t$e (re+ise )et!i#s of t$e ne2 s<ste, !re
Cno2n> it ,!< "e !)vis!"#e to !,en) t$e (!<,ent )!tes in +#!uses 114(A) !n) (-) J10&1K for joint ventures invo#vin% #!r%e
+o,(!nies to %ive %re!ter (re+ision in t$e #i%$t of t$e +$!n%es4
See !#so note 8 on t$e effe+ts of t$e tr!nsfer> )e!)#o+C !n) ter,in!tion (rovisions on t$e !v!i#!"i#it< of +onsortiu, re#ief4
!1,,1$
11
T$is (rovision +ou#) !#so "e e9ten)e) to (rovi)e for interest on #!te (!<,ent of su,s )ue un)er +#!use 114
13
C#!use 114& J10&K (rovi)es for t$e +o,(!n< to ,!Ce !((ro(ri!te %rou( in+o,e e#e+tions so t$!t (!<,ents of )ivi)en)s> interest
et+ +!n "e ,!)e "< t$e +o,(!n< to its +onsortiu, ,e,"ers or ! 01L s$!re$o#)er 2it$out !++ountin% for !)v!n+e +or(or!tion
t!9 or )e)u+tin% !n< 2it$$o#)in% t!94 Note t$!t !)v!n+e +or(or!tion t!9 is to "e !"o#is$e) 2it$ effe+t fro, 1 A(ri# 1666> !fter
2$i+$ )!te +#!use 114&(-)(1) J10&K +!n "e )e#ete)4 .o2ever> +#!use 114&(-)() J10&K 2i## re,!in re#ev!nt if t$ere is !
+onsortiu, or if !n< s$!re$o#)er $o#)s !t #e!st 01L of t$e +o,(!n<As or)in!r< s$!re +!(it!#4
15
It 2i## not nor,!##< "e !((ro(ri!te for t$e +o,(!n< to "e VAT %rou(e) 2it$ !n< of its s$!re$o#)ers> !#t$ou%$ ! VAT %rou(
"et2een t$e +o,(!n< !n) !n< su"si)i!ries it $!s 2ou#) often "e )esir!"#e4 .o2ever> t$e (referre) VAT %rou(in% (osition
s$ou#) "e !s+ert!ine) e!+$ ti,e t$e (re+e)ent is use)4
16
It ,!< "e !((ro(ri!te to !##o2 for
(A) (er,itte) tr!nsfers (e% intr! %rou() (see :or, 5 J168*K (ost) !n)Eor
(-) tr!nsfers in !++or)!n+e 2it$ !n< (re'e,(tion (rovisions in t$e !rti+#es of !sso+i!tion4 T$e !rti+#es of !sso+i!tion for
use 2it$ t$is :or, +ont!in (re'e,(tion (rovisions !s !n o(tion (see :or, * !rti+#e 3 J1111K (ost)4
!1,,%$
8
No s(e+ifi+ )e!)#o+C reso#ution +#!use is in+#u)e) !s Dst!n)!r)A in t$is (re+e)ent !#t$ou%$ 2$et$er !n< for, of )e!)#o+C
reso#ution +#!use is re;uire) in !n< %iven ,u#ti'(!rt< joint venture !%ree,ent 2i## "e one of t$e first !n) ,ost i,(ort!nt ,!tters
to "e !))resse)4 An< ri%$t of veto veste) in !n< (!rt< is usu!##< restri+te) to t$e t<(e of s(e+ifi+ ,!tters +ont!ine) in +#!use 3
J10K4 Ot$er t$!n t$!t> )e+isions !t "o!r) !n) s$!re$o#)er #eve# 2i## nor,!##< "e "< ,!jorit< )e+ision !n) !n< ,inorit< (!rt<
or (!rties ,ust !++e(t t$is %iven t$e siIe of t$eir interest4 One !#tern!tive o(en to ! ,inorit< in t$ese +ir+u,st!n+es is to #e!ve
t$e venture !n) tr!nsfer its s$!res !n) it is su%%este) t$!t it ,i%$t not "e !((ro(ri!te to $!ve !n !"so#ute restri+tion on s$!re
tr!nsfers in ,!n< ,u#ti'(!rt< joint ventures "ut t$!t t$e (re'e,(tion (ro+e)ure +ont!ine) in :or, * !rti+#e 3 J1111K (ost s$ou#)
"e !)o(te)4 T$e e9+e(tion 2ou#) of +ourse "e t$ose +!ses 2$ere t$e (erson!# n!ture of t$e res(e+tive (!rtiesA +ontri"utions
(re+#u)e it4 It is for +onsi)er!tion in e!+$ +!se 2$et$er t$e t<(e of ,!tters for in+#usion in +#!use 3 J10K (!n) over 2$i+$ it is
inten)e) !## or so,e of t$e (!rties $!ve ! ri%$t of veto) s$ou#) "e restri+te) to ,!jor )e(!rtures fro, t$e Dnor,!#A 2!< t$e (!rties
e9(e+t t$e venture to "e +on)u+te) or s$ou#) e9ten) to !## ,!tters t$e (!rties +onsi)er si%nifi+!nt fro, t$e outset "ut 2$i+$ !re
#iCe#< to re;uire !%ree,ent on ! re%u#!r "!sis (e% )ivi)en) (o#i+<> !((rov!# of !++ounts or "usiness (#!ns et+)4 If t$e #!tter> it
,i%$t "e !((ro(ri!te to +onsi)er ! )e!)#o+C reso#ution +#!use to reso#ve t$e situ!tion 2$ere> for e9!,(#e> one or ,ore ,inorit<
(!rties +ontinu!##< Dfrustr!tesA !+tions re;uire) to "e i,(#e,ente) on ! re%u#!r "!sis4 T$is ,i%$t !#so "e ne+ess!r< 2$ere> in #ess
+o,,on situ!tions> e!+$ (!rt< or its re(resent!tives nee) to "e (resent to !+$ieve ! ;uoru, eit$er !t "o!r) or s$!re$o#)er #eve#4
:or ! (ossi"#e (re+e)ent see :or, && J1686K (ost4
Consortiu, re#ief 2i## not "e !v!i#!"#e to t$e (!rties !n) t$e +o,(!n< fro, t$e outset of t$e joint venture if t$ere !re !t t$!t ti,e
D!rr!n%e,entsA in (#!+e for t$e +onsortiu, re#!tions$i( to "e "roCen4 T$ere is !++or)in%#< ! risC t$!t t$e tr!nsfer> )e!)#o+C or
ter,in!tion (rovisions in t$e joint venture !%ree,ent +ou#) !,ount to su+$ !rr!n%e,ents so t$!t +onsortiu, re#ief 2ou#) "e
un!v!i#!"#e4 .o2ever> !n In#!n) Revenue e9tr!'st!tutor< +on+ession (ESC C 18) !n) St!te,ent of /r!+ti+e (S/ &E6&) +onfir,
t$!t in (r!+ti+e in +ert!in +o,,on joint venture situ!tions !rr!n%e,ents 2i## not "e tre!te) !s "ein% in (#!+e unti# t$e re#ev!nt
tri%%erin% event o++urs> so t$!t t$e +onsortiu, is not "roCen unti# t$!t ti,e4 T$e tri%%erin% events to 2$i+$ t$e +on+ession
!((#ies in+#u)e:
(1) t$e vo#unt!r< )e(!rture of ! ,e,"er of t$e joint venture +o,(!n<H
() t$e +o,,en+e,ent of #i;ui)!tion> !),inistr!tion or re+eivers$i( of ! ,e,"erH
(&) ! serious )eterior!tion in t$e fin!n+i!# +on)ition of ! ,e,"erH
(*) ! +$!n%e in t$e +ontro# or o2ners$i( of ! ,e,"erH
(0) ! "re!+$ "< ! ,e,"er of t$e ter,s of ! s$!re$o#)ersA !%ree,ent or of t$e joint venture +o,(!n<As !rti+#es of
!sso+i!tionH
(1) !n e9tern!# +$!n%e in t$e +o,,er+i!# +ir+u,st!n+es in 2$i+$ t$e joint venture +o,(!n< o(er!tes so t$!t its vi!"i#it<
is serious#< t$re!tene)H
(3) unreso#ve) )is!%ree,ent !,on% t$e ,e,"ersH or
(5) !n< +ontin%en+< of ! si,i#!r Cin) (rovi)e) !%!inst> "ut not inten)e) to $!((en> 2$en t$e !%ree,ent 2!s entere) into4
!1,,($
T$e +on+ession!r< tre!t,ent 2i## !((#< 2$ere t$e joint venture !%ree,ent (rovi)es for t$e re,!inin% ,e,"ers to !+;uire t$e
s$!res of ! )e(!rtin% ,e,"er> or for ! )e(!rtin% ,e,"er to tr!nsfer its s$!res to t$e re,!inin% ,e,"ers> on t$e o++urren+e of !
tri%%erin% event> on t$e "!sis of:
(!) !n offer (ro r!t! to t$e re,!inin% ,e,"ersA s$!re$o#)in%s> 2it$ t$e (ri+e fi9e) "< !%ree,ent or in)e(en)ent
v!#u!tionH
(") ! +o,(etitive ten)er !,on% t$e re,!inin% ,e,"ersH
(+) ! re+i(ro+!# (ro+ess 2$ere"< ,e,"ers $!ve ,!t+$in% (ut !n) +!## o(tions over e!+$ ot$ersA s$!resH or
()) !n< ot$er !rr!n%e,ents )esi%ne) to ensure t$!t ! (ri+e !((ro(ri!te to t$e +o,,er+i!# +ir+u,st!n+es is stru+C4
As )r!fte)> t$e (rovisions set out in +#!uses 1* J10&&K !n) 10 J10&0K f!## 2it$in t$e ter,s of t$e +on+ession4 .o2ever> it is
i,(ort!nt to ensure t$!t t$is re,!ins t$e +!se if !n< !,en),ents !re ,!)e4
1
A#t$ou%$ unusu!# in t$e +!se of ! joint +o,(!n<> t$ere is no re!son 2$< t$e !%ree,ent s$ou#) not $!ve ! finite #ife4 :or !
(ossi"#e (re+e)ent see :or, 3 J168&K (ost4 .o2ever> +onsi)er!tion s$ou#) "e %iven !s to 2$!t 2i## $!((en u(on e9(ir< of t$e
re#ev!nt (erio) in re#!tion to t$e +o,(!n< !n) t$e (!rtiesA s$!re$o#)in%s et+4 T$e ,e+$!nis,s in +#!use 10 J10&0K ,!< "e
(refer!"#e to 2in)in% u(4
In t$e +!se of #i;ui)!tion or "!nCru(t+< it ,!< "e t$ou%$t (refer!"#e to re#< on t$e (rovision of t$e !rti+#es of !sso+i!tion un)er
2$i+$ t$e s$!res of t$e #i;ui)!te) or "!nCru(te) s$!re$o#)er $!ve to "e offere) u( for s!#e un)er t$e (re'e,(tion (rovisions4
!1,,)$
&
T$is (rovision 2i## on#< "e !((#i+!"#e 2$ere t$e joint venture +o,(!n< is o2ne) 2$o##< or (!rt#< "< in)ivi)u!#s !n) it is !n
i,(ort!nt fe!ture of t$e venture t$!t one or ,ore of t$e in)ivi)u!#s s$!## ,!Ce t$eir fu## ti,e servi+es !v!i#!"#e4 As )r!fte)> it
,!< "e re%!r)e) !s unf!ir in t$!t it +ou#) re;uire !n in)ivi)u!# to offer u( $is s$!res !fter "ein% 2ron%fu##< or unf!ir#<
)is,isse)4 E9e,(tions !re !#so often seen for ! D%oo) #e!verA 2$o retires or +e!ses to 2orC t$rou%$ i## $e!#t$> !#t$ou%$ it ,!<
"e +onsi)ere) t$!t ter,in!tion 2ou#) sti## "e !((ro(ri!te in t$ese +ir+u,st!n+es4
*
A +$!n%e of +ontro# (!s )efine) in t$e !%ree,ent) ,!< of +ourse "e Dinvo#unt!r<A !n) t$erefore it is for +onsi)er!tion 2$et$er it
s$ou#) %ive rise to ! ri%$t of ter,in!tion on t$e (!rt of t$e ot$er (!rt<4
0
As to t$e (ossi"#e effe+t of t$ese (rovisions on +onsortiu, re#ief see note 8 !"ove4
1
C#!use 1041 J10&0K nee)s +!refu# +onsi)er!tion in e!+$ +!se4 :or e9!,(#e> it ,i%$t "e !((ro(ri!te !s )r!2n if t$ere !re on#< or
& (!rties "ut it ,i%$t 2orC $!rs$#< if> in ! ,u#ti'(!rt< joint venture> one (!rt< (for e9!,(#e "e+!use of !n invo#unt!r< +$!n%e of
+ontro#) "e+!,e o"#i%!te) to (ur+$!se !## t$e interests of t$e re,!inin% !n) (ossi"#< ,ore su"st!nti!# s$!re$o#)ers4
Converse#<> t$e o"#i%!tion to se## s$!res (!n) $!ve !## #o!ns re(!i)) ,!< not in +ert!in +ir+u,st!n+es "e seen !s ! suffi+ient
in+entive not to "re!+$ t$e !%ree,ent et+4 In t$e #!st +!se it ,i%$t "e t$ou%$t )esir!"#e to (rovi)e for ! )ifferent for,u#! for
+!#+u#!tin% t$e (ur+$!se (ri+e in t$e event of "re!+$ t$!n in ot$er Dinvo#unt!r<A +ir+u,st!n+es !n) ! (rovision !#on% t$ese #ines
$!s "een in+#u)e) in t$e v!#u!tion for,u#!4 Ever<t$in% 2i## )e(en) on t$e nu,"er !n) siIe of t$e )ifferent s$!re$o#)in%s !n)
,!n< ot$er f!+tors4
3
A furt$er v!ri!tion 2ou#) "e to re;uire t$e ter,in!tee to offer to se## its s$!res to t$e re,!inin% (!rties (2$o 2ou#) not "e
re;uire) to (ur+$!se unti# t$e (ri+e $!) first "een !s+ert!ine)) or !#tern!tive#< to serve ! tr!nsfer noti+e in !++or)!n+e 2it$ t$e
!rti+#es of !sso+i!tion> if !((#i+!"#e: see :or, &* J161K (ost4
Ot$er ,e+$!nis,s for t$e (ur+$!se of ! (!rt<As s$!res +ou#) in+#u)e t$eir (ur+$!se "< t$e +o,(!n< or t$e so#i+it!tion of !
t$ir) (!rt< offer4 A +#!use +!terin% for t$ese (ossi"i#ities> !s furt$er !#tern!tives to t$e !+;uisition "< one or ,ore of t$e (!rties>
is set out in :or, &3 J1611K (ost4 Anot$er (ossi"i#it< is ! DTe9!s s$oot outAGsee :or,s &641 J1616KM&64& J161K (ost4
5
It is for +onsi)er!tion 2$et$er t$ere s$ou#) "e !n< !)just,ent to t$e (ur+$!se (ri+e in t$e event> for e9!,(#e> of ter,in!tion )ue
to t$e )ef!u#t of one (!rt<4 Su+$ !n !)just,ent $!s "een in+#u)e) in t$e v!#u!tion for,u#!4
!1,,,$
6
It ,!< "e !((ro(ri!te for ,ore so($isti+!te) (rovisions to "e inserte) in re#!tion to t$e use or e9(#oit!tion of t$e n!,e or tr!)e
,!rCs of eit$er of t$e (!rties if t$ese !re inten)e) to "e use) "< t$e +o,(!n< (e% ! for,!# tr!)e ,!rC #i+en+e)4
&8
&1
T$is is +#e!r#< on#< !((ro(ri!te if ! ne2#< for,e) or Doff t$e s$e#fA +o,(!n< is "ein% use) !s t$e joint venture ve$i+#e4 If !n<
ot$er t<(e of e9istin% +o,(!n< is "ein% use) (er$!(s !t t$e insisten+e of one (!rt< t$e ot$er(s) 2ou#) "e 2e## !)vise) to +onsi)er
2$< su+$ ! +o,(!n< is "ein% (ut for2!r) !n) if !n e9istin% +o,(!n< D2it$ ! $istor<A is !%ree) to "e use) !s t$e ve$i+#e t$e
ot$er(s) s$ou#) +ert!in#< +onsi)er ,ore e9tensive 2!rr!nties !n) in)e,nities4 T$e +#!use (or !n< v!ri!tion) is usu!##<
unne+ess!r< for ! +o,(!n< not <et for,e)4
&
T$e :in!n+e A+t 1665 s 185 (*M** .!#s"ur<As St!tutes (*t$ E)n) TAFATION) re(#!+e) t$e #e%is#!tion on tr!nsfer (ri+in% for
UB t!9 (ur(oses4 Un)er t$e ne2 ru#es> t$e +ir+u,st!n+es in 2$i+$ tr!nsfer (ri+in% !)just,ents +!n "e ,!)e in ! joint venture
situ!tion !re )eter,ine) in (!rt "< t$e re#!tions$i( "et2een t$e ,e,"ers of t$e joint venture4 A++or)in%#<> it $!s "e+o,e even
,ore re#ev!nt> in re#!tion to joint venture +o,(!nies 2it$ one or ,ore non'UB resi)ent s$!re$o#)ers> to est!"#is$ 2$et$er !n< of
t$e (!rties is !+tin% !s !%ent for !not$er (!rt<4 T$e +onfir,!tion in +#!use 1541 J10*K 2i## "e usefu# evi)en+e in (rovin% t$e
#!+C of su+$ !%en+< to t$e In#!n) Revenue> !#t$ou%$ not +on+#usive4
&&
C#!uses 84* !n) 840 J10*0K +!n "e )e#ete) if !## t$e (!rties !re "!se) in En%#!n)4
!1,,.$9!1,/#$
(
A'reement relatin' to the establishment and operation of a company as a joint enture companyGminority
protection; 0ith special class ri'hts in articles of association attached
1
T.IS AGREE=ENT is ,!)e t$e TTTT )!< of TTTT -ET7EEN:
(1) 1name o. .irst /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (DFA) !!n)$
() 1name o. second /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (D?A) !!n)
(&) 1name o. third /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er TTT 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (DRA)$4
7.EREAS:
(A) 1name o. compan,6 is ! +o,(!n< #i,ite) "< s$!res !n) in+or(or!te) in En%#!n) 2it$ nu,"er 1re!istration
number6 un)er t$e Co,(!nies A+t 1650 !n) $!s !t t$e )!te of t$is !%ree,ent !n !ut$orise) s$!re +!(it!# of O
TTT )ivi)e) into 1number6 or)in!r< s$!res of O1 e!+$ of 2$i+$ ! 1or as re>uired6$ s$!res $!ve "een
issue) !n) !re fu##< (!i) u(> "enefi+i!##< o2ne) "< F !n) re%istere) in t$e n!,e of F or !its 1or6 $is$
no,inees4 T$e (resent )ire+tors of t$e Co,(!n< !re 1name6 !n) 1name6
4
(-) T$e (!rties (ro(ose t$!t 1name o. compan,6 s$ou#) "e use) !s t$eir joint venture ve$i+#e to 1speci., proposed
business or purpose o. the /oint venture compan,64
!1,/1$
se+tion *81
&
H
(E) D! ,!jorit<A of t$e (!rties ,e!ns su+$ nu,"er of t$e, !s for t$e ti,e "ein% !re t$e $o#)ers of
s$!res in t$e Co,(!n< to%et$er +onferrin% not #ess t$!n TTL of t$e tot!# nu,"er of votes
e9er+is!"#e !t ! %ener!# ,eetin% of t$e Co,(!n<H
(:) Dsu"si)i!r<A !n) D$o#)in% +o,(!n<A s$!## "e!r t$e s!,e res(e+tive ,e!nin%s !s in t$e Co,(!nies
(G) D+ontro#A or D+ontro##e)A s$!## "e )eter,ine) "< referen+e to t$e (rovisions of !t$e In+o,e !n)
*
e9e+ution of t$is !%ree,ent (or t$e )!te su+$ (!rt< "e+o,es "oun) "< t$e ter,s $ereof (if #!ter))
su"se;uent#< +e!se to +ontro# it or if !n< (erson or (ersons su"se;uent#< !+;uire +ontro# of itH
(.) referen+es to D(!rt<A !n) D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is
!%ree,ent4
!1,/%$
14* Referen+es to +#!uses !n) s+$e)u#es !re to +#!uses !n) s+$e)u#es of t$is !%ree,ent4
!1,/($
(!sse) !t t$e ,eetin%> t$e ne2 o"je+ts referre) to in (!r!%r!($ () of t$e s!i) reso#ution "ein% t$ose
+ont!ine) in +#!use & of t$e ,e,or!n)u, of !sso+i!tion in t$e !%ree) for, ,!rCe) D-A !n) t$e ne2
!rti+#es of !sso+i!tion referre) to in (!r!%r!($ (&) of t$e s!i) reso#ution "ein% t$ose in t$e !%ree)
(-) su"je+t to !n) fort$2it$ u(on t$e reso#ution in su"'+#!use 41(A) !"ove "ein% (ro(ose) !n) (!sse):
(1) F s$!## (ro+ure t$!t 1name6 !n) 1name6 s$!## (su"je+t to t$e, res(e+tive#< +onsentin% so
to !+t) "e !((ointe) !s !))ition!# )ire+tors of t$e Co,(!n<H !n)
() F> ?> !n) R s$!## su"s+ri"e in +!s$ !!t (!r$ for ne2 or)in!r< s$!res of O1 e!+$ in t$e
Co,(!n< !s fo##o2s (F 2!ivin% !n< ri%$ts of (re'e,(tion $o2soever !risin% 2$i+$ it
,i%$t $!ve in res(e+t of su+$ su"s+ri(tions):
Name Number and class of shares
F 1number6 DAA S$!res
? 1number6 D-A S$!res
R 1number6 DCA S$!res
!n) t$e (!rties s$!## (ro+ure t$!t ! ,eetin% of t$e -o!r) is $e#) !t 2$i+$ !## t$e s$!res s(e+ifie)
!"ove s$!## "e !##otte) to F> ? !n) R res(e+tive#< !n) re%istere) in t$eir n!,es in t$e nu,"ers
res(e+tive#< su"s+ri"e) "< t$e, +re)ite) !s fu##< (!i) !!t (!r$ !%!inst i,,e)i!te (!<,ent of t$e
re#ev!nt su"s+ri(tion ,one<4
4 :ort$2it$ fo##o2in% t$e )ue (erfor,!n+e of t$e (rovisions of +#!use 41 !"ove t$e (!rties s$!## (ro+ure:
(A) t$!t t$e re%istere) offi+e of t$e Co,(!n< s$!## "e +$!n%e) to 1address6H
(-) t$!t t$e !u)itors of t$e Co,(!n< s$!## "e 1names6H
(C) t$!t t$e Co,(!n<As !++ountin% referen+e )!te s$!## "e +$!n%e) to 1date6 +o,,en+in% 1date6 (so
t$!t its first !++ountin% referen+e (erio) s$!## "e fro, its )!te of in+or(or!tion to 1date6 ("ot$ )!tes
in+#usive))H
(D) t$!t t$e "!nCers to t$e Co,(!n< s$!## "e 1name o. bank6 of 1branch address6!H !n)
(E) t$!t 1name6 s$!## "e !((ointe) se+ret!r< in (#!+e of 1name6$4
!1,/)$
&41 T$e (!rties !+Cno2#e)%e t$!t t$eir res(e+tive entit#e,ents to !((oint )ire+tors s$!## "e !s +ont!ine) in t$e
ne2 !rti+#es of !sso+i!tion to "e !)o(te) (ursu!nt to +#!use 41(A) !"ove4
&4 Un#ess ot$er2ise !%ree) t$e (!rties s$!## (ro+ure t$!t "o!r) ,eetin%s "e +onvene) !n) $e#) !t #e!st 1number6
ti,es ! <e!r !n) t$!t ! 2ritten !%en)! s(e+if<in% t$e ,!tters to "e r!ise) !t !n< "o!r) ,eetin% of t$e
Co,(!n< s$!## (to%et$er 2it$ t$e noti+e +onvenin% t$e ,eetin% or (if not) not #ess t$!n !3 )!<s 1or as
re>uired6$ (rior to t$e )!te of t$e ,eetin%) "e sent to !## )ire+tors (or t$eir !#tern!tes) entit#e) to re+eive
noti+e of !n< su+$ ,eetin%4 It is furt$er !%ree) t$!t (un#ess> in !n< (!rti+u#!r +!se> t$e (!rties s$!## ot$er2ise
!%ree in 2ritin%) no reso#ution re#!tin% to !n< "usiness ,!< "e (ro(ose) or (!sse) !t !n< "o!r) ,eetin%
un#ess t$e n!ture of t$e "usiness is s(e+ifie) in t$e !%en)!4
!1,/,$
*41 T$e "usiness of t$e Co,(!n< s$!## un#ess !n) unti# ot$er2ise )eter,ine) un)er +#!use 3 "e +onfine) to
1insert details64
est!"#is$e) in !t$e Unite) Bin%)o, 1or as re>uired6$ or e#se2$ere !n) t$e Co,(!n< s$!## est!"#is$ su+$
offi+es or ot$er (re,ises !s t$e -o!r) ,!< )e+i)e4
1insert details6
0
referre) to in +#!use !n) t$ere!fter "< #o!ns fro, F> ?> !n) R on su+$ ter,s !s t$e< ,!< !%ree 2it$ t$e
-o!r) or "< #o!ns fro, t$e Co,(!n<As "!nCers> or "ot$
1
4
(-) )oes not resu#t in t$e Co,(!n< "ein% t$in#< +!(it!#ise) for Unite) Bin%)o, t!9 (ur(oses
3
4$
!1,/.$
!341 7$i#e t$is !%ree,ent re,!ins in for+e> t$e (!rties s$!## (ro+ure t$!t e9+e(t 2it$ t$e +onsent of !!## 1or6 "ot$
1or6 ! ,!jorit<$ of t$e,:
(A) t$e %ener!# n!ture of t$e "usiness of t$e Co,(!n< !n) its su"si)i!ries (if !n<) s$!## not "e +$!n%e)
fro, t$!t )es+ri"e) in +#!use *H
(-) no +$!n%e s$!## "e ,!)e in t$e !ut$orise) or issue) s$!re or #o!n +!(it!# of t$e Co,(!n< nor s$!##
!n< o(tion or ri%$t to su"s+ri"e "e %r!nte) to !n< (erson over !n< s$!re or #o!n +!(it!# of t$e
Co,(!n< !n) no se+urities +onverti"#e into su+$ s$!re or #o!n +!(it!# s$!## "e issue) !s!ve t$!t
t$ere s$!## "e (er,itte) !n issue of or)in!r< s$!res +o,(#<in% 2it$ !rti+#e !040 1or as the case ma,
be6$ of t$e Co,(!n<As !rti+#es of !sso+i!tion un)er 2$i+$ t$e re#ev!nt or)in!r< s$!res !re offere)
for su"s+ri(tion !t !! (ri+e (er s$!re !((rove) "< ! ,!jorit< of t$e (!rties $ereto 1or6 ! (ri+e (er
s$!re 2$i+$ is +ertifie) "< t$e !u)itors to t$e Co,(!n< !s re(resentin% ! f!ir o(en ,!rCet
+onsi)er!tion for t$e s$!res offere) !n) in so +ertif<in% t$e !u)itors s$!## !+t !s e9(erts !n) not !s
!r"itr!tors !n) t$e (!rties s$!## (ro+ure t$!t t$eir fees !n) e9(enses s$!## "e "orne "< t$e
Co,(!n<$$ "ut t$e (!rties s$!## in !n< event (ro+ure t$!t no issue of s$!res is ,!)e to !n< (erson
not (!rt< to t$is !%ree,ent un#ess +#!use 1541 is +o,(#ie) 2it$H
(C) no !#ter!tion s$!## "e ,!)e in t$e ,e,or!n)u, or !rti+#es of !sso+i!tion of t$e Co,(!n< or t$e
ri%$ts !tt!+$in% to !n< +#!ss of s$!resH
(D) no reso#ution s$!## "e (!sse) for t$e 2in)in%'u( of t$e Co,(!n< nor s$!## !n< of t$e (!rties (resent
or +!use to "e (resente) !n< (etition for t$e 2in)in%'u( or !),inistr!tion of t$e Co,(!n< (un#ess
in eit$er +!se t$e Co,(!n< s$!## $!ve "e+o,e inso#vent)H
(E) no ne2 e;uit< interest in t$e Co,(!n< s$!## "e +re!te) or +onferre) on !n< (erson (in+#u)in% !n<
of t$e (!rties) in+#u)in% "ut not #i,ite) to !n< !rr!n%e,ents for s$!rin% in+o,e or (rofits !n) !n<
ot$er interest 2$et$er in t$e for, of s$!res> +onverti"#e se+urities or #o!n sto+C or +!(it!#
+onverti"#e into s$!resH
!1,//$
(:) t$e Co,(!n< s$!## not:
(1) !+;uire> 2$et$er "< for,!tion or ot$er2ise> !n< su"si)i!r< nor effe+t or (er,it t$e
)is(os!# or )i#ution of its interest> )ire+t#< or in)ire+t#< in !n< su"si)i!r<H
() se##> tr!nsfer> #e!se> #i+en+e or in !n< 2!< )is(ose of !## or ! ,!teri!# (!rt of its "usiness>
un)ert!Cin% or !ssets> 2$et$er "< ! sin%#e tr!ns!+tion or series of tr!ns!+tions re#!te) or
not (ot$er2ise t$!n in t$e or)in!r< +ourse of t$e Co,(!n<As "usiness)H
(&) "orro2 !n< su,s !e9+e(t fro, t$e Co,(!n<As "!nCers in t$e or)in!r< !n) usu!# +ourse
of "usiness !n)$ in !%%re%!te in e9+ess of OTTT !t !n< ti,eH
(*) un)ert!Ce in !n< fin!n+i!# <e!r !n< sin%#e ite, or series of ite,s of +!(it!# e9(en)iture
(in+#u)in% fin!n+e #e!ses "ut e9+#u)in% o(er!tin% #e!ses !s res(e+tive#< )efine) in SSA/
1) invo#vin% !n !%%re%!te #i!"i#it<
(!) )urin% t$!t fin!n+i!# <e!r in e9+ess of !OTTT 1or6 t$e su,s (rovi)e) for
+!(it!# e9(en)iture in t$e -usiness /#!n referre) to in +#!use 5 for t$!t <e!r$
!n)Eor
(") )urin% t$!t !n) !## future fin!n+i!# <e!rs in e9+ess of OTTTH
(0) enter into !n< o(er!tin% #e!se (!s )efine) in SSA/ 1) eit$er !s #essor or #essee of !n<
(ro(ert<> (#!nt or e;ui(,ent of ! )ur!tion e9+ee)in% !0 1or as re>uired6$ <e!rs or
invo#vin% !%%re%!te (re,iu, !n) !nnu!# rent!# (!<,ents for t$e o(er!tin% #e!se in
;uestion in e9+ess of OTTTH
(1) f!+tor or )is+ount !n< "ooC )e"ts of t$e Co,(!n<H
(3) ,!Ce !n< #o!n or !)v!n+e or ot$er2ise %ive +re)it (ot$er t$!n +re)it %iven in t$e nor,!#
+ourse of t$e Co,(!n<As "usiness) to !n< (erson e9+e(t for t$e (ur(ose of ,!Cin%
)e(osits 2it$ its "!nCersH
(5) %ive !n< %u!r!ntee> "on) or in)e,nit< in res(e+t of or to se+ure t$e #i!"i#ities or
o"#i%!tions of !n< (erson (ot$er t$!n ! 2$o##< o2ne) su"si)i!r< of t$e Co,(!n<)H
(6) +re!te or issue !n< )e"enture> ,ort%!%e> +$!r%e or ot$er se+urit< over !n< !ssets of t$e
Co,(!n< !(e9+e(t for t$e (ur(ose of se+urin% su,s "orro2e) "< t$e Co,(!n< fro, its
"!nCers in t$e or)in!r< !n) usu!# +ourse of "usiness)$H
(18) !+;uire !n< s$!re #o!n +!(it!# of !n< "o)< +or(or!te (in+#u)in% t$!t of t$e Co,(!n< or
!n< su"si)i!r<) or enter into !n< (!rtners$i( or (rofit s$!rin% !rr!n%e,ent 2it$ !n<
(ersonH
!(11) )e+#!re or (!< !n< )ivi)en) or ot$er )istri"ution in res(e+t of !n< s$!re +!(it!# of t$e
Co,(!n<H$
!1,/"$
(1) enter into or ,!Ce !n< ,!teri!# +$!n%e to !n< +ontr!+t or tr!ns!+tion 2it$
(!) !n< of t$e (!rties or t$eir res(e+tive su"si)i!ries or $o#)in% +o,(!nies (e9+e(t
!s e9(ress#< !ut$orise) in t$is !%ree,ent) or
(") !n< ot$er (ersons e9+e(t on nor,!# !r,As #en%t$ +o,,er+i!# ter,sH
(1&) enter into !n< !%en+< or )istri"ution !%ree,ent 2$i+$ is e9(resse) to +ont!in !n<
e#e,ent of e9+#usivit< !s re%!r)s !n< (ro)u+ts or servi+es )e!#t in or !s to t$e !re! of t$e
!%ree,entH
(1*) enter into !n< #i+en+e or ot$er si,i#!r !%ree,ent re#!tin% to inte##e+tu!# (ro(ert< to "e
#i+ense) to or "< t$e Co,(!n< !2$i+$ is ot$er2ise t$!n in t$e or)in!r< +ourse of
"usiness$H
(10) enter into or ,!Ce !n< ,!teri!# +$!n%e to !n< +ontr!+t of e,(#o<,ent 2it$ !n< )ire+tor
or senior ,!n!%er of t$e Co,(!n< (2$!tever $is tit#e or jo" )es+ri(tion)H
(11) enter into !n< +ontr!+t of e,(#o<,ent or for t$e (rovision of servi+es to t$e Co,(!n< "<
!n< s(e+ifie) in)ivi)u!# 2$i+$ +!nnot "e ter,in!te) on #ess t$!n !1 1or as re>uired6$
,ont$sA noti+e> 2it$out (!<,ent of +o,(ens!tionH
(13) intro)u+e !n< e9e+utive or e,(#o<ee sto+C or s$!re o(tion or (rofit s$!rin% or "onus
s+$e,e of !n< n!tureH
(15) en%!%e !n< ne2 e,(#o<ee !t ! s!#!r< in e9+ess of OTTT ! <e!r> in+re!se re,uner!tion
of !n e,(#o<ee to ! s!#!r< in e9+ess of OTTT ! <e!r or )is,iss !n< e,(#o<ee 2it$ !
s!#!r< in e9+ess OTTT ! <e!rH
(16) enter into !n< !%ree,ent for +onsu#t!n+< or ,!n!%e,ent servi+es 2$i+$ 2i##> or is #iCe#<
to> resu#t in t$e Co,(!n< "ein% ,!n!%e) ot$er2ise t$!n "< its )ire+tors> or 2$i+$
invo#ves ! +onsi)er!tion e9+ee)in% OTTT ! <e!rH
!(8) +$!n%e t$e !u)itors of t$e Co,(!n< or effe+t !n< si%nifi+!nt +$!n%e in t$e !++ountin%
(rin+i(#es !n) (r!+ti+es for t$e ti,e "ein% !)o(te) "< t$e Co,(!n<H$
(1) +$!n%e t$e n!,es or t$e s+o(e of t$e !ut$orit< of t$e (ersons !ut$orise) to si%n +$e;ues
or ot$er fin!n+i!# instru,ents on "e$!#f of t$e Co,(!n<H !or
() !)o(t or !,en) on+e !)o(te) !n< -usiness /#!n referre) to in +#!use 54H$
(G) no !+t or event s$!## o++ur in re#!tion to !n< su"si)i!r< of t$e Co,(!n< 2$i+$ is !n!#o%ous to !n)
$!s ! su"st!nti!##< si,i#!r effe+t to !n< of t$e ,!tters referre) to in su"'+#!uses 341(:)(1)M()
!"ove (ot$er t$!n su"'+#!use 341(:)(11))
5
4
!34 In +#!use 341 t$e e9(ression DSSA/ 1A s$!## ,e!n t$e St!te,ent of St!n)!r) A++ountin% /r!+ti+e No 1 !s
issue) "< or on "e$!#f of t$e Institute of C$!rtere) A++ount!nts in En%#!n) !n) 7!#es !s !n) in t$e for,
e9istin% !t t$e )!te of e9e+ution of t$is !%ree,ent4$
!1,/2$
(A) t$e Co,(!n< s$!## ,!int!in !++ur!te !n) +o,(#ete !++ountin% !n) ot$er fin!n+i!# re+or)s in
!++or)!n+e 2it$ t$e re;uire,ents of !## !((#i+!"#e #!2s !n) %ener!##< !++e(te) !++ountin%
(rin+i(#es !((#i+!"#e in t$e Unite) Bin%)o,H
(-) !,ont$#< 1or as re>uired6$ ,!n!%e,ent !++ounts !!n) re(orts$ +ont!inin% su+$ infor,!tion !s e!+$
(!rt< s$!## re!son!"#< re;uire s$!## "e (re(!re) !n) )es(!t+$e) "< t$e Co,(!n< to t$e (!rties
2it$in !&8 )!<s 1or as re>uired6$ of t$e en) of t$e !,ont$ 1or as re>uired6$ in ;uestionH !n)
!54
(A) T$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## (re(!re !n !nnu!# "usiness (#!n 2$i+$ s$!##
in+#u)e t$e fo##o2in%:
s$eet fore+!stH
(-) T$e first "usiness (#!n in res(e+t of t$e fin!n+i!# <e!r en)in% 1date6 s$!## "e !in t$e !%ree) for,
,!rCe) DEA 1or6 (re(!re) 2it$in !&8$ )!<s of t$e )!te of t$is !%ree,ent$4 -usiness (#!ns in res(e+t
of su"se;uent fin!n+i!# <e!rs s$!## "e su",itte) for !((rov!# not #!ter t$!n !18 1or as re>uired6$
)!<s "efore t$e +o,,en+e,ent of t$e fin!n+i!# <e!r in ;uestion4$
!not #ess t$!n TTL4 of t$e (ost t!9 !+onso#i)!te)$ (rofits of t$e Co,(!n< !!n) its su"si)i!ries$ for t$!t
fin!n+i!# <e!r 1or6 !## of its (rofits !s !re t$en !v!i#!"#e for )istri"ution4$
6
!1,"#$
2 Promotion of the Companys business
641 E!+$ of t$e (!rties +oven!nts 2it$ e!+$ ot$er to use !## re!son!"#e en)e!vours to (ro,ote !n) )eve#o( t$e
"usiness of t$e Co,(!n< to t$e "est !)v!nt!%e in !++or)!n+e 2it$ %oo) "usiness (r!+ti+e !n) t$e $i%$est
et$i+!# st!n)!r)s4
!%ree,ent !n) for t$e fo##o2in% (erio) of !* 1or as re>uired6$ ,ont$s it s$!## not !n) s$!## (ro+ure t$!t no
en%!%e)> +on+erne) or intereste) eit$er )ire+t#< or in)ire+t#< !n) 2$et$er on its or $is o2n "e$!#f or on
"e$!#f of or in !sso+i!tion 2it$ ot$ers !n) in !n< +!(!+it< 2$!tever in +!rr<in% on in +o,(etition 2it$ t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< !n<2$ere 2it$in 1area6 t$e "usiness of 1business64$
!64& E!+$ of t$e (!rties +oven!nts t$!t for !s #on% !s !$e 1or6 it$ is ! (!rt< to t$is !%ree,ent !n) for t$e fo##o2in%
(erio) of !*$ ,ont$s !$e 1or6 it$ s$!## not !n) s$!## (ro+ure t$!t no +o,(!n< o2ne) or +ontro##e) "< !$i,
1or6 it$ !n) no (erson on !$is 1or6 its$ "e$!#f s$!## in re#!tion to !n< %oo)s or servi+es su((#ie) "< t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< in re#!tion to su+$ %oo)s or servi+es4$
!64*
(!rties "ut if !n< restri+tion s$!## "e foun) to "e voi) "ut 2ou#) "e v!#i) if so,e (!rt or (!rts of it
2ere )e#ete) or t$e (erio) or !re! of !((#i+!tion re)u+e)> t$e (!rties !%ree t$!t t$e restri+tion s$!##
!((#< 2it$ su+$ ,o)ifi+!tion !s ,!< "e ne+ess!r< to ,!Ce it v!#i) !n) effe+tive4
virtue of 2$i+$ t$e !%ree,ent or !rr!n%e,ent is su"je+t to re%istr!tion un)er t$e Restri+tive Tr!)e
18
!1,"1$
1# Confidentiality
!+;uire in re#!tion to t$e Co,(!n< !n) its su"si)i!ries or in re#!tion to t$e +#ients> "usiness or !ff!irs of ever<
infor,!tion e9+e(t 2it$ t$e +onsent of t$!t ot$er (!rt< or of t$e Co,(!n< or its re#ev!nt su"si)i!r< (!s
re#!tin% to t$e Co,(!n< or one of its su"si)i!ries> for t$e !)v!n+e,ent of t$e "usiness of t$e Co,(!n< or t$e
184
re!son!"#e en)e!vours to ensure t$!t t$e offi+ers e,(#o<ees !n) !%ents of e!+$ of t$e, s$!##
of ti,e "ut s$!## +e!se to !((#< to !n< infor,!tion +o,in% into t$e (u"#i+ )o,!in !ot$er2ise t$!n
"< "re!+$ "< !n< su+$ (!rt< of its o"#i%!tions +ont!ine) in +#!use 1&41$ (rovi)e) !#2!<s t$!t
not$in% +ont!ine) in t$is +#!use 18 s$!## (revent !n< (!rt< fro, )is+#osin% !n< su+$ infor,!tion to
t$e e9tent re;uire) in or in +onne+tion 2it$ #e%!# (ro+ee)in%s !risin% out of t$is !%ree,ent or !n<
!n) of su+$ su"si)i!r< or +ontro##e) +o,(!nies4
!1,"%$
11 *a5 matters
11
1141
(-) E!+$ of t$e (!rties 2!rr!nts !n) un)ert!Ces t$!t:
in ! (osition v!#i)#< to %ive !n) s$!## %ive t$e 2!rr!nt< un)ert!Cin% +ont!ine) in t$is
+#!use 1141(-)4
!114
t$e (!rties s$!## t$en (ro+ure) t$!t its re#ev!nt (ro(ortion ()efine) "e#o2) of t$e Co,(!n<As tr!)in%
#osses !n) ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e surren)ere) to it (or !not$er
+o,(!n< t$!t s$!## "e its %rou( ,e,"er 2$ere t$!t +o,(!n< is entit#e) to re+eive t$e #osses
+#!use 11> t$e e9(ression Dre#ev!nt (ro(ortionA 2$en !((#ie) to eit$er (!rt< (or !n< %rou( ,e,"er
of it) s$!## ,e!n t$e (ro(ortion t$!t t$e no,in!# v!#ue of t$e or)in!r< s$!res "enefi+i!##< o2ne) "<
t$!t (!rt< in t$e Co,(!n< "e!rs to t$e tot!# no,in!# v!#ue of t$e entire issue) or)in!r< s$!re
+!(it!# of t$e Co,(!n<4
!1,"($
res(e+t of t$!t (!rt not !##o2e)4
1
#osses or ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e %iven "< t$e Co,(!n< or t$e
!((ro(ri!te (!rt< or (!rties or t$eir %rou( ,e,"er(s) or "ot$ 2it$in t$e re;uisite (erio)4
+o,(!n< in f!+t (!<in% t$e re+i(ient +o,(!n< t$e ,onies )ue 2it$in t$e s!i) 5 )!< (erio)
1&
4$
!,ount of !n< t!9 #i!"i#it< s!ve) !s ! resu#t of ! surren)er of %rou( re#ief or t$e )!te on 2$i+$ t$e
!%ree,ent> "< t$e /resi)ent for t$e ti,e "ein% of t$e Institute of C$!rtere) A++ount!nts in En%#!n)
"in)in% on t$e (!rties s!ve in t$e +!se of ,!nifest error4 T$e +osts of t$e in)e(en)ent fir, of
!1,")$
!114& T$e (!rties s$!##:
1*
114*
10
4
!1,",$
1% 3hare transfers
S!ve !s ot$er2ise e9(ress#< (rovi)e) in t$is !%ree,ent> !no 1or6 neit$er$ (!rt< s$!## )urin% t$e ter, of t$is !%ree,ent
eit$er to se##> tr!nsfer> +$!r%e> en+u,"er> %r!nt o(tions over or ot$er2ise )is(ose of !n< #e%!# or "enefi+i!# interest in
!n< of t$e s$!res no2 o2ne) or su"se;uent#< !+;uire) "< it in t$e Co,(!n< un)er or (ursu!nt to t$is !%ree,ent or "<
virtue of its s$!re$o#)in% in t$e Co,(!n< !e9+e(t 2it$ t$e (rior 2ritten +onsent of t$e ot$er !(!rt< 1or6 (!rties$ (2$i+$
,!< "e 2it$$e#) for !n< re!son or 2it$out %ivin% !n< re!son) !n) in +o,(#i!n+e 2it$ t$e (rovisions of t$e !rti+#es of
!sso+i!tion of t$e Co,(!n< (rovi)e) t$!t t$e (rovisions of +#!use 1541 !re +o,(#ie) 2it$$
11
4
!1( Deadloc> resolution
1insert details i. re>uired6$
13
1) *ermination
15
t$is +#!use4 Ter,in!tion s$!## not !ffe+t !n< (rovision of t$is !%ree,ent e9(resse) to $!ve effe+t !fter su+$
ter,in!tion or !n< ri%$ts 2$i+$ !n< (!rt< ,!< $!ve !%!inst !n< ot$er (!rt< su"sistin% !t t$e ti,e of
ter,in!tion
16
4
1*4 An< of t$e (!rties s$!## "e entit#e) to ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% !("ut not !fter
68 )!<s of t$e event in ;uestion first +o,in% to t$e !ttention of t$e (!rt< entit#e) to %ive t$e noti+e)$ if !n< of
t$e events set out "e#o2 s$!## o++ur4 Su+$ noti+e s$!## "e serve) u(on t$e (!rt< to 2$i+$ t$e event or events
re#!te !or in t$e +!se of ! noti+e serve) un)er su"'+#!use 1*4(D) ,!< "e serve) on ever< (!rt< 2$o $o#)s !t
t$e ti,e of t$e noti+e !n< of t$e s$!res (revious#< $e#) "< t$e in)ivi)u!# 2$ose servi+es $!ve +e!se)$ !n)
+o(ies of su+$ noti+e s$!## "e %iven to !## ot$er (!rties to t$is !%ree,ent (if !n<)4 T$e effe+t of t$e noti+e
s$!## "e to ter,in!te t$is !%ree,ent !s "et2een t$e )ef!u#tin% (!rt< !n) t$e re,!inin% (!rties> "ut t$is
!%ree,ent s$!## +ontinue in fu## for+e !n) effe+t !s "et2een su+$ re,!inin% (!rties (if ,ore t$!n one "ut not
ot$er2ise)4 T$e re#ev!nt events !re:
(A) !n< (!rt< s$!## +o,,it !n< !,!teri!#$ "re!+$ of !n< of its o"#i%!tions un)er t$is !%ree,ent !n)
s$!## f!i# to re,e)< t$e "re!+$ (if +!(!"#e of re,e)<) 2it$in &8 )!<s !fter "ein% %iven noti+e "< t$e
ot$er (!rt< or (!rties to )o soH or
(-) !n< (!rt<> "ein% ! +o,(!n<> s$!## %o into #i;ui)!tion 2$et$er +o,(u#sor< or vo#unt!r< (e9+e(t for
t$e (ur(oses of ! "on! fi)e re+onstru+tion or !,!#%!,!tion 2it$ t$e +onsent of t$e ot$er (!rt< or
(!rties> su+$ +onsent not to "e unre!son!"#< 2it$$e#)) or !n< (!rt< s$!## $!ve !n !),inistr!tor
!((ointe) or s$!## $!ve ! re+eiver> !),inistr!tive re+eiver or ,!n!%er !((ointe) over !n< (!rt of its
!ssets or un)ert!Cin%H or
(C) !n< (!rt<> "ein% !n in)ivi)u!#> s$!## "e !)ju)%e) "!nCru(t or s$!## )ie or "e+o,e ! (!tient for t$e
8
H or
(D) !n< (!rt< ("ein% !n in)ivi)u!#) s$!## +e!se for !n< re!son to ,!Ce $is su"st!nti!##< fu##'ti,e
servi+es !v!i#!"#e to t$e Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< or "ot$
1
H !or
(E) t$ere s$!## "e !n< +$!n%e in t$e +ontro# of !n< (!rt<4$
!1,".$
!1*4& An< of t$e (!rties ,!< !t !n< ti,e !fter 1date6 ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e
ot$er (!rties4 T$e effe+t of t$e noti+e s$!## "e to ter,in!te t$is !%ree,ent !s "et2een t$e (!rt< servin% t$e
noti+e !n) t$e re,!inin% (!rties "ut t$is !%ree,ent s$!## +ontinue in fu## for+e !n) effe+t !s "et2een t$e
re,!inin% (!rties> if ,ore t$!n one "ut not ot$er2ise4$
1*4* T$is !%ree,ent s$!## ter,in!te in res(e+t of !n< (!rt< ("ut s$!## +ontinue "et2een t$e ot$er (!rties if ,ore
t$!n one "ut not ot$er2ise) if> !t !n< ti,e !s ! resu#t of ! tr!nsfer of s$!res ,!)e in !++or)!n+e 2it$ t$is
!%ree,ent (in+#u)in%> 2it$out #i,it> +o,(#i!n+e 2it$ t$e (rovisions of +#!use 141) t$!t (!rt< $o#)s no s$!res
in t$e +!(it!# of t$e Co,(!n<4
#i;ui)!tor is ot$er2ise !((ointe)4
!1,"/$
1, Conse6uences of notices under clause!s 1( and$ 1)
&
1041 If !n< (!rt< or (!rties s$!## serve ! noti+e of ter,in!tion un)er +#!use 1* !"ove t$!t (!rt< or t$ose (!rties
(in)ivi)u!##< or (if ,ore t$!n one) to%et$er Dt$e Ter,in!torA) s$!## "e entit#e) "< t$!t noti+e to re;uire t$e
re+i(ient(s) of t$e noti+e (Dt$e Ter,in!teeA) eit$er:
(A) (in t$e +!se of ! noti+e serve) un)er su"'+#!uses 1*4(A)(D) or (E) or +#!use 1*4& on#<) to (ur+$!se
!## ("ut not so,e on#<) of t$e Ter,in!torAs s$!res in t$e Co,(!n<> or
(-) to se## to t$e Ter,in!tor (!n) if ,ore t$!n one e;u!##< or in su+$ ot$er (ro(ortions !s t$e< ,!<
!%ree) !## ("ut not so,e on#<) of t$e Ter,in!teeAs s$!res in t$e Co,(!n<
in eit$er +!se !t ! (ri+e )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of +#!use 104 "e#o2
*
4
U(on t$e e9er+ise of !n< su+$ ri%$t t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e "oun) to
res(e+tive#< se## or (ur+$!se u(on t$e ter,s set out "e#o24 If> in ! v!#i) ter,in!tion noti+e> t$is (o2er of s!#e
or (ur+$!se is not e9er+ise) "< t$e Ter,in!tor> t$en in t$e +!se of ! noti+e serve) un)er +#!use 1*4& on#<> t$e
Ter,in!tee ,!< 2it$in &8 )!<s of t$e Ter,in!torAs noti+e serve ! +ounter'noti+e on t$e Ter,in!tor (!n) (if
,ore t$!n one) !## of t$e,) re;uirin% t$e Ter,in!tor to se## to one or ,ore of t$e, !## ("ut not so,e on#<) of
t$e Ter,in!torAs s$!res in t$e Co,(!n<> in 2$i+$ +!se t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e
"oun) res(e+tive#< to se## !n) (ur+$!se su+$ s$!res on t$e ter,s set out "e#o2> "ut ot$er2ise t$e (!rties s$!##
(ro+ure t$!t t$e Co,(!n< s$!## "e i,,e)i!te#< 2oun) u(
0
4
!1,""$
104 T$e (ur+$!se (ri+e of t$e s$!res to "e "ou%$t !n) so#) (ursu!nt to +#!use 1041 !(or> if !((#i+!"#e> +#!use 1&)$
s$!## "e t$e f!ir v!#ue of t$e, !s !%ree) "et2een t$e (!rties to t$e s!#e !n) (ur+$!se or> in )ef!u#t of
!%ree,ent 2it$in 10 )!<s !fter t$e servi+e of t$e noti+e of ter,in!tion !(or in t$e +!se of +#!use 1& 2it$in 10
)!<s !fter servi+e of ! +o(< of t$e )e!)#o+C reso#ution noti+e "< t$e )ire+tors (ursu!nt to +#!use 1&)$> t$e su,
t$!t s$!## "e +ertifie) "< t$e !u)itors (!t t$e re;uest of !n< su+$ (!rt<) for t$e ti,e "ein% of t$e Co,(!n< to
"e t$e f!ir v!#ue of t$e, on t$e )!te 2$en t$e ter,in!tion noti+e 2!s serve)4 In so +ertif<in% t$e !u)itors !re
irrevo+!"#< instru+te) to v!#ue t$e s$!res to "e "ou%$t !n) so#) !s t$e s!,e (ro(ortion of t$e ,!rCet v!#ue of
t$e Co,(!n< !s ! 2$o#e on t$!t )!te !s t$e re#ev!nt s$!re$o#)in% "e!rs to t$e 2$o#e issue) or)in!r< s$!re
+!(it!# of t$e Co,(!n< on t$!t )!te> "ut ot$er2ise t$e< s$!## t!Ce into !++ount !## +ir+u,st!n+es t$!t s$!##
see, to t$e, re#ev!nt4 !In ! +!se 2$ere t$e s$!res to "e "ou%$t !n) so#) !re o2ne) "< ! (!rt< u(on 2$o, !
ter,in!tion noti+e un)er su"'+#!use 1*4(A) $!s "een serve)> t$e !u)itors s$!## )eter,ine t$e ,!rCet v!#ue of
t$e Co,(!n< !s ! 2$o#e "ot$ in t$e #i%$t of t$e "re!+$ +on+erne) !n) on t$e "!sis t$!t t$e "re!+$ $!) not
"een +o,,itte) !n) if t$e first of t$ese v!#u!tions is #o2er t$!n t$e se+on)> t$e 2$o#e !,ount of t$e
re)u+tion in t$e v!#ue of t$e Co,(!n< s$!## "e !ttri"ute) to t$e s$!res of t$e )ef!u#tin% (!rt<> so t$!t $e s$!##
re+eive !n !,ount 2$i+$ is t$e (ro(ortion of t$e se+on) v!#u!tion !ttri"ut!"#e to t$e s$!res> ,inus t$e 2$o#e
!,ount of t$e re)u+tion4$
1
In so !+tin% t$e !u)itors !re instru+te) to !+t !s e9(erts !n) not !s !r"itr!tors !n)
t$eir )e+ision s$!## (s!ve in res(e+t of ,!nifest error) "e fin!# !n) "in)in% on t$e (!rties to t$e s!#e !n)
(ur+$!se for !## (ur(oses !n) t$eir fees !n) e9(enses s$!## "e "orne in e;u!# s$!res "< !## of su+$ (!rties4
!1,"2$
104& Co,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to t$e (rovisions of +#!use 1041 !(or> if !((#i+!"#e>
+#!use 1&)$ s$!## t!Ce (#!+e !t t$e re%istere) offi+e of t$e Co,(!n< !t !18488 !, 1or as re>uired6$ on t$e
!se+on) 1or as re>uired6$ "usiness )!< !fter t$e (ri+e (!<!"#e $!s "een !%ree) or )eter,ine) in !++or)!n+e
2it$ t$e (rovisions of +#!use 104 (or su+$ ot$er ti,e !n)Eor (#!+e !s t$e (!rties to t$e s!#e !n) (ur+$!se ,!<
!%ree) !n) in res(e+t of 2$i+$ t$e (rovisions of +#!uses 104*> 1040> 1041 !n) 1043 s$!## t$en $!ve effe+t4
104* At !n< +o,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to !eit$er$ +#!use !1& or$ 10 in return for !
"!nCersA )r!ft )r!2n on ! Lon)on +#e!rin% "!nC (or !n< ot$er ,e!ns of (!<,ent 2$i+$ is !%ree) "< t$e
se##er) for t$e fu## !,ount of t$e (ur+$!se ,one< for t$e s$!res "ein% "ou%$t !n) so#) ()eter,ine) in
!++or)!n+e 2it$ t$e res(e+tive (rovisions of +#!use !1& or$ 10 !(!s !((#i+!"#e)$ !n) su+$ !,ounts !s !re
referre) to in +#!use 1040 "e#o2> t$e se##er(s) s$!## )e#iver to t$e (ur+$!ser(s) )u#< e9e+ute) s$!re tr!nsfers for
t$e s$!res "ein% so#) in f!vour of t$e (ur+$!ser(s) (in !++or)!n+e 2it$ t$eir res(e+tive entit#e,ents) or !s
t$e< ,!< )ire+t to%et$er 2it$ t$e re#!tive s$!re +ertifi+!te(s) (or !n !++e(t!"#e in)e,nit< in #ieu of t$e,)4
An< s$!res so#) un)er or (ursu!nt to t$e !"ove (rovisions s$!## "e so#) free of !## #iens +$!r%es !n)
en+u,"r!n+es !n) to%et$er 2it$ !## ri%$ts t$en or su"se;uent#< !tt!+$in% to t$e, !n) t$e se##er s$!## se## t$e
s!,e 2it$ fu## tit#e %u!r!ntee !"ut s$!## not "e o"#i%e) to enter into !n< ot$er %u!r!ntee> 2!rr!nties or
in)e,nities$4
!1,2#$
!1040 If !n< (!rt< or (!rties (in)ivi)u!##< or (if ,ore t$!n one) to%et$er Dt$e Out%oin% /!rt<A) s$!## e#e+t or "e+o,e
"oun) to tr!nsfer !## !$is 1or6 its$ or t$eir s$!res in t$e Co,(!n< to !n< ot$er (!rt< or (!rties un)er or
(ursu!nt to t$e !"ove (rovisions of +#!use !1& or$ 10 su+$ ot$er (!rt< or (!rties s$!## u(on or i,,e)i!te#<
(rior to +o,(#etion of su+$ tr!nsfer (ro+ure:
(A) t$e i,,e)i!te re#e!se of !## %u!r!ntees !n) in)e,nities (if !n<) %iven "< t$e Out%oin% /!rt< in
f!vour or for t$e "enefit of t$e Co,(!n< un)er or (ursu!nt to +#!use 1 (!n) (en)in% su+$ re#e!se
s$!## in)e,nif< !n) Cee( t$e Out%oin% /!rt< fu##< !n) effe+tive#< in)e,nifie) fro, !n) !%!inst !##
+#!i,s !risin% un)er t$e,) !n)
ju)%e,ent)4$
!1041 In t$e event of !n< (!rt< +e!sin% to "e ! s$!re$o#)er in t$e Co,(!n< 2$ere t$e +or(or!te n!,e of t$e
Co,(!n< or !n< (!rt of it +ont!ins !n< 2or) or 2or)s t$e s!,e or si,i#!r to t$e +or(or!te n!,e or !n<
)istin+tive (!rt of t$e +or(or!te n!,e of t$!t s$!re$o#)er t$e re,!inin% (!rt< or (!rties s$!## (ro+ure t$!t
2it$in &8 )!<s of su+$ +ess!tion t$e +or(or!te n!,e of t$e Co,(!n< s$!## "e +$!n%e) so !s to e9+#u)e t$e
2or) or 2or)s4$
1
1043 !T$is +#!use 10 )oes 1or6 +#!use 1& !n) t$is +#!use 10 )o$ not !#ter !n< (rovision or (rovisions +ont!ine) in
t$e !rti+#es of !sso+i!tion of t$e Co,(!n< restri+tin% t$e tr!nsfer of s$!res4 .o2ever> t$e (!rties s$!##
e9er+ise !## votin% !n) ot$er ri%$ts !v!i#!"#e to t$e, to ensure t$e i,(#e,ent!tion of t$e fore%oin% (rovisions
of !+#!use 1& !n)$ t$is +#!use 10 !n) !n< (rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion of t$e Co,(!n<
restri+tin% tr!nsfers of s$!res (in+#u)in%> 2it$out #i,it> t$e (rovisions of !!rti+#e 3 1or as the case ma, be6$)
!re 2!ive) or sus(en)e) to !##o2 t$e s!#es !n) (ur+$!ses to (ro+ee) !s (rovi)e) !"ove !n) t$e (!rties s$!##
(ro+ure t$e re%istr!tion of !n< su+$ tr!nsfer of !n< s$!res in t$e Co,(!n< !++or)in%#<4
!1,21$
!1. 4arranties
1141 F 2!rr!nts !n) re(resents to ? !n) R t$!t i,,e)i!te#< (rior to t$e e9e+ution of t$is !%ree,ent:
(A) t$e (!rti+u#!rs re#!tin% to t$e Co,(!n< set out in Re+it!# (-) !re true !n) !++ur!te in !## res(e+tsH
(-) t$e Co,(!n<:
(1) $!s not tr!)e)H
3
!1,2%$
,e,or!n)u, or !rti+#es of !sso+i!tion or "ot$ to t$e e9tent ne+ess!r< to (er,it t$e Co,(!n< !n) its !ff!irs
to "e +!rrie) out !s (rovi)e) in t$is !%ree,ent4 :or t$e !voi)!n+e of )ou"t> t$e ,e,or!n)u, !n) !rti+#es of
t$e Co,(!n< !n) t$eir "enefi+i!# s$!re$o#)in%s in it so !s to (ro+ure (so f!r !s e!+$ is res(e+tive#< !"#e "<
t$e e9er+ise of su+$ ri%$ts !n) (o2ers) t$!t !t !## ti,es )urin% t$e ter, of t$is !%ree,ent t$e (rovisions
+on+ernin% t$e stru+ture !n) or%!nis!tion of t$e Co,(!n< !n) t$e re%u#!tion "< t$e (!rties of its !ff!irs set
out in t$is !%ree,ent !re )u#< o"serve) !n) %iven fu## for+e !n) effe+t !n) !## !+tions re;uire) of t$e (!rties
un)er t$is !%ree,ent !re +!rrie) out in ! ti,e#< ,!nner4 7it$out (reju)i+e to t$e %ener!#it< of t$e fore%oin%
e!+$ (!rt< s$!## (ro+ure t$!t e!+$ of its no,inees 2$o !re s$!re$o#)ers in t$e Co,(!n< !n) (su"je+t to t$eir
fi)u+i!r< )uties) e!+$ of t$e )ire+tors !((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use
or un)er t$e !rti+#es of !sso+i!tion of t$e Co,(!n< s$!## e9e+ute !n) )o !## su+$ !+ts !n) t$in%s !n) %ive !n)
+onfer !## su+$ (o2ers !n) !ut$orities !s t$e< 2ou#) $!ve "een re;uire) to e9e+ute> )o> %ive !n)Eor +onfer
$!) t$e< "een ! (!rt< !n) $!) +oven!nte) in t$e s!,e ter,s !s t$e (!rt< for 2$i+$ t$e< !re ! no,inee (if !
s$!re$o#)er) or 2$i+$ !((ointe) t$e, (if ! )ire+tor)4
!134& Not2it$st!n)in% !n< ot$er (rovision of t$is !%ree,ent in t$e event t$!t !n< (!rt< !(or !n< (erson +onne+te)
2it$ ! (!rt<)$ s$!## "e in )is(ute 2it$ or s$!## $!ve ! +onf#i+t of interest 2it$ t$!t of t$e Co,(!n<> t$!t (!rt<>
in its +!(!+it< !s s$!re$o#)er s$!## not )o or o,it !n<t$in%> !n) s$!## (ro+ure t$!t t$e )ire+tor or )ire+tors
!((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use & !"ove s$!## not )o or o,it !n<t$in%
2$i+$ 2ou#) or "e #iCe#< to (revent t$e Co,(!n< fro, e9er+isin% or fro, )e+i)in% 2$et$er or not to
e9er+ise su+$ ri%$ts !s it ,!< $!ve in res(e+t of t$e ,!tter or !%!inst t$e (!rt< !(or (erson +onne+te) 2it$ it)$
in ;uestion4$
!1,2($
1" 8eneral
1541 E!+$ of t$e (!rties s$!## (ro+ure t$!t it s$!## "e ! +on)ition of t$e s!#e tr!nsfer or ot$er )is(osition of !n<
s$!res in t$e Co,(!n< for t$e ti,e "ein% #e%!##< or "enefi+i!##< o2ne) "< $i,> or of !n< interest in t$e,> in
f!vour of !n< (erson (Dt$e Tr!nsfereeA) 2$o is not ! (!rt< to t$is !%ree,ent t$!t t$e s!#e> tr!nsfer or ot$er
)is(osition ("ein% one 2$i+$ is ot$er2ise (er,itte) un)er or (ursu!nt to t$e (rovisions of +#!use 141 !"ove)
s$!## not "e effe+te) un#ess t$e Tr!nsferee (!n) !n< ot$er (erson 2$o 2i## in +onse;uen+e of t$e tr!nsfer or
ot$er )is(os!# $!ve !n< "enefi+i!# interest in t$e s$!res +on+erne)) s$!## first enter into !n un)ert!Cin% 2it$
!## t$e ot$er (!rties to t$is !%ree,ent !!n) 2it$ !## ot$er (ersons 2$o !re for t$e ti,e "ein% "oun) "< t$is
!%ree,ent !n) 2i## re,!in so !fter t$e s!#e> tr!nsfer or ot$er )is(osition$> 2$ere"< t$e Tr!nsferee !%rees to
"e "oun) !n) to +o,(#< 2it$ !## t$e (rovisions of t$is !%ree,ent "in)in% u(on $is tr!nsferor (ot$er t$!n !n<
2$i+$ i,(ose ! (erson!# o"#i%!tion u(on $is tr!nsferor 2$i+$ is not !#so un)ert!Cen "< e!+$ of t$e ot$er
(!rties to t$is !%ree,ent !n) !n< 2!rr!nties %iven "< $is tr!nsferor)4 T$e un)ert!Cin% s$!## "e in t$e for, (!s
ne!r#< !s +ir+u,st!n+es 2i## (er,it) set out in t$e s+$e)u#e "e#o24 T$e (!rties s$!## !#so (ro+ure t$!t no
s$!res of t$e Co,(!n< s$!## "e issue) e9+e(t u(on t$e +on)ition t$!t t$e (erson to 2$o, t$e s$!res !re to "e
issue) !n) !n< (erson 2$o 2i##> fo##o2in% t$e issue> $!ve !n< "enefi+i!# interest in t$e s$!res issue)> s$!##
!#so enter into su+$ !n un)ert!Cin%4
!1,2)$
154& A (!rt< or !n< su++essor or (er,itte) !ssi%n of ! (!rt< 2$o +e!ses to "e #e%!##< !n) "enefi+i!##< entit#e) to
!n< s$!res of t$e Co,(!n< !n) 2$o $!s +o,(#ie) 2it$ +#!use 1541 !n) !## ot$er !((#i+!"#e (rovisions of t$is
!%ree,ent re#!tin% to t$e tr!nsfer of su+$ s$!res (in+#u)in%> 2it$out #i,it> +#!use 141) s$!## (su"je+t !s
(rovi)e) in +#!use 1*41) +e!se to "e "oun) "< t$is !%ree,ent> 2it$ t$e e9+e(tion of +#!uses !64>$ !64&>$ !64*>$
18 !n) 114
154* T$is !%ree,ent s$!## "e +!(!"#e of "ein% !,en)e) "< !n instru,ent e9e+ute) "< !## t$e (!rties for t$e ti,e
"ein%4
1540 No e9er+ise> f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t (o2er or re,e)< veste) in !n< (!rt< un)er or
(ursu!nt to t$is !%ree,ent s$!## +onstitute ! 2!iver "< t$!t (!rt< of t$!t or !n< ot$er ri%$t (o2er or re,e)<4
1541 Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties (or !n< of t$e,)
nor +onstitute !n< (!rt< or (!rties t$e !%ent of t$e ot$er (!rt< or (!rties or ot$er2ise entit#e !n< (!rt< to $!ve
!ut$orit< to "in) !n< ot$er (!rt< or (!rties for !n< (ur(ose
5
4
1545 No (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
st!te,ent or )is+#osure +on+ernin% t$is !%ree,ent or !n< of t$e tr!ns!+tions +onte,(#!te) in t$is !%ree,ent
2it$out t$e (rior 2ritten +onsent of t$e ot$er (!rt< or (!rties !(e9+e(t !s re;uire) "< t$e Sto+C E9+$!n%e
2$en t$e (!rt< s$!## first su((#< ! +o(< of t$e st!te,ent> re#e!se or )is+#osure to t$e ot$er (!rt< or (!rties !n)
s$!## in+or(or!te !n< !,en),ents or !))itions re!son!"#< re;uire) "< t$e ot$er (!rt< or (!rties)$4
!1,2,$
1546 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ it) +onstitutes
t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to t$e su"je+t ,!tter of it !n) su(erse)es !## (rior
!%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to it !n) no v!ri!tion of t$is !%ree,ent
s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of ! )u#< !ut$orise) re(resent!tive of
e!+$ of t$e (!rties> "ut su"je+t to +#!use 154*4
15418 In t$e event t$!t !n< ter,> +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e
#!2 st!tute or re%u#!tion it s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n)
effe+t !n) t$is !%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if t$e ter,> +on)ition or (rovision $!) not
ori%in!##< "een +ont!ine) in it4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< su+$ )e#etion t$e (!rties
(rovision in (#!+e of t$e (rovision so )e#ete)4
ori%in!#> "ut t$e +ounter(!rts or )u(#i+!tes s$!## to%et$er +onstitute one !n) t$e s!,e !%ree,ent4
!1,2.$
12 Notices
outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or f!9 nu,"er of t$!t (!rt< set o((osite its n!,e
"e#o2:
? 1insert address .a7 number6
R 1insert address .a7 number6
or !t !n< ot$er !))ress (or f!9 nu,"er) t$e (!rt< to "e serve) ,!< $!ve notifie) (in !++or)!n+e 2it$ t$e
(ost s$!## "e )ee,e) serve) !*5 $ours 1or as re>uired6$ !fter (ostin% to !n !))ress in t$e Unite) Bin%)o, or>
2$ere serve) "< !ir,!i#> !0 )!<s 1or as re>uired6$ !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,4 In
(rovin% t$e servi+e of !n< noti+e it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s
(ro(er#< st!,(e)> !))resse) !n) (#!+e) in t$e (ost or )e#ivere) or #eft !t t$e +urrent !))ress if )e#ivere)
(erson!##< !n)> in t$e +!se of ! f!9> t$!t t$e f!9 2!s )u#< )es(!t+$e) to t$e f!9 nu,"er of t$e !))ressee %iven
!"ove or su"se;uent#< notifie) for t$e (ur(oses of t$is !%ree,ent4
!1,2/$
!n) 2!ives !n< o"je+tion to (ro+ee)in%s in t$ose +ourts on t$e %roun)s of venue or on t$e %roun)s t$!t t$e
juris)i+tion4
servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n)4 Servi+e s$!## "e )ee,e) +o,(#ete) on )e#iver< to su+$
(ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If for !n< re!son t$e
part,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e ot$er (!rt< $ereto !n) to
)e#iver to su+$ ot$er (!rt< ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent 2it$in &8 )!<s4$
2it$ t$e (rovisions of t$is !%ree,ent re#!tin% to t$e servi+e of noti+es4 Servi+e s$!## "e+o,e effe+tive &8
)!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is !%ree,ent s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n< ot$er
,!nner (er,itte) "< #!24$
6
!1,2"$
AS 7ITNESS et+ 1see vol :9 1:CCF Reissue6 DEED#0 )GREE(E*'# )*D DE&L)R)'8O*# Form C5 N:DC:O et se>6
SC.EDULE
:or, of un)ert!Cin% re;uire) on ! tr!nsfer of s$!res
T.IS DEED is ,!)e t$e TTT )!< of TTTT -ET7EEN:
() T$e (ersons 2$ose n!,es !n) !))resses !((e!r in t$e S+$e)u#e $ereto (Dt$e E9istin% S$!re$o#)ersA)4
7.EREAS
(-) 1recite an, previous deeds adherin! to the /oint venture a!reement and an, releases there.rom6
or)in!r< s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<4
effe+te) un#ess t$e !tr!nsferee 1or6 t$e (erson to 2$o, su+$ s$!res !re to "e issue)$ s$!## $!ve first entere)
into ! )ee) in t$e for, of t$is )ee)4
(rovision of t$e Joint Venture A%ree,ent !"< 2$i+$ 1out!oin! part,6 2!s "oun)$ in ever< 2!< !s if t$e Ne2
S$!re$o#)er $!) "een n!,e) t$erein ! (!rt< t$ereto 2it$ t$e e9+e(tion of +#!uses 1insert numbers o. an, clauses which
IN 7ITNESS et+ 1see vol :9 1:CCF Reissue6 DEED#0 )GREE(E*'# )*D DE&L)R)'8O*# Form C; N:DCFO et se>6
T.E SC.EDULE
1names and addresses o. e7istin! shareholders6
!1,22$
1
joint venture !%ree,entGsee :or, 1 J1081K !nte4
t$in%s or (re'+on)itions $!((enin%> e% t$e !2!r) of ! (!rti+u#!r +ontr!+t to t$e Co,(!n< or t$e %r!nt of ! (!rti+u#!r #i+en+e et+:
see :or, 1 J168K (ost4
+#!use !((#i+!"#e for ! +o,(!n< not <et in+or(or!te) see :or,s 8 J1533K !n) 1 J1535K (ost4
&
T$is )efinition is re;uire) on#< for t$e (ur(ose of t$e +onsortiu, re#ief (rovisions in +#!use 11Gsee note 1 "e#o24
*
+o,,er+i!##<4 :or e9!,(#e> if t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *11 +ontro# test !((#ies to t$e +$!n%e of +ontro#
(rovisions> t$en t$ese (rovisions 2i## !((#< 2$enever one of t$e ,u#ti(#e +ontro##ers +$!n%e)4 In ,!n< +!ses> it ,!< "e ,ore
!((ro(ri!te to use t$e n!rro2er )efinition +ont!ine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 5*84
!1.##$
0
In ,ost !%ree,ents e!+$ of t$e (!rties !ssu,es s(e+ifi+ o"#i%!tions in re#!tion to t$e +o,(!n<4 T$ese ,i%$t in+#u)e t$e tr!nsfer
of s(e+ifi+ !ssets or ri%$ts to t$e +o,(!n< or t$e #i+ensin% or %r!nt of t$e ri%$t to use su+$ !ssets or ri%$ts (e% $ive')o2n of
!ssets> te+$no#o%< tr!nsfer or #i+en+e !%ree,ent) or (er$!(s t$e (rovision of (ersonne#4 E!+$ joint venture is> in t$is res(e+t>
uni;ue !n) t$is +#!use 2i## !++or)in%#< re;uire in)ivi)u!# Dt!i#orin%A to ,eet t$e re;uire,ents of e!+$ +!se4
!%ree,ent4
1
It is ;uite +o,,on for s$!re$o#)ers to (rovi)e #o!ns> #o!n +!(it!# !n) %u!r!ntees or se+urit< for #o!ns o"t!ine) "< t$e Co,(!n<
fro, t$ir) (!rties4 It 2i## "e i,(ort!nt to s(e+if< (re+ise#< 2$!t t$ese +o,,it,ents !re4 :or,s of (ossi"#e +#!uses !re set out in
:or,s J1551K> & J155*K !n) * J1550K (ost> !#t$ou%$ !n< nu,"er of v!ri!tions is (ossi"#e in (r!+ti+e4
3
s$!## "e #i,ite) to 2$i+$ever is t$e #o2est in t$!t (erio) of:
t$!t ,e,"erH
5
T$is #ist is> of +ourse> not e9$!ustive !n) so,e of t$e restri+tions ,!< not !#2!<s "e !((ro(ri!te in +ert!in +!ses4 It s$ou#) "e
re+o%nise) t$!t> for e9!,(#e> "< in+#u)in% re%u#!r "usiness )e+isions su+$ !s t$e !++ounts> "usiness (#!n> )ivi)en) (o#i+< et+ !
ri%$t of veto is effe+tive#< "ein% %iven 2$i+$ ,i%$t en!"#e one or ,ore ,inorit< (!rties in ! ,u#ti'(!rt< joint venture to )i+t!te
su+$ (o#i+< )e+isions "< frustr!tin% t$e )e+isions of t$e ,!jorit<4 In t$ese +ir+u,st!n+es it ,i%$t "e !((ro(ri!te to in+#u)e so,e
for, of )e!)#o+C reso#ution (ro+e)ure4 See note 13 "e#o24
It 2i## !#so "e !((re+i!te) t$!t t$ese +ontr!+tu!# restri+tions +ou#) !#so "e ens$rine) !s +#!ss ri%$ts (see :or, & J1685K
(ost)4
!1.#1$
6
It 2i## "e !((re+i!te) t$!t !s )r!2n t$is is !n e9(ression of intention on#<> not ! "in)in% +o,,it,ent4
18
Restri+tions of t$is t<(e re;uire +!refu# +onsi)er!tion of t$e !((ro(ri!te +o,(etition #!2 +onse;uen+es4
11
re#iefs) +!n "e surren)ere) (ro'r!t! to or fro, t$e s$!re$o#)ers "< or to t$e Co,(!n<4 A furt$er "enefit of ! +onsortiu, is t$!t
t!9 un)er %rou( in+o,e e#e+tions (see note 1* "e#o2)4
Co,(!n<> 2it$ e!+$ o2nin% not #ess t$!n 0L of t$e or)in!r< s$!re +!(it!#4 T$e !"i#it< to surren)er or +#!i, #osses et+ is !#so
T$e (rovisions in +#!use 11 J105&K !re )esi%ne) to ensure t$!t t$e Co,(!n< is tre!te) !s UB t!9 resi)ent !n) t$!t t$e
,ore t$!n 0L of t$e Co,(!n<As s$!re +!(it!#> so t$!t +onsortiu, re#ief 2ou#) not "e !v!i#!"#e in !n< event)> t$en +#!uses
1141(-)> (C) !n) 114 J105&K +ou#) "e )e#ete)4 In (r!+ti+e t$is is un#iCe#< to "e t$e +!se> "e+!use 2$ere t$ere is ! joint venture
"et2een ! UB +o,(!n< !n) ! forei%n entit< 2it$ t$e UB +o,(!n< "rin%in% #o+!# e9(ertise> t$e UB +o,(!n< 2i## nor,!##<
insist t$!t t$e forei%n joint venturer invests in t$e joint venture vi! ! UB su"si)i!r<4 In t$ese +ir+u,st!n+es> t$e forei%n joint
venturer 2i## re;uire !)vi+e on> inter !#i!> fin!n+in% its invest,ents in t$e joint venture> )ivi)en) !n) interest re(!tri!tion !n)
+!(it!# %!ins t!9 ,iti%!tion on )is(os!#4
(see note 1* "e#o2) 2i## not "e !v!i#!"#e !n) +#!uses 1141(A) J105&K !n) 114& J1050K +ou#) !#so "e )e#ete)4
!1.#%$
1
C#!use 114(A) J105&K (rovi)es for t$e +o,(!n< to surren)er its #osses et+ to t$e s$!re$o#)ers> in return for ! (!<,ent to t$e
C#!use 114(-) J105*K (rovi)es for t$e s$!re$o#)ers to surren)er t$eir #osses et+ to t$e +o,(!n< in return for ! (!<,ent "<
Cno2n> it ,!< "e !)vis!"#e to !,en) t$e (!<,ent )!tes in +#!uses 114(A)> (-) for joint ventures invo#vin% #!r%e +o,(!nies to
%ive %re!ter (re+ision in t$e #i%$t of t$e +$!n%es4
See !#so note 13 "e#o2 on t$e effe+ts of t$e tr!nsfer> )e!)#o+C !n) ter,in!tion (rovisions on t$e !v!i#!"i#it< of +onsortiu,
re#ief4
1&
!1.#($
1*
C#!use 114& J1050K (rovi)es for t$e +o,(!n< to ,!Ce !((ro(ri!te %rou( in+o,e e#e+tions so t$!t (!<,ents of )ivi)en)s> interest
t!9 or )e)u+tin% !n< 2it$$o#)in% t!94 Note !)v!n+e +or(or!tion t!9 is to "e !"o#is$e) 2it$ effe+t fro, 1 A(ri# 1666> !fter 2$i+$
)!te +#!use 114&(-)(1) J1050K +!n "e )e#ete)4 .o2ever> +#!use 114&(-)() J1050K 2i## re,!in re#ev!nt if t$ere is ! +onsortiu, or
if !n< s$!re$o#)er $o#)s !t #e!st 01L of t$e +o,(!n<As or)in!r< s$!re +!(it!#4
10
11
It ,!< "e !((ro(ri!te to !##o2 for:
(A) (er,itte) tr!nsfers> e% intr!'%rou(Gsee :or, 5 J168*K (ost> !n)Eor
(-) tr!nsfers in !++or)!n+e 2it$ (re'e,(tion (rovisions in t$e !rti+#es of !sso+i!tion4
T$e !rti+#es of !sso+i!tion for use 2it$ t$is for, +ont!in (re'e,(tion (rovisionsGsee :or, * !rti+#e 3 J1111K (ost4
13
No s(e+ifi+ )e!)#o+C reso#ution +#!use is in+#u)e) !s Dst!n)!r)A in t$is (re+e)ent !#t$ou%$ 2$et$er !n< for, of )e!)#o+C
reso#ution +#!use is re;uire) in !n< %iven ,u#ti'(!rt< joint venture !%ree,ent 2i## "e one of t$e first !n) ,ost i,(ort!nt ,!tters
to "e !))resse)4 An< ri%$t of veto veste) in !n< (!rt< is usu!##< restri+te) to t$e t<(e of s(e+ifi+ ,!tters +ont!ine) in +#!use 34
Ot$er t$!n t$!t )e+isions !t "o!r) !n) s$!re$o#)er #eve# 2i## nor,!##< "e "< ,!jorit< )e+ision !n) !n< ,inorit< (!rt< or (!rties
,ust !++e(t t$is %iven t$e siIe of t$eir interest4 One !#tern!tive o(en to ! ,inorit< in t$ese +ir+u,st!n+es is to #e!ve t$e venture
!n) tr!nsfer its s$!res !n) it is su%%este) t$!t it ,i%$t not "e !((ro(ri!te to $!ve !n !"so#ute restri+tion on s$!re tr!nsfers in
,!n< ,u#ti'(!rt< joint ventures "ut t$!t t$e (re'e,(tion (ro+e)ure +ont!ine) in :or, * !rti+#e 3 J1111K s$ou#) "e !)o(te)4 T$e
e9+e(tion 2ou#) of +ourse "e t$ose +!ses 2$ere t$e (erson!# n!ture of t$e res(e+tive (!rtiesA +ontri"utions (re+#u)es it4 It is for
+onsi)er!tion in e!+$ +!se 2$et$er t$e t<(e of ,!tters for in+#usion in +#!use 3 J1033K (!n) over 2$i+$ it is inten)e) !## or so,e
of t$e (!rties $!ve ! ri%$t of veto) s$ou#) "e restri+te) to ,!jor )e(!rtures fro, t$e Dnor,!#A 2!< t$e (!rties e9(e+t t$e venture
to "e +on)u+te) or s$ou#) e9ten) to !## ,!tters t$e (!rties +onsi)er si%nifi+!nt fro, t$e outset "ut 2$i+$ !re #iCe#< to re;uire
!%ree,ent on ! re%u#!r "!sis (e% )ivi)en) (o#i+<> !((rov!# of !++ounts or "usiness (#!ns et+)4 If t$e #!tter> it ,i%$t "e
!((ro(ri!te to +onsi)er ! )e!)#o+C reso#ution +#!use to reso#ve t$e situ!tion 2$ere> for e9!,(#e> one or ,ore ,inorit< (!rties
+ontinu!##< Dfrustr!tesA !+tions re;uire) to "e i,(#e,ente) on ! re%u#!r "!sis4 T$is ,i%$t !#so "e ne+ess!r< 2$ere> in #ess
+o,,on situ!tions> e!+$ (!rt< or its re(resent!tives nee) to "e (resent to !+$ieve ! ;uoru, eit$er !t "o!r) or s$!re$o#)er #eve#4
:or ! (ossi"#e (re+e)ent see :or, && J1686K (ost4
Consortiu, re#ief 2i## not "e !v!i#!"#e to t$e (!rties !n) t$e +o,(!n< fro, t$e outset of t$e joint venture if t$ere !re !t t$!t
ti,e D!rr!n%e,entsA in (#!+e for t$e +onsortiu, re#!tions$i( to "e "roCen4 T$ere is !++or)in%#< ! risC t$!t t$e tr!nsfer> )e!)#o+C
or ter,in!tion (rovisions in t$e joint venture !%ree,ent +ou#) !,ount to su+$ !rr!n%e,ents so t$!t +onsortiu, re#ief 2ou#) "e
t$!t in (r!+ti+e in +ert!in +o,,on joint venture situ!tions> !rr!n%e,ents 2i## not "e tre!te) !s "ein% in (#!+e unti# t$e re#ev!nt
!((#ies in+#u)e:
(0) ! "re!+$ "< ! ,e,"er of t$e ter,s of ! s$!re$o#)ersA !%ree,ent or t$e joint venture +o,(!n<As !rti+#es of
!sso+i!tionH
v!#u!tionH
As )r!fte)> t$e (rovisions set out in +#!uses 1* J1051K !n) 10 J1055K f!## 2it$in t$e ter,s of t$e +on+ession4 .o2ever> it is
!1.#)$
15
16
re#ev!nt (erio) in re#!tion to t$e +o,(!n< !n) t$e (!rtiesA s$!re$o#)in%s et+4 T$e ,e+$!nis,s in +#!use 10 J1055K ,!< "e
(refer!"#e to 2in)in% u(4
8
In t$e +!se of #i;ui)!tion or "!nCru(t+< it ,!< "e t$ou%$t (refer!"#e to re#< on t$e (rovision of t$e !rti+#es of !sso+i!tion un)er
2$i+$ t$e s$!res of t$e #i;ui)!te) or "!nCru(te) s$!re$o#)er $!ve to "e offere) u( for s!#e un)er t$e (re'e,(tion (rovisions4
1
)is,isse)4 E9e,(tions !re !#so often seen for ! D%oo) #e!verA 2$o retires or +e!ses to 2orC t$rou%$ i## $e!#t$> !#t$ou%$ it ,!<
"e +onsi)ere) t$!t ter,in!tion 2ou#) "e !((ro(ri!te in t$ese +ir+u,st!n+es4
A +$!n%e of +ontro# (!s )efine) in t$e !%ree,ent) ,!< of +ourse "e Dinvo#unt!r<A !n) t$erefore it is for +onsi)er!tion 2$et$er it
&
*
C#!use 1041 J1055K nee)s +!refu# +onsi)er!tion in e!+$ +!se4 :or e9!,(#e> it ,i%$t "e !((ro(ri!te !s )r!2n if t$ere !re on#< or
& (!rties "ut it ,i%$t 2orC $!rs$#< if> in ! ,u#ti'(!rt< joint venture> one (!rt< (for e9!,(#e "e+!use of !n invo#unt!r< +$!n%e of
+ontro#) "e+!,e o"#i%!te) to (ur+$!se !## t$e interests of t$e re,!inin% !n) (ossi"#< ,ore su"st!nti!# s$!re$o#)ers4 Converse#<>
t$e o"#i%!tion to se## s$!res (!n) $!ve !## #o!ns re(!i)) ,!< not in +ert!in +ir+u,st!n+es "e seen !s ! suffi+ient in+entive not to
"re!+$ t$e !%ree,ent et+4 In t$e #!st +!se it ,i%$t "e t$ou%$t )esir!"#e to (rovi)e for ! )ifferent for,u#! for +!#+u#!tin% t$e
(ur+$!se (ri+e in t$e event of "re!+$ t$!n in ot$er Dinvo#unt!r<A +ir+u,st!n+es !n) ! (rovision !#on% t$ese #ines $!s "een
in+#u)e) in t$e v!#u!tion for,u#!4 Ever<t$in% 2i## )e(en) on t$e nu,"er !n) siIe of t$e )ifferent s$!re$o#)in%s !n) ,!n< ot$er
f!+tors4
!1.#,$
0
A furt$er v!ri!tion 2ou#) "e to re;uire t$e ter,in!tee to offer to se## its s$!res to t$e re,!inin% (!rties (2$o 2ou#) not "e
re;uire) to (ur+$!se unti# t$e (ri+e $!) first "een !s+ert!ine)) or !#tern!tive#< to serve ! tr!nsfer noti+e in !++or)!n+e 2it$ t$e
!rti+#es of !sso+i!tion (if !((#i+!"#e)Gsee :or, &* J161K (ost4
Ot$er ,e+$!nis,s for t$e (ur+$!se of ! (!rt<As s$!res +ou#) in+#u)e t$eir (ur+$!se "< t$e +o,(!n< or t$e so#i+it!tion of !
t$ir) (!rt< offer4 A +#!use +!terin% for t$ese (ossi"i#ities> !s furt$er !#tern!tives to t$e !+;uisition "< one or ,ore of t$e (!rties>
is set out in :or, &3 J1611K (ost4 Anot$er (ossi"i#it< is ! DTe9!s s$oot outAGsee :or,s &641 J1616KM&64& J161K (ost4
0
1
,!rCs of eit$er of t$e (!rties4
3
ot$er t<(e of e9istin% +o,(!n< is "ein% use) (er$!(s of t$e insisten+e of one (!rt< t$e ot$er(s) 2ou#) "e 2e## !)vise) to
+onsi)er 2$< su+$ ! +o,(!n< is "ein% (ut for2!r) !n) if !n e9istin% +o,(!n< D2it$ ! $istor<A is !%ree) to "e use) !s t$e ve$i+#e
t$e ot$er(s) s$ou#) +ert!in#< +onsi)er ,ore e9tensive 2!rr!nties !n) in)e,nities4 T$e +#!use (or !n< v!ri!tion) is usu!##<
unne+ess!r< for ! +o,(!n< not <et for,e)4
5
T$e :in!n+e A+t 1665 s 185 re(#!+e) t$e #e%is#!tion on tr!nsfer (ri+in% for UB t!9 (ur(oses4 Un)er t$e ne2 ru#es> t$e
+ir+u,st!n+es in 2$i+$ tr!nsfer (ri+in% !)just,ents +!n "e ,!)e in ! joint venture situ!tion !re )eter,ine) in (!rt "< t$e
re#!tions$i( "et2een t$e ,e,"ers of t$e joint venture4 A++or)in%#<> it $!s "e+o,e even ,ore re#ev!nt> in re#!tion to joint
venture +o,(!nies 2it$ one or ,ore non'UB resi)ent s$!re$o#)ers> to est!"#is$ 2$et$er !n< of t$e (!rties is !+tin% !s !%ent for
!not$er (!rt<4 T$e +onfir,!tion in +#!use 1541 J1060K 2i## "e usefu# evi)en+e in (rovin% t$e #!+C of su+$ !%en+< to t$e In#!n)
Revenue> !#t$ou%$ not +on+#usive4
6
C#!uses 84* !n) 840 J1065K +!n "e )e#ete) if !## t$e (!rties !re "!se) in En%#!n)4
!1.#.$
)
Articles of association for company 0ith t0o or more shareholders (0hich is not a Ddeadloc> ,#E,# company)
includin' class ri'hts
T.E CO=/ANIES ACT 1650
NE7 ARTICLES O: ASSOCIATION
of
1name6 Li,ite)
(!)o(te) "< s(e+i!# reso#ution (!sse) on 1date6)
1 *able A
T$e Re%u#!tions +ont!ine) in T!"#e A in t$e S+$e)u#e to t$e Co,(!nies (T!"#es A to :) Re%u#!tions 1650 !s !,en)e)
!t t$e )!te of !)o(tion of t$ese !rti+#es (DT!"#e AA) s$!##> e9+e(t 2$ere t$e< !re e9+#u)e)> v!rie) "< or in+onsistent 2it$
t$ese !rti+#es> !((#< to t$e Co,(!n< to t$e e9+#usion of !## ot$er re%u#!tions set out in !n< st!tute or st!tutor<
instru,ent +on+ernin% +o,(!nies4
% 7nterpretation
In t$ese !rti+#es un#ess t$e +onte9t ot$er2ise re;uires:
(A) Dt$e Co,(!n<A ,e!ns 1name6 Li,ite)
(-) Dt$ese !rti+#esA ,e!ns t$ese !rti+#es of !sso+i!tion in t$eir (resent for, or !s fro, ti,e to ti,e !#tere)H
(C) Dt$e Co,(!nies A+tsA ,e!ns ever< st!tute fro, ti,e to ti,e in for+e +on+ernin% +o,(!nies in so f!r !s t$e
s!,e !((#ies to t$e Co,(!n<H
(D) D,e,"erA ,e!ns ! ,e,"er of t$e Co,(!n<H
(E) ever< referen+e in T!"#e A to Dt$e A+tA s$!## "e +onstrue) !s if t$e referen+e 2!s to t$e Co,(!nies A+tsH
(:) !n< 2or)s or e9(ressions )efine) in t$e Co,(!nies A+ts in for+e !t t$e )!te 2$en t$ese !rti+#es or !n< (!rt of
t$e, !re !)o(te) s$!## (un#ess ot$er2ise )efine) in t$ese !rti+#es) "e!r t$e s!,e ,e!nin% in t$ese !rti+#es or
su+$ (!rt (!s t$e +!se ,!< "e)H !n)
(G) 2$ere for !n< (ur(ose !n or)in!r< reso#ution of t$e Co,(!n< is re;uire)> ! s(e+i!# or e9tr!or)in!r<
reso#ution s$!## !#so "e effe+tive> !n) 2$ere !n e9tr!or)in!r< reso#ution is re;uire) ! s(e+i!# reso#ution s$!##
!#so "e effe+tive4
!1.#/$
( Authorised share capital
1
&41 T$e s$!re +!(it!# of t$e Co,(!n< !t t$e )!te of t$e !)o(tion of t$ese !rti+#es is OTTT )ivi)e) into:
1number6 DAA or)in!r< s$!res of O1 e!+$ (Dt$e A s$!resA)
1number6 D-A or)in!r< s$!res of O1 e!+$ (Dt$e - s$!resA)
1number6 DCA or)in!r< s$!res of O1 e!+$ (Dt$e C s$!resA)
&4 T$e A s$!res> t$e - s$!res !n) t$e C s$!res s$!## e!+$ +onstitute )ifferent +#!sses of s$!res for t$e (ur(oses
of t$e A+t "ut s!ve !s ot$er2ise (rovi)e) in t$ese !rti+#es s$!## r!nC (!ri (!ssu in !## res(e+ts4
) Aariation of ri'hts
%
T$e ri%$ts for t$e ti,e "ein% res(e+tive#< !tt!+$e) to !n< A s$!res> - s$!res or C s$!res for t$e ti,e "ein% in issue ,!<
fro, ti,e to ti,e (2$et$er or not t$e Co,(!n< is "ein% 2oun) u() "e v!rie) or !"ro%!te) 2it$ t$e +onsent in 2ritin%
of t$e $o#)ers of not #ess t$!n 30L in no,in!# v!#ue of t$e issue) s$!res of t$e re#ev!nt +#!ss or 2it$ t$e s!n+tion of !n
e9tr!or)in!r< reso#ution (!sse) !t ! se(!r!te %ener!# ,eetin% of t$e $o#)ers of t$e s$!res of t$e +#!ss4 To !n< su+$
se(!r!te %ener!# ,eetin% !## t$e (rovisions of t$ese !rti+#es !s to %ener!# ,eetin%s of t$e Co,(!n< s$!## ,ut!tis
,ut!n)is !((#<> "ut so t$!t t$e ne+ess!r< ;uoru, s$!## "e one $o#)er of t$e re#ev!nt +#!ss (resent in (erson or "< (ro9<
!n) $o#)in% or re(resentin% not #ess t$!n &&4&L in no,in!# v!#ue of t$e issue) s$!res of t$e re#ev!nt +#!ss> t$!t ever<
$o#)er of s$!res of t$e +#!ss s$!## "e entit#e) on ! (o## to one vote for ever< su+$ s$!re $e#) "< $i, !n) t$!t !n< $o#)er
of s$!res of t$e +#!ss (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise) re(resent!tive ,!<
)e,!n) ! (o##4 :or t$e (ur(ose of t$is !rti+#e one $o#)er (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< !
)u#< !ut$orise) re(resent!tive ,!< +onstitute ! ,eetin%4
!1.#"$
, Hnissued share capital
041 Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts !n) t$ese !rti+#es !n) to !n< )ire+tion to t$e +ontr!r< 2$i+$
,!< "e %iven "< or)in!r< or ot$er reso#ution of t$e Co,(!n<> !n< unissue) s$!res of t$e Co,(!n< (2$et$er
for,in% (!rt of t$e ori%in!# or !n< in+re!se) +!(it!#) s$!## "e !t t$e )is(os!# of t$e )ire+tors 2$o ,!< offer>
!##ot> %r!nt o(tions over or %r!nt !n< ri%$t or ri%$ts to su"s+ri"e for t$e s$!res> or !n< ri%$t or ri%$ts to
+onvert !n< se+urit< into t$e s$!res or ot$er2ise )is(ose of t$e, to su+$ (ersons> !t su+$ ti,es !n) for su+$
+onsi)er!tion !n) u(on su+$ ter,s !n) +on)itions !s t$e )ire+tors ,!< )eter,ine4
04 :or t$e (ur(oses of t$e Co,(!nies A+t 1650 se+tion 58 "ut su"je+t to t$e (rovisions of t$ese !rti+#es> t$e
)ire+tors !re %ener!##< !n) un+on)ition!##< !ut$orise) to e9er+ise !## (o2ers of t$e Co,(!n< to !##ot re#ev!nt
se+urities !s )efine) in t$!t se+tion u( to !n !%%re%!te no,in!# !,ount of OTTT4 T$is !ut$orit< s$!##
e9(ire 0 <e!rs fro, t$e )!te on 2$i+$ t$e reso#ution !)o(tin% t$ese !rti+#es is (!sse) "ut ,!< "e (revious#<
revoCe) or v!rie) "< t$e Co,(!n< in %ener!# ,eetin% !n) ,!< fro, ti,e to ti,e "e rene2e) "< t$e
Co,(!n< in %ener!# ,eetin% for ! furt$er (erio) not e9+ee)in% 0 <e!rs4 T$e Co,(!n< ,!< ,!Ce !n< offer
or !%ree,ent "efore t$e e9(ir< of t$is !ut$orit< t$!t 2ou#) or ,i%$t re;uire re#ev!nt se+urities to "e !##otte)
!fter t$is !ut$orit< $!s e9(ire) !n) t$e )ire+tors ,!< !##ot re#ev!nt se+urities in (ursu!n+e of !n< su+$ offer
or !%ree,ent !s if t$is !ut$orit< $!) not e9(ire)4
!1.#2$
04& Arti+#e 04 s$!## not !((#< to re)ee,!"#e s$!res> 2$i+$ s$!## "e %overne) "< t$e (rovisions of !rti+#e 14
04* T$e Co,(!nies A+t 1650 se+tions 56(1) !n) 68(1)M(1) (in+#usive) s$!## not !((#<4
!040 An< s$!res for t$e ti,e "ein% unissue) s$!##> "efore t$e< !re issue)> "e offere) to t$e ,e,"ers $o#)in%
or)in!r< s$!res in (ro(ortion !s ne!r#< !s t$e +ir+u,st!n+es !),it to t$eir e9istin% $o#)in%s of or)in!r<
s$!res4 T$e offer s$!## "e ,!)e "< noti+e s(e+if<in% t$e nu,"er of s$!res offere) !n) #i,ite) to ! ti,e
2it$in 2$i+$ t$e offer> if not !++e(te)> 2i## "e )ee,e) to "e )e+#ine)4 After t$e e9(ir!tion of t$!t ti,e> or if
e!r#ier on t$e re+ei(t of !n inti,!tion fro, t$e (erson to 2$o, t$e offer $!s "een ,!)e t$!t $e )e+#ines to
!++e(t t$e s$!res offere)> t$e )ire+tors ,!<> su"je+t to t$ese !rti+#es> )is(ose of t$e s$!res in su+$ ,!nner !s
t$e< t$inC ,ost "enefi+i!# to t$e Co,(!n<4 T$e )ire+tors ,!<> in #iCe ,!nner> )is(ose of !n< s$!res 2$i+$
"< re!son of t$e (ro(ortion "orne "< t$e, to t$e nu,"er of (ersons entit#e) to t$e offer !s !fores!i) or "<
re!son of !n< )iffi+u#t< in !((ortionin% t$e, +!nnot in t$e o(inion of t$e )ire+tors "e +onvenient#< offere) in
t$e ,!nner (rovi)e) !"ove4 T$e (rovisions of t$is !rti+#e ,!< "e re#!9e) or v!rie) to !n< e9tent "< t$e
2ritten !%ree,ent of !## t$e ,e,"ers for t$e ti,e "ein%4$
&
!041 T$e ri%$ts +onferre) u(on t$e $o#)ers of !n< s$!res or +#!ss of s$!res s$!## not> un#ess ot$er2ise e9(ress#<
(rovi)e) in t$e ri%$ts !tt!+$in% to> or t$e ter,s of issue of> t$e s$!res> "e )ee,e) to "e !#tere) "< t$e +re!tion
or issue of furt$er s$!res r!nCin% (!ri (!ssu 2it$ t$e,4$
*
!1.1#$
. &edeemable shares
Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts> !n< s$!res ,!<> 2it$ t$e s!n+tion of ! s(e+i!# reso#ution> "e issue) on
ter,s t$!t t$e< !re> or !t t$e o(tion of t$e Co,(!n< or t$e ,e,"er re%istere) in res(e+t of t$e, !re #i!"#e> to "e
re)ee,e) on t$e ter,s !n) in t$e ,!nner (rovi)e) for "< t$ese !rti+#es4 Re%u#!tion & of T!"#e A s$!## not !((#<4
/ *ransfer of shares
0
341 !S!ve 2it$ t$e (rior +onsent in 2ritin% of !## t$e ot$er ,e,"ers of t$e Co,(!n< for t$e ti,e "ein%> no
,e,"er s$!## "e entit#e) to tr!nsfer !n< s$!res in t$e Co,(!n<4
1or6
!Su"je+t to !rti+#e 34 no 1or6 No$ tr!nsfer of !n< s$!re s$!## "e ,!)e or re%istere) 2it$out t$e (revious
s!n+tion of t$e )ire+tors 2$o ,!< in t$eir !"so#ute !n) unfettere) )is+retion> 2it$out !ssi%nin% !n< re!son>
refuse to %ive t$eir s!n+tion4 If t$eir s!n+tion s$!## not "e %iven 2it$in 5 2eeCs !fter t$e tr!nsfer is #o)%e) for
re%istr!tion> it s$!## "e )ee,e) to $!ve "een refuse) !t t$e e9(ir!tion of su+$ (erio) !n) t$e tr!nsferee s$!##
"e notifie) of su+$ refus!#4 Re%u#!tion * of T!"#e A s$!## "e v!rie) !++or)in%#<4$
34 Ever< ,e,"er (!n) ever< (erson entit#e) to ! s$!re or s$!res in +onse;uen+e of t$e )e!t$ or "!nCru(t+< of !
,e,"er or "< o(er!tion of #!2) 2$o inten)s to tr!nsfer or ot$er2ise )is(ose of s$!res of !n< +#!ss of t$e
Co,(!n< or !n< interest in su+$ s$!res (D! (ro(ose) tr!nsferorA) s$!##> "efore so )oin% or !%reein% so to )o>
infor, t$e Co,(!n< of $is intention "< %ivin% it noti+e in 2ritin% (D! tr!nsfer noti+eA)4 A tr!nsfer noti+e s$!##
+onstitute t$e Co,(!n< t$e !%ent of ! (ro(ose) tr!nsferor> e,(o2ere) to se## t$e s$!res referre) to in t$e
tr!nsfer noti+e (to%et$er 2it$ !## ri%$ts t$en !tt!+$e) to t$e,) to !n< ,e,"er> !t t$e (res+ri"e) (ri+e
()eter,ine) !s s(e+ifie) "e#o2) in t$e ,!nner !((e!rin% "e#o2> !n) s$!## not "e revo+!"#e e9+e(t 2it$ t$e
un!ni,ous !%ree,ent of t$e )ire+tors4
!1.11$
34& If> not ,ore t$!n 1* )!<s !fter t$e )!te on 2$i+$ ! tr!nsfer noti+e is %iven or )ee,e) to $!ve "een %iven> !
(ro(ose) tr!nsferor !n) t$e )ire+tors s$!## $!ve !%ree) in 2ritin% ! (ri+e (er s$!re !s re(resentin% t$e f!ir
v!#ue of t$e s$!res> or !s "ein% !++e(t!"#e to t$e (ro(ose) tr!nsferor !!n) not ,ore t$!n t$e f!ir v!#ue of t$e
s$!res$> t$en t$!t (ri+e s$!## "e t$e (res+ri"e) (ri+e4 In t$e !"sen+e of !n< !%ree,ent $!vin% "een re!+$e)
2it$in t$!t (erio) of 1* )!<s t$e )ire+tors s$!## fort$2it$ re;uest t$e !u)itors for t$e ti,e "ein% of t$e
Co,(!n< to )eter,ine !n) +ertif< in 2ritin% to t$e Co,(!n< t$e su, (er s$!re +onsi)ere) "< t$e, to "e t$e
f!ir v!#ue of t$e s$!res !s "et2een ! 2i##in% ven)or !n) ! 2i##in% (ur+$!ser (i%norin% t$e f!+t if su+$ "e t$e
+!se> t$!t t$e s$!res )o not +!rr< effe+tive +ontro# of t$e Co,(!n<) !s !t t$e )!te on 2$i+$ t$e tr!nsfer noti+e
2!s %iven or )ee,e) to $!ve "een %iven> !n) t$e su, (er s$!re so )eter,ine) !n) +ertifie) s$!## "e t$e
(res+ri"e) (ri+e4 T$e !u)itors s$!## !+t un)er t$is !rti+#e !t t$e +ost !n) e9(ense of t$e (ro(ose) tr!nsferor>
!s e9(erts !n) not !s !r"itr!tors !n) t$eir )eter,in!tion s$!## "e fin!# !n) "in)in% for !## (ur(oses (s!ve in
res(e+t of ,!nifest error)4
34* 7it$in 3 )!<s of t$e (res+ri"e) (ri+e "ein% so !%ree) or )eter,ine) !n) fi9e) !## s$!res in+#u)e) in !n<
tr!nsfer noti+e s$!## "e offere) for (ur+$!se !t t$e (res+ri"e) (ri+e "< noti+e in 2ritin% %iven "< t$e Co,(!n<
to !## ,e,"ers $o#)in% s$!res of 2$!tever +#!ss in t$e Co,(!n<> ot$er t$!n t$e ,e,"er to 2$ose s$!res t$e
tr!nsfer noti+e re#!tes4 T$e offer s$!## "e on t$e "!sis t$!t in t$e +!se of +o,(etition for t$e, t$e s$!res so
offere) s$!## (in !++or)!n+e 2it$> "ut su"je+t to> t$e ne9t fo##o2in% !rti+#e) "e so#) to !++e(tors $o#)in%
s$!res of t$e s!,e +#!ss !s t$e s$!res "ein% offere)> in (ro(ortion (!s ne!r#< !s ,!< 2it$out invo#vin%
fr!+tions or in+re!sin% t$e nu,"er so#) to !n< ,e,"er "e<on) t$!t !((#ie) for "< $i,) to t$eir e9istin%
$o#)in%s of s$!res of t$e s!,e +#!ss !n) in t$e event of ,e,"ers $o#)in% s$!res of t$e s!,e +#!ss not t!Cin%
!## t$e s$!res so offere)> t$en t$e s$!res so offere) "ut not so so#) s$!## "e so#) to t$e ,e,"ers $o#)in%
s$!res of !n< ot$er +#!ss !n) in t$e +!se of +o,(etition on ! si,i#!r "!sis ,ut!tis ,ut!n)is !s !fores!i)4 An<
su+$ offer s$!## s(e+if< ! (erio) ("ein% not #ess t$!n 1 )!<s !n) not ,ore t$!n * )!<s) 2it$in 2$i+$ it ,ust
"e !++e(te) or 2i## #!(se4
!1.1%$
340 If ,e,"ers (D(ur+$!sersA) s$!## 2it$in t$e s!i) (erio) of t$e offer !%ree to (ur+$!se t$e s$!res +on+erne) or
!n< of t$e, t$e Co,(!n< s$!## fort$2it$ %ive noti+e in 2ritin% !s ,entione) "e#o2 to t$e (ro(ose)
tr!nsferor !n) to t$e (ur+$!sers> !n) u(on (!<,ent of t$e (res+ri"e) (ri+e t$e (ro(ose) tr!nsferor s$!## "e
"oun) to tr!nsfer t$e s$!res to t$e res(e+tive (ur+$!sers !++or)in%#<4 Ever< su+$ noti+e s$!## st!te t$e n!,e
!n) !))ress of e!+$ (ur+$!ser !n) t$e nu,"er !n) +#!ss of s$!res !%ree) to "e (ur+$!se) "< $i, !n) t$e
(ur+$!se s$!## "e +o,(#ete) !t ! (#!+e !n) ti,e to "e !((ointe) "< t$e )ire+tors not "ein% #ess t$!n 3 )!<s
nor ,ore t$!n &8 )!<s !fter t$e )!te of su+$ noti+e /ROVIDED t$!t if ! tr!nsfer noti+e s$!## st!te t$!t !
(ro(ose) tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e s$!res t$e su"je+t of t$e tr!nsfer noti+e> t$e
fore%oin% (rovisions of t$is !rti+#e 340 s$!## not !((#< un#ess t$e Co,(!n< s$!## $!ve foun) (ur+$!sers for !##
of t$e s$!res !n) (un#ess !s !fores!i)) !n< offer referre) to in !rti+#e 34* s$!## "e )ee,e) to $!ve #!(se)
2it$out $!vin% "een v!#i)#< !++e(te)4
341 If ! (ro(ose) tr!nsferor s$!## f!i# or refuse to tr!nsfer !n< s$!res to ! (ur+$!ser un)er t$is !rti+#e 3 t$e
)ire+tors ,!< !ut$orise so,e (erson to e9e+ute t$e ne+ess!r< tr!nsfer !n) ,!< )e#iver it on $is "e$!#f> !n)
t$e Co,(!n< ,!< re+eive t$e (ur+$!se ,one< in trust for t$e (ro(ose) tr!nsferor (2$i+$ it s$!## (!< into !
se(!r!te "!nC !++ount in t$e Co,(!n<As n!,e) !n) +!use t$e (ur+$!ser to "e re%istere) !s t$e $o#)er of su+$
s$!res4 T$e re+ei(t of t$e Co,(!n< for t$e (ur+$!se ,one< s$!## "e ! %oo) )is+$!r%e to t$e (ur+$!ser (2$o
s$!## not "e "oun) to see to t$e !((#i+!tion of it) !n) !fter t$e (ur+$!ser $!s "een re%istere) in (ur(orte)
e9er+ise of t$ese (o2ers t$e v!#i)it< of t$e (ro+ee)in%s s$!## not "e ;uestione) "< !n< (erson4
!1.1($
343 If !t t$e en) of t$e (erio) for !++e(t!n+e of t$e offer referre) to in !rti+#e 34* !"ove> ,e,"ers of t$e
Co,(!n< $!ve not !%ree) to (ur+$!se !## t$e s$!res offere)> t$e Co,(!n< s$!## fort$2it$ %ive noti+e in
2ritin% of t$!t to t$e (ro(ose) tr!nsferor !n) !(su"je+t to t$e (revious s!n+tion of t$e "o!r)> su+$ s!n+tion
not to "e unre!son!"#< 2it$$e#))$
1
$e s$!## t$en "e !t #i"ert< !t !n< ti,e t$ere!fter> u( to t$e e9(ir!tion of &
,ont$s !fter t$e %ivin% of t$e noti+e> to tr!nsfer t$ose s$!res 2$i+$ ,e,"ers $!ve not !%ree) to (ur+$!se to
!n< (erson on ! "on! fi)e s!#e !t !n< (ri+e not "ein% #ess t$!n t$e (res+ri"e) (ri+e /ROVIDED t$!t:
(A) if ! tr!nsfer noti+e st!tes t$!t t$e (ro(ose) tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e
s$!res t$e su"je+t of t$e tr!nsfer noti+e> $e s$!## not "e entit#e) un)er t$is !rti+#e to tr!nsfer !n< of
su+$ s$!res un#ess in !%%re%!te t$e 2$o#e of su+$ s$!res !re tr!nsferre)H !n)
(-) t$e )ire+tors ,!< re;uire to "e s!tisfie) t$!t t$e s$!res !re "ein% tr!nsferre) in (ursu!n+e of ! "on!
fi)e s!#e for t$e +onsi)er!tion st!te) in t$e instru,ent of tr!nsfer 2it$out !n< )e)u+tion> re"!te or
!##o2!n+e 2$!tsoever "ein% %iven to t$e (ur+$!ser !n)> if not so s!tisfie)> ,!< refuse to re%ister
t$e instru,ent of tr!nsfer4
!345 If ! ,e,"er> or ot$er (erson entit#e) to tr!nsfer ! s$!re> !t !n< ti,e !tte,(ts to )e!# 2it$ or )is(ose of !
s$!re or !n< interest in ! s$!re ot$er2ise t$!n in !++or)!n+e 2it$ t$e fore%oin% (rovisions of t$is !rti+#e 3> $e
s$!## "e )ee,e) to $!ve serve) ! tr!nsfer noti+e on t$e Co,(!n< in res(e+t of t$e s$!re i,,e)i!te#< (rior to
t$e !tte,(t> !n) t$e (rovisions of t$is !rti+#e 3 s$!## t$ereu(on !((#< to t$e s$!re4 An< su+$ tr!nsfer noti+e
s$!## "e )ee,e) to $!ve "een serve) on t$e )!te on 2$i+$ t$e )ire+tors re+eive !+tu!# noti+e of t$e !tte,(t4 $
!1.1)$
!346 T$e e9e+utors or !),inistr!tors or ot$er (erson!# re(resent!tives (if !n<) of !n< )e+e!se) ,e,"er> or t$e
trustee in "!nCru(t+< of ! "!nCru(t ,e,"er> s$!## "e "oun) !t t$e e9(ir< of ,ont$s fro, t$e )!te of $is
)e!t$ or "!nCru(t+< (!s !((#i+!"#e)> to %ive ! tr!nsfer noti+e in res(e+t of !## t$e s$!res re%istere) in t$e n!,e
of t$e )e+e!se) or "!nCru(t ,e,"er !t t$e )!te of $is )e!t$ or "!nCru(t+<> or su+$ of t$e, !s sti## re,!in so
re%istere)4 S$ou#) t$e e9e+utors> !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tive f!i# to
%ive ! tr!nsfer noti+e 2it$in 1* )!<s !fter t$e e9(ir< of t$!t (erio) of ,ont$s> or s$ou#) t$ere "e no
e9e+utors or !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tive !t t$e e9(ir< of t$!t (erio)
of ,ont$s> ! tr!nsfer noti+e s$!## "e )ee,e) to $!ve "een %iven (on t$e "!sis t$!t t$ere is no re;uire,ent
t$!t !## "ut not so,e on#< of t$e s$!res t$e su"je+t of t$e tr!nsfer noti+e ,ust "e so#) to e9istin% ,e,"ers)
!n) t$e (rovisions of t$is !rti+#e 3 s$!## $!ve effe+t !++or)in%#<4$
!3418 If !n< ,e,"er ("ein% ! +or(or!tion) %oes into #i;ui)!tion (+o,(u#sori#< or vo#unt!ri#<) or $!s !n
!),inistr!tor !((ointe) or $!s ! re+eiver> !),inistr!tive re+eiver or si,i#!r offi+i!# !((ointe) of t$e 2$o#e or
!n< (!rt of its !ssets> its #i;ui)!tor> !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!#
s$!## "e "oun) fort$2it$ to %ive to t$e Co,(!n< ! tr!nsfer noti+e in res(e+t of !## t$e s$!res re%istere) in t$e
n!,e of t$!t ,e,"er4 In )ef!u#t of ! tr!nsfer noti+e "ein% %iven 2it$in &8 )!<s of t$e ,e,"er %oin% into
#i;ui)!tion or $!vin% !n !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# !((ointe)> t$e
#i;ui)!tor> !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# s$!## "e )ee,e) to $!ve
%iven su+$ noti+e !t t$e e9(ir!tion of t$!t (erio) of &8 )!<s (on t$e "!sis t$!t t$ere is no re;uire,ent t$!t !##
"ut not so,e on#< of t$e s$!res t$e su"je+t of t$e tr!nsfer noti+e ,ust "e so#) to e9istin% ,e,"ers) !n) t$e
(rovisions of t$is !rti+#e s$!## !((#< !++or)in%#<4$
3
!1.1,$
" Alteration of capital
T$e Co,(!n< ,!< fro, ti,e to ti,e "< s(e+i!# reso#ution in+re!se t$e s$!re +!(it!# "< su+$ su, to "e )ivi)e) into
s$!res of su+$ !,ount !s t$e reso#ution s$!## (rovi)e4 Re%u#!tion & of T!"#e A s$!## "e v!rie) !++or)in%#<4
2 Purchase of o0n shares
5
E9+e(t 2it$ t$e +onsent in 2ritin% of !n) in t$e ,!nner !ut$orise) "< !## t$e ,e,"ers> t$e (o2ers +onferre) "<
Re%u#!tion &0 of T!"#e A s$!## not "e e9er+ise)4
1# Proceedin's at 'eneral meetin's
1841 No "usiness s$!## "e tr!ns!+te) !t !n< %ener!# ,eetin% un#ess ! ;uoru, of ,e,"ers is (resent !t t$e ti,e
2$en t$e ,eetin% (ro+ee)s to "usiness4 In )ef!u#t of ! ;uoru, 2it$in one $our !fter t$e ti,e !((ointe) for
t$e ,eetin% t$e ,eetin% s$!## "e !)journe) to su+$ ti,e (not "ein% e!r#ier t$!n 3 )!<s fro, t$e )!te of t$e
ori%in!# ,eetin%) !n) (#!+e !s t$e )ire+tors ,!< )eter,ine4 If t$ere is no ;uoru, !t t$e !)journe) ,eetin%
2it$in one $our !fter t$e ti,e !((ointe) for t$e ,eetin%> t$e ,eetin% s$!## !%!in "e !)journe) !s !fores!i)4
If t$ere is no ;uoru, !t t$e furt$er !)journe) ,eetin% 2it$in one $our !fter t$e ti,e !((ointe) for t$e
,eetin% t$e ,e,"er or ,e,"ers (resent> 2$!tever t$eir nu,"er !n) t$e +#!ss or +#!sses of s$!res $e#) "<
t$e, s$!## +onstitute ! ;uoru,4
!1.1.$
184 Su"je+t to !rti+#e 1841 t$e ;uoru, !t !n< %ener!# ,eetin% (!n) !t !n< !)journe) %ener!# ,eetin%) s$!## "e !&$
,e,"ers (resent in (erson or "< (ro9< or> "ein% ! +or(or!tion> "< ! )u#< !ut$orise) re(resent!tive> of 2$o,
one s$!## "e ! $o#)er of DAA s$!res> one ! $o#)er of D-A s$!res !n) t$e ot$er ! $o#)er of DCA s$!res4
184& Re%u#!tions !&6>$ *8 !n) *1 of T!"#e A s$!## not !((#<4
184* At !n< %ener!# ,eetin% ! (o## ,!< "e )ire+te) "< t$e +$!ir,!n or )e,!n)e) "< !n< ,e,"er (resent in
(erson or "< (ro9< or> "ein% ! +or(or!tion> "< ! )u#< !ut$orise) re(resent!tive> !n) Re%u#!tion *1 of T!"#e A
s$!## "e v!rie) !++or)in%#<4
1840 In t$e +!se of !n e;u!#it< of votes 2$et$er on ! s$o2 of $!n)s or on ! (o##> t$e +$!ir,!n of t$e ,eetin% !t
2$i+$ t$e s$o2 of $!n)s t!Ces (#!+e or !t 2$i+$ t$e (o## is )e,!n)e) s$!## not $!ve ! se+on) or +!stin% vote4
Re%u#!tion 08 of T!"#e A s$!## not !((#<4
1841 In t$e +!se of ! +or(or!tion> ! reso#ution in 2ritin% ,!< "e si%ne) on its "e$!#f "< ! )ire+tor or t$e se+ret!r<
of it> or "< its )u#< !((ointe) !ttorne< or )u#< !ut$orise) re(resent!tive !n) Re%u#!tion 0& s$!## "e e9ten)e)
!++or)in%#<4
!1.1/$
11 Aotes of members
1141 Su"je+t to !n< ri%$ts or restri+tions for t$e ti,e "ein% !tt!+$e) to !n< +#!ss or +#!sses of s$!res (in+#u)in%>
2it$out #i,it> t$e (rovisions of !rti+#es !114> 114& !n) 114*$ "e#o2)> on ! s$o2 of $!n)s ever< ,e,"er
(resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise) re(resent!tive s$!## $!ve one vote>
!n) on ! (o## ever< ,e,"er (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise)
re(resent!tive s$!## $!ve one vote for e!+$ s$!re of 2$i+$ $e is t$e $o#)er
6
4 Re%u#!tion 0* of T!"#e A s$!##
not !((#<4
114 U(on !n< reso#ution
18
for t$e re,ov!# fro, offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er
t$e (rovisions of !rti+#e 1141 "< t$e $o#)ers of t$e A s$!res> no - s$!re or C s$!re s$!## +onfer u(on t$e
$o#)er
11
!n< ri%$t to vote eit$er on ! (o## or ! s$o2 of $!n)s or ot$er2ise4
114& U(on !n< reso#ution for t$e re,ov!# fro, offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er
t$e (rovisions of !rti+#e 114 "< t$e $o#)ers of t$e - s$!res> no A s$!re or C s$!re s$!## +onfer u(on t$e
$o#)er !n< ri%$t to vote eit$er on ! (o## or ! s$o2 of $!n)s or ot$er2ise4
114* U(on !n< reso#ution for t$e re,ov!# fro, offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er
t$e (rovisions of !rti+#e 114& "< t$e $o#)ers of t$e C s$!res> no A s$!re or - s$!re s$!## +onfer u(on t$e
$o#)er !n< ri%$t to vote eit$er on ! (o## or ! s$o2 of $!n)s or ot$er2ise4
1140 T$e instru,ent !((ointin% ! (ro9< !n) t$e (o2er of !ttorne< or ot$er !ut$orit< (if !n<) un)er 2$i+$ it is
si%ne)> or ! not!ri!##< +ertifie) +o(< of su+$ (o2er or !ut$orit<> s$!## "e )e(osite) !t t$e re%istere) offi+e of
t$e Co,(!n< (or !t su+$ ot$er (#!+e in t$e Unite) Bin%)o, !s is s(e+ifie) for t$!t (ur(ose in t$e noti+e of
,eetin% or !n< instru,ent of (ro9< sent "< t$e Co,(!n< in re#!tion to t$e ,eetin%) !not #ess t$!n !one$ $our$
"efore t$e ti,e for $o#)in% t$e ,eetin% or !)journe) ,eetin% !t 2$i+$ t$e (erson n!,e) in t$e instru,ent
(ro(oses to vote> or $!n)e) to t$e C$!ir,!n of t$e ,eetin% or !)journe) ,eetin% "efore t$e +o,,en+e,ent
of su+$ ,eetin% !n)> in )ef!u#t> t$e instru,ent of (ro9< s$!## not "e tre!te) !s v!#i)4 Re%u#!tion 1 of T!"#e
A s$!## not !((#<4
!1.1"$
1% Number of directors
T$e nu,"er of )ire+tors s$!## not "e #ess t$!n !& 1or as re>uired6$ or ,ore t$!n 1number6
1
4 Re%u#!tion 1* of T!"#e A
s$!## not !((#<4
1( Alternate directors
1&41 An< )ire+tor (ot$er t$!n !n !#tern!te )ire+tor) ,!< !((oint !n< (erson to "e !n !#tern!te )ire+tor !n) ,!<
re,ove fro, offi+e !n !#tern!te )ire+tor !((ointe) "< $i,
1&
4 :or t$e (ur(oses of t$ese !rti+#es> !n !#tern!te
)ire+tor !((ointe) "< !n A )ire+tor s$!## "e )ee,e) to "e !n A )ire+tor> !n !#tern!te )ire+tor !((ointe) "< ! -
)ire+tor s$!## "e )ee,e) to "e ! - )ire+tor !n) !n !#tern!te )ire+tor !((ointe) "< ! C )ire+tor s$!## "e
)ee,e) to "e ! C )ire+tor4 A (erson +!n "e !((ointe) !n !#tern!te )ire+tor "< ,ore t$!n one )ire+tor
(rovi)e) !## t$e !((ointors re(resent t$e s!,e +#!ss of s$!res "ut not ot$er2ise4
1&4 An !#tern!te )ire+tor ,!< "e (!i) e9(enses !n) s$!## "e entit#e) to "e in)e,nifie) "< t$e Co,(!n< to t$e
s!,e e9tent ,ut!tis ,ut!n)is !s if $e 2ere ! )ire+tor "ut s$!## not "e entit#e) to re+eive fro, t$e Co,(!n<
!n< fee in $is +!(!+it< !s !n !#tern!te )ire+tor e9+e(t on#< su+$ (!rt (if !n<) of t$e re,uner!tion ot$er2ise
(!<!"#e to t$e )ire+tor !((ointin% $i, !s su+$ )ire+tor ,!< "< noti+e in 2ritin% to t$e Co,(!n< fro, ti,e to
ti,e )ire+t4 An !#tern!te )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o, s$!## "e entit#e) to re+eive noti+e
of !## ,eetin%s of t$e )ire+tors !n) of !## ,eetin%s of +o,,ittees of )ire+tors of 2$i+$ $is !((ointor is !
,e,"er !t su+$ !))ress !s $e s$!## $!ve notifie) to t$e Se+ret!r<4 Re%u#!tions 10 !n) 11 of T!"#e A s$!## "e
v!rie) !++or)in%#<4
1&4& Ever< (erson !+tin% !s !n !#tern!te )ire+tor s$!## $!ve one vote for e!+$ )ire+tor for 2$o, $e !+ts !s
!#tern!te (in !))ition to $is o2n vote if $e is !#so ! )ire+tor) "ut $e s$!## +ount !s on#< one A )ire+tor or one -
)ire+tor or one C )ire+tor (!s !((ro(ri!te) for t$e (ur(ose of )eter,inin% 2$et$er ! ;uoru, is (resent4 T$e
si%n!ture of !n !#tern!te )ire+tor to !n< reso#ution in 2ritin% of t$e )ire+tors or of ! +o,,ittee of t$e
)ire+tors s$!##> un#ess noti+e of $is !((oint,ent (rovi)es to t$e +ontr!r<> "e !s effe+tive !s t$e si%n!ture of
$is !((ointor4
!1.12$
1) *he seal
T$e Co,(!n< ,!< e9er+ise !## t$e (o2ers +onferre) "< t$e Co,(!nies A+ts 2it$ re%!r) to $!vin% !n< offi+i!# se!#> or
ot$er2ise in re#!tion to t$e e9e+ution of )o+u,ents "< t$e Co,(!n<> !n) su+$ (o2ers s$!## "e veste) in t$e )ire+tors4
An< instru,ent to 2$i+$ !n offi+i!# se!# is !ffi9e) or 2$i+$ is ot$er2ise e9e+ute) "< t$e Co,(!n< s$!## "e si%ne) "<
su+$ (ersons> if !n<> !s t$e )ire+tors ,!< fro, ti,e to ti,e )eter,ine !n) un#ess ot$er2ise so )eter,ine) s$!## "e
si%ne) "< ! )ire+tor !n) "< t$e se+ret!r< or ! se+on) )ire+tor4 An< su+$ )o+u,ent s$!## "e )e#ivere) !t su+$ ti,e> !n)
in su+$ ,!nner> !s t$e )ire+tors ,!< fro, ti,e to ti,e )eter,ine> !n) s$!## not "e )ee,e) to "e )e#ivere) "< t$e
Co,(!n< so#e#< !s ! resu#t of $!vin% "een e9e+ute) "< t$e Co,(!n<4 Re%u#!tion 181 of T!"#e A s$!## not !((#<4
1insert restrictions on directors3 borrowin! powers i. re>uired6
1, Dele'ation of directors po0ers
T$e )ire+tors ,!< )e#e%!te !n< of t$eir (o2ers to !n< +o,,ittee +onsistin% of !&$ or ,ore )ire+tors one of 2$o, s$!##
"e !n A )ire+tor> one ! - )ire+tor !n) one ! C )ire+tor4 !T$e )ire+tors ,!< !#so entrust to !n) +onfer u(on !n< )ire+tor
!n< of t$e (o2ers e9er+is!"#e "< t$e,4$ An< su+$ )e#e%!tion ,!< "e ,!)e u(on su+$ ter,s !n) +on)itions !n) 2it$
su+$ restri+tions !s t$e< ,!< t$inC fit> !n) eit$er +o##!ter!##< 2it$ or to t$e e9+#usion of t$eir o2n (o2ers> !n) ,!<
fro, ti,e to ti,e revoCe> 2it$)r!2> !#ter or v!r< !## or !n< of su+$ (o2ers4 Su"je+t to !n< su+$ +on)itions> t$e
(ro+ee)in%s of su+$ ! +o,,ittee s$!## "e %overne) "< t$ese !rti+#es re%u#!tin% t$e (ro+ee)in%s of )ire+tors so f!r !s
t$e< !re +!(!"#e of !((#<in%4 Re%u#!tion 3 of T!"#e A s$!## not !((#<4
!1.%#$
1. Appointment and retirement of directors
1141 T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) A s$!res fro, ti,e to
ti,e s$!## "e entit#e) to !((oint 1number6 )ire+tor!s$> to re,ove !n< )ire+tor so !((ointe) !n) to !((oint
!not$er )ire+tor in (#!+e of !n< )ire+tor so !((ointe) 2$o for !n< re!son +e!ses to "e ! )ire+tor4 !:or t$is
(ur(ose 1name6 !n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!## "e )ee,e) to $!ve "een !((ointe)
un)er t$is !rti+#e 11414$
10
An< (ersons so !((ointe) or )ee,e) to "e so !((ointe) un)er t$is !rti+#e 1141 !re
+!##e) DA )ire+torsA4
114 T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) - s$!res fro, ti,e to
un)er t$is !rti+#e 1144$ An< (ersons so !((ointe) or )ee,e) to "e so !((ointe) un)er t$is !rti+#e 114 !re
+!##e) D- )ire+torsA4
114& T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) C s$!res fro, ti,e to
un)er t$is !rti+#e 114&4$ An< (ersons so !((ointe) or )ee,e) to "e so !((ointe) un)er t$is !rti+#e 114& !re
+!##e) DC )ire+torsA4
114* An< !((oint,ent or re,ov!# un)er t$is !rti+#e s$!## "e "< noti+e in 2ritin% #o)%e) !t t$e re%istere) offi+e of
t$e Co,(!n< or )e#ivere) to ! )u#< +onstitute) ,eetin% of t$e )ire+tors of t$e Co,(!n< !n) si%ne) un)er t$e
$!n) or $!n)s of t$e $o#)er or $o#)ers of ! ,!jorit< in no,in!# v!#ue of t$e issue) s$!res of t$e +#!ss
effe+tin% t$e s!,e4 An< !((oint,ent or re,ov!# s$!## t!Ce effe+t !s !t t$e ti,e of t$e #o)%e,ent or )e#iver<
of t$e noti+e or !t su+$ #!ter ti,e !s s$!## "e s(e+ifie) in it4 In t$e +!se of ! +or(or!tion t$e noti+e ,!< "e
si%ne) "< or on its "e$!#f "< ! )ire+tor or t$e se+ret!r< or "< its )u#< !((ointe) !ttorne< or )u#< !ut$orise)
re(resent!tive4
!1.%1$
1140 No )ire+tor s$!## "e re;uire) to retire or v!+!te $is offi+e or "e ine#i%i"#e for re!((oint,ent !s ! )ire+tor> nor
s$!## !n< (erson "e ine#i%i"#e for !((oint,ent !s ! )ire+tor> "< re!son of $is $!vin% !tt!ine) !n< (!rti+u#!r
!%e4
1141 Re%u#!tions 3& to 58 (in+#usive) of T!"#e A s$!## not !((#<4
1143 T$e offi+e of ! )ire+tor s$!## "e v!+!te) if:
(A) $e resi%ns $is offi+e "< noti+e in 2ritin% )e#ivere) to t$e re%istere) offi+e of t$e Co,(!n< or
ten)ere) to ! ,eetin% of t$e )ire+torsH or
(-) $e "e+o,es of unsoun) ,in) or ! (!tient for t$e (ur(oses of !n< st!tute re#!tin% to ,ent!# $e!#t$
!n) t$e )ire+tors reso#ve t$!t $is offi+e is v!+!te)H or
(C) $e "e+o,es "!nCru(t or +o,(oun)s 2it$ $is +re)itorsH or
(D) $e is (ro$i"ite) fro, "ein% ! )ire+tor "< #!2 or "< t$e or)er of !n< Court or tri"un!# of +o,(etent
juris)i+tionH or
(E) "ein% ! )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er !rti+#e 11> $e is re,ove) fro, offi+e
un)er t$e (rovisions of t$!t !rti+#eH !or
(:) "ein% ! )ire+tor !((ointe) un)er !rti+#e 11 t$e ,e,"er or t$e ,e,"ers entit#e) to !((oint $i, s$!##
+e!se to "e so entit#e)$4
!1.%%$
1/ Directors 'ratuities and pensions
T$e )ire+tors on "e$!#f of t$e Co,(!n< ,!< e9er+ise !## t$e (o2ers of t$e Co,(!n< to %r!nt (ensions> !nnuities>
%r!tuities !n) su(er!nnu!tion or ot$er !##o2!n+es !n) "enefits in f!vour of !n< (erson in+#u)in% !n< )ire+tor or for,er
)ire+tor or t$e re#!tions> +onne+tions or )e(en)!nts of !n< )ire+tor or for,er )ire+tor4 A )ire+tor or for,er )ire+tor
s$!## not "e !++ount!"#e to t$e Co,(!n< or t$e ,e,"ers for !n< "enefit of !n< Cin) +onferre) un)er or (ursu!nt to t$is
!rti+#e !n) t$e re+ei(t of !n< su+$ "enefit s$!## not )is;u!#if< !n< (erson fro, "ein% or "e+o,in% ! )ire+tor of t$e
Co,(!n<4
1" Proceedin's of directors
1541 @uestions !risin% !t !n< ,eetin% of t$e )ire+tors or of !n< +o,,ittee of t$e )ire+tors s$!##> un#ess ot$er2ise
)eter,ine) "< !## t$e ,e,"ers> "e )e+i)e) "< ! ,!jorit< of votes of t$e )ire+tors (resent (or t$eir !#tern!tes)4
T$e +$!ir,!n s$!## not $!ve ! se+on) or +!stin% vote4 Re%u#!tion 55 of T!"#e A s$!## "e v!rie) !++or)in%#<4
154 Su"je+t to !rti+#e 154&> t$e ;uoru, ne+ess!r< for t$e tr!ns!+tion of t$e "usiness of t$e )ire+tors or of !n<
+o,,ittee of t$e )ire+tors s$!## t$rou%$out t$e ,eetin% "e !&$ )ire+tors of 2$o, one s$!## "e !n A )ire+tor>
one ! - )ire+tor !n) one ! C )ire+tor4 A (erson 2$o $o#)s offi+e on#< !s !n !#tern!te )ire+tor s$!##> if t$e
)ire+tor $e $!s "een !((ointe) to re(resent is not (resent> "e +ounte) in t$e ;uoru,4 Re%u#!tion 56 T!"#e A
s$!## not !((#<4
!1.%($
154& If t$ere s$!## "e no ;uoru, !t !n< ,eetin% of t$e )ire+tors 2it$in one $our !fter t$e ti,e fi9e) for t$e
,eetin%> t$e ,eetin% s$!## "e !)journe) to su+$ ti,e (not "ein% e!r#ier t$!n 3 )!<s !fter t$e )!te of t$e
ori%in!# ,eetin%) !s t$e )ire+tor or )ire+tors (resent !t t$e ,eetin% s$!## )eter,ine> or if none> s$!## "e
)eter,ine) "< t$e se+ret!r<4 If t$ere s$!## "e no ;uoru, 2it$in one $our !fter t$e ti,e fi9e) for t$e
!)journe) ,eetin%> t$e ,eetin% s$!## "e furt$er !)journe) !s !fores!i)4 If t$ere s$!## "e no ;uoru, 2it$in
one $our !fter t$e ti,e fi9e) for t$e furt$er !)journe) ,eetin% 2it$in one $our !fter t$e ti,e fi9e) for t$e
,eetin% t$e )ire+tor or )ire+tors (resent> 2$!tever t$eir nu,"er !n) t$eir )esi%n!tions s$!## +onstitute !
;uoru,4
154* An< )ire+tor 2$o +e!ses to "e ! )ire+tor !t ! "o!r) ,eetin% ,!< +ontinue to "e (resent !n) to !+t !s !
)ire+tor !n) "e +ounte) in t$e ;uoru, unti# t$e ter,in!tion of t$e "o!r) ,eetin% if no ot$er )ire+tor o"je+ts
!n) if ot$er2ise ! ;uoru, of )ire+tors 2ou#) not "e (resent4
1540 A )ire+tor s$!## "e tre!te) !s (resent in (erson !t ! ,eetin% of t$e )ire+tors or !n< +o,,ittee of t$e )ire+tors
if $e is in +o,,uni+!tion 2it$ t$e ,eetin% "< +onferen+e te#e($one or ot$er +o,,uni+!tion e;ui(,ent
(er,ittin% t$ose !tten)in% t$e ,eetin% to $e!r one !not$er4 !A#tern!tive#<> ! ,eetin% of t$e )ire+tors or of
!n< +o,,ittee of t$e )ire+tors ,!< t!Ce t$e for, of ! series of te#e($one +!##s 2$i+$> in t$e +!se of !
,eetin% of t$e )ire+tors s$!## "e fro, t$e +$!ir,!n of t$e )ire+tors to e!+$ of t$e )ire+tors !n) in t$e +!se of
! +o,,ittee ,eetin%> fro, t$e +$!ir,!n of t$e +o,,ittee to e!+$ )ire+tor 2$o is ! ,e,"er of t$e
+o,,ittee4$ A )ire+tor t!Cin% (!rt in ! ,eetin% "< te#e($one s$!## "e +ounte) in t$e ;uoru, of t$e ,eetin%
!n) s$!## "e entit#e) to vote !t it4 A ,eetin% of t$e )ire+tors or of ! +o,,ittee to 2$i+$ t$is !rti+#e !((#ies
s$!## "e )ee,e) to t!Ce (#!+e 2$ere t$e ,!jorit< of t$ose (!rti+i(!tin% is !sse,"#e) or> if t$ere is no
,!jorit<> !t t$e (#!+e 2$ere t$e +$!ir,!n of t$e ,eetin% is (resent> !or if t$e ,eetin% is in t$e for, of ! series
of te#e($one +!##s fro, t$e +$!ir,!n of t$e )ire+tors or of ! +o,,ittee> !t t$e (#!+e fro, 2$i+$ t$e +$!ir,!n
is +!##in%$4
!1.%)$
1541 Un#ess in !n< (!rti+u#!r +!se su+$ re;uire,ent is 2!ive) in 2ritin% "< !## ("ut not so,e on#<) of t$e )ire+tors
t$en in offi+e> not #ess t$!n !3 1or as re>uired6$ )!<sA (rior noti+e ,ust "e %iven of !n< ,eetin% of t$e
)ire+tors or of !n< +o,,ittee of )ire+tors +onvene) un)er or (ursu!nt to t$ese !rti+#es4 !It s$!## "e ne+ess!r<
to %ive noti+e of ! ,eetin% to ! )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o, !t su+$ !))ress !s $e s$!##
$!ve notifie) to t$e se+ret!r<4$
11
Re%u#!tion 55 of T!"#e A s$!## "e v!rie) !++or)in%#<4
1543 An< s$!re$o#)er ,!<> !n) t$e se+ret!r< !t t$e re;uest of !n< s$!re$o#)er s$!##> +!## ! ,eetin% of t$e )ire+tors4
1545 Su"je+t to t$e (rovisions of t$ese !rti+#es !n) (rovi)e) ! )ire+tor s$!## $!ve )is+#ose) su+$ interest in
!++or)!n+e 2it$ Re%u#!tion 50 of T!"#e A> ! )ire+tor s$!## "e entit#e) to vote in res(e+t of !n< tr!ns!+tion>
+ontr!+t> !rr!n%e,ent or !%ree,ent 2it$ t$e Co,(!n< in 2$i+$ $e is in !n< 2!<> 2$et$er )ire+t#< or
in)ire+t#<> intereste) !n) if $e s$!## )o so $is vote s$!## "e +ounte) !n) $e s$!## "e t!Cen into !++ount in
!s+ert!inin% 2$et$er ! ;uoru, is (resent4 :or t$e (ur(ose of t$is !rti+#e> !n interest of ! (erson 2$o is> for
!n< (ur(ose of t$e A+t> +onne+te) 2it$ ! )ire+tor s$!## "e tre!te) !s !n interest of t$e )ire+tor !n)> in re#!tion
to !n !#tern!te )ire+tor> !n interest of $is !((ointor s$!## "e tre!te) !s !n interest of t$e !#tern!te )ire+tor
2it$out (reju)i+e to !n< interest 2$i+$ t$e !#tern!te )ire+tor $!s ot$er2ise4 Re%u#!tions 6* to 65 (in+#usive)
of T!"#e A s$!## not !((#<4
1546 In Re%u#!tions 0& !n) 6& of T!"#e A !n) t$ese !rti+#es D2ritin%A s$!## "e )ee,e) to in+#u)e ($oto+o(<> f!9>
te#e%r!, !n) ot$er ,et$o)s of re(ro)u+in% or +o,,uni+!tin% in 2ritin% in visi"#e for,4
!1.%,$
12 Notices
1641 An< noti+e or ot$er )o+u,ent (in+#u)in% ! s$!re +ertifi+!te) ,!< "e serve) on or )e#ivere) to !n< ,e,"er "<
t$e Co,(!n< eit$er (erson!##< or "< sen)in% it t$rou%$ t$e (ost in ! (re(!i) #etter !))resse) to su+$ ,e,"er
!t $is re%istere) !))ress !s !((e!rin% in t$e re%ister of ,e,"ers (2$et$er or not su+$ !))ress is 2it$in t$e
Unite) Bin%)o,)> or "< )e#iverin% it to or #e!vin% it !t su+$ re%istere) !))ress> !))resse) !s !fores!i)> or "<
!n< ot$er ,e!ns (rovi)e) su+$ ot$er ,e!ns $!ve "een !ut$orise) in 2ritin% "< t$e ,e,"er +on+erne)4 In
t$e +!se of joint $o#)ers of ! s$!re> servi+e or )e#iver< of !n< noti+e or ot$er )o+u,ent on or to one of t$e
joint $o#)ers s$!## for !## (ur(oses "e )ee,e) ! suffi+ient servi+e on or )e#iver< to !## t$e joint $o#)ers4 An<
noti+e or ot$er )o+u,ent serve) or )e#ivere) in !++or)!n+e 2it$ t$ese !rti+#es s$!## "e )ee,e) )u#< serve) or
)e#ivere) not2it$st!n)in% t$!t t$e ,e,"er is t$en )e!) or "!nCru(t or ot$er2ise un)er !n< #e%!# )is!"i#it< or
in+!(!+it< !n) 2$et$er or not t$e Co,(!n< $!) noti+e t$ereof4 !An< su+$ noti+e or ot$er )o+u,ent> if sent
"< first'+#!ss (ost> s$!## "e )ee,e) to $!ve "een serve) or )e#ivere) on t$e )!< !fter t$e )!< 2$en it 2!s (ut
in t$e (ost> !n) in (rovin% su+$ servi+e or )e#iver< it s$!## "e suffi+ient to (rove t$!t t$e noti+e or )o+u,ent
2!s (ro(er#< !))resse)> st!,(e) !n) (ut in t$e (ost4$
13
164 Noti+e of ever< %ener!# ,eetin% s$!## "e %iven in !n< ,!nner !ut$orise) "< or un)er t$ese !rti+#es to !##
,e,"ers ot$er t$!n su+$ !s> un)er t$e (rovisions of t$ese !rti+#es or t$e ter,s of issue of t$e s$!res t$e<
$o#)> !re not entit#e) to re+eive su+$ noti+es fro, t$e Co,(!n< /ROVIDED t$!t !n< ,e,"er ,!< in 2ritin%
2!ive noti+e of !n< ,eetin% eit$er (ros(e+tive#< or retros(e+tive#< !n) if $e )oes so it s$!## "e no o"je+tion
to t$e v!#i)it< of su+$ ,eetin% t$!t noti+e 2!s not %iven to $i,4 Re%u#!tions 11> 110 !n) 111 of T!"#e A
s$!## not !((#<4
!1.%.$
%# 4indin' up
If t$e Co,(!n< s$!## "e 2oun) u( (2$et$er t$e #i;ui)!tion is vo#unt!r<> un)er su(ervision> or "< t$e Court) t$e
#i;ui)!tor ,!<> 2it$ t$e !ut$orit< of !n e9tr!or)in!r< reso#ution !n) su"je+t to !n< (rovision s!n+tione) in !++or)!n+e
2it$ t$e (rovisions of t$e Co,(!nies A+ts> )ivi)e !,on% t$e ,e,"ers in s(e+ie or Cin) t$e 2$o#e or !n< (!rt of t$e
!ssets of t$e Co,(!n< (2$et$er t$e< s$!## +onsist of (ro(ert< of t$e s!,e Cin) or not) !n) ,!<> for su+$ (ur(ose> set
su+$ v!#ues !s $e )ee,s f!ir u(on !n< !ssets to "e )ivi)e) !s !fores!i) !n) ,!< )eter,ine $o2 su+$ )ivision s$!## "e
+!rrie) out !s "et2een t$e ,e,"ers or )ifferent +#!sses of ,e,"ers4 T$e #i;ui)!tor ,!<> 2it$ t$e #iCe !ut$orit<> vest
t$e 2$o#e or !n< (!rt of t$e !ssets in trustees u(on su+$ trusts for t$e "enefit of ,e,"ers !s t$e #i;ui)!tor 2it$ t$e #iCe
!ut$orit< s$!## t$inC fit> !n) t$e #i;ui)!tion of t$e Co,(!n< ,!< "e +#ose) !n) t$e Co,(!n< )isso#ve)> "ut so t$!t no
+ontri"utor< s$!## "e +o,(e##e) to !++e(t !n< s$!res or ot$er (ro(ert< in res(e+t of 2$i+$ t$ere is ! #i!"i#it< !n) t$e
#i;ui)!tor ,!< ,!Ce !n< (rovision referre) to in !n) s!n+tione) in !++or)!n+e 2it$ t$e (rovisions of t$e Co,(!nies
A+ts4 Re%u#!tion 113 of T!"#e A s$!## not !((#<4
!1.%/$
%1 7ndemnity
Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts> t$e Co,(!n< ,!< (ur+$!se !n) ,!int!in for ever< )ire+tor> !#tern!te
)ire+tor> se+ret!r< or ot$er offi+er of t$e Co,(!n< (e9+#u)in% !n< Au)itor) insur!n+e !%!inst !n< #i!"i#it< 2$i+$ "<
virtue of !n< ru#e of #!2 2ou#) ot$er2ise !tt!+$ to $i, in res(e+t of !n< ne%#i%en+e> )ef!u#t> "re!+$ of )ut< or "re!+$
of trust of 2$i+$ $e ,!< "e %ui#t< in re#!tion to t$e Co,(!n< !n) (2$et$er or not !n< su+$ insur!n+e is effe+te)) ever<
su+$ (erson s$!## "e entit#e) to "e in)e,nifie) "< t$e Co,(!n< !%!inst !## +osts> +$!r%es> #osses> e9(enses !n)
#i!"i#ities in+urre) "< $i, in t$e e9e+ution !n) )is+$!r%e of $is )uties or in re#!tion to t$e,> in+#u)in% !n< #i!"i#it<
in+urre) "< $i, in )efen)in% !n< (ro+ee)in%s> +ivi# or +ri,in!#> t$!t re#!te to !n<t$in% )one or o,itte) or !##e%e) to
$!ve "een )one or o,itte) "< $i, !s !n offi+er or e,(#o<ee of t$e Co,(!n< !n) in 2$i+$ ju)%e,ent is %iven in $is
f!vour (or t$e (ro+ee)in%s ot$er2ise )is(ose) of 2it$out !n< fin)in% or !),ission of !n< ,!teri!# "re!+$ of )ut< on
$is (!rt) or in 2$i+$ $e is !+;uitte) or in +onne+tion 2it$ !n< !((#i+!tion un)er !n< st!tute for re#ief fro, #i!"i#it< in
res(e+t of !n< su+$ !+t or o,ission in 2$i+$ re#ief is %r!nte) "< t$e Court4 Re%u#!tion 115 of T!"#e A s$!## not !((#<4
!1.%"$
1
T$is (re+e)ent is )r!fte)> "< 2!< of e9!,(#e> on t$e "!sis of & se(!r!te +#!sses of s$!res4 It +!n of +ourse "e use) for or !n<
%re!ter nu,"er of +#!sses "ut +onse;uenti!# !,en),ents 2i## o"vious#< nee) to "e ,!)e t$rou%$out4 See in (!rti+u#!r !rti+#es &>
* J1185K> 184> 184* J1113K> 11 J1115K> 1> 1&41> 1&4& J1116K> 10 J118K> 1141> 114> 114& J111K !n) 154 J11&K4 If ! D)e!)#o+CA
08E08 +o,(!n< is "ein% stru+ture) it 2ou#) "e ,ore !((ro(ri!te to use t$e )r!ft !rti+#es of !sso+i!tion in :or, 15 J15*3K (ost4
7$ere t$ere !re ,ore t$!n (rin+i(!# s$!re$o#)ers or if t$ere !re 2it$ une;u!# siIe) s$!re$o#)in%s it ,!< "e )esir!"#e to
entren+$ +ert!in restri+tion !n) ot$er ,inorit< (rote+tion ri%$ts !s +#!ss ri%$ts> in !))ition or !s !#tern!tive to so )oin% in t$e
!%ree,ent (see e% :or, & +#!use 341(-) J1033K !nte)4 :or ! (ossi"#e (re+e)ent see :or, & J1685K (ost4 It s$ou#)> $o2ever> "e
note) t$!t t$e !rti+#es of !sso+i!tion is ! (u"#i+ )o+u,ent !n) 2i## "e fi#e) !t t$e Co,(!nies Re%istr<4
&
If it is inten)e) t$!t t$ere s$ou#) "e furt$er issues of s$!res it ,!< "e !((ro(ri!te to ensure t$!t no ne2 or)in!r< s$!res s$ou#) "e
issue) un#ess t$e< !re )ivi)e) into t$e e9istin% +#!sses r!t$er t$!n "e un)esi%n!te)4 See :or, 15 !rti+#e 040 (n) !#tern!tive)
J1501K (ost for ! (ossi"#e (re+e)ent> 2$i+$ !#so (rovi)es for t$e re'offerin% to ,e,"ers 2$o $!ve !++e(te) t$e offer ,!)e to
t$e,> of !n< s$!res not t!Cen u(4
*
If it is )e+i)e) t$!t t$e issue of ne2 s$!res is not to +onstitute ! v!ri!tion of +#!ss ri%$ts it ,i%$t "e !s 2e## to in+#u)e !rti+#e 041
J1118K to ,!Ce t$e (osition +#e!r4
0
7$et$er t$ere s$ou#) "e ! +o,(#ete restri+tion on s$!re tr!nsfers (e9+e(t 2it$ t$e +onsent of !## or ! ,!jorit< of (!rties (su"je+t
to e9(ress ,inorit< (rote+tion +oven!nts)) or 2$et$er tr!nsfers s$ou#) "e !##o2e) (rovi)e) ! (re'e,(tion (ro+e)ure $!s "een
fo##o2e) 2i## )e(en) u(on t$e 2is$es of t$e (!rties !n) t$e (!rti+u#!r +ir+u,st!n+es of e!+$ +!se4 It ,!< "e )esir!"#e to $!ve !n
!"so#ute restri+tion on s$!re tr!nsfers e9+e(t for +ert!in +!te%ories of (er,itte) tr!nsferees4 :or ! (ossi"#e (re+e)ent see :or,
5 J168*K (ost4 In !n< event t$e (rovisions of !rti+#e 3 J1111K s$ou#) "e +onsistent 2it$ t$e s$!re$o#)ers !%ree,ent (see e%
:or, & +#!use 1 J1051K !nte)4 Consi)er!tion s$ou#) "e %iven> in ! +!se 2$ere ! (!rt< is to "e free to tr!nsfer its s$!res !fter
$!vin% e9$!uste) t$e (re'e,(tion (ro+e)ure (see note 1 "e#o2) to t$e (rote+tion of t$e ,inorit< s$ou#) s$!res +onferrin% +ontro#
"e tr!nsferre)4 If t$e ,inorit< is un!"#e to (ur+$!se t$e +ontro##in% interest un)er t$e (re'e,(tion ri%$ts t$e< run t$e risC of
"ein% D#o+Ce) inA 2it$ ! (!rt< t$e< )o not Cno24 A so#ution is to (rovi)e t$!t no tr!nsfer +onferrin% +ontro# +!n "e re%istere)
un#ess t$e (ro(ose) tr!nsferee offers to !+;uire !## t$e ot$er s$!res on t$e s!,e ter,s4 :urt$er> "e+!use !n offeror ,!< not "e
(re(!re) to (ro+ee) un#ess it re+eives 188L !++e(t!n+es> !n) it is )ou"tfu# 2$et$er t$e Co,(!nies A+t 1650 s *6 !((#ies to t$e
!+;uisition of t$e s$!re +!(it!# of ! +o,(!n< "< (riv!te +ontr!+t> it ,!< "e $e#(fu# to (rovi)e t$!t if t$e offer is !++e(te) "< !
+ert!in (er+ent!%e of t$e s$!re$o#)ers> t$e ot$ers !re !#so "oun) to !++e(t it4 Su+$ ! (rovision is +ontroversi!#> "ut it is
su",itte) t$!t 2$ere t$e offer is on o(en ,!rCet ter,s> it is #iCe#< to "e u($e#)4 An !rti+#e in+or(or!tin% "ot$ t$ese fe!tures is
+ont!ine) in :or, &5 J1613K (ost4
As to t$e (ossi"#e effe+t of t$ese (rovisions on +onsortiu, re#ief see :or, & note 13 J118*K !nte4
!1.%2$
1
It is for +onsi)er!tion 2$et$er $!vin% e9$!uste) t$e (re'e,(tion (ro+e)ure ! (!rt< ,!< sti## "e restri+te) fro, tr!nsferrin% $is
s$!res if t$e "o!r) refuse to %ive t$eir s!n+tion to $is (ro(ose) tr!nsfer to ! t$ir) (!rt<4 T$is (!rt ,!< t$erefore nee) to "e
)e#ete) in !((ro(ri!te +!ses4
3
Arti+#es 346 !n) 3418 J1110K ,!< "e )e#ete) if it is inten)e) t$!t t$e ter,in!tion (rovisions of t$e s$!re$o#)ersA !%ree,ent (see
:or, & +#!use 1*4 J1051K !nte) s$ou#) !((#< in t$e event of #i;ui)!tion> "!nCru(t+<> )e!t$ et+ of !n< (!rt<4
5
It ,!< "e ,ore )esir!"#e to )e#ete t$is !n) in+#u)e t$e (o2er !s one re;uirin% t$e +onsent of e!+$ +#!ss4
6
It is !ssu,e) t$!t e!+$ +#!ss of or)in!r< s$!re 2i## "e )ivi)e) into s$!res of t$e s!,e no,in!# v!#ue4 If not> it is for
+onsi)er!tion 2$et$er on ! (o## votes s$ou#) "e +ounte) "< referen+e to t$e tot!# nu,"er of units of ! %iven no,in!# v!#ue r!t$er
t$!n "< referen+e to e!+$ s$!re (er se4
18
If un!ni,it< is re;uire) !t s$!re$o#)er #eve# t$en !s !n !#tern!tive to !rti+#es 114> 114& !n) 114* J1115K !n) in #ieu of ens$rinin%
(!rti+u#!r ,inorit< (rote+tions !s +#!ss ri%$ts> ! si,(#e ri%$t of veto +!n "e %iven to t$e $o#)ers of ! ,!jorit< of e!+$ +#!ssGsee
:or, 6 J1680K (ost4
11
If t$ere is #iCe#< to "e ,ore t$!n one $o#)er of e!+$ +#!ss of s$!res (i%norin% no,inees for t$is (ur(ose) it ,!< "e )esir!"#e to
in+or(or!te 2ei%$te) votin% ri%$ts so t$!t in t$e !"sen+e of !n< (!rti+u#!r s$!re$o#)er in t$!t +#!ss t$e re,!inin% $o#)er or
$o#)ers of s$!res of t$!t +#!ss +!n e9er+ise !## votin% ri%$ts !tt!+$in% to s$!res of t$!t +#!ss4
1
In vie2 of t$e ;uoru, re;uire,ents in !rti+#e 15 J11&K it is su%%este) t$!t t$e ,ini,u, nu,"er of )ire+tors s$ou#) "e one for
e!+$ +#!ss of or)in!r< s$!re4 It ,!< !#so "e )esir!"#e to #i,it t$e ,!9i,u, nu,"er of )ire+tors to no %re!ter nu,"er t$!n t$e
tot!# 2$i+$ ,!< "e !((ointe) "< t$e or)in!r< s$!re$o#)ers un)er t$eir se(!r!te +#!ss ri%$ts4
!1.(#$
1&
T$is %ives e!+$ )ire+tor t$e free)o, to +$oose !n !#tern!te !((rove) "< $i, r!t$er t$!n !s T!"#e A (rovi)es %ivin% t$e "o!r) t$e
ri%$t to veto !n< su+$ !((oint,ent4 A v!ri!tion 2ou#) "e to (rovi)e t$!t t$e !((oint,ent "e ,!)e "< t$e ,!jorit< $o#)ers of t$e
+#!ss 2$i+$ !((ointe) t$e ori%in!# )ire+torGsee :or, &8 J1681K (ost for ! (re+e)ent4 7$ere!s eit$er o(tion is (ro"!"#<
)esir!"#e in ,ost +ir+u,st!n+es t$is ,!< not "e 2$!t t$e (!rties 2!nt in +ert!in +!ses4
1*
It ,!< "e !((ro(ri!te to in+#u)e restri+tions on t$e )ire+torsA "orro2in% (o2ers4
10
In or)er to ensure t$!t !n< e9istin% )ire+tors in offi+e !t t$e )!te of !)o(tion of t$e !rti+#es 2$o !re )esi%n!te) !s $!vin% "een
!((ointe) un)er !rti+#e 1141> 114 or 114& J111K et+ res(e+tive#<> +!nnot "e re,ove) "< or)in!r< reso#ution of t$e s$!re$o#)ers
("< virtue of t$e 2ei%$te) votin% ri%$ts +ont!ine) in !rti+#e 1*) it is ne+ess!r< to D)ee,A t$e, !s $!vin% "een !((ointe) un)er
t$e re#ev!nt (!r!%r!($ of !rti+#e 1141> 114 or 114& et+ res(e+tive#<4
11
It ,!< "e i,(r!+ti+!"#e to $!ve to %ive noti+es of ,eetin%s to )ire+tors Cno2n to "e !"sent fro, t$e Unite) Bin%)o,4 It ,!<
!#so "e unne+ess!r< if !#tern!te )ire+tors !re !((ointe)4 T$is senten+e ,!<> t$erefore> in ,!n< +!ses "e )e#ete)4
13
See :or, &0 J161*K (ost for !n !#tern!tive (rovision 2$ere noti+es !re re;uire) to "e serve) !t re%istere) !))resses outsi)e t$e
Unite) Bin%)o,4
!1.(1$
,
A'reement relatin' to the establishment and operation of a joint enture companyGt0o principal shareholders
only 0ho are deadloc>ed; and no minority protection or special class ri'hts; articles of association attached
1
T.IS AGREE=ENT is ,!)e t$e TTT )!< of TTTT -ET7EEN:
(1) 1name o. .irst /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1compan, re!istration
number6 2$ose re%istere) offi+e is !t 1address6 1or6 of 1address6$ (DFA)H !n)
() 1name o. second /oint venturer6 !! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1compan, re!istration
number6 2$ose re%istere) offi+e is !t 1address6 1or6 of 1address6$ (D?A)4
7.EREAS:
(A) 1name6 Li,ite) is ! +o,(!n< #i,ite) "< s$!res !n) in+or(or!te) in En%#!n) 2it$ nu,"er 1compan,
re!istration number6 un)er t$e Co,(!nies A+t 1650
!n) $!s !t t$e )!te $ereof !n !ut$orise) s$!re +!(it!# of

OTT )ivi)e) into 1number6 or)in!r< s$!res of O1 e!+$ of 2$i+$ !$ s$!res $!ve "een issue) !n) !re fu##<
(!i) u(> "enefi+i!##< o2ne) "< F !n) re%istere) in t$e n!,e of F or !its 1or6 $is$ no,inees4 T$e (resent
)ire+tors of t$e Co,(!n< !re 1name6 !n) 1name64
(-) T$e (!rties (ro(ose t$!t 1name6 Li,ite) s$ou#) "e use) !s t$eir joint venture ve$i+#e to !s(e+if< (ro(ose)
"usiness or (ur(ose of t$e joint +o,(!n<$4
!1.(%$
1 7nterpretation
se+tion *81
&
H
(E) Dsu"si)i!r<A !n) D$o#)in% +o,(!n<A s$!## "e!r t$e s!,e res(e+tive ,e!nin%s !s in t$e Co,(!nies
(:) D+ontro#A or D+ontro##e)A s$!## "e )eter,ine) "< referen+e to t$e (rovisions of !t$e In+o,e !n)
*
e9e+ution of t$is !%ree,ent (or t$e )!te su+$ (!rt< "e+o,es "oun) "< t$e ter,s $ereof (if #!ter))
su"se;uent#< +e!se to +ontro# it or if !n< (erson or (ersons su"se;uent#< !+;uire +ontro# of itH
(G) referen+es to D(!rt<A !n) D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is
!%ree,ent4
14* Referen+es to +#!uses !n) s+$e)u#es !re to +#!uses !n) s+$e)u#es of t$is !%ree,ent4
!1.(($
(!sse) !t t$!t ,eetin%> t$e ne2 o"je+ts referre) to in (!r!%r!($ of t$e s!i) reso#ution "ein% t$ose
+ont!ine) in +#!use & of t$e ,e,or!n)u, of !sso+i!tion in t$e !%ree) for, ,!rCe) D-A !n) t$e ne2
!rti+#es of !sso+i!tion referre) to in (!r!%r!($ & of t$e s!i) reso#ution "ein% t$ose in t$e !%ree)
(-) su"je+t to !n) fort$2it$ u(on t$e reso#ution in su"'+#!use 41(A) !"ove "ein% (ro(ose) !n) (!sse):
(1) F s$!## (ro+ure t$!t 1name6 !n) 1name6 s$!## (su"je+t to t$e, res(e+tive#< +onsentin% to
!+t) "e !((ointe) !s !))ition!# )ire+tors of t$e Co,(!n<H !n)
() F s$!## su"s+ri"e for +!s$ !!t (!r$ 1number6 ne2 or)in!r< s$!res of O1 e!+$ (t$ere"<
in+re!sin% its $o#)in% of s$!res in t$e Co,(!n< to 1number6 or)in!r< s$!res of O1 e!+$)
!n) ? s$!## su"s+ri"e for +!s$ !!t (!r$ 1number6 ne2 or)in!r< s$!res of O1 e!+$ (F
2!ivin% !n< ri%$ts of (re'e,(tion $o2soever !risin% 2$i+$ it ,i%$t $!ve in res(e+t of
su+$ su"s+ri(tion) !n) t$e (!rties s$!## (ro+ure t$!t ! -o!r) ,eetin% of t$e Co,(!n<
s$!## "e $e#) !t 2$i+$ su+$ s$!res s$!## "e !##otte) to F !n) ? res(e+tive#< !n) re%istere)
in t$eir n!,es in t$e nu,"ers res(e+tive#< su"s+ri"e) "< t$e, +re)ite) !s fu##< (!i) !!t
(!r$ !%!inst i,,e)i!te (!<,ent of t$e re#ev!nt su"s+ri(tion ,onies
0
4
4 :ort$2it$ fo##o2in% t$e )ue (erfor,!n+e of t$e (rovisions of +#!use 41 t$e (!rties s$!## (ro+ure t$!t:
(C) t$e Co,(!n<As !++ountin% referen+e )!te s$!## "e +$!n%e) to 1date6 !+o,,en+in% 1date6 (so t$!t its
first !++ountin% referen+e (erio) s$!## "e fro, its )!te of in+or(or!tion to 1date6 ("ot$ )!tes
in+#usive))$H
(D) t$e "!nCers to t$e Co,(!n< s$!## "e 1bank6 of 1branch address6H !!n)
!1.()$
( Directors and Board meetin's
&41 At !## ti,es 2$i#st t$is !%ree,ent re,!ins in for+e t$e (!rties s$!## (ro+ure t$!t t$e nu,"er of )ire+tors s$!##
"e not #ess t$!n 1number6 !n) t$!t e!+$ of t$e (!rties s$!## "e entit#e) to $!ve !((ointe) !n e;u!# nu,"er of
)ire+tors in !++or)!n+e 2it$ t$e fo##o2in% (rovisions of t$is +#!use4
&4 F s$!## "e entit#e) to $!ve !((ointe) u( to 1number6 )ire+tors of t$e Co,(!n< !t !n< ti,e !n) to $!ve !n<
)ire+tor so !((ointe) re,ove)4 :or t$is (ur(ose 1name6 !n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!##
"e )ee,e) to $!ve "een !((ointe) !s )ire+tors !t t$e re;uest of F4
&4& ? s$!## "e entit#e) to $!ve !((ointe) u( to 1number6 )ire+tors of t$e Co,(!n< !t !n< ti,e !n) to $!ve !n<
)ire+tor so !((ointe) re,ove)4 :or t$is (ur(ose 1name6 !n) 1name6 (e9istin% )ire+tors of t$e Co,(!n<) s$!##
"e )ee,e) to $!ve "een !((ointe) !s )ire+tors !t t$e re;uest of ?4
&4*
(A) S!ve for t$e s(e+ifi+ !((oint,ents )ee,e) to "e ,!)e (ursu!nt to +#!uses &4 !n) &4& !"ove> !n<
e9er+ise "< !n< (!rt< of t$e (o2er of !((oint,ent or re,ov!# +onferre) on it (ursu!nt to t$e
fore%oin% (rovisions s$!## "e in 2ritin% !n) s$!## "e serve) u(on t$e ot$er (!rt< to%et$er 2it$ !
+o,(#ete) for, of s$!re$o#)ersA reso#ution in 2ritin% su"st!nti!##< in t$e ter,s of t$e !%ree) for,
,!rCe) DDA si%ne) "< t$e (!rt< %ivin% t$e noti+e (!n) e!+$ of its no,inees) 2$i+$ t$e (!rt<
re+eivin% it (!n) its no,inees) s$!## t$en fort$2it$ si%n !n) )e#iver to t$e re%istere) offi+e of t$e
Co,(!n< ,!rCe) for t$e !ttention of t$e se+ret!r<
1
4
!1.(,$
(-) If t$e (!rt< to 2$o, t$e s$!re$o#)ersA reso#ution referre) to in +#!use &4*(A) is sent or !n< of its
no,inees s$!## )e#!< si%nin% t$e reso#ution !n)Eor )e#iverin% it to t$e re%istere) offi+e of t$e
Co,(!n<> t$!t (!rt< (on "e$!#f of itse#f !n) (!s it 2!rr!nts !n) re(resents) !s ! )u#< !ut$orise)
!%ent of e!+$ of its no,inees) irrevo+!"#<:
(1) !((oints t$e ot$er (!rt< to si%n ! furt$er +o(< of t$e s$!re$o#)ersA reso#ution on "e$!#f of
itse#f !n) e!+$ of t$e no,inees !n)
() !ut$orises t$e ot$er (!rt< to )e#iver t$e reso#ution to t$e re%istere) offi+e of t$e Co,(!n<
,!rCe) for t$e !ttention of its se+ret!r<4
&40 Un#ess ot$er2ise !%ree) t$e (!rties s$!## (ro+ure t$!t "o!r) ,eetin%s !re +onvene) !n) $e#) !t #e!st
1number6 ti,es ! <e!r !n) t$!t ! 2ritten !%en)! s(e+if<in% t$e ,!tters to "e r!ise) !t !n< "o!r) ,eetin% of
t$e Co,(!n< s$!## (to%et$er 2it$ t$e noti+e +onvenin% t$e ,eetin% or (if not) not #ess t$!n !3 1or as
re>uired6$ )!<s (rior to t$e )!te of t$e ,eetin%) "e sent to !## )ire+tors (or t$eir !#tern!tes) entit#e) to re+eive
noti+e of !n< su+$ ,eetin%4 It is furt$er !%ree) "< t$e (!rties t$!t (un#ess !n e;u!# nu,"er of )ire+tors
!((ointe) !t t$e inst!n+e of e!+$ (!rt< s$!## "e (resent !t !n< su+$ ,eetin% or un#ess> in !n< (!rti+u#!r +!se>
t$e (!rties s$!## ot$er2ise !%ree in 2ritin%) no reso#ution re#!tin% to !n< "usiness ,!< "e (ro(ose) or (!sse)
!t !n< "o!r) ,eetin% !un#ess t$e n!ture of t$e "usiness is s(e+ifie) in t$e !%en)! 1or6 "ut t$is s$!## not !((#<
to ! "o!r) ,eetin% 2$i+$ is !n !)journ,ent of ! (revious "o!r) ,eetin% !t 2$i+$ t$e (!rties 2ere e;u!##<
re(resente)$
3
4 :or t$e (ur(ose of t$e fore%oin% !n !#tern!te )ire+tor (resent !t !n< ,eetin% s$!## "e tre!te) !s
$!vin% "een !((ointe) "< t$e (!rt< $!vin% t$e ri%$t to $!ve !((ointe) su+$ !#tern!teAs !((ointor (un#ess su+$
!#tern!te is t$en !not$er )ire+tor of t$e Co,(!n< in 2$i+$ +!se $e is not to "e so tre!te))4
!1.(.$
*41 T$e "usiness of t$e Co,(!n< s$!## un#ess !n) unti# t$e (!rties ot$er2ise !%ree "e +onfine) to 1insert details64
est!"#is$e) in !t$e Unite) Bin%)o,$ or e#se2$ere !n) t$e Co,(!n< s$!## est!"#is$ su+$ offi+es or ot$er
(re,ises !s t$e -o!r) ,!< )e+i)e4
1insert details6
5
referre) to in +#!use !"ove !n) t$ere!fter "< #o!ns fro, F !n) ?
6
on su+$ ter,s !s t$e< ,!< !%ree 2it$ t$e
-o!r) !n)Eor "< #o!ns fro, t$e Co,(!n<As "!nCers4
18
!/ Conduct of the joint enture
1insert details i. re>uired6$
11
!1.(/$
(-) !,ont$#< 1or as re>uired6$ ,!n!%e,ent !++ounts !!n) re(orts$ +ont!inin% su+$ infor,!tion !s
eit$er (!rt< s$!## re!son!"#< re;uire s$!## "e (re(!re) !n) )es(!t+$e) "< t$e Co,(!n< to t$e
(!rties 2it$in !&8 1or as re>uired6$ )!<s of t$e en) of t$e !,ont$$ in ;uestionH !n)
!54
(A) T$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## (re(!re !n !nnu!# "usiness (#!n 2$i+$ s$!##
in+#u)e t$e fo##o2in%:
s$eet fore+!stH
(-) T$e first "usiness (#!n in res(e+t of t$e fin!n+i!# <e!r en)in% 1date6 s$!## "e !in t$e !%ree) for,
,!rCe) DEA 1or6 (re(!re) 2it$in !&8 1or as re>uired$ )!<s of t$e )!te $ereof$4 -usiness (#!ns in
res(e+t of su"se;uent fin!n+i!# <e!rs s$!## "e su",itte) for !((rov!# "< t$e -o!r) not #!ter t$!n !18
1or as re>uired$ )!<s "efore t$e +o,,en+e,ent of t$e fin!n+i!# <e!r in ;uestion4$
fin!n+i!# <e!r 1or6 !## of its !+onso#i)!te)$ (rofits t$!t !re t$en !v!i#!"#e for )istri"ution4$
1
!1.("$
2 Promotion of Companys business
641 E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts 2it$ e!+$ ot$er to use !## re!son!"#e en)e!vours to (ro,ote
!n) )eve#o( t$e "usiness of t$e Co,(!n< to t$e "est !)v!nt!%e in !++or)!n+e 2it$ %oo) "usiness (r!+ti+e
!n) t$e $i%$est et$i+!# st!n)!r)s4
!%ree,ent !n) for t$e fo##o2in% (erio) of !* 1or as re>uired$ ,ont$s it s$!## not !n) s$!## (ro+ure t$!t no
en%!%e) +on+erne) or intereste) eit$er )ire+t#< or in)ire+t#< !n) 2$et$er on its o2n "e$!#f or on "e$!#f of or
in !sso+i!tion 2it$ ot$ers or in !n< +!(!+it< 2$!tsoever in +!rr<in% on in +o,(etition 2it$ t$e Co,(!n< or
!n< su"si)i!r< of t$e Co,(!n< !n<2$ere 2it$in 1area6 t$e "usiness of 1state business64
64& E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts t$!t for !s #on% !s it is ! (!rt< to t$is !%ree,ent !n) for t$e
fo##o2in% (erio) of !* 1or as re>uired$ ,ont$s it s$!## not !n) s$!## (ro+ure t$!t no +o,(!n< o2ne) or
+ontro##e) "< it !n) no (erson on its or t$eir "e$!#f s$!## in re#!tion to !n< %oo)s or servi+es su((#ie) "< t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< in re#!tion to su+$ %oo)s or servi+es4
64*
effe+tive4
1&
!1.(2$
1# Confidentiality
!+;uire in re#!tion to t$e Co,(!n< !n) its su"si)i!ries or in re#!tion to t$e +#ients> "usiness or !ff!irs of !n<
ot$er (!rt< or t$e Co,(!n< or of !n< of t$e Co,(!n<As su"si)i!ries !n) s$!## not use or )is+#ose su+$
infor,!tion e9+e(t 2it$ t$e +onsent of ever< ot$er (!rt< !n)Eor of t$e Co,(!n< or its re#ev!nt su"si)i!r< (!s
184
of ti,e "ut s$!## +e!se to !((#< to !n< infor,!tion +o,in% into t$e (u"#i+ )o,!in ot$er2ise t$!n
"< "re!+$ "< !n< su+$ (!rt< of its o"#i%!tions +ont!ine) in +#!use 1&41 (rovi)e) t$!t not$in%
!1.)#$
11 *a5 matters
1*
1141
in ! (osition v!#i)#< to %ive !n) s$!## %ive t$e un)ert!Cin% +ont!ine) in t$is +#!use
1141(-)4
114
(A) In res(e+t of e!+$ !++ountin% (erio) of t$e Co,(!n< (2it$in t$e ,e!nin% of t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 se+tion 1)> e!+$ of t$e (!rties ,!< !t !n< ti,e re;uire (in 2$i+$ +!se
su+$ (!rties s$!## t$en (ro+ure) t$!t its re#ev!nt (ro(ortion ()efine) "e#o2) of t$e Co,(!n<As
tr!)in% #osses !n) ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e surren)ere) to it (or su+$
ot$er +o,(!n< !s ,!< "e its %rou( ,e,"er 2$ere su+$ +o,(!n< is entit#e) to re+eive t$e s!,e
su+$ (!rt< in t$e Co,(!n< "e!rs to t$e tot!# no,in!# v!#ue of t$e entire issue) or)in!r< s$!re
+!(it!# of t$e Co,(!n<4
!1.)1$
(-) In res(e+t of e!+$ !++ountin% (erio) of t$e Co,(!n< (2it$in t$e ,e!nin% of t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 se+tion 1)> e!+$ of t$e (!rties ,!< re;uire t$e Co,(!n< to !++e(t t$e
res(e+t of t$!t (!rt not !##o2e)4
10
!((ro(ri!te (!rt< or (!rties or t$eir %rou( ,e,"er(s) 2it$in t$e re;uisite (erio)4
!1.)%$
!n< interest t$ereon is in f!+t (!i) to t$e In#!n) Revenue 2it$in 5 )!<s of t$e re+i(ient +o,(!n<
+o,(!n< in f!+t (!<in% t$e re+i(ient +o,(!n< t$e ,one< )ue 2it$in t$e s!i) 5 )!< (erio)
11
4
!%ree,ent> "< t$e /resi)ent for t$e ti,e "ein% of t$e Institute of C$!rtere) A++ount!nts of En%#!n)
!n) 7!#es)> 2$i+$ fir, s$!## !+t !s !n e9(ert !n) not !n !r"itr!tor> !n) 2$ose )e+ision s$!## "e
!1.)($
!114& T$e (!rties s$!##:
13
114*
15
4
!1.))$
1% 3hare transfers
S!ve !s ot$er2ise e9(ress#< (rovi)e) in t$is !%ree,ent> neit$er (!rt< s$!## "e entit#e) )urin% t$e ter, of t$is !%ree,ent
eit$er to se##> tr!nsfer> +$!r%e> en+u,"er> %r!nt o(tions over or ot$er2ise )is(ose of> or of !n< #e%!# or "enefi+i!#
interest in> !n< of t$e s$!res no2 o2ne) or su"se;uent#< !+;uire) "< it in t$e Co,(!n< un)er or (ursu!nt to t$is
!%ree,ent or "< virtue of its s$!re$o#)in% t$e Co,(!n< !e9+e(t 2it$ t$e (rior 2ritten +onsent of t$e ot$er (!rt< (2$i+$
,!< "e 2it$$e#) for !n< re!son or 2it$out %ivin% !n< re!son) !n) in +o,(#i!n+e 2it$ t$e (rovisions of t$e !rti+#es of
!sso+i!tion of t$e Co,(!n< !n) (rovi)e) t$!t t$e (rovisions of +#!use 1541 !re +o,(#ie) 2it$$
16
4
8
1&41 :or t$e (ur(oses of t$is +#!use 1& ! D)e!)#o+CA s$!## "e )ee,e) to $!ve o++urre) if:
(A) (1) ! ,!tter re#!tin% to or !ffe+tin% t$e Co,(!n< $!s "een r!ise) !t !n)Eor +onsi)ere) "< ! ,eetin%
of t$e -o!r) or ! %ener!# ,eetin% !n) () no reso#ution $!s "een (!sse) "< su+$ ,eetin% "< re!son
of !n e;u!#it< of votes for !n) !%!inst !n< reso#ution (ro(ose) re#!tin% to su+$ ,!tter !n) (&) eit$er
(!rt< $!s su"se;uent#< notifie) t$e ot$er !2it$in !5 1or as re>uired6$ )!<s !fter su+$ -o!r) or
%ener!# ,eetin%$ t$!t t$e ,!tter $!s not "een reso#ve) to its s!tisf!+tion!H or
(-) ! ;uoru, is not (resent !t su++essive -o!r) or %ener!# ,eetin%s (or (ro(ose) -o!r) or %ener!#
,eetin%s) )u#< +onvene)$
1
4
!1.),$
1&4
(A) In t$e event of ! )e!)#o+C eit$er (!rt< (Dt$e ServerA) s$!## "e entit#e) !!t !n< ti,e 2it$in 68 )!<s of
t$e -o!r) ,eetin% or %ener!# ,eetin% referre) to in +#!use 1&41(A) !"ove !or t$e se+on) of t$e
(ro(ose) -o!r) or %ener!# ,eetin%s referre) to in +#!use 1&41(-) !"ove$ to serve ! noti+e (!
)e!)#o+C reso#ution noti+eA) on t$e ot$er (!rt< (Dt$e Re+i(ientA) offerin% eit$er to se## !## ("ut not
so,e on#<) of its s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re s(e+ifie) "< it (Dt$e S(e+ifie) /ri+eA)
or to (ur+$!se !## ("ut not so,e on#<) of t$e Re+i(ientsA s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re
e;u!# to t$e S(e+ifie) /ri+e4 On+e %iven ! )e!)#o+C reso#ution noti+e +!nnot "e 2it$)r!2n 2it$out
t$e 2ritten +onsent of t$e Re+i(ient4
(-) 7it$in !&8 1or as re>uired6$ )!<s of servi+e of ! )e!)#o+C reso#ution noti+e t$e Re+i(ient s$!## "<
noti+e to t$e Server (D! +ounter noti+eA) "e entit#e) eit$er to !++e(t t$e offer +ont!ine) in t$e
)e!)#o+C reso#ution noti+e or (if t$e offer +ont!ine) in it 2!s to (ur+$!se t$e Re+i(ientAs s$!res) to
e#e+t to (ur+$!se !## ("ut not so,e on#<) of t$e ServerAs s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re
e;u!# to t$e S(e+ifie) /ri+e or (if t$e offer +ont!ine) in t$e )e!)#o+C reso#ution noti+e 2!s to se##
t$e ServerAs s$!res) to e#e+t to se## !## ("ut not so,e on#<) of t$e Re+i(ientAs s$!res in t$e Co,(!n<
to t$e Server !t ! (ri+e (er s$!re e;u!# to t$e S(e+ifie) /ri+e4 If no +ounter noti+e is serve) "< t$e
Re+i(ient on t$e Server 2it$in t$e (erio) referre) to> t$e Re+i(ient s$!## "e )ee,e) to $!ve
!++e(te) t$e offer +ont!ine) in t$e )e!)#o+C reso#ution noti+e4
(C) U(on )ee,e) !++e(t!n+e of t$e )e!)#o+C reso#ution noti+e or u(on servi+e of ! +ounter noti+e (!s
!((#i+!"#e) t$e (!rties s$!## "e+o,e res(e+tive#< "oun) to "u< or se## !++or)in%#< !n) +o,(#etion
of !n< su+$ s!#e !n) (ur+$!se s$!## t!Ce (#!+e !t t$e re%istere) offi+e of t$e Co,(!n< !t !18488 !,
1or as re>uired6$ on t$e !tent$ 1or as re>uired6$ "usiness )!< !fter su+$ event (or su+$ ot$er ti,e
!n)Eor (#!+e !s t$e (!rties ,!< !%ree) !n) in res(e+t of t$e s!#e !n) (ur+$!se t$e (rovisions of
+#!uses 104*> 1040> 1041 !n) 1043 s$!## t$en $!ve effe+t4
!1.).$
1) *ermination
t$is +#!use> "ut no su+$ ter,in!tion s$!## !ffe+t !n< (rovision of t$is !%ree,ent e9(resse) to $!ve effe+t !fter
su+$ ter,in!tion or !n< ri%$t 2$i+$ eit$er (!rt< ,!< $!ve !%!inst t$e ot$er su"sistin% !t t$e ti,e of
ter,in!tion
&
4
1*4 If eit$er (!rt<:
(A) s$!## +o,,it !n< !,!teri!#$ "re!+$ of !n< of !$is 1or6 its$ o"#i%!tions un)er t$is !%ree,ent !n)
s$!## f!i# to re,e)< su+$ "re!+$ (if +!(!"#e of re,e)<) 2it$in &8 )!<s !fter "ein% %iven noti+e "<
t$e first (!rt< so to )oH or
(-) "ein% ! +o,(!n< s$!## %o into #i;ui)!tion 2$et$er +o,(u#sor< or vo#unt!r< (e9+e(t for t$e
(ur(oses of ! "on! fi)e re+onstru+tion or !,!#%!,!tion 2it$ t$e +onsent of t$e first (!rt<> su+$
+onsent not to "e unre!son!"#< 2it$$e#)) or if t$e ot$er (!rt< s$!## $!ve !n !),inistr!tor !((ointe)
or if ! re+eiver> !),inistr!tive re+eiver or ,!n!%er s$!## "e !((ointe) over !n< (!rt of t$e !ssets or
un)ert!Cin% of t$e ot$er (!rt<H or
(C) "ein% !n in)ivi)u!# s$!## "e !)ju)%e) "!nCru(t or s$!## )ie or s$!## "e+o,e ! (!tient for t$e
*
H or
(D) "ein% !n in)ivi)u!# s$!## +e!se for !n< re!son to ,!Ce $is su"st!nti!##< fu##'ti,e servi+es !v!i#!"#e
to t$e Co,(!n< !n)Eor !n< su"si)i!r< of t$e Co,(!n<
0
H
!or if t$ere s$!## "e !n< +$!n%e in t$e +ontro# of eit$er (!rt<$
1
t$e ot$er (!rt< s$!## "e entit#e) to ter,in!te
t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e first (!rt< !(or in t$e +!se of ! noti+e serve) un)er +#!use
1*4(D) to ever< (!rt< 2$o $o#)s !t t$e ti,e of t$e noti+e !n< of t$e s$!res (revious#< $e#) "< t$e in)ivi)u!#
2$ose servi+es $!ve +e!se))$ !> "ut not !fter 68 )!<s of t$e event in ;uestion first +o,in% to t$e !ttention of
t$e (!rt< entit#e) to %ive t$e noti+e$4
!1.)/$
!1*4& Eit$er (!rt< ,!< !t !n< ti,e !fter 1date6 ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e ot$er
(!rt<4$
1*4* T$is !%ree,ent s$!## ter,in!te if> !t !n< ti,e !s ! resu#t of ! tr!nsfer of s$!res ,!)e in !++or)!n+e 2it$ t$is
!%ree,ent "< eit$er (!rt< (in+#u)in%> 2it$out #i,it> +o,(#i!n+e 2it$ t$e (rovisions of +#!use 1) t$!t (!rt<
$o#)s no s$!res in t$e +!(it!# of t$e Co,(!n<4
1, Conse6uences of notices under clauses 1( and 1)
3
1041 If eit$er (!rt< s$!## serve ! v!#i) noti+e of ter,in!tion un)er +#!use 1* !"ove t$!t (!rt< (Dt$e Ter,in!torA)
s$!## "e entit#e) "< t$!t noti+e to re;uire t$e ot$er (!rt< (Dt$e Ter,in!teeA) eit$er:
(A) (in t$e +!se of ! noti+e serve) un)er +#!uses 1*4(A)> (D) or (E) or 1*4& on#<) to (ur+$!se !## ("ut
not so,e on#<) of t$e Ter,in!torAs s$!res in t$e Co,(!n< or
(-) to se## to t$e Ter,in!tor !## ("ut not so,e on#<) of t$e Ter,in!teeAs s$!res in t$e Co,(!n<
in eit$er +!se !t ! (ri+e )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of +#!use 104 "e#o24 U(on e9er+ise of
!n< su+$ ri%$t t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e "oun) to res(e+tive#< se## or (ur+$!se u(on
t$e ter,s set out "e#o24 If> in ! v!#i) ter,in!tion noti+e> t$e (o2er of s!#e or (ur+$!se is not e9er+ise) "< t$e
Ter,in!tor t$en> in t$e +!se of ! noti+e serve) un)er +#!use 1*4& on#<> t$e Ter,in!tee ,!< 2it$in &8 )!<s of
t$e Ter,in!torAs noti+e serve ! +ounter'noti+e on t$e Ter,in!tor re;uirin% t$e Ter,in!tor to se## to t$e
Ter,in!tee !## ("ut not so,e on#<) of t$e Ter,in!torAs s$!res in t$e Co,(!n< !n) t$e Ter,in!tee s$!##
"e+o,e "oun) res(e+tive#< to se## !n) (ur+$!se su+$ s$!res on t$e ter,s set out "e#o2 "ut ot$er2ise t$e
(!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## "e i,,e)i!te#< 2oun) u(4
!1.)"$
104 T$e (ur+$!se (ri+e of t$e s$!res to "e "ou%$t !n) so#) (ursu!nt to +#!use 1041 !"ove s$!## "e t$e f!ir v!#ue of
t$e, !s !%ree) "et2een t$e (!rties to t$e s!#e !n) (ur+$!se or> in )ef!u#t of !%ree,ent 2it$in 10 )!<s !fter
t$e servi+e of t$e noti+e of ter,in!tion> su+$ su, !s s$!## "e +ertifie) "< t$e !u)itors (!t t$e re;uest of eit$er
su+$ (!rt<) for t$e ti,e "ein% of t$e Co,(!n< to "e t$e f!ir v!#ue of t$e s$!res on t$e )!te 2$en t$e
ter,in!tion noti+e 2!s serve)4 In so +ertif<in% t$e !u)itors !re irrevo+!"#< instru+te) to v!#ue t$e or)in!r<
s$!res to "e "ou%$t !n) so#) !s t$e s!,e (ro(ortion of t$e ,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e on t$!t
)!te !s t$e re#ev!nt or)in!r< s$!re$o#)in% "e!rs to t$e 2$o#e issue) or)in!r< s$!re +!(it!# of t$e Co,(!n< on
t$!t )!te "ut ot$er2ise t$e< s$!## t!Ce into !++ount !## su+$ +ir+u,st!n+es !s s$!## see, to t$e, re#ev!nt4 !In
! +!se 2$ere t$e s$!res to "e "ou%$t !n) so#) !re o2ne) "< t$e (!rt< u(on 2$o, ! ter,in!tion noti+e un)er
+#!use 1*4(A) $!s "een serve)> t$e !u)itors s$!## )eter,ine t$e ,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e>
"ot$ in t$e #i%$t of t$e "re!+$ +on+erne) !n) on t$e "!sis t$!t t$e "re!+$ $!) not "een +o,,itte)> !n) if t$e
first of t$ose v!#u!tions is #o2er t$!n t$e se+on)> t$e 2$o#e !,ount of t$e re)u+tion in t$e v!#ue of t$e
Co,(!n< s$!## "e !ttri"ute) to t$e s$!res of t$!t (!rt<> so t$!t $e s$!## re+eive !n !,ount 2$i+$ is t$e
(ro(ortion of t$e se+on) v!#u!tion !ttri"ut!"#e to t$e s$!res> ,inus t$e 2$o#e !,ount of t$e re)u+tion4$
5
In
so !+tin% t$e !u)itors !re instru+te) to !+t !s e9(erts !n) not !s !r"itr!tors !n) t$eir )e+ision s$!## (s!ve in
res(e+t of ,!nifest error) "e fin!# !n) "in)in% on t$e (!rties to t$e s!#e !n) (ur+$!se for !## (ur(oses !n)
t$eir +osts s$!## "e "orne in e;u!# s$!res "< su+$ (!rties4
104& Co,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to t$e (rovisions of +#!use 1041 s$!## t!Ce (#!+e !t t$e
re%istere) offi+e of t$e Co,(!n< !t !18488 !, 1or as re>uired6$ on t$e !se+on) 1or as re>uired6$ "usiness )!<
!fter t$e (ri+e (!<!"#e for t$e s$!res $!s "een !%ree) or )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of
+#!use 104 (or su+$ ot$er ti,e !n)Eor (#!+e !s t$e (!rties ,!< !%ree) !n) in res(e+t of 2$i+$ t$e (rovisions
of +#!uses 104*> 1040> 1041 !n) 1043 s$!## t$en $!ve effe+t4
!1.)2$
104* At !n< +o,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to eit$er +#!use 1& or 10> in return for !
"!nCersA )r!ft )r!2n on ! Lon)on +#e!rin% "!nC (or su+$ ot$er ,e!ns of (!<,ent 2$i+$ is !%ree) "< t$e
se##er) for t$e fu## !,ount of t$e (ur+$!se ,one< for t$e s$!res "ein% "ou%$t !n) so#) ()eter,ine) in
!++or)!n+e 2it$ t$e res(e+tive (rovisions of +#!uses 1& or 10 (!s !((#i+!"#e)) !n) su+$ ot$er !,ounts !s !re
referre) to in +#!use 1040 "e#o2 t$e se##er s$!## )e#iver to t$e (ur+$!ser )u#< e9e+ute) s$!re tr!nsfers for t$e
s$!res "ein% so#) in f!vour of t$e (ur+$!ser or !s !$e 1or6 it$ ,!< )ire+t to%et$er 2it$ t$e re#!tive s$!re
+ertifi+!te(s) for t$e, (or !n !++e(t!"#e in)e,nit< in #ieu of t$e +ertifi+!tes)4
!1040 If !n< (!rt< (Dt$e Out%oin% /!rt<A) s$!## e#e+t or "e+o,e "oun) to tr!nsfer !## !$is 1or6 its$ s$!res in t$e
Co,(!n< to !n< ot$er (!rt< un)er or (ursu!nt to t$e (rovisions of +#!uses 1& or 10> t$!t ot$er (!rt< s$!##
u(on or i,,e)i!te#< "efore +o,(#etion of t$e tr!nsfer (ro+ure:
(A) t$e i,,e)i!te re#e!se of !## %u!r!ntees> in)e,nities !n) si,i#!r +oven!nts (if !n<) %iven "< t$e
Out%oin% /!rt< in f!vour or for t$e "enefit of t$e Co,(!n< un)er or (ursu!nt to +#!use 1 (!n)
(en)in% su+$ re#e!se s$!## in)e,nif< !n) Cee( t$e Out%oin% /!rt< fu##< !n) effe+tive#< in)e,nifie)
fro, !n) !%!inst !## +#!i,s !risin% un)er t$e,) !n)
(-) t$e i,,e)i!te re(!<,ent to t$e out%oin% (!rt< of !## ,one< !)v!n+e) to t$e Co,(!n< un)er or
ju)%e,ent)4$
!1041 In t$e event of !n< (!rt< +e!sin% to "e ! s$!re$o#)er in t$e Co,(!n< 2$ere t$e +or(or!te n!,e of t$e
Co,(!n< or !n< (!rt of it +ont!ins !n< 2or) or 2or)s t$e s!,e or si,i#!r to t$e +or(or!te n!,e or !n<
)istin+tive (!rt of t$e +or(or!te n!,e of t$e s$!re$o#)er> t$e re,!inin% (!rt< s$!## (ro+ure t$!t 2it$in &8
)!<s of t$e +ess!tion t$e +or(or!te n!,e of t$e Co,(!n< is +$!n%e) so !s to e9+#u)e t$e 2or) or 2or)s4$
6
1043 C#!use 1& !n) t$is +#!use 10 )o not !#ter !n< (rovision or (rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion
of t$e Co,(!n< restri+tin% t$e tr!nsfer of s$!res4 .o2ever> t$e (!rties s$!## e9er+ise !## votin% !n) ot$er
ri%$ts !v!i#!"#e to t$e, to ensure t$e i,(#e,ent!tion of t$e fore%oin% (rovisions of t$is +#!use !n) !n<
(rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion of t$e Co,(!n< restri+tin% tr!nsfers of s$!res (in+#u)in%>
2it$out #i,it> t$e (rovisions of !!rti+#e 3 1or as appropriate6$) !re 2!ive) or sus(en)e) to !##o2 su+$ s!#es
!n) (ur+$!ses to (ro+ee) !s (rovi)e) !"ove !n) t$e (!rties s$!## (ro+ure t$e re%istr!tion of !n< su+$ tr!nsfer
of !n< s$!res in t$e Co,(!n< !++or)in%#<4
!1.,#$
!1. 4arranties
F 2!rr!nts !n) re(resents to ? t$!t i,,e)i!te#< "efore t$e e9e+ution of t$is !%ree,ent:
(-) t$e Co,(!n<:
(1) $!s not tr!)e)H
&8
!1.,1$
,e,or!n)u, !n)Eor !rti+#es of !sso+i!tion to t$e e9tent ne+ess!r< to (er,it t$e Co,(!n< !n) its !ff!irs to "e
+!rrie) out !s (rovi)e) in t$is !%ree,ent4 :or t$e !voi)!n+e of )ou"t> t$e ,e,or!n)u, !n) !rti+#es of
t$e Co,(!n< so !s to (ro+ure (so f!r !s e!+$ is res(e+tive#< !"#e "< t$e e9er+ise of su+$ ri%$ts !n) (o2ers)
t$!t !t !## ti,es )urin% t$e ter, of t$is !%ree,ent t$e (rovisions +on+ernin% t$e stru+ture !n) or%!nis!tion of
t$e Co,(!n< !n) t$e re%u#!tion "< t$e (!rties of its !ff!irs set out in t$is !%ree,ent !re )u#< o"serve) !n)
%iven fu## for+e !n) effe+t !n) !## !+tions re;uire) of t$e (!rties un)er t$is !%ree,ent !re +!rrie) out in !
ti,e#< ,!nner4 7it$out (reju)i+e to t$e %ener!#it< of t$e fore%oin% e!+$ (!rt< to t$is !%ree,ent s$!##
(ro+ure t$!t e!+$ of its no,inees 2$o !re s$!re$o#)ers in t$e Co,(!n< !n) (su"je+t to t$eir fi)u+i!r< )uties)
e!+$ of t$e )ire+tors !((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use & !"ove s$!##
e9e+ute !n) )o !## su+$ !+ts !n) t$in%s !n) %ive !n) +onfer !## su+$ (o2ers !n) !ut$orities !s t$e< 2ou#)
$!ve "een re;uire) to e9e+ute> )o %ive or +onfer $!) t$e< "een ! (!rt< to t$is !%ree,ent !n) $!) +oven!nte)
in t$e s!,e ter,s !s t$e (!rt< for 2$i+$ t$e< !re ! no,inee (if ! s$!re$o#)er) or 2$i+$ !((ointe) t$e, (if !
)ire+tor)4
!134& Not2it$st!n)in% !n< ot$er (rovision of t$is !%ree,ent if eit$er (!rt< !(or ot$er (erson +onne+te) 2it$ !$i,
1or6 it)$$ s$!## "e in )is(ute 2it$ or s$!## $!ve ! +onf#i+t of interest 2it$ t$!t of t$e Co,(!n<> t$!t (!rt< s$!##
in !$is 1or6 its$ +!(!+it< !s s$!re$o#)er (!n) s$!## (ro+ure t$!t t$e )ire+tor or )ire+tors !((ointe) or )ee,e) to
"e !((ointe) "< !$i, 1or6 it)$ un)er or (ursu!nt to +#!use & !"ove> s$!##) not )o !n<t$in% or o,it to )o
!n<t$in% 2$i+$ 2ou#) or "e #iCe#< to (revent t$e Co,(!n< fro, e9er+isin% or fro, )e+i)in% 2$et$er or not
!$i, 1or6 it)$$ in ;uestion4$
!1.,%$
1" 8eneral
s$!res in t$e Co,(!n< for t$e ti,e "ein% #e%!##< or "enefi+i!##< o2ne) "< !$i, 1or6 it)$ or of !n< interest in
t$e, in f!vour of !n< (erson (Dt$e Tr!nsfereeA) 2$o is not ! (!rt< to t$is !%ree,ent t$!t t$e s!#e> tr!nsfer or
ot$er )is(osition ("ein% one 2$i+$ is ot$er2ise (er,itte) un)er or (ursu!nt to t$e (rovisions of +#!use 1
!"ove) s$!## not "e effe+te) un#ess t$e Tr!nsferee (!n) !n< ot$er (erson 2$o 2i## in +onse;uen+e of t$e
tr!nsfer or ot$er )is(os!# $!ve !n< "enefi+i!# interest in t$e s$!res +on+erne)) s$!## first enter into !n
un)ert!Cin% 2it$ t$e ot$er (!rt< to t$is !%ree,ent !> !n) 2it$ !## ot$er (ersons 2$o !re for t$e ti,e "ein%
"oun) "< t$is !%ree,ent !n) 2i## re,!in so !fter t$e s!#e> tr!nsfer or ot$er )is(osition>$ 2$ere"< t$e
Tr!nsferee !%rees to "e "oun) !n) to +o,(#< 2it$ !## t$e (rovisions of t$is !%ree,ent "in)in% u(on $is
tr!nsferor (ot$er t$!n !n< 2$i+$ i,(ose ! (erson!# o"#i%!tion u(on $is tr!nsferor 2$i+$ is not !#so
un)ert!Cen "< t$e ot$er (!rt< to t$is !%ree,ent !n) !n< 2!rr!nties %iven "< $is tr!nsferor)4 Su+$
un)ert!Cin% s$!## "e in t$e for, (!s ne!r#< !s +ir+u,st!n+es 2i## (er,it) set out in t$e s+$e)u#e "e#o24 T$e
(!rties s$!## !#so (ro+ure t$!t no s$!res of t$e Co,(!n< s$!## "e issue) e9+e(t u(on t$e +on)ition t$!t t$e
(erson to 2$o, t$e s$!res !re to "e issue) !n) !n< (erson 2$o 2i##> fo##o2in% t$e issue> $!ve !n< "enefi+i!#
interest in t$e s$!res issue)> s$!## !#so enter into su+$ !n un)ert!Cin%4
!((#i+!"#e (rovisions of t$is !%ree,ent re#!tin% to t$e tr!nsfer of su+$ s$!res (in+#u)in%> 2it$out #i,it> +#!use
+#!uses !64>$ !64&>$ !64*>$ 18 !n) 114
!1.,($
154* T$is !%ree,ent s$!## "e +!(!"#e of "ein% !,en)e) "< !n instru,ent e9e+ute) "< e!+$ of t$e (!rties for t$e
ti,e "ein%4
re,e)<4
1541 Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties to it nor +onstitute
eit$er (!rt< t$e !%ent of t$e ot$er (!rt< or ot$er2ise entit#e eit$er (!rt< to $!ve !ut$orit< to "in) t$e ot$er
(!rt< for !n< (ur(ose
&1
4
1545 Neit$er (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
(rior 2ritten +onsent of t$e ot$er (!rt< !(e9+e(t !s re;uire) "< t$e Sto+C E9+$!n%e> 2$en t$e (!rt< s$!## first
su((#< ! +o(< of t$e st!te,ent> re#e!se or )is+#osure to t$e ot$er !n) s$!## in+or(or!te !n< !,en),ents or
!))itions re!son!"#< re;uire) "< t$e ot$er (!rt<)$4
!1.,)$
1546 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ or referre) to
in it) +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to t$e su"je+t ,!tter of it !n) su(erse)es
!## (rior !%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to it> !n) no v!ri!tion of t$is
!%ree,ent s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of ! )u#< !ut$orise)
re(resent!tive of e!+$ of t$e (!rties4
15418 In t$e event t$!t !n< ter,> +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e
#!2> st!tute or re%u#!tion it s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n)
effe+t !n) t$is !%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if t$!t ter,> +on)ition or (rovision $!) not
ori%in!##< "een +ont!ine) in it4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< )e#etion t$e (!rties s$!##
ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n) s!tisf!+tor< !#tern!tive
ori%in!# "ut su+$ +ounter(!rts or )u(#i+!tes s$!## to%et$er +onstitute one !n) t$e s!,e !%ree,ent4
!1.,,$
12 Notices
outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or (!s t$e +!se ,!< "e) t$e f!9 nu,"er of t$!t
(!rt< set o((osite !$is 1or6 its$ n!,e "e#o2:
? 1insert address and .a7 number6
or !t su+$ ot$er !))ress (or f!9 nu,"er) !s t$e (!rt< to "e serve) ,!< $!ve notifie) (in !++or)!n+e 2it$ t$e
(ost s$!## "e )ee,e) serve) *5 $ours !fter (ostin% to !n !))ress in t$e Unite) Bin%)o, or> 2$ere serve) "<
!ir,!i#> !0 1or as re>uired6$ )!<s !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,4 In (rovin% t$e
!1.,.$
!n) 2!ives !n< o"je+tion to (ro+ee)in%s in su+$ +ourts on t$e %roun)s of venue or on t$e %roun)s t$!t t$e
juris)i+tion4
!84* 1.orei!n part,6 irrevo+!"#< !((oints 1process a!ent6 of 1address6 !s !$is 1or6 its$ (ro+ess !%ent to re+eive on
!$is 1or6 its$ "e$!#f servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n)4 Servi+e s$!## "e )ee,e) +o,(#ete) on
)e#iver< to t$e (ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If for !n<
re!son t$e (ro+ess !%ent +e!ses to "e !"#e to !+t !s (ro+ess !%ent> or no #on%er $!s !n !))ress in En%#!n)>
1.orei!n part,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e ot$er (!rt< to t$is
!%ree,ent !n) to )e#iver to t$!t ot$er (!rt< ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent
2it$in &8 )!<s4
840 1.orei!n part,6 irrevo+!"#< +onsents to !n< (ro+ess in !n< (ro+ee)in%s !n<2$ere "ein% serve) in !++or)!n+e
)!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is !%ree,ent s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n< ot$er
!1.,/$
SC.EDULE
:or, of un)ert!Cin% for use on tr!nsfer or issue of s$!res
() T$e (ersons 2$ose n!,es !n) !))resses !((e!r in t$e s+$e)u#e "e#o2 (Dt$e E9istin% S$!re$o#)ersA)4
7.EREAS
or)in!r< s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<4
effe+te) un#ess t$e !tr!nsferee 1or6 t$e (erson to 2$o, su+$ s$!res !re to "e issue)$ first enters into ! )ee) in
t$e for, of t$is )ee)4
(rovision of t$e Joint Venture A%ree,ent !"< 2$i+$ 1out!oin! part,6 2!s "oun)$ in ever< 2!< !s if t$e Ne2
S$!re$o#)er $!) "een n!,e) in it ! (!rt< to it 2it$ t$e e9+e(tion of +#!uses 1insert numbers o. an, clauses which
SC.EDULE
1insert names and addresses o. e7istin! shareholders6
!1.,"$
1
joint venture !%ree,entGsee :or, 1 J1081K !nte4
t$in%s or (re'+on)itions $!((enin% e% t$e !2!r) of ! (!rti+u#!r +ontr!+t to t$e +o,(!n< or t$e %r!nt of ! (!rti+u#!r #i+en+e et+G
see :or, 1 J168K (ost)4
&
T$is )efinition is re;uire) on#< for t$e (ur(ose of t$e +onsortiu, re#ief (rovisions in +#!use 11Gsee note 10 "e#o24
*
+o,,er+i!##<4 :or e9!,(#e> if t$e s *11 +ontro# test !((#ies to t$e +$!n%e of +ontro# (rovisions> t$en t$ese (rovisions 2i## !((#<
2$enever one of t$e ,u#ti(#e +ontro##ers +$!n%e)4 In ,!n< +!ses> it ,!< "e ,ore !((ro(ri!te to use t$e n!rro2er )efinition
+ont!ine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 5*84
0
T$e use of t$is for, is on#< !((#i+!"#e 2$ere (!rties (to%et$er 2it$ t$eir res(e+tive no,inees) $o#) e;u!# s$!re$o#)in%s in t$e
+o,(!n<4 If t$ere !re ,ore t$!n s$!re$o#)ers see :or, J101&K !nte4
!1.,2$
1
Re%u#!tion 0& of T!"#e A 2$i+$ is in+or(or!te) in t$e !rti+#es of !sso+i!tion to "e use) in +onjun+tion 2it$ t$is for, (see :or, 3
J1115K (ost) entit#es t$e s$!re$o#)ers of t$e +o,(!n< to (!ss reso#utions in 2ritin% si%ne) "< !## s$!re$o#)ers4 It s$ou#) "e note)
t$!t "e+!use s$!res $e#) "< e!+$ (!rt< !re not )ivi)e) into )ifferent +#!sses t$e !((oint,ent (!n) re,ov!#) "< ! s$!re$o#)er of
its Do2nA )ire+tors re;uires t$e si%n!ture of !## s$!re$o#)ers4 :or, 11 J1510K (ost (!n) t$e !rti+#es of !sso+i!tion (re(!re) to %o
2it$ itGsee :or, 15 J15*3K (ost) +ont!ins !#tern!tive (rovisions effe+tive#< ens$rinin% t$e ri%$t to !((oint )ire+tors !s !
se(!r!te +#!ss ri%$t !tt!+$in% to t$e s$!res of e!+$ s$!re$o#)er4 In ,!n< res(e+ts> t$is #!tter for,!t is (refer!"#e "ut it )oes
invo#ve )ivi)in% t$e s$!re +!(it!# into or)in!r< s$!res of )ifferent +#!sses !n) +ert!in ot$er (rovisions in t$e !rti+#es4 Note !#so
t$!t it is ne+ess!r< t$!t t$e !rti+#es of !sso+i!tion of t$e +o,(!n< s$ou#) (er,it t$e !((oint,ent !n) re,ov!# of )ire+tors "<
or)in!r< reso#ution> !s )oes :or, 3 !rti+#e 1041 J1158K (ost4 :or ! for, of s$!re$o#)ersA reso#ution see :or, 5 J1153K (ost4
3
T$e essen+e of ! D)e!)#o+CA 08E08 +o,(!n< is t$!t eit$er (!rt< ,ust $!ve !n effe+tive ri%$t of veto !t "o!r) ,eetin%s4 T$e
(rovisions of +#!use &40 J11&1K !re )esi%ne) to !voi) ,!tters "ein% )e!#t 2it$ !t "o!r) ,eetin%s 2$ere eit$er (!rt< is not e;u!##<
re(resente)4 If t$e first !#tern!tive 2or)in% is in+#u)e)> ! reso#ution ,!< sti## "e (!sse) !t t$e ,eetin% not2it$st!n)in% t$!t t$e
(!rties !re not e;u!##< re(resente) !s #on% !s t$e ,!tters to "e )is+usse) 2ere on t$e !%en)!> !n) t$e onus 2i## t$en "e on e!+$
(!rt< to ensure t$!t t$e< !re !((ro(ri!te#< re(resente) 2$en issues i,(ort!nt to t$e, !re "ein% )is+usse)4 T$e se+on)
!#tern!tive 2or)in% is )esi%ne) to !voi) eit$er (!rt< frustr!tin% !n< )e+ision "< "ein% !"sent> so t$!t t$e (!rties !re not e;u!##<
re(resente)4 .o2ever> ! si,(#er !n) (er$!(s ,ore effe+tive 2!< to over+o,e t$is (ro"#e,> 2$i+$ +!n e!si#< !rise in (r!+ti+e> is
to )esi%n!te )ire+tors !((ointe) "< one (!rt< !s DAA )ire+tors !n) t$ose "< t$e ot$er !s D-A )ire+tors !n) to +onfer 2ei%$te)
votin% ri%$ts so t$!t e!+$ DAA )ire+tor (resent $!s ! nu,"er of votes e;u!# to e!+$ D-A )ire+tor (resent !n) vi+e vers!4 In or)er to
!voi) un)ue +o,(#e9it< 2it$ i)entifi+!tion t$is )oes $o2ever re;uire ! )ivision of t$e s$!re +!(it!# into or)in!r< s$!res of
)ifferent +#!sses: see :or,s 11 J1510K !n) 15 J15*3K (ost4
5
In ,ost !%ree,ents e!+$ of t$e (!rties !ssu,es +ert!in s(e+ifi+ o"#i%!tions in re#!tion to t$e joint +o,(!n<4 T$ese ,i%$t in+#u)e
t$e tr!nsfer of s(e+ifi+ !ssets or ri%$ts to t$e +o,(!n< or t$e #i+ensin% or %r!nt of t$e ri%$t to use su+$ !ssets or ri%$ts (e% $ive'
!%ree,ent4
6
t$e +o,(!n< fro, t$ir) (!rties4 It 2i## "e i,(ort!nt to s(e+if< (re+ise#< 2$!t t$ese +o,,it,ents !re4 :or (ossi"#e for,s of
+#!uses see :or,s J1551K> & J155*K !n) * J1550K (ost> !#t$ou%$ !n< nu,"er of v!ri!tions is (ossi"#e in (r!+ti+e4
!1..#$
18
t$!t ,e,"erH
s$!re$o#)er ,!< 2is$ to in+#u)e +#!use 14 to (revent ! situ!tion !risin% 2$ere"< interest (!<,ents re+eive) fro, t$e +o,(!n<
+ou#) "e re'+$!r!+terise) !s )istri"utions4 7it$ t$e !"o#ition of !)v!n+e +or(or!tion t!9 fro, 1 A(ri# 1666> t$is (rovision ,!<
"e+o,e #ess i,(ort!nt4 .o2ever> !n< re#!9!tion in t$is !re! 2i## "e offset "< t$e in+re!se) In#!n) Revenue fo+us on tr!nsfer
(ri+in% !n) t$e nee) to seeC tre!t< +onsent to (!< interest %ross> !n) s(e+ifi+ t!9 !)vi+e s$ou#) "e sou%$t on t$ese issues in !
joint venture invo#vin% one or ,ore non'UB resi)ent (!rties4
11
In ! D)e!)#o+CA +o,(!n< 2$ere t$ere is !n !%ree,ent "et2een t2o s$!re$o#)ers e!+$ of 2$o, o2ns 08L of t$e joint +o,(!n<
!n) e!+$ of 2$o, is entit#e) to !((oint !n e;u!# nu,"er of )ire+tors !n) 2$ere t$e +$!ir,!n $!s no +!stin% vote un)er t$e
(ro(ose) !rti+#es of !sso+i!tion> it ,!< not "e ne+ess!r< to in+or(or!te restri+tions on +ert!in !+tions on t$e "!sis t$!t eit$er
(!rt< +!n effe+tive#< "#o+C t$e, !t "ot$ "o!r) !n) s$!re$o#)er #eve#4 .o2ever> if t$ere is !n< (ossi"i#it< of !),ission of furt$er
(!rties> on t$e tr!nsfer of !n< s$!res $e#) "< t$e ori%in!# (!rties or on t$e issue of s$!res to ! t$ir) (!rt<> restri+tions on +ert!in
!+tions 2it$out un!ni,ous !((rov!#> or t$e !((rov!# of ! (!rti+u#!r ,!jorit<> !re #iCe#< to "e )esir!"#e4 If it is inten)e) to
in+or(or!te restri+tions ! s(e+i,en +#!use ,!< "e foun) in :or, +#!use 3 J10K !nte> !#t$ou%$ it 2i## "e !((re+i!te) %iven t$e
f#e9i"#e n!ture of joint venture !rr!n%e,ents t$!t t$is #ist is "< no ,e!ns e9$!ustive !n) in)ee) ,!< 2e## nee) to "e D(rune)A or
e9ten)e) to ,eet t$e re;uire,ents of e!+$ (!rti+u#!r +!se4
1
!1..1$
1&
Restri+tions of t$is t<(e on t$e (!rt of or ,ore (!rties re;uire +!refu# +onsi)er!tion of t$e !((ro(ri!te +o,(etition #!2
+onse;uen+es4
1*
re#iefs) +!n "e surren)ere) (ro'r!t! to or fro, t$e s$!re$o#)ers "< or to t$e +o,(!n<4 A furt$er "enefit of ! +onsortiu, is t$!t
Co,(!n<> 2it$ e!+$ o2nin% not #ess t$!n 0L of t$e or)in!r< s$!re +!(it!#4 T$e !"i#it< to surren)er or +#!i, #osses et+ is !#so
T$e (rovisions in +#!use 11 J11*1K !re )esi%ne) to ensure t$!t t$e +o,(!n< is tre!te) !s UB t!9 resi)ent !n) t$!t t$e
,ore t$!n 0L of t$e +o,(!n<As s$!re +!(it!#> so t$!t +onsortiu, re#ief 2ou#) not "e !v!i#!"#e in !n< event)> t$en +#!uses
1141(-)> (C) !n) 114 +ou#) "e )e#ete)4 In (r!+ti+e t$is is un#iCe#< to "e t$e +!se> "e+!use 2$ere t$ere is ! joint venture "et2een
! UB +o,(!n< !n) ! forei%n entit< 2it$ t$e UB +o,(!n< "rin%in% #o+!# e9(ertise> t$e UB +o,(!n< 2i## nor,!##< insist t$!t t$e
forei%n joint venturer invests in t$e joint venture vi! ! UB su"si)i!r<4 In t$ese +ir+u,st!n+es> t$e forei%n joint venturer 2i##
re;uire !)vi+e on> inter !#i!> fin!n+in% its invest,ents in t$e joint venture> )ivi)en) !n) interest re(!tri!tion !n) +!(it!# %!ins t!9
,iti%!tion on )is(os!#4
(see note 13 "e#o2) 2i## not "e !v!i#!"#e !n) +#!uses 1141(A) J11*1K !n) 114& J11**K +ou#) !#so "e )e#ete)4
!1..%$
10
C#!use 114(A) J11*1K (rovi)es for t$e +o,(!n< to surren)er its #osses et+ to t$e s$!re$o#)ers> in return for ! (!<,ent to t$e
C#!use 114(-) J11*K (rovi)es for t$e s$!re$o#)ers to surren)er t$eir #osses et+ to t$e +o,(!n< in return for ! (!<,ent "<
Cno2n> it ,!< "e !)vis!"#e to !,en) t$e (!<,ent )!tes in +#!uses 114(A) !n) (-) for joint ventures invo#vin% #!r%e +o,(!nies
to %ive %re!ter (re+ision in t$e #i%$t of t$e +$!n%es4
re#ief4
11
13
C#!use 114& J11**K (rovi)es for t$e +o,(!n< to ,!Ce !((ro(ri!te %rou( in+o,e e#e+tions so t$!t (!<,ents of )ivi)en)s> interest
t!9 or )e)u+tin% !n< 2it$$o#)in% t!94 Note t$!t !)v!n+e +or(or!tion t!9 is to "e !"o#is$e) 2it$ effe+t fro, 1 A(ri# 1666> !fter
2$i+$ )!te +#!use 114&(-)(1) +!n "e )e#ete)4 .o2ever> +#!use 114&(-)() 2i## re,!in re#ev!nt if t$ere is ! +onsortiu, or if !n<
s$!re$o#)er $o#)s !t #e!st 01L of t$e +o,(!n<As or)in!r< s$!re +!(it!#4
15
16
In !n !%ree,ent "et2een (!rties !s $ere> it is +o,,on for t$e (!rties to i,(ose !n !"so#ute restri+tion on t$e ri%$t of tr!nsfer4
.o2ever> in +ert!in +ir+u,st!n+es> it ,!< "e !((ro(ri!te to !##o2 for
(A) (er,itte) tr!nsfers (e% intr!'%rou(Gsee :or, 5 J168*K (ost) !n)Eor
(-) tr!nsfers in !++or)!n+e 2it$ (re'e,(tion (rovisions in t$e !rti+#es of !sso+i!tion4 T$e !rti+#es of !sso+i!tion for use
2it$ t$is for, +ont!in (re'e,(tion (rovisions: see :or, 3 !rti+#e 14* J113*K (ost4
!1..($
8
A s(e+i!# +#!use (rovi)in% for ! reso#ution of )e!)#o+C ,!< not "e !((#i+!"#e to !## joint venture +o,(!nies4 .o2ever> if it is
inten)e) to restri+t tr!nsfers ("< e9+#u)in% t$e (re'e,(tion (ro+e)ure in !rti+#es of !sso+i!tion) !n) $!ve !n in)efinite )ur!tion
for t$e !%ree,ent it is $i%$#< )esir!"#e to $!ve ! +ontr!+tu!# ,e!ns of )e!)#o+C reso#ution "e+!use ot$er2ise t$e on#< !#tern!tive
to reso#ve ! )is(ute (ot$er2ise t$!n "< !%ree,ent "et2een t$e (!rties) ,!< "e !n !((#i+!tion "< eit$er (!rt< to t$e +ourt to 2in)
u( t$e +o,(!n< on t$e "!sis t$!t it is just !n) e;uit!"#e to )oGsee Ebrahimi v Westbourne Galleries Ltd J163&K AC &18> J163K
A## ER *6> .L4 T$e un+ert!int< of t$e out+o,e of t$e DRussi!n Rou#etteA )e!)#o+C reso#ution (ro+e)ure "< !n< inten)in%
s$!re$o#)er is )esi%ne) to )eter its use in !## "ut t$e ,ost serious +!ses of )e!)#o+C4 .o2ever> it ,ust "e !+Cno2#e)%e) t$!t its
f!irness in (r!+ti+e !s ! ,e!ns of reso#vin% ! )is(ute is> (re+ise#< "e+!use of su+$ un+ert!int<> o(en to ;uestion4 Consi)er !s
!#tern!tives t$e (ro+e)ures in :or, &1 J1610K (ost !)!(te) to suit t$e +!se or +onsi)er t$e D%in !n) toni+A (rovision for reso#ution
of )e!)#o+CGsee :or, && J1686K (ost4
Consortiu, re#ief 2i## not "e !v!i#!"#e to t$e (!rties !n) t$e +o,(!n< fro, t$e outset of t$e joint venture if t$ere !re !t t$!t
ti,e D!rr!n%e,entsA in (#!+e for t$e +onsortiu, re#!tions$i( to "e "roCen4 T$ere is !++or)in%#< ! risC t$!t t$e tr!nsfer> )e!)#o+C
or ter,in!tion (rovisions in t$e joint venture !%ree,ent +ou#) !,ount to su+$ !rr!n%e,ents so t$!t +onsortiu, re#ief 2ou#) "e
!((#ies in+#u)e:
!sso+i!tionH
v!#u!tionH
As )r!fte)> t$e (rovisions set out in +#!uses 1& J11*0K> 1* J11*3K !n) 10 J11*5K f!## 2it$in t$e ter,s of t$e +on+ession4
.o2ever> it is i,(ort!nt to ensure t$!t t$is re,!ins t$e +!se if !n< !,en),ents !re ,!)e4
1
T$is is not ne+ess!r< if t$e !rti+#es +ont!in (rovisions re#!9in% t$e ;uoru, re;uire,ents 2$ere ! ,eetin% $!s "een !)journe)
t$rou%$ #!+C of ! ;uoru,4 T$e !rti+#es for use 2it$ t$is for, +ont!in su+$ ! (rovision4
!1..)$
&
re#ev!nt (erio) of )ur!tion in re#!tion to t$e +o,(!n< !n) t$e (!rtiesA s$!re$o#)in%s et+4 T$e ,e+$!nis, in +#!use 10 J11*5K
,!< "e (refer!"#e to ! 2in)in% u(4
*
In t$e +!se of #i;ui)!tion or "!nCru(t+<> it ,!< "e t$ou%$t (refer!"#e to re#< on ! (rovision of t$e !rti+#es of !sso+i!tion un)er
2$i+$ t$e s$!res of t$e #i;ui)!te) or "!nCru(te) s$!re$o#)er !re to "e offere) u( for s!#e un)er t$e (re'e,(tion (rovisions4
0
)is,isse)4 E9e,(tions !re !#so often seen for t$e D%oo) #e!verA 2$o retires or +e!ses to 2orC t$rou%$> i##'$e!#t$> !#t$ou%$ it
,!< "e +onsi)ere) t$!t ter,in!tion 2ou#) "e !((ro(ri!te in t$ese +ir+u,st!n+es4
1
A ri%$t of ter,in!tion in t$e event of ! +$!n%e of +ontro# of one (!rt< ,!< "e !((ro(ri!te if t$!t (!rt< is itse#f ! s(e+i!# (ur(ose
ve$i+#e !n) $en+e is ! ,e!ns of effe+tive#< restri+tin% s$!re tr!nsfers or if> %enuine#<> t$e o2ners$i( of one (!rt< is i,(ort!nt for
t$e venture4 A (u"#i+#< #iste) +o,(!n< 2$i+$ +!nnot +ontro# 2$o its s$!re$o#)ers !re nee)s to +onsi)er ver< +!refu##< t$e
i,(#i+!tions of !%reein% to su+$ ! (rovision4
3
5
6
,!rCs of eit$er of t$e (!rties if t$ese !re inten)e) to "e use) "< t$e +o,(!n< (e% ! for,!# tr!)e ,!rC #i+en+e)4
&8
ot$er t<(e of e9istin% +o,(!n< is "ein% use) (er$!(s !t t$e inst!n+e of one (!rt< t$e ot$er 2ou#) "e 2e## !)vise) to +onsi)er
2$< su+$ ! +o,(!n< is "ein% (ut for2!r) !n) if !n e9istin% +o,(!n< D2it$ ! $istor<A is !%ree) to "e use) !s its ve$i+#e t$e ot$er
s$ou#) +ert!in#< +onsi)er ,ore e9tensive 2!rr!nties !n) in)e,nities4 T$e +#!use (or !n< v!ri!tion) is usu!##< unne+ess!r< for !
+o,(!n< not <et for,e)4
&1
re#!tions$i( "et2een t$e ,e,"ers of t$e joint venture4 A++or)in%#< it $!s "e+o,e even ,ore re#ev!nt> in re#!tion to joint
!not$er (!rt<4 T$e +onfir,!tion in +#!use 1541 J110*K 2i## "e usefu# evi)en+e in (rovin% t$e #!+C of su+$ !%en+< to t$e In#!n)
&
C#!uses 84* !n) 840 J1103K +!n "e )e#ete) if !## t$e (!rties !re "!se) in En%#!n)4
!1..,$
.
Notice of e5traordinary 'eneral meetin'; te5t of special resolution and consent to short notice for anne5ation to
shareholders a'reements 0here an e5istin' company is bein' used as the joint enture ehicle
1
1name6 LI=ITED
NOTICE IS .ERE-? GIVEN T.AT !n EFTRAORDINAR? GENERAL =EETING of t$e !"ove n!,e) Co,(!n<
2i## "e $e#) !t 1place6 on 1date6 !t 1time6 to +onsi)er !n)> if t$ou%$t fit> (!ss t$e fo##o2in% reso#ution 2$i+$ 2i## "e
(ro(ose) !s ! s(e+i!# reso#ution of t$e Co,(!n<:
S/ECIAL RESOLUTION
T.AT:
(1) t$e !ut$orise) s$!re +!(it!# of t$e Co,(!n< "e !n) t$e s!,e is $ere"< in+re!se) fro, OTTT to OTTT
"< t$e +re!tion of 1number6 ne2 or)in!r< s$!res of O1 e!+$ to r!nC (!ri (!ssu in !## res(e+ts 2it$ t$e e9istin%
or)in!r< s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<H
() t$e )r!ft o"je+ts +ont!ine) in t$e )o+u,ent su",itte) to t$e ,eetin% !n) for t$e (ur(oses of i)entifi+!tion
initi!##e) "< t$e +$!ir,!n t$ereof "e !n) t$e s!,e !re $ere"< !((rove) !n) t$e (rovisions of +#!use & of t$e
,e,or!n)u, of !sso+i!tion of t$e Co,(!n< "e !n) t$e< !re $ere"< !#tere) "< t$e !)o(tion of t$e s!i) )r!ft
o"je+ts !s t$e o"je+ts of t$e Co,(!n< in su"stitution for !n) to t$e e9+#usion of t$e e9istin% o"je+ts of t$e
Co,(!n<H !!n)$
(&) t$e )r!ft re%u#!tions +ont!ine) in t$e )o+u,ent su",itte) to t$e ,eetin% !n) for t$e (ur(oses of
i)entifi+!tion initi!##e) "< t$e +$!ir,!n t$ereof "e !n) t$e s!,e !re $ere"< !((rove) !n) !)o(te) !s t$e
!rti+#es of !sso+i!tion of t$e Co,(!n< in su"stitution for !n) to t$e e9+#usion of !## e9istin% !rti+#es of
!sso+i!tion of t$e Co,(!n<H !!n)
(*) t$e n!,e of t$e Co,(!n< "e +$!n%e) to 1new name64$
!1...$
DATED t$is TTT )!< of TTT
-< Or)er of t$e -o!r)
1si!nature o. secretar,6
Se+ret!r<
Re%istere) Offi+e:
1insert address6
Note: A ,e,"er entit#e) to !tten) !n) vote !t t$e ,eetin% +onvene) "< t$is noti+e is entit#e) to !((oint ! (ro9< to
!tten) !n) on ! (o## vote in $is (#!+e4 A (ro9< nee) not "e ! ,e,"er of t$e Co,(!n<4
CONSENT TO S.ORT NOTICE
7e> t$e un)ersi%ne)> "ein% !## t$e ,e,"ers of t$e !"ove n!,e) Co,(!n< $ere"< !%ree t$!t t$e s!i) ,eetin% s$!## "e
)ee,e) to $!ve "een )u#< +!##e) !n) t$!t t$e s(e+i!# reso#ution set out in t$e s!i) noti+e ,!< "e (ro(ose) !n) (!sse)
not2it$st!n)in% t$!t s$orter noti+e t$!n t$!t s(e+ifie) in t$e Co,(!nies A+t 1650 or t$e Co,(!n<As !rti+#es of
!sso+i!tion $!s "een %iven4
1si!natures o. all members6
1
T$is for, is !%ree) for, DAA referre) to in :or,s J101&K> & J1031K !n) 0 J11&K !nte4
!1../$
/
3imple form of articles of association suitable for companies used as joint enture ehicles 0here there are no
special class ri'hts
T.E CO=/ANIES ACT 1650
NE7 ARTICLES O: ASSOCIATION
of
1name6 LI=ITED
1 *able A
!t t$e )!te of !)o(tion of t$ese !rti+#es (DT!"#e AA) s$!##> e9+e(t 2$ere t$e< !re e9+#u)e) or v!rie) "< or in+onsistent
2it$ t$ese !rti+#es> !((#< to t$e Co,(!n< to t$e e9+#usion of !## ot$er re%u#!tions set out in !n< st!tute or st!tutor<
instru,ent +on+ernin% +o,(!nies4
!1.."$
% 7nterpretation
(A) Dt$ese !rti+#esA ,e!ns t$ese !rti+#es of !sso+i!tion in t$eir (resent for, or !s fro, ti,e to ti,e !#tere)H
(-) t$e DCo,(!nies A+tsA ,e!ns ever< st!tute fro, ti,e to ti,e in for+e +on+ernin% +o,(!nies in so f!r !s t$e
(C) D,e,"erA ,e!ns ! ,e,"er of t$e Co,(!n<H
(D) ever< referen+e in T!"#e A to t$e DA+tA s$!## "e +onstrue) !s if t$e referen+e 2!s to t$e Co,(!nies A+tsH
(E) !n< 2or)s or e9(ressions )efine) in t$e Co,(!nies A+ts in for+e !t t$e )!te 2$en t$ese !rti+#es or !n< (!rt of
su+$ (!rt (!s t$e +!se ,!< "e)H !n)
(:) 2$ere for !n< (ur(ose !n or)in!r< reso#ution of t$e Co,(!n< is re;uire)> ! s(e+i!# or e9tr!or)in!r<
!#so "e effe+tive4
T$e s$!re +!(it!# of t$e Co,(!n< !t t$e )!te of t$e !)o(tion of t$ese !rti+#es is OTTT )ivi)e) into 1number6
or)in!r< s$!res of O1 e!+$4
!1..2$
) Hnissued share capital
*41 Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts !n) t$ese !rti+#es !n) to !n< )ire+tion to t$e +ontr!r< 2$i+$
!##ot> %r!nt o(tions over or %r!nt !n< ri%$t or ri%$ts to su"s+ri"e for t$e s$!res> or !n< ri%$t or ri%$ts to
+onvert !n< se+urit< into s$!res> or ot$er2ise )is(ose of t$e, to su+$ (ersons> !t su+$ ti,es !n) for su+$
*4 :or t$e (ur(oses of t$e Co,(!nies A+t 1650 se+tion 58> t$e )ire+tors !re %ener!##< !n) un+on)ition!##<
!ut$orise) to e9er+ise !## (o2ers of t$e Co,(!n< to !##ot re#ev!nt se+urities !s )efine) in t$!t se+tion u( to
!n !%%re%!te no,in!# !,ount of OTTT4 T$is !ut$orit< s$!## e9(ire 0 <e!rs fro, t$e )!te on 2$i+$ t$e
reso#ution !)o(tin% t$ese !rti+#es is (!sse) "ut ,!< "e (revious#< revoCe) or v!rie) "< t$e Co,(!n< in
%ener!# ,eetin% !n) ,!< fro, ti,e to ti,e "e rene2e) "< t$e Co,(!n< in %ener!# ,eetin% for ! furt$er
(erio) not e9+ee)in% 0 <e!rs4 T$e Co,(!n< ,!< ,!Ce !n< offer or !%ree,ent "efore t$e e9(ir< of t$is
!ut$orit< t$!t 2ou#) or ,i%$t re;uire re#ev!nt se+urities to "e !##otte) !fter t$is !ut$orit< $!s e9(ire) !n) t$e
)ire+tors ,!< !##ot re#ev!nt se+urities in (ursu!n+e of !n< su+$ offer or !%ree,ent !s if t$is !ut$orit< $!) not
e9(ire)4
!1./#$
*4& Arti+#e *4 s$!## not !((#< to re)ee,!"#e s$!res> 2$i+$ s$!## "e %overne) "< t$e (rovisions of !rti+#e 04
*4* T$e Co,(!nies A+t 1650 se+tions 56(1) !n) 68(1)M(1) (in+#usive) s$!## not !((#<4
*40 An< s$!res for t$e ti,e "ein% unissue) s$!##> su"je+t to t$e (rovisions of t$ese !rti+#es> "efore t$e< !re
issue)> "e offere) to t$e ,e,"ers $o#)in% or)in!r< s$!res in (ro(ortion !s ne!r#< !s t$e +ir+u,st!n+es !),it
to t$eir e9istin% $o#)in%s of or)in!r< s$!res4 T$e offer s$!## "e ,!)e "< noti+e s(e+if<in% t$e nu,"er of
s$!res offere) !n) #i,ite) to ! ti,e 2it$in 2$i+$ t$e offer> if not !++e(te)> 2i## "e )ee,e) to "e )e+#ine) !n)
!fter t$e e9(ir!tion of t$!t ti,e> or if e!r#ier on t$e re+ei(t of !n inti,!tion fro, t$e (erson to 2$o, t$e offer
$!s "een ,!)e t$!t $e )e+#ines to !++e(t t$e s$!res offere)> t$e )ire+tors ,!<> su"je+t to t$ese !rti+#es>
)is(ose of t$e s$!res in t$e ,!nner t$e< t$inC ,ost "enefi+i!# to t$e Co,(!n<4 T$e )ire+tors ,!<> in #iCe
,!nner> )is(ose of !n< s$!res 2$i+$ "< re!son of t$e (ro(ortion "orne "< t$e, to t$e nu,"er of (ersons
entit#e) to t$e offer> or "< re!son of !n< )iffi+u#t< in !((ortionin% t$e, +!nnot in t$e o(inion of t$e )ire+tors
"e +onvenient#< offere) in t$e ,!nner (rovi)e) !"ove4 T$e (rovisions of t$is !rti+#e ,!< "e re#!9e) or
v!rie) to !n< e9tent "< t$e 2ritten !%ree,ent of !## t$e ,e,"ers for t$e ti,e "ein%4
!1./1$
, &edeemable shares
ter,s t$!t t$e< !re> or !t t$e o(tion of t$e Co,(!n< or t$e ,e,"er re%istere) in res(e+t of t$e s$!res !re #i!"#e> to "e
re)ee,e) on su+$ ter,s !n) in su+$ ,!nner !s ,!< "e (rovi)e) for "< t$ese !rti+#es4 Re%u#!tion & of T!"#e A s$!## not
!((#<4
. *ransfer of shares
1
141 !S!ve 2it$ t$e +onsent in 2ritin% of !## t$e ot$er ,e,"ers of t$e Co,(!n< for t$e ti,e "ein%> no ,e,"er
s$!## "e entit#e) to tr!nsfer !n< s$!res in t$e Co,(!n<4
1or6
Su"je+t to !rti+#e 14> no tr!nsfer of !n< s$!re s$!## "e ,!)e or re%istere) 2it$out t$e (revious s!n+tion of t$e
)ire+tors 2$o ,!< in t$eir !"so#ute !n) unfettere) )is+retion> 2it$out !ssi%nin% !n< re!son> refuse to %ive
t$eir s!n+tion4 If s!n+tion s$!## not "e %iven 2it$in 5 2eeCs !fter t$e tr!nsfer is #o)%e) for re%istr!tion t$e
s!n+tion s$!## "e )ee,e) to $!ve "een refuse) !t t$e e9(ir!tion of t$!t (erio) !n) t$e tr!nsferee s$!## "e
notifie) of t$e refus!#4 Re%u#!tion * of T!"#e A s$!## "e v!rie) !++or)in%#<4$
!1./%$
Co,(!n< or !n< interest in t$e, (D! (ro(ose) tr!nsferorA) s$!##> "efore so )oin% or !%reein% so to )o> infor,
t$e Co,(!n< of $is intention "< %ivin% it noti+e in 2ritin% (D! tr!nsfer noti+eA)4 A tr!nsfer noti+e s$!##
tr!nsfer noti+e (to%et$er 2it$ !## ri%$ts t$en !tt!+$e) to t$e,) !t t$e (res+ri"e) (ri+e ()eter,ine) !s (rovi)e)
"e#o2) to !n< ,e,"er in t$e ,!nner !((e!rin% "e#o2> !n) s$!## not "e revo+!"#e e9+e(t 2it$ t$e un!ni,ous
!%ree,ent of t$e )ire+tors4
14& If not ,ore t$!n 1* )!<s !fter t$e )!te on 2$i+$ ! tr!nsfer noti+e 2!s %iven (or )ee,e) to $!ve "een %iven) !
(ro(ose) tr!nsferor !n) t$e )ire+tors s$!## $!ve !%ree) in 2ritin% ! (ri+e (er s$!re !s re(resentin% t$e f!ir
v!#ue of t$e s$!res> or !s "ein% !++e(t!"#e to t$e (ro(ose) tr!nsferor !!n) not ,ore t$!n t$e f!ir v!#ue of t$e
s$!res$> t$en t$!t (ri+e s$!## "e t$e (res+ri"e) (ri+e4 In t$e !"sen+e of !n< !%ree,ent $!vin% "een re!+$e)
2it$in t$!t (erio) of 1* )!<s t$e )ire+tors s$!## fort$2it$ re;uest t$e !u)itors for t$e ti,e "ein% of t$e
Co,(!n< to )eter,ine !n) +ertif< in 2ritin% to t$e Co,(!n< t$e su, (er s$!re +onsi)ere) "< t$e, to "e t$e
f!ir v!#ue of t$e s$!res !s "et2een ! 2i##in% se##er !n) ! 2i##in% (ur+$!ser (i%norin% t$e f!+t> if su+$ "e t$e
+!se> t$!t t$e s$!res )o not +!rr< effe+tive +ontro# of t$e Co,(!n<) !s !t t$e )!te on 2$i+$ t$e tr!nsfer noti+e
2!s %iven (or )ee,e) to $!ve "een %iven) !n) t$e su, (er s$!re so )eter,ine) !n) +ertifie) s$!## "e t$e
(res+ri"e) (ri+e4 T$e !u)itors s$!## !+t un)er t$is !rti+#e !t t$e +ost !n) e9(ense of t$e (ro(ose) tr!nsferor !s
e9(erts !n) not !s !r"itr!tors !n) t$eir )eter,in!tion s$!## "e fin!# !n) "in)in% for !## (ur(oses (s!ve in
res(e+t of ,!nifest error)4
!1./($
14* 7it$in 3 )!<s of t$e (res+ri"e) (ri+e "ein% so !%ree) or )eter,ine) !n) fi9e)> !## s$!res in+#u)e) in !n<
tr!nsfer noti+e s$!## "e offere) for (ur+$!se !t t$e (res+ri"e) (ri+e "< noti+e in 2ritin% %iven "< t$e Co,(!n<
to !## ,e,"ers $o#)in% s$!res in t$e Co,(!n< (ot$er t$!n t$e ,e,"er to 2$ose s$!res t$e tr!nsfer noti+e
re#!tes)4 An< su+$ offer s$!## s(e+if< ! (erio) ("ein% not #ess t$!n 1 )!<s !n) not ,ore t$!n * )!<s) 2it$in
2$i+$ it ,ust "e !++e(te) or 2i## #!(se4
140 If ,e,"ers (D(ur+$!sersA) s$!## 2it$in t$e (erio) of t$e offer !%ree to (ur+$!se t$e s$!res +on+erne) or !n<
of t$e,> t$e Co,(!n< s$!## fort$2it$ %ive noti+e in 2ritin% !s ,entione) "e#o2 to t$e (ro(ose) tr!nsferor
!n) to t$e (ur+$!sers !n) u(on (!<,ent of t$e (res+ri"e) (ri+e t$e (ro(ose) tr!nsferor s$!## "e "oun) to
tr!nsfer su+$ s$!res to t$e res(e+tive (ur+$!sers !++or)in%#<4 Ever< su+$ noti+e s$!## st!te t$e n!,e !n)
!))ress of e!+$ (ur+$!ser !n) t$e nu,"er of s$!res !%ree) to "e (ur+$!se) "< $i, !n) t$e s!#e !n) (ur+$!se
s$!## "e +o,(#ete) !t ! (#!+e !n) ti,e to "e !((ointe) "< t$e )ire+tors not "ein% #ess t$!n 3 )!<s nor ,ore
t$!n &8 )!<s !fter t$e )!te of su+$ noti+e /ROVIDED t$!t if ! tr!nsfer noti+e s$!## st!te t$!t t$e (ro(ose)
tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e s$!res t$e su"je+t of t$e tr!nsfer noti+e> t$e fore%oin%
(rovisions of t$is !rti+#e 140 s$!## not !((#< un#ess t$e Co,(!n< s$!## $!ve foun) (ur+$!sers for !## of t$e
s$!res !n) (un#ess !s !fores!i)) !n< offer referre) to in !rti+#e 14* s$!## "e )ee,e) to $!ve #!(se) 2it$out
$!vin% "een v!#i)#< !++e(te)4
!1./)$
141 If ! (ro(ose) tr!nsferor s$!## f!i# or refuse to tr!nsfer !n< s$!res to ! (ur+$!ser un)er !rti+#e 140> t$e )ire+tors
,!< !ut$orise so,e (erson to e9e+ute t$e ne+ess!r< tr!nsfer !n) ,!< )e#iver it on $is "e$!#f !n) t$e
Co,(!n< ,!< re+eive t$e (ur+$!se ,one< in trust for t$e (ro(ose) tr!nsferor (2$i+$ it s$!## (!< into !
e9er+ise of t$e !fores!i) (o2ers t$e v!#i)it< of t$e (ro+ee)in%s s$!## not "e ;uestione) "< !n< (erson4
143 If !t t$e e9(ir< of t$e (erio) for t$e !++e(t!n+e of t$e offer referre) to in !rti+#e 14* ,e,"ers of t$e Co,(!n<
$!ve not !%ree) to (ur+$!se !## t$e s$!res so offere) t$e Co,(!n< s$!## fort$2it$ %ive noti+e of t$!t in
2ritin% to t$e (ro(ose) tr!nsferor !n) !(su"je+t to t$e (revious s!n+tion of t$e "o!r)> su+$ s!n+tion not to "e
unre!son!"#< 2it$$e#))$
$e s$!## t$en "e !t #i"ert< !t !n< ti,e t$ere!fter u( to t$e e9(ir!tion of & ,ont$s
!fter t$e %ivin% of su+$ noti+e to tr!nsfer t$ose s$!res 2$i+$ ,e,"ers $!ve not !%ree) to (ur+$!se to !n<
(erson on ! "on! fi)e s!#e !t !n< (ri+e not "ein% #ess t$!n t$e (res+ri"e) (ri+e (rovi)e) t$!t:
(A) if t$e tr!nsfer noti+e st!tes t$!t t$e (ro(ose) tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e
s$!res t$e su"je+t of t$e tr!nsfer noti+e> $e s$!## not "e entit#e) to tr!nsfer !n< of t$e s$!res un#ess
in !%%re%!te t$e 2$o#e of t$e s$!res !re tr!nsferre)H !n)
(-) t$e )ire+tors ,!< re;uire to "e s!tisfie) t$!t su+$ s$!res !re "ein% tr!nsferre) in (ursu!n+e of !
"on! fi)e s!#e for t$e +onsi)er!tion st!te) in t$e instru,ent of tr!nsfer 2it$out !n< )e)u+tion>
re"!te or !##o2!n+e 2$!tsoever "ein% %iven to t$e (ur+$!ser !n) if not so s!tisfie) ,!< refuse to
re%ister t$e instru,ent of tr!nsfer4
!1./,$
s$!re or !n< interest in it ot$er2ise t$!n in !++or)!n+e 2it$ t$e fore%oin% (rovisions of t$is !rti+#e 1> $e s$!##
"e )ee,e) to $!ve serve) ! tr!nsfer noti+e on t$e Co,(!n< in res(e+t of t$e s$!re i,,e)i!te#< "efore t$e
!tte,(t !n) t$e (rovisions of t$is !rti+#e 1 s$!## t$ereu(on !((#< to t$e s$!re4 An< su+$ tr!nsfer noti+e s$!##
"e )ee,e) to $!ve "een serve) on t$e )!te on 2$i+$ t$e )ire+tors s$!## re+eive !+tu!# noti+e of t$e !tte,(t4 $
!146 T$e e9e+utors or !),inistr!tors or ot$er (erson!# re(resent!tives (if !n<) of !n< )e+e!se) ,e,"er or t$e
trustee in "!nCru(t+< of ! "!nCru(t ,e,"er s$!## "e "oun) !t t$e e9(ir< of ,ont$s fro, t$e )!te of $is
of t$e )e+e!se) ,e,"er !t t$e )!te of $is )e!t$ or "!nCru(t+<> or t$ose of t$e, t$!t sti## re,!in so re%istere)4
S$ou#) t$e e9e+utors or !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tives f!i# to %ive !
tr!nsfer noti+e 2it$in 1* )!<s !fter t$e e9(ir< of t$e (erio) of ,ont$s or s$ou#) t$ere "e no su+$ e9e+utors
or !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tives !t t$e e9(ir< of t$e (erio) of
,ont$s> ! tr!nsfer noti+e s$!## "e )ee,e) to $!ve "een %iven (on t$e "!sis t$!t t$ere is no re;uire,ent t$!t !##
!n) not so,e on#< of t$e s$!res t$e su"je+t of it ,ust "e so#) to e9istin% ,e,"ers) !n) t$e (rovisions of t$is
!rti+#e 1 s$!## $!ve effe+t !++or)in%#<4
1418 If !n< ,e,"er ("ein% ! +or(or!tion) s$!## %o into #i;ui)!tion (+o,(u#sori#< or vo#unt!ri#<) or $!ve !n
!),inistr!tor !((ointe) or $!ve ! re+eiver> !),inistr!tive re+eiver or si,i#!r offi+i!# !((ointe) of t$e 2$o#e
or !n< (!rt of its !ssets> its #i;ui)!tor> !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!#
n!,e of t$!t ,e,"er4 In )ef!u#t of ! tr!nsfer noti+e "ein% %iven 2it$in &8 )!<s of it %oin% into #i;ui)!tion or
$!vin% !n !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# !((ointe)> t$e #i;ui)!tor>
!),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# s$!## "e )ee,e) to $!ve %iven ! noti+e
!t t$e e9(ir!tion of t$!t (erio) of &8 )!<s (on t$e "!sis t$!t t$ere is no re;uire,ent t$!t !## "ut not so,e on#<
of t$e s$!res t$e su"je+t of it ,ust "e so#) to e9istin% ,e,"ers) !n) t$e (rovisions of t$is !rti+#e 1 s$!##
!((#< !++or)in%#<4$
&
!1./.$
/ Alteration of capital
" Purchase of o0n shares
2 Proceedin's at 'eneral meetin's
t$e ,eetin%> t$e ,eetin% s$!## "e !)journe) to su+$ ti,e (not "ein% e!r#ier t$!n 3 )!<s !fter t$e )!te of t$e
ori%in!# ,eetin%) !n) (#!+e !s t$e )ire+tors ,!< )eter,ine4 If t$ere s$!## "e no ;uoru, !t t$e !)journe)
,eetin% 2it$in one $our !fter t$e ti,e !((ointe) for t$e ,eetin%> t$e ,eetin% s$!## !%!in "e !)journe) !s
!fores!i)4 If t$ere s$!## "e no ;uoru, 2it$in one $our !fter t$e ti,e !((ointe) for t$e furt$er !)journe)
,eetin% t$e ,e,"er or ,e,"ers (resent> 2$!tever t$eir nu,"er> s$!## +onstitute ! ;uoru,4
64 Su"je+t to !rti+#e 641 ! 1or as re>uired6$ (ersons entit#e) to vote u(on t$e "usiness to "e tr!ns!+te)> e!+$
"ein% ! ,e,"er or ! (ro9< for ! ,e,"er or ! )u#< !ut$orise) re(resent!tive of ! ,e,"er 2$i+$ is !
+or(or!tion> s$!## "e ! ;uoru,
*
4
64& Re%u#!tions &6> *8 !n) *1 of T!"#e A s$!## not !((#<4
64* At !n< %ener!# ,eetin% ! (o## ,!< "e )ire+te) "< t$e +$!ir,!n or )e,!n)e) "< !n< ,e,"er (resent in
(erson or "< (ro9< or> "ein% ! +or(or!tion> "< ! )u#< !ut$orise) re(resent!tive !n) Re%u#!tion *1 of T!"#e A
s$!## "e v!rie) !++or)in%#<4
!1.//$
1# Aotes of members
1841 Su"je+t to !n< ri%$ts or restri+tions for t$e ti,e "ein% !tt!+$e) to !n< +#!ss or +#!sses of s$!res> on ! s$o2 of
$!n)s ever< ,e,"er (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise)
re(resent!tive s$!## $!ve one vote !n) on ! (o## ever< ,e,"er (resent in (erson or "< (ro9< or ("ein% !
+or(or!tion) "< )u#< !ut$orise) re(resent!tive s$!## $!ve one vote for e!+$ s$!re of 2$i+$ $e is t$e $o#)er4
Re%u#!tion 0* of T!"#e A s$!## not !((#<4
184 T$e instru,ent !((ointin% ! (ro9< !n) t$e (o2er of !ttorne< or ot$er !ut$orit< (if !n<) un)er 2$i+$ it is
,eetin% or !n< instru,ent of (ro9< sent "< t$e Co,(!n< in re#!tion to t$e ,eetin%) !not #ess t$!n !one$ $our$
"efore t$e ti,e for $o#)in% t$e ,eetin% or !)journe) ,eetin% !t 2$i+$ t$e (erson n!,e) in t$e instru,ent
(ro(oses to vote> or $!n)e) to t$e +$!ir,!n of t$e ,eetin% or t$e !)journe) ,eetin% "efore t$e
+o,,en+e,ent of su+$ ,eetin% !n)> in )ef!u#t> t$e instru,ent or (ro9< s$!## not "e tre!te) !s v!#i)4
!1./"$
11 Number of directors
T$e nu,"er of )ire+tors s$!## not "e #ess t$!n ! 1or as re>uired6$ or ,ore t$!n 1number6
0
s$!## not !((#<4
1% Alternate directors
An< )ire+tor (ot$er t$!n !n !#tern!te )ire+tor) ,!< !((oint !n< (erson to "e !n !#tern!te )ire+tor !n) ,!< re,ove fro,
offi+e !n !#tern!te )ire+tor !((ointe) "< $i,
1
4 An !#tern!te )ire+tor ,!< "e (!i) e9(enses !n) s$!## "e entit#e) to "e
in)e,nifie) "< t$e Co,(!n< to t$e s!,e e9tent ,ut!tis ,ut!n)is !s if $e 2ere ! )ire+tor "ut s$!## not "e entit#e) to
re+eive fro, t$e Co,(!n< !n< fee in $is +!(!+it< !s !n !#tern!te )ire+tor e9+e(t on#< su+$ (!rt (if !n<) of t$e
re,uner!tion ot$er2ise (!<!"#e to t$e )ire+tor !((ointin% $i, !s su+$ )ire+tor ,!< "< noti+e in 2ritin% to t$e
Co,(!n< fro, ti,e to ti,e )ire+t4 An !#tern!te )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o, s$!## "e entit#e) to
re+eive noti+e of !## ,eetin%s of )ire+tors !n) of !## ,eetin%s of +o,,ittees of )ire+tors of 2$i+$ $is !((ointor is !
,e,"er !t su+$ !))ress !s $e ,!< fro, ti,e to ti,e notif< to t$e se+ret!r<
3
4 Re%u#!tions 10 !n) 11 of T!"#e A s$!## "e
v!rie) !++or)in%#<4
1( *he seal
Co,(!n< so#e#< !s ! resu#t of $!vin% "een e9e+ute) "< t$e Co,(!n<4 Re%u#!tion 181 of T!"#e A s$!## not !((#<4
!1./2$
!1) Dele'ation of directors po0ers
5
T$e )ire+tors ,!< )e#e%!te !n< of t$eir (o2ers to !n< +o,,ittee +onsistin% of ! or ,ore 1or as re>uired6$ )ire+tors4
T$e )ire+tors ,!< !#so entrust to !n) +onfer u(on !!n< )ire+tor$ !n< of t$e (o2ers e9er+is!"#e "< t$e,4 An< su+$
)e#e%!tion ,!< "e ,!)e u(on su+$ ter,s !n) +on)itions !n) 2it$ su+$ restri+tions !s t$e< ,!< t$inC fit> !n) eit$er
+o##!ter!##< 2it$ or to t$e e9+#usion of t$eir o2n (o2ers> !n) ,!< fro, ti,e to ti,e revoCe> 2it$)r!2> !#ter or v!r< !##
or !n< of su+$ (o2ers4 Su"je+t to !n< su+$ +on)itions> t$e (ro+ee)in%s of ! +o,,ittee 2it$ ! or ,ore 1or as
re>uired6$ ,e,"ers s$!## "e %overne) "< t$ese !rti+#es re%u#!tin% t$e (ro+ee)in%s of )ire+tors so f!r !s t$e< !re +!(!"#e
of !((#<in%4 Re%u#!tion 3 of T!"#e A s$!## not !((#<4$
6
1, Appointment and retirement of directors
1041 T$e Co,(!n< s$!## $!ve (o2er !t !n< ti,e !n) fro, ti,e to ti,e "< or)in!r< reso#ution to !((oint !n<
(erson to "e ! )ire+tor eit$er to fi## ! +!su!# v!+!n+< or !s !n !))ition to t$e e9istin% )ire+tors or to re,ove
!n< )ire+tor fro, offi+e $o2soever !((ointe)4 An< )ire+tor so !((ointe) s$!## (su"je+t to !rti+#e 104* !n) to
t$e (rovisions of t$e Co,(!nies A+ts) $o#) offi+e unti# $e is re,ove) (ursu!nt to t$ese !rti+#es
18
4
104 No )ire+tor s$!## "e re;uire) to retire or v!+!te $is offi+e or "e ine#i%i"#e for re!((oint,ent !s ! )ire+tor> nor
!%e4
104& Re%u#!tions 3& to 58 (in+#usive) of T!"#e A s$!## not !((#<4
104* T$e offi+e of ! )ire+tor s$!## "e v!+!te) if:
(D) $e is (ro$i"ite) fro, "ein% ! )ire+tor "< #!2 or "< t$e or)er of !n< +ourt or tri"un!# of +o,(etent
juris)i+tionH or
(E) t$e Co,(!n< so reso#ves "< or)in!r< reso#ution in !++or)!n+e 2it$ !rti+#e 1041H or
(:) $e is re;ueste) in 2ritin% to resi%n "< !## ("ut not so,e on#<) of $is +o')ire+tors4
!1."#$
1. Directors 'ratuities and pensions
T$e )ire+tors> on "e$!#f of t$e Co,(!n<> ,!< e9er+ise !## t$e (o2ers of t$e Co,(!n< to %r!nt (ensions> !nnuities>
Co,(!n<4
1/ Proceedin's of directors
1341 In t$e +!se of !n e;u!#it< of votes !t !n< ,eetin% of t$e )ire+tors t$e +$!ir,!n s$!## not $!ve ! se+on) or
+!stin% vote4 It s$!## "e ne+ess!r< to %ive noti+e of ! ,eetin% to ! )ire+tor 2$o is !"sent fro, t$e Unite)
Bin%)o, !n) su+$ noti+e s$!## "e %iven to su+$ !))ress !s su+$ )ire+tor ,!< fro, ti,e to ti,e s(e+if< to t$e
se+ret!r<
11
4 Re%u#!tion 55 of T!"#e A s$!## "e v!rie) !++or)in%#<4
134& Su"je+t to !rti+#e 134* t$e ;uoru, ne+ess!r< for t$e tr!ns!+tion of t$e "usiness of t$e )ire+tors !or of !n<
+o,,ittee of t$e )ire+tors$ s$!## "e ! 1or as re>uired6$ )ire+tors
1
4 Re%u#!tion 56 of T!"#e A s$!## "e v!rie)
!++or)in%#<4
134* If t$ere s$!## "e no ;uoru, !t !n< ,eetin% of t$e )ire+tors 2it$in one $our !fter t$e ti,e fi9e) for t$e
ori%in!# ,eetin%) !s t$e )ire+tor or )ire+tors (resent !t t$e ,eetin% s$!## )eter,ine> or if none> !s s$!## "e
!)journe) ,eetin%> t$e ,eetin% s$!## "e furt$er !)journe) !s !fores!i)4 If t$ere s$!## "e no ;uoru, !t t$e
furt$er !)journe) ,eetin% 2it$in one $our of t$e ti,e fi9e) for t$e ,eetin%> t$e )ire+tor or )ire+tors (resent>
2$!tever t$eir nu,"er> s$!## +onstitute ! ;uoru,4
!1."1$
1340 An< )ire+tor 2$o +e!ses to "e ! )ire+tor !t ! "o!r) ,eetin% ,!< +ontinue to "e (resent !n) to !+t !s !
1341 A )ire+tor s$!## "e tre!te) !s (resent in (erson !t ! ,eetin% of t$e )ire+tor or !n< +o,,ittee of t$e )ire+tors if
$e is in +o,,uni+!tion 2it$ t$e ,eetin% "< +onferen+e te#e($one or ot$er +o,,uni+!tion e;ui(,ent
!n) s$!## "e entit#e) to vote t$ere!t4 A ,eetin% of t$e )ire+tors or of ! +o,,ittee to 2$i+$ t$is !rti+#e !((#ies
s$!## "e )ee,e) to t!Ce (#!+e 2$ere t$e ,!jorit< of t$ese (!rti+i(!tin% is !sse,"#e)> or if t$ere is no
,!jorit<> !t t$e (#!+e 2$ere t$e +$!ir,!n of t$e ,eetin% is (resent !or if t$e ,eetin% is in t$e for, of ! series
of te#e($one +!##s fro, t$e C$!ir,!n of t$e )ire+tors of ! +o,,ittee> !t t$e (#!+e fro, 2$i+$ t$e C$!ir,!n is
+!##in%$
1&
4
1343 !Su"je+t to t$e (rovisions of t$ese !rti+#es !n) (rovi)e) ! )ire+tor s$!## $!ve )is+#ose) su+$ interest in
!n< (ur(ose of t$e A+t> +onne+te) 2it$ ! )ire+tor (2$i+$ s$!##> inter !#i!> in+#u)e !n< (erson (or !n< ot$er
(erson +onne+te) 2it$ su+$ (erson) 2$o (ursu!nt to !n< !%ree,ent in 2ritin% ,!)e "et2een !## t$e ,e,"ers
for t$e ti,e "ein% s$!## $!ve !((ointe) or no,in!te) su+$ )ire+tor) s$!## "e tre!te) !s !n interest of t$e
)ire+tor !n)> in re#!tion to !n !#tern!te )ire+tor> !n interest of $is !((ointor s$!## "e tre!te) !s !n interest of
t$e !#tern!te )ire+tor 2it$out (reju)i+e to !n< interest 2$i+$ t$e !#tern!te )ire+tor $!s ot$er2ise4 Re%u#!tions
6* to 65 (in+#usive) of T!"#e A s$!## not !((#<4
1or6
:or t$e (ur(ose of t$ese !rti+#es> !n interest of ! (erson 2$o is> for !n< (ur(ose of t$e A+t> +onne+te) 2it$ !
)ire+tor (2$i+$ s$!##> inter !#i!> in+#u)e !n< (erson (or !n< ot$er (erson +onne+te) 2it$ su+$ (erson) 2$o
(ursu!nt to !n< !%ree,ent in 2ritin% ,!)e "et2een !## t$e ,e,"ers for t$e ti,e "ein% s$!## $!ve !((ointe)
or no,in!te) su+$ )ire+tor) s$!## "e !n interest of t$e )ire+tor !n)> in re#!tion to !n !#tern!te )ire+tor> !n
interest of $is !((ointor s$!## "e tre!te) !s !n interest of t$e !#tern!te )ire+tor 2it$out (reju)i+e to !n<
interest 2$i+$ t$e !#tern!te )ire+tor $!s ot$er2ise4 T$e #!st senten+e of Re%u#!tion 6* of T!"#e A s$!## not
!((#<4$
1*
!1."%$
1" Notices
te#e%r!, !n) ot$er ,et$o)s of re(ro)u+in% or +o,,uni+!tin% 2ritin% in visi"#e for,4
t$e Co,(!n< eit$er (erson!##< or "< sen)in% it t$rou%$ t$e (ost in ! (re(!i) #etter !))resse) to t$e ,e,"er
!t $is re%istere) !))ress !s !((e!rin% in t$e re%ister of ,e,"ers (2$et$er or not t$!t !))ress is 2it$in t$e
Unite) Bin%)o,)> or "< )e#iverin% it to or #e!vin% it !t t$!t re%istere) !))ress> !))resse) !s !fores!i)> or "<
"< first'+#!ss (ost> s$!## "e )ee,e) to $!ve "een serve) or )e#ivere) on t$e )!< !fter t$e )!< 2$en it 2!s (ut
in t$e (ost> !n) in (rovin% su+$ servi+e or )e#iver< it s$!## "e suffi+ient to (rove t$!t t$e noti+e or )o+u,ent
2!s (ro(er#< !))resse)> st!,(e) !n) (ut in t$e (ost4$
10
154& Noti+e of ever< %ener!# ,eetin% s$!## "e %iven in !n< ,!nner !ut$orise) "< or un)er t$ese !rti+#es to !##
$o#)> !re not entit#e) to re+eive su+$ noti+es fro, t$e Co,(!n< /ROVIDED t$!t !n< ,e,"er ,!< in 2ritin%
2!ive noti+e of !n< ,eetin% eit$er (ros(e+tive#< or retros(e+tive#< !n) if $e s$!## )o so it s$!## "e no
o"je+tion to t$e v!#i)it< of t$e ,eetin% t$!t noti+e 2!s not %iven to $i,4 Re%u#!tions 11> 110 !n) 111 of
T!"#e A s$!## not !((#<4
!1."($
12 4indin' up
%# 7ndemnity
)ire+tor> se+ret!r< or ot$er offi+er of t$e Co,(!n< (e9+#u)in% !n< !u)itor) insur!n+e !%!inst !n< #i!"i#it< 2$i+$ "<
#i!"i#ities in+urre) "< $i, in t$e e9e+ution !n) )is+$!r%e of $is )uties or in re#!tion to t$e,> in+#u)in% !n< #i!"i#it<
!1.")$
1
7$et$er t$ere s$ou#) "e ! +o,(#ete restri+tion on s$!re tr!nsfers (e9+e(t 2it$ 2$!t is in effe+t t$e +onsent of "ot$ (!rties in !
D)e!)#o+CA 08E08 +o,(!n< or t$e ,!jorit< of t$e "o!r) in ot$er +!ses (su"je+t to e9(ress ,inorit< (rote+tion +oven!nts)) or
2$et$er tr!nsfers s$ou#) "e !##o2e) (rovi)in% ! (re'e,(tion (ro+e)ure $!s "een fo##o2e)> 2i## )e(en) u(on t$e 2is$es of t$e
(!rties !n) t$e (!rti+u#!r +ir+u,st!n+es of e!+$ +!se4 As to t$e (ossi"#e effe+t of t$ese (rovisions on +onsortiu, re#ief see :or,
0 note 8 J111*K !nte4
s$!res if t$e "o!r) refuses to %ive its s!n+tion to $is (ro(ose) tr!nsfer to ! t$ir) (!rt<4 T$is (!rt ,!< t$erefore nee) to "e )e#ete)
in !((ro(ri!te +!ses4
&
Arti+#es 146 !n) 1418 J1131K ,!< "e )e#ete) if it is inten)e) in t$e event of #i;ui)!tion "!nCru(t+<> )e!t$ et+ of eit$er (!rt< t$!t
t$e ter,in!tion (rovisions of t$e s$!re$o#)ers !%ree,ent (see :or, +#!use 1*4(-) J10&&K !nte or :or, 0 +#!use 1*4(-)
J11*3K !nte) s$ou#) !((#<4
*
It is su%%este) t$!t t$e ;uoru, for %ener!# ,eetin%s s$ou#) ref#e+t t$e nu,"er of (!rties to t$e joint venture !%ree,ent 2$o !re
!#so s$!re$o#)ers4
0
In ! D)e!)#o+CA 08E08 +o,(!n<> !n) in t$e !"sen+e of 2ei%$te) votin% ri%$ts> it is +#e!r#< )esir!"#e t$!t t$ere s$ou#) "e !n DevenA
,!9i,u, nu,"er of )ire+tors 2it$ e!+$ of t$e (!rties "ein% !"#e to $!ve !((ointe) (re+ise#< t$e s!,e nu,"er of )ire+tors4
1
T$is %ives e!+$ )ire+tor t$e free)o, to +$oose !n !#tern!te !((rove) "< $i, r!t$er t$!n (!s T!"#e A (rovi)es) %ivin% t$e "o!r)
t$e ri%$t to veto !n< su+$ !((oint,ent4 7$ere!s t$is is (ro"!"#< )esir!"#e in ,ost +ir+u,st!n+es ((!rti+u#!r#< in D)e!)#o+CA
08E08 +o,(!nies 2it$ no 2ei%$te) votin% ri%$ts) t$is ,!< "e in!((ro(ri!te in +ert!in +!ses4
3
Not2it$st!n)in% +#!use &40 of t$e s$!re$o#)ers !%ree,ent (see :or, +#!use &40 J1015K !nte or :or, 0 +#!use &40 J11&1K !nte)
it is (!rti+u#!r#< i,(ort!nt t$!t> 2$ere )ire+tors )o not $!ve 2ei%$te) votin% ri%$ts (see :or, 15 J15*3K (ost)> e!+$ (!rtiesA
re(resent!tive )ire+tors (or t$eir !#tern!tes) !re (resent !t ,eetin%s !n) $en+e t$e su%%este) v!ri!tion of T!"#e A to ensure noti+e
of (ro(ose) "o!r) ,eetin%s is %iven to !## )ire+tors (!n) t$eir !#tern!tes) even t$ose !"sent fro, t$e Unite) Bin%)o,4 It ,i%$t
!#so "e !((ro(ri!te to s(e+if< 2$!t t$e ,ini,u, (erio) of noti+e s$ou#) "e 2$ere t$ere !re #iCe#< to "e !n< )ire+tors not in t$e
Unite) Bin%)o,4
!1.",$
5
It is not !((ro(ri!te in ! D)e!)#o+CA 08E08 +o,(!n< to in+#u)e restri+tions on t$e )ire+torsA "orro2in% (o2ers4
6
Un#ess t$e (rin+i(#e of e;u!#it< of votin% +!n "e ,!int!ine) !t +o,,ittee #eve# it is re+o,,en)e) t$!t !rti+#e 1* J1158K "e
)e#ete) in t$e +!se of ! D)e!)#o+CA 08E08 +o,(!n< un#ess ! suit!"#e #ist of ,!tters re;uirin% "ot$ (!rties +onsent is in+#u)e) (see
:or, +#!use 3 J10K !nte)4
18
Arti+#es 1041 !n) 104*(E) J1158K 2i## !#,ost +ert!in#< not "e suit!"#e e9+e(t in ! D)e!)#o+CA 08E08 +o,(!n<4 Note t$!t t$e
Co,(!nies A+t 1650 s &8& )oes not !((#<> !n) it is not ne+ess!r< to %ive s(e+i!# noti+e of t$e or)in!r< reso#ution4
11
T$is s$ou#) not "e ne+ess!r< if !#tern!te )ire+tors !re !((ointe) "< )ire+tors !"sent !"ro!)4
1
T$e ,ini,u, ;uoru, s$ou#) of +ourse ref#e+t t$e ,ini,u, ri%$t to $!ve )ire+tors !((ointe) +onferre) on e!+$ (rin+i(!#
s$!re$o#)er4 See !#so note 6 !"ove4
1&
T$e !))ition!# f#e9i"i#it< (rovi)e) "< t$e 2or)in% in s;u!re "r!+Cets ,!< not !#2!<s "e +onsi)ere) suit!"#e in ! joint venture
+o,(!n<4
1*
7$et$er )ire+tors s$ou#) "e entit#e) to vote on ,!tters in 2$i+$ t$e< or t$e s$!re$o#)er !((ointin% t$e, !re intereste) often
%ives rise to +onsi)er!"#e )e"!te in joint venture +o,(!nies 2$ere (!rti+i(!tion in )e+ision ,!Cin% of "ot$ or !## s$!re$o#)ers is
often +onsi)ere) essenti!#4 A#tern!tive +#!uses !re (rovi)e)4 .o2ever> ! +o,(ro,ise 2$i+$ is often re!+$e) is to in+or(or!te
t$e first !#tern!tive 2or)in% (rovi)e) in t$e !rti+#es "ut re;uire in t$e s$!re$o#)ers !%ree,ent t$!t 2$ere ! s$!re$o#)er $!s !
+onf#i+t of interest 2it$ t$e +o,(!n< it 2i##> inter !#i!> (ro+ure t$!t its )ire+tors 2i## not !+t or vote to (revent t$e +o,(!n< "ein%
!"#e to e9!,ine its ri%$ts (!#t$ou%$ !r%u!"#< its )ire+tors $!ve fi)u+i!r< )uties to t$!t effe+t in !n< event)Gsee :or, 0 +#!use
134& J110K !nte4
10
If t$ere is one s$!re$o#)er or ,ore 2it$ !n !))ress outsi)e t$e Unite) Bin%)o, it ,!< "e )esir!"#e to )efer t$e )!te of )ee,e)
servi+e of noti+es> in+#u)in% t$ose for %ener!# ,eetin%s4 :or ! suit!"#e (re+e)ent see :or, &0 J161*K (ost4
!1.".$
"
&esolution in 0ritin' appointin' or remoin' directors
1
Co,(!n< nu,"er TTTTTTT
1name6 LI=ITED
Reso#ution in 2ritin% si%ne) !## t$e s$!re$o#)ers of t$e !"ove +o,(!n< t$is TTT )!< of TTTTT in !++or)!n+e
2it$ Re%u#!tion 0& of T!"#e A in t$e S+$e)u#e to t$e Co,(!nies (T!"#es A to :) Re%u#!tions 1650
ORDINAR? RESOLUTION
!T.AT 1name6 "e !n) $e is $ere"< re,ove) !s ! )ire+tor of t$e Co,(!n< in !++or)!n+e 2it$ t$e (rovisions of Arti+#e
!15 1or as appropriate6$ of t$e Co,(!n<As !rti+#es of Asso+i!tion$
!!n)$
!T.AT 1name6 "e !n) $e is $ere"< !((ointe) !s ! )ire+tor of t$e Co,(!n< (su"je+t to $i, +onsentin% so to !+t) in
!++or)!n+e 2it$ t$e (rovisions of Arti+#e !15 1or as appropriate6$ of t$e Co,(!n<As !rti+#es of Asso+i!tion$4
SIGNED -? 1si!natures o. all shareholders6
1
T$is for, is t$e for, of 2ritten reso#ution to !((oint or re,ove )ire+tors inten)e) to "e !nne9e) to :or,s J101&K or 0 J11&K
!nte !s t$e !%ree) for, ,!rCe) DDA4
!1."/$9!1.22$
2
?utline co+operation a'reement bet0een t0o enturers to perform a specific contract for a third party
1
T.IS AGREE=ENT is ,!)e t$e TTT )!< of TTTT-ET7EEN:
(1) 1name o. .irst venturer6 ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1compan, re!istration number6
2$ose re%istere) offi+e is !t 1address6 (DF CoA)H !n)
() 1name o. second venturer6 ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1compan, re!istration number6
2$ose re%istere) offi+e is !t 1address6 (D? CoA)
!1/##$
-ACBGROUND
:
(A) F Co is 1insert details-e! a buildin! contractor with plant e>uipment and operatives capable o. !eneral
buildin! and construction6
(-) ? Co is 1insert details-e! a mechanical and electrical en!ineerin! contractor specialisin! in the desi!n
manu.acture and installation o. mechanical and electrical services6
(C) 1recite principal contract-e! b, an a!reement in writin! made on : +anuar, :CC= the parties have /ointl,
a!reed with the PPP Re!ional @ealth )uthorit, to build the PPP General @ospital 1includin! the suppl,
and installation o. all the mechanical and electrical services6
&
(D) T$e (!rties $!ve !%ree) to enter into +ert!in ,utu!# +o,,it,ents !n) to re%u#!te t$eir ri%$ts in re#!tion to
t$eir joint venture !s set out in t$is !%ree,ent4
!1/#1$
1 7nterpretation
(A) Dt$e Co##e+tion A++ountA ,e!ns t$e !++ount to "e o(ene) (ursu!nt to +#!use 34&H
(-) Dt$e Contr!+t /ri+eA ,e!ns t$e !%%re%!te !,ount (!<!"#e "< t$e E,(#o<er to t$e (!rties un)er t$e
/rin+i(!# Contr!+tH
(C) Dt$e E,(#o<erA ,e!ns 1insert name o. emplo,er under principal contract6 !1add where principal
contract contains a ri!ht o. assi!nment6 or su+$ ot$er entit< !s s$!## fro, ti,e to ti,e "e t$e
E,(#o<er un)er t$e /rin+i(!# Contr!+t$H
!(D) !Dt$e Joint @u!ntit< Surve<orA 1or6 At$e Joint AssessorA$ ,e!ns 1insert name o. .irm6> @u!ntit<
Surve<ors of 1address6H$
*
(E) Dt$e =!n!%e,ent Co,,itteeA ,e!ns t$e +o,,ittee for,e) !n) Ce(t in e9isten+e (ursu!nt to +#!use
041H
(:) Dt$e /rin+i(!# Contr!+tA ,e!ns 1describe principal contract-e! the articles o. a!reement made :
+anuar, :CC5 between 1:6 the PPP Re!ional @ealth )uthorit, and 196 I &o and E &o relatin! to
etc6 in+#u)in% t$e !"i##s of ;u!ntities> (#!ns !n) )r!2in%s 1or as appropriate6$ !n) ot$er )o+u,ents
2$i+$ for, (!rt of itH
(G) Dt$e /roje+tA ,e!ns t$e 2orCs of )esi%n> f!"ri+!tion !n) inst!##!tion !n) !## %oo)s ,!teri!#s !n)
servi+es to "e (rovi)e) to t$e E,(#o<er (ursu!nt to t$e /rin+i(!# Contr!+tH
(.) D(roje+t ,!n!%erA ,e!ns ! (erson en%!%e) in !++or)!n+e 2it$ +#!use 141H
(I) Dt$e SiteA ,e!ns t$e site referre) to in t$e /rin+i(!# Contr!+tH
(J) Dt$e So#i+itorsA ,e!ns 1insert name o. .irm6> So#i+itors of 1address6 or su+$ ot$er fir, of so#i+itors
!s t$e (!rties s$!## joint#< instru+t (ursu!nt to +#!use 184
!1/#%$
!,en)e) or re'en!+te) or !s t$eir !((#i+!tion is ,o)ifie) "< ot$er (rovisions (2$et$er "efore or !fter t$e
,!Cin% of t$is !%ree,ent) fro, ti,e to ti,e !n) s$!## in+#u)e !n< (rovisions of 2$i+$ t$e< !re re'
en!+t,ents (2$et$er 2it$ or 2it$out ,o)ifi+!tions)4
14& .e!)in%s !re inserte) for +onvenien+e !n< !n) s$!## not !ffe+t t$e +onstru+tion of t$is !%ree,ent4
14* 7or)s i,(ortin% one %en)er in+#u)e !## ot$er %en)ers !n) 2or)s i,(ortin% t$e sin%u#!r in+#u)e t$e (#ur!#
!n) vi+e vers!4
140 Referen+es to D(!rtiesA !re referen+es to t$e (!rties to t$is !%ree,ent> !n) referen+es to D(ersonsA or D(!rtiesA
s$!## in+#u)e "o)ies +or(or!te> unin+or(or!te) !sso+i!tions !n) (!rtners$i(s4
141 An< +oven!nt "< ! (!rt< not to )o !n !+t or t$in% s$!## "e )ee,e) to in+#u)e !n o"#i%!tion not to (er,it or
suffer su+$ !+t or t$in% to "e )one "< !not$er (erson4
143 Referen+es to D+onsentA or 2or)s to si,i#!r effe+t ,e!n ! +onsent %iven in !)v!n+e in 2ritin% si%ne) "< or on
"e$!#f of t$e (!rt< 2$ose +onsent is to "e %iven4
145 Referen+es to D%oo)sA in+#u)e !n< (#!nt> too#s or e;ui(,ent4
!1/#($
% Commencement and term
41 T$is !%ree,ent +o,es into for+e on t$e )!te t$!t it is si%ne) "< "ot$ (!rties4
4 Su"je+t to +#!use 6 t$is !%ree,ent s$!## ter,in!te 2$en t$e /rin+i(!# Contr!+t $!s "een (erfor,e) !n) !##
,!tters outst!n)in% !t t$e )!te of t$!t (erfor,!n+e $!ve "een )e!#t 2it$ in !++or)!n+e 2it$ t$is !%ree,ent
0
4
4& T$e (rovisions of +#!uses 5> 6> 18 !n) 11 s$!## "in) t$e (!rties fo##o2in% ter,in!tion of t$is !%ree,ent
2$et$er (ursu!nt to +#!use 6 or ot$er2ise
1
4
( ?bli'ation of parties to perform the Principal Contract
&41 T$e (!rties s$!## i,,e)i!te#< +o,,en+e !n) s$!## re%u#!r#< !n) )i#i%ent#< (ro+ee) 2it$ !n) (erfor, t$e
/rin+i(!# Contr!+t> un)ert!Cin% !## 2orC !n) (rovi)in% !## ,!teri!#s in su+$ ,!nner !s t$e /rin+i(!# Contr!+t
re;uires
3
4
&4 F Co s$!## ensure t$!t t$e 2orC !n) ,!teri!#s s(e+ifie) in !s+$e)u#e 1 /!rt A to t$is !%ree,ent 1or6 1insert
details-e! in chapters : to 9: 1inclusive6 o. the Bills o. Auantities re.erred to in the Principal &ontract6$ !re
un)ert!Cen !n) (rovi)e) in !++or)!n+e 2it$ t$e /rin+i(!# Contr!+t !n) !s "et2een t$e (!rties F Co s$!## "e
entit#e) to re+eive t$!t (!rt of t$e Contr!+t /ri+e 2$i+$ re#!tes to t$!t (!rt of t$e 2orC> n!,e#< OTTT4
&4& ? Co s$!## ensure t$!t t$e 2orC !n) ,!teri!#s s(e+ifie) in !s+$e)u#e 1 /!rt - to t$is !%ree,ent 1or6 1insert
details-e! in chapters 99 to F; 1inclusive6 o. the Bills o. Auantities re.erred to in the Principal &ontract6$
!re un)ert!Cen !n) (rovi)e) in !++or)!n+e 2it$ t$e /rin+i(!# Contr!+t> !n) !s "et2een t$e (!rties ? Co s$!##
"e entit#e) to re+eive t$!t (!rt of t$e Contr!+t /ri+e 2$i+$ re#!tes to t$!t (!rt of t$e 2orC> n!,e#< OTTT4
!1/#)$
&4* In t$e event t$!t t$e n!ture> ;u!#it< or !,ount of 2orC to "e )one !n) ,!teri!#s to "e (rovi)e) in !++or)!n+e
2it$ t$e (rovisions of t$e /rin+i(!# Contr!+t is v!rie) t$en t$e v!ri!tion s$!## not !ffe+t t$e v!#i)it< of t$is
!%ree,ent "ut t$e o"#i%!tions of t$e (!rties un)er +#!uses &4 !n) &4& s$!## "e !)juste) !s fo##o2s
5
:
(A) !n< re)u+tion or o,ission of !n< 2orC or ,!teri!#s to "e (rovi)e) un)er t$e /rin+i(!# Contr!+t
s$!## o(er!te !s ! re)u+tion or o,ission of t$e +orres(on)in% o"#i%!tions un)er +#!uses &4 !n) &4&H
!n)
(-) !n< in+re!se in or !))ition to t$e n!ture> ;u!#it< or !,ount of !n< 2orC or ,!teri!#s to "e (rovi)e)
un)er t$e /rin+i(!# Contr!+t s$!## o(er!te !s !n in+re!se in or !))ition to t$e +orres(on)in%
o"#i%!tions un)er +#!uses &4 !n) &4&> !n) e!+$ (!rt< s$!## (erfor, t$!t (!rt of t$e in+re!se or
!))ition !s re#!tes to t$e (!rt of t$e 2orC or ,!teri!#s for 2$i+$ it $!s res(onsi"i#it< un)er +#!use
&4 or &4& res(e+tive#<4
&40 7$ere t$ere is ! v!ri!tion in t$e /rin+i(!# Contr!+t 2it$in +#!use &4* 2$i+$ resu#ts in !n !)just,ent to t$e
Contr!+t /ri+e> +#!uses &4 !n) &4& s$!## +ontinue to !((#<> "ut so t$!t e!+$ (!rt< s$!## "e entit#e) to re+eive
t$!t (!rt of t$e !)juste) Contr!+t /ri+e t$!t re#!tes to t$!t (!rt of t$e 2orC or ,!teri!#s for 2$i+$ it is
res(e+tive#< res(onsi"#e4
&41 T$is !%ree,ent re#!tes on#< to t$e sin%#e joint venture it refers to4 It )oes not +onstitute eit$er (!rt< t$e !%ent
of t$e ot$er (!rt<> !n) it )oes not +onstitute ! (!rtners$i( "et2een t$e (!rties4
!1/#,$
) Amendments to the Principal Contract
6
*41 Neit$er (!rt< s$!## 2it$out t$e +onsent of t$e ot$er:
(A) offer> re;uest or !%ree to !n< !,en),ent of t$e /rin+i(!# Contr!+tH or
(-) ter,in!te or re(u)i!te !n< o"#i%!tion on !n< (erson un)er t$e /rin+i(!# Contr!+t4
*4 7$en %ivin% +onsent (ursu!nt to +#!use *41 eit$er (!rt< ,!< sti(u#!te su+$ +on)itions for t$e +onsent !s it
t$inCs fit4
, *he <ana'ement Committee
041 T$e (!rties s$!## for, ! ,!n!%e,ent +o,,ittee for t$e (ur(ose of !+o'or)in!tin% !n) ,!n!%in% 1or as
re>uired6$
18
t$e (erfor,!n+e of t$e /rin+i(!# Contr!+t4 !E!+$ (!rt< s$!## !((oint 1number6 re(resent!tives to
t$e =!n!%e,ent Co,,ittee 1or6 T$e =!n!%e,ent Co,,ittee s$!## "e +o,(ose)$ in !++or)!n+e 2it$
s+$e)u#e /!rt A "e#o24 !T$e first ,e,"ers of t$e =!n!%e,ent Co,,ittee s$!## "e t$ose (ersons n!,e) in
of s+$e)u#e /!rt - "e#o24$
04 In)ivi)u!#s 2$o !re ,e,"ers of t$e =!n!%e,ent Co,,ittee ,!< "e re(#!+e) !t t$e )is+retion of t$e (!rt<
!((ointin% t$e,4
04& T$e =!n!%e,ent Co,,ittee s$!## !((oint ! se+ret!r< 2$o s$!## Cee( !n) +ir+u#!te ,inutes of !!## ,eetin%s
1or6 ,eetin%s of t$e Cin) #iste) in s+$e)u#e /!rt C$4
04* T$e =!n!%e,ent Co,,ittee s$!## ,eet !on t$e first =on)!< of e!+$ ,ont$ of t$e ter, of t$is !%ree,ent 1or
as re>uired6$4 Un#ess ot$er2ise !%ree) ,eetin%s s$!## "e $e#) !t !t$e Site 1or as re>uired$4 Eit$er (!rt< ,!<
+onvene ! s(e+i!# ,eetin% of t$e =!n!%e,ent Co,,ittee "< %ivin% !3 1or as re>uired6$ )!<sA 2ritten noti+e
of t$e ,!tters to "e +onsi)ere) to t$e ot$er (!rt< !n) to t$e se+ret!r<4
040 T$e =!n!%e,ent Co,,ittee s$!## not $!ve (o2er to !,en) or v!r< t$is !%ree,ent or !((rove !n< ,!tter
re;uirin% t$e +onsent of eit$er (!rt<4
041 Co(ies of t$e ,inutes of t$e =!n!%e,ent Co,,ittee s$!## "e +ir+u#!te) to t$e (!rties !n) to t$e (roje+t
,!n!%ers4
!1/#.$
. Project mana'ers
141 E!+$ (!rt< s$!## +onst!nt#< Cee( en%!%e) on t$e /roje+t ! +o,(etent (roje+t ,!n!%er4
14 E!+$ (!rt< s$!## (ro+ure t$!t its (roje+t ,!n!%er (rovi)es !## infor,!tion re!son!"#< re;uire) u(on re;uest
"< t$e =!n!%e,ent Co,,ittee !n) +o,(#ies 2it$ un!ni,ous )e+isions of t$e =!n!%e,ent Co,,ittee4
14& E!+$ (!rt< s$!## (ro+ure t$!t its (roje+t ,!n!%er +onsu#ts 2it$ t$e ot$er (!rt<As (roje+t ,!n!%er to $!r,onise
t$e re%u#!r !n) )i#i%ent +on)u+t of )!< to )!< o(er!tions4 :urt$er> t$e (roje+t ,!n!%ers s$!## !%ree !n) s$!##
e!+$ i,(#e,ent !((ro(ri!te ,e!sures for t$e fo##o2in% ,!tters:
(A) $e!#t$ !n) s!fet<H
(-) sto+C !n) inventor< +ontro# !n) stor!%eH
(C) site se+urit< !n) fire (reventionH
(D) #i!ison 2it$ t$e E,(#o<er !n) ot$er (ersons re#ev!nt to t$e /rin+i(!# Contr!+tH
(E) #i!ison re%!r)in% )esi%n +$!n%es !n) v!ri!tions un)er t$e /rin+i(!# Contr!+t4
14* T$e (roje+t ,!n!%ers (!s su+$) )o not $!ve (o2er to v!r< t$is !%ree,ent or to !((rove or +onsent to !n<
,!tter re;uirin% +onsent4
!1/#/$
/ Property and money
341 !E!+$ (!rt< s$!## (rovi)e !n) s$!## re(!ir !n) ,!int!in !## !(#!nt>$ too#s !n) e;ui(,ent re;uire) to (erfor, its
o"#i%!tions un)er +#!use &4
1or where 1plant06 tools and e>uipment are to be hired to one venturer b, the other or obtained /ointl,6
(A) E!+$ (!rt< s$!## (rovi)e !n) s$!## re(!ir !n) ,!int!in !## !(#!nt$ too#s !n) e;ui(,ent re;uire) to
(erfor, its o"#i%!tions un)er +#!use & !n):
(1) F Co s$!## (rovi)e t$e !(#!nt>$ too#s !n) e;ui(,ent set out in s+$e)u#e & /!rt A +o#u,n 1
!n) ? Co s$!## (!< to F Co t$e $ire fees set out in res(e+t t$ereof in of s+$e)u#e &
+o#u,n H !n)
() ? Co s$!## (rovi)e t$e !(#!nt>$ too#s !n) e;ui(,ent set out in s+$e)u#e & /!rt - +o#u,n 1
!n) F Co s$!## (!< to ? Co t$e $ire fees set out in res(e+t t$ereof in s+$e)u#e & +o#u,n 4
.ire fees s$!## "e (!i) ,ont$#< in !)v!n+e free of !## )e)u+tions4
(-) T$e (!rties s$!## !(ur+$!se or $ire$ t$e !(#!nt>$ too#s !n) e;ui(,ent set out in s+$e)u#e *4 A## +osts
(in+#u)in% !## ,!inten!n+e> re(!irs !n) insur!n+e) s$!## "e "orne e;u!##< "< t$e (!rties !or
!((ortione) "< referen+e to t$eir res(e+tive (ro(ortions of t$e Contr!+t /ri+e or in so,e ot$er
2!<$4 !U(on (erfor,!n+e of t$e /rin+i(!# Contr!+t t$e (!rties 2i## se## or )is(ose of su+$ !(#!nt>$
too#s !n) e;ui(,ent !n) t$e (ro+ee)s of s!#e or +osts of )is(os!# s$!## "e s$!re) e;u!##< !or
!((ortione) "< referen+e to t$eir res(e+tive (ro(ortions of t$e Contr!+t /ri+e or in so,e ot$er
2!<$4$
!1/#"$
34 If !n< !(#!nt$ too#s or e;ui(,ent !re #ent or $ire) "< eit$er (!rt< to t$e ot$er> t$e "orro2er s$!## t!Ce !##
re!son!"#e ,e!sures re;uire) to (reserve t$e, in %oo) +on)ition> in+#u)in% !## )!< to )!< ,!inten!n+e> !n)
s$!## (ro,(t#< )e#iver t$e, u( to t$e #en)er on re;uest !s soon !s t$e< !re no #on%er re;uire) to (erfor, t$e
/rin+i(!# Contr!+t4
34& T$e (!rties s$!## o(en ! +urrent !++ount !t 1bank6 of 1branch address6 (Dt$e -!nCA) 2$i+$ s$!## "e +!##e) t$e
!F Co 1or6 ? Co$ Co##e+tion A++ount
11
> !n) t$e fo##o2in% (rovisions s$!## !((#<:
(A) A## (!<,ents re+eive) "< eit$er (!rt< on !++ount of t$e Contr!+t /ri+e or ot$er2ise un)er t$e
/rin+i(!# Contr!+t s$!## "e (!i) into t$e Co##e+tion A++ount4 E!+$ (!rt< s$!## %ive !## 2ritten
!ut$orities> !ut$oris!tions !n) instru+tions ne+ess!r< to ensure t$!t !## su,s )ue un)er t$e /rin+i(!#
Contr!+t !re (!i) into t$e Co##e+tion A++ount4
(-) Durin% t$e ter, of t$is !%ree,ent 2it$)r!2!#s fro, t$e Co##e+tion A++ount !n) !## instru+tions to
t$e -!nC s$!## re;uire t$e si%n!tures of ! 1or as re>uired6$ re(resent!tives of e!+$ (!rt<4 If for !n<
re!son t$is !%ree,ent ter,in!tes (rior to t$e Co##e+tion A++ount "ein% +#ose) in !++or)!n+e 2it$
+#!use 34&(D) t$e (rovisions of +#!use 6 s$!## !((#<4
(C) S!ve for !n< )e(osit re;uire) to o(en or ,!int!in t$e Co##e+tion A++ount no su,s ot$er t$!n su,s
re+eive) (ursu!nt to t$e /rin+i(!# Contr!+t s$!## "e (!i) into t$e Co##e+tion A++ount4
(D) T$e Co##e+tion A++ount s$!## "e Ce(t in "ein% unti# t$e fin!# (!<,ent un)er t$e /rin+i(!# Contr!+t
$!s "een re+eive) !or e% unti# one ,ont$ !fter t$e fin!# +ertifi+!te $!s "een issue) un)er t$e
/rin+i(!# Contr!+t$4
(E) T$e (!rties 2i## %ive su+$ joint 2ritten instru+tions to t$e "!nC !s ,!< "e re;uire) to %ive effe+t to
t$e (rovisions of +#!use 34& !n) +#!use 64
!1/#2$
" :iability of the parties
1
541
(A) E!+$ of t$e (!rties s$!## "e res(onsi"#e (e9+e(t !s (rovi)e) in t$is +#!use 5) for t$e $e!#t$ !n)
s!fet< of its o2n e,(#o<ees !n) su"'+ontr!+tors 2$i#st on t$e Site !n) s$!## ensure t$!t t$e<
re+eive !((ro(ri!te instru+tion in s!fet< (ro+e)ures !n) !re (rovi)e) 2it$ !## s!fet< e;ui(,ent
re;uire) "< #!2 or 2$i+$ is "< %ener!##< !++e(te) "est (r!+ti+e fro, ti,e to ti,e4
(-) E!+$ of t$e (!rties s$!## "e res(onsi"#e for t$e s!fet<> (ro(er fun+tionin%> fitness for (ur(ose !n)
+o,(#i!n+e 2it$ !## #e%!# re;uire,ents of !## !(#!nt>$ too#s !n) e;ui(,ent it "rin%s onto t$e Site for
t$e (ur(oses of (erfor,in% t$e /rin+i(!# Contr!+t (su"je+t to t$e o"#i%!tion of ! (!rt< to (rovi)e
routine ,!inten!n+e to e;ui(,ent 2$i+$ it $!s "orro2e) or $ire) fro, t$e ot$er (!rt< un)er +#!use
341> !n) !(#!nt>$ too#s !n) e;ui(,ent (ur+$!se) joint#< in res(e+t of 2$i+$ t$e (!rties s$!## "e
joint#< res(onsi"#e for t$e s!fet<> (ro(er fun+tionin%> fitness for (ur(ose !n) +o,(#i!n+e 2it$ !##
#e%!# re;uire,ents) !n) t$is res(onsi"i#it< s$!## e9ten) (s!ve !s !fores!i)) to ensurin% t$e s!fet<>
(ro(er fun+tionin% !n) fitness for (ur(ose of t$e !(#!nt>$ too#s !n) e;ui(,ent in t$e $!n)s of t$e
e,(#o<ees or su"'+ontr!+tors of t$e ot$er (!rt< or !n< ot$er (!rties> in+#u)in% 2it$out #i,it!tion>
#!2fu# visitors to t$e Site !n) !n< (!ssers'"< or o2ners or o++u(iers of !)joinin% #!n) 2$o ,!<
,!Ce (ro(er use of it or ,!< "e e9(ose) to it4
!1/1#$
(C) E!+$ of t$e (!rties s$!## "e res(onsi"#e for t$e st!"i#it<> s!fet< !n) fitness for its (ur(ose !n)
+o,(#i!n+e 2it$ !## #e%!# re;uire,ents of ever< s+!ffo#)in% !n) te,(or!r< ere+tion or stru+ture
"rou%$t "< it to or ere+te) or +!use) to "e ere+te)> "< it u(on t$e Site !n) t$is res(onsi"i#it< s$!##
e9ten) to ensurin% su+$ st!"i#it<> s!fet< !n) fitness for (ur(ose 2$en e!+$ s+!ffo#)in% or te,(or!r<
ere+tion or stru+ture is 2!#Ce) u(on or )riven over> or use) !s ! (#!tfor, for> !n< e,(#o<ees or
su"'+ontr!+tors of t$e ot$er (!rt< or !n< ot$er (!rties> in+#u)in%> 2it$out #i,it!tion> #!2fu# visitors
to t$e Site !n) !n< (!ssers'"< or o2ners or o++u(iers of !)joinin% #!n)> 2$o ,!Ce (ro(er use
t$ereof or ,!< suffer injur<> #oss or )!,!%e "< t$e +o##!(se of t$e s!,e4
(D) E!+$ of t$e (!rties s$!## "e res(onsi"#e for e9e+utin% its (!rt of t$e 2orCs un)er t$e /rin+i(!#
Contr!+t> not on#< in !++or)!n+e 2it$ t$e +ontr!+t s(e+ifi+!tion "ut !#so in ! (ro(er> 2orC,!n#iCe
!n) su"st!nti!# ,!nner in !++or)!n+e 2it$ %ener!##< !++e(te) (r!+ti+e !n) 2it$ )ue re%!r) to t$e
s!fet<> st!"i#it< !n) )ur!"i#it< of t$e resu#tin% stru+ture4
!1/11$
54 In t$e event of:
(A) ! su++essfu# +#!i, "ein% "rou%$t !%!inst eit$er or "ot$ of t$e (!rties "< t$e E,(#o<er for "re!+$ of
t$e /rin+i(!# Contr!+t> or "< t$e E,(#o<er or !n< e,(#o<ee or su"'+ontr!+tor of t$e E,(#o<er or of
eit$er (!rt<> !n< #!2fu# visitor to t$e site> !n< (!sser'"<> !n< o2ners or o++u(iers of !)joinin% #!n)
or !n< ot$er (!rt< 2$!tsoever> !risin% in res(e+t of ne%#i%en+e> nuis!n+e> "re!+$ of st!tutor< )ut<>
R,lands v Fletcher #i!"i#it<> or !n< ot$er tort or in res(e+t of !n< ot$er #e%!# ri%$t or re,e)<>
$o2soever !risin% out of t$e (erfor,!n+e of t$e 2orCs un)er t$e /rin+i(!# Contr!+t> or
(-) !n< o++urren+e !ffe+tin% or !"!tin% t$e v!#u!tion of !n< 2orC or ,!teri!#s su((#ie) (ursu!nt to t$e
/rin+i(!# Contr!+t resu#tin% fro, ! "re!+$ t$ereof "< eit$er (!rt<> or
(C) ! su++essfu# (rose+ution !%!inst eit$er (!rt< or its )ire+tors or e,(#o<ees in res(e+t of !n< f!i#ure
to +o,(#< 2it$ !n< #e%!# re;uire,ent to "e +o,(#ie) 2it$ )urin% t$e +ourse of t$e 2orCs un)er t$e
/rin+i(!# Contr!+t
t$en !s "et2een t$e (!rties !## #i!"i#ities> +osts> +#!i,s> )e,!n)s> e9(enses> fines !n) ot$er (en!#ties
(in+#u)in% #e%!# fees !n) e9(enses) !risin% t$erefro, or in !n< 2!< re#!tin% t$ereto s$!## "e "orne "< e!+$
(!rt< to t$e e9tent of its res(onsi"i#it< t$erefor> )eter,ine) in !++or)!n+e 2it$ +#!use 541 !n) t$e (rovisions
of t$is !%ree,ent %ener!##<> !n) e!+$ of t$e (!rties s$!## in)e,nif< !n) Cee( in)e,nifie) !n) !++ount to t$e
ot$er (!rt< !++or)in%#<4
54& 7$ere !n< set'off or !"!te,ent is ,!)e "< t$e E,(#o<er )urin% t$e ter, !n) eit$er or "ot$ t$e (!rties
)is(ute or +ontest t$e #!2fu#ness or !,ount of !n< 2it$$o#)in%> t$e (!rt< 2$o "< virtue of +#!use & is to +!rr<
out t$e )is(ute) 2orC s$!## "e!r t$e !"!te,ent (or if t$e !"!te,ent !ffe+ts 2orCs to "e +!rrie) out "< "ot$ of
t$e,> t$e< s$!## "e!r it in t$e s!,e (ro(ortions !s t$eir res(e+tive entit#e,ents to t$e Contr!+t /ri+e) unti# t$e
#i!"i#it< of t$e (!rties !n) t$e E,(#o<er $!s "een fin!##< !s+ert!ine)4
54* T$e (rovisions of t$is +#!use 5 s$!## survive t$e ter,in!tion of t$is !%ree,ent4
!1/1%$
2 *ermination of joint enture durin' term of the Principal Contract
1&
641 7$ere ! (!rt< (in t$is +#!use 6 +!##e) Dt$e /!rt< in Def!u#tA):
(A) sus(en)s> for !n< re!son its (erfor,!n+e of !## or !n< (!rt of t$e o"#i%!tions un)er +#!use &H or
(-) f!i#s to (ro+ee) re%u#!r#< !n) )i#i%ent#< to (erfor, its o"#i%!tions un)er +#!use &H or
(C) f!i#s to (!< !n< su, (ro(er#< )ue un)er t$is !%ree,ent or t$e /rin+i(!# Contr!+tH or
(D) %oes into #i;ui)!tion 2$et$er +o,(u#sor< or vo#unt!r< (e9+e(t for t$e (ur(oses of ! "on! fi)e
re+onstru+tion or !,!#%!,!tion 2it$ t$e +onsent of t$e ot$er (!rt<> su+$ +onsent not to "e
unre!son!"#< 2it$$e#))H or
(E) $!s !n !),inistr!tor !((ointe) or ! re+eiver> !),inistr!tive re+eiver or ,!n!%er is !((ointe) over
!n< (!rt of its !ssets or un)ert!Cin%H
or if in re#i!n+e u(on +#!use 1number6 of t$e /rin+i(!# Contr!+t t$e E,(#o<er serves noti+e s(e+if<in% !
)ef!u#t 2$i+$ entit#es t$e E,(#o<er to ter,in!te t$e /rin+i(!# Contr!+t
1*
t$en t$e ot$er (!rt< (in t$is +#!use 6
+!##e) Dt$e /!rt< Givin% Noti+eA) ,!<> "ut is not o"#i%e) to> %ive ! noti+e to t$e /!rt< in Def!u#t s(e+if<in%
t$e )ef!u#t4 If t$e (!rt< in )ef!u#t +ontinues t$e )ef!u#t for !3 )!<s 1or as re>uired6$
10
!or !t !n< ti,e re(e!ts
t$e )ef!u#t$ t$en 2it$out (reju)i+e to !n< ot$er ri%$ts of t$e (!rties> t$e /!rt< Givin% Noti+e ,!< "< noti+e
fort$2it$ ter,in!te t$is !%ree,ent4
!1/1($
64 7$ere t$is !%ree,ent is ter,in!te) (ursu!nt to +#!use 641 t$en> un#ess t$e /rin+i(!# Contr!+t is ter,in!te) "<
t$e E,(#o<er> t$e /!rt< Givin% Noti+e s$!## use its "est en)e!vours to (erfor, t$e /rin+i(!# Contr!+t4 T$e
/!rt< Givin% Noti+e ,!< for t$is (ur(ose:
(A) (!< !n< su((#ier or su"'+ontr!+tor of t$e /!rt< in Def!u#t for !n< %oo)s )e#ivere) or 2orCs )one
for t$e (ur(oses of t$e /rin+i(!# Contr!+t (2$et$er "efore or !fter ter,in!tion) so f!r !s not !#re!)<
(!i) "< t$e /!rt< in Def!u#tH !n)
(-) notif< t$e -!nC t$!t t$is !%ree,ent $!s "een ter,in!te) !n) t$!t t$e /!rt< in Def!u#t $!s +e!se) to
$!ve (o2er over t$e Co##e+tion A++ountH !n)
(C) !((#< ,one< in t$e Co##e+tion A++ount fro, ti,e to ti,e to )is+$!r%e +osts !n) e9(enses in+urre)
in (erfor,in% t$e /rin+i(!# Contr!+tH !n)
(D) !((#< !n< su, re,!inin% in t$e Co##e+tion A++ount to2!r)s t$e entit#e,ent of t$e /!rt< Givin%
Noti+e to re+eive its (ro(ortion of t$e Contr!+t /ri+e on 2orC (erfor,e) (ursu!nt to t$e /rin+i(!#
Contr!+tH !n)
(E) enter u(on !n< (!rt of t$e Site (in+#u)in% !## te,(or!r< "ui#)in%s> (#!nt> %oo)s !n) ,!teri!#s !t t$e
Site or !)j!+ent to it 2$i+$ "e#on% to or !re use) "< t$e /!rt< in Def!u#t)4
!1/1)$
64& 7$ere t$is !%ree,ent is ter,in!te) (ursu!nt to +#!use 641 t$en> un#ess t$e /rin+i(!# Contr!+t is ter,in!te) "<
t$e E,(#o<er> t$e /!rt< in Def!u#t s$!## if so re;uire) "< t$e /!rt< Givin% Noti+e 2it$in 1* )!<s of
ter,in!tion of t$is !%ree,ent:
(A) !ssi%n to t$e /!rt< Givin% Noti+e 2it$out (!<,ent> t$e "enefit of ever< !%ree,ent for t$e su((#< of
%oo)s or t$e e9e+ution of !n< 2orC for t$e (ur(oses of t$e /rin+i(!# Contr!+tH !n)
(-) )e#iver to t$e /!rt< Givin% Noti+e> 2it$out (!<,ent> !## (#!ns> )r!2in%s s(e+ifi+!tions> "i##s of
;u!ntities !n) ot$er infor,!tion (in+#u)in% in t$e +!se of infor,!tion in ,!+$ine're!)!"#e for,>
fu## )et!i#s of $o2 to retrieve it) re#!tin% to t$e )esi%n> settin% out> inst!##!tion or +onstru+tion of
!n< 2orC )one or to "e )one or %oo)s (in+#u)in% !n< e;ui(,ent) su((#ie) or to "e su((#ie) for t$e
(ur(oses of t$e /rin+i(!# Contr!+tH !n)
(C) (rovi)e true> +o,(#ete !n) !++ur!te +o(ies of !## "ooCs of !++ount> invoi+es> or)ers !n) ot$er
infor,!tion +onne+te) 2it$ t$e v!#u!tion of !n) (!<,ent for !n< 2orC )one or to "e )one or %oo)s
su((#ie) or to "e su((#ie) for t$e (ur(oses of t$e /rin+i(!# Contr!+tH !!n)$
(D) )e#iver !to t$e /!rt< Givin% Noti+e 1or6 to t$e Site$ !## %oo)s (in+#u)in% !n< in ! (!rt#< finis$e)
+on)ition) su((#ie) or to "e su((#ie) for t$e (ur(oses of t$e /rin+i(!# Contr!+t!H !n)
(E) re,ove fro, t$e Site !n< te,(or!r< "ui#)in%s> (#!nt> too#s> e;ui(,ent or ot$er %oo)s "e#on%in% to
$i, /ROVIDED t$!t if t$e /!rt< in Def!u#t f!i#s to +o,(#< 2it$in ! re!son!"#e ti,e t$en t$e /!rt<
Givin% Noti+e ,!< re,ove !n) se## !n< su+$ (ro(ert<> (!<in% t$e (ro+ee)s> #ess !n< +osts in+urre)>
into t$e Co##e+tion A++ount$4
!1/1,$
64* T$e /!rt< in Def!u#t s$!## !##o2 or (!< to t$e /!rt< Givin% Noti+e:
(A) t$e +ost of (erfor,in% its (ro(ortion of t$e /rin+i(!# Contr!+t to +o,(#etion or its ter,in!tion (!s
t$e +!se ,!< "e)H !n)
(-) t$e !,ount of !## #i;ui)!te) !n) !s+ert!ine) )!,!%es !n) )ire+t #oss or e9(ense 2$i+$ t$e (!rties or
eit$er of t$e, "e+o,es #i!"#e to (!< (2$et$er un)er t$e /rin+i(!# Contr!+t or un)er !n< su"'
+ontr!+t) "< re!son of !n< !+t or o,ission of t$e /!rt< in Def!u#tH !n)
(C) t$e !,ount of !n< )ire+t #oss or e9(ense +!use) to t$e /!rt< Givin% Noti+e "< re!son of !n< !+t or
o,ission of t$e /!rt< in Def!u#t !n) t$e ter,in!tion of t$is !%ree,entH !n)
(D) !## ot$er #oss !n) )!,!%e (in+#u)in% #oss of (rofit) +!use) "< t$e )ef!u#t or ter,in!tion4
640 Unti# !fter !t$e +ertifi+!te of ,!Cin% %oo) of )efe+ts $!s "een issue) un)er t$e /rin+i(!# Contr!+t 1or6 t$e
2orCs to "e (erfor,e) un)er t$e /rin+i(!# Contr!+t $!ve "een +o,(#ete)$ t$e /!rt< in Def!u#t s$!## not "e
entit#e) to:
(A) re+eive !n< su,s fro, t$e Co##e+tion A++ountH or
(-) (!<,ent of !n< su,s un)er t$e /rin+i(!# Contr!+t4
641 U(on +o,(#etion of t$e 2orCs to "e (erfor,e) un)er t$e /rin+i(!# Contr!+t !n) t$e ,!Cin% 2it$in !
re!son!"#e ti,e of !## ne+ess!r< !++ounts> t$e /!rt< Givin% Noti+e s$!## )e#iver to t$e /!rt< in Def!u#t !
st!te,ent s$o2in% t$e !,ount:
(A) of e9(enses (ro(er#< in+urre) "<H !n)
(-) of !n< )ire+t #oss or )!,!%e +!use) to t$e /!rt< Givin% Noti+e "< re!son of t$e )ef!u#t of t$e /!rt<
in Def!u#t> !n):
(C) st!n)in% (2$et$er in t$e Co##e+tion A++ount or $e#) "< or )ue fro, t$e E,(#o<er) to t$e +re)it of
t$e /!rt< in Def!u#tH
(D) re+eive) (if !n<) fro, t$e /!rt< in Def!u#t (ursu!nt to +#!use 643H !n)
(E) interest on t$e !fores!i) ite,s !t t$e !nnu!# r!te of TTLH
!n) t$e )ifferen+e "et2een t$e !%%re%!te of t$e su,s referre) to in +#!uses 641(A) !n) 641(-) !n) t$e
!%%re%!te of t$e su,s referre) to in +#!uses 641(C) to 641(E) (in+#usive) s$!## "e ! )e"t (!<!"#e "< t$e /!rt< in
Def!u#t to t$e /!rt< Givin% Noti+e or vi+e vers! (!s t$e +!se ,!< "e)4
!1/1.$
643 7$ere ter,in!tion of t$is !%ree,ent (ursu!nt to +#!use 641 o++urs ,ore t$!n !& 1or as re>uired6$ ,ont$s
"efore !t$e +ertifi+!te of ,!Cin% %oo) of )efe+ts 2!s )ue to "e issue) (ursu!nt to t$e /rin+i(!# Contr!+t 1or6
t$e +ontr!+tu!# )!te for +o,(#etion of t$e 2orCs un)er t$e /rin+i(!# Contr!+t$ t$en t$e /!rt< Givin% Noti+e
,!< )e#iver to t$e /!rt< in Def!u#t !fter t$e ter,in!tion !n) !t interv!#s of no #ess t$!n one ,ont$ t$ere!fter>
!n interi, !++ount s$o2in% t$e !,ount of t$e tot!# +ost of t$e 2orC e9e+ute) !n) t$e %oo)s (rovi)e) "< t$e
/!rt< Givin% Noti+e 2$i+$ $!s "een in+#u)e) in !n< interi, !+ertifi+!te or$ v!#u!tion un)er t$e /rin+i(!#
Contr!+t !n) 2$i+$ $!s not "een (!i) "< t$e E,(#o<er un)er ! +#!i, in %oo) f!it$ to "e entit#e) to e9er+ise
!n< ri%$t of set'off in res(e+t of t$e +onse;uen+es of t$e )ef!u#t of t$e /!rt< in Def!u#t4 T$e /!rt< Givin%
Noti+e s$!## "e entit#e) to (!<,ent of su,s s$o2n in t$e interi, !++ount 2it$in 1* )!<s of t$e )e#iver< of t$e
!++ount4
645 T$e (!rties s$!## ensure t$!t !## !,e!sure,ents !n)$ v!#u!tions s$!## "e +o,(#ete) 2it$in ! re!son!"#e ti,e
of +o,(#etion of t$e /rin+i(!# Contr!+t4
646 T$e /!rt< in Def!u#t s$!## !t its re;uest !n) e9(ense "e su((#ie) "< t$e /!rt< Givin% Noti+e 2it$ +o(ies of !##
,e!sure,ents> v!#u!tions !n) +ertifi+!tes (erfor,e) !n) issue) un)er t$e /rin+i(!# Contr!+t !n) !n< su"'
+ontr!+t in res(e+t of 2$i+$ ! (!<,ent or !##o2!n+e is +#!i,e) or )ue4
!1/1/$
1# Claims by or a'ainst the -mployer or third parties
1841 7$ere eit$er (!rt< 2is$es to "rin% or resist (ro+ee)in%s for !n< +#!i, un)er t$e /rin+i(!# Contr!+t !or un)er
!n< su"'+ontr!+t$ 2$i+$ so#e#< !ffe+ts t$e re,uner!tion or #i!"i#it< of one of t$e (!rties t$en> $!vin% (rovi)e)
su+$ se+urit< for +osts !s ,!< "e !((ro(ri!te> eit$er (!rt< ,!< use t$e n!,e of t$e ot$er to "rin% or resist t$e
(ro+ee)in%s4 A## +osts !n) e9(enses in+urre) s$!## "e "orne "<> !n) !## su,s re+overe) s$!## "e#on% to> t$e
(!rt< "rin%in% or resistin% t$e +#!i,4
184 If !n< +#!i, is "rou%$t "< or !%!inst eit$er or "ot$ of t$e (!rties un)er t$e /rin+i(!# Contr!+t !!n< su"'
+ontr!+t$ or "< !n< ot$er (!rt< in res(e+t of ! +#!i, in !n< 2!< !risin% out of t$e (erfor,!n+e "< t$e (!rties
of t$e /rin+i(!# Contr!+t or ! (rose+ution is "rou%$t !%!inst ! (!rt< or !n< of its )ire+tors or e,(#o<ees> !n)
t$e +#!i, or (rose+ution is one in res(e+t of 2$i+$ t$e< ,!< "ot$ to !n< e9tent "e res(onsi"#e "< virtue of
+#!use 5 of t$is !%ree,ent or ot$er2ise> t$e< s$!## joint#< instru+t t$e So#i+itors to $!n)#e t$e +#!i, or
(rose+ution !!n)> if t$e +ir+u,st!n+es !),it> s$!## instru+t t$e !Joint Assessor 1or6 Joint @u!ntit< Surve<or$
to !)vise !n) !ssist 2it$ v!#uin% t$e ;u!ntu, of t$e +#!i,$4 If t$ere is !n< )is(ute "et2een t$e (!rties !s to
t$e +on)u+t of t$e +#!i, or (rose+ution or !s to 2$et$er ! +#!i, s$ou#) "e ,!)e or t$e (rose+ution or +#!i,
resiste)> t$e ,!tter s$!## "e referre) to t$e So#i+itors !n) t$e (!rties s$!## fo##o2 t$eir !)vi+e4 Durin% t$e
+ontinu!n+e of t$e +#!i, or (rose+ution t$e (!rties s$!## "e!r t$e +osts !n) e9(enses of it !e;u!##< 1or6 in t$e
s!,e (ro(ortions !s t$ose in 2$i+$ t$e< !re entit#e) to re+eive t$e Contr!+t /ri+e$4 U(on fin!# )eter,in!tion
or sett#e,ent t$e tot!# !,ount of +osts !n) e9(enses in+urre) (!fter t!Cin% into !++ount !n< +ontri"ution
re+overe) fro, t$e t$ir) (!rties to t$e )is(ute) s$!## "e !((ortione) (ro r!t! !++or)in% to t$e !,ounts
re+overe) "< or !2!r)e) !%!inst e!+$ of t$e (!rties or (!<!"#e "< one (!rt< to t$e ot$er !fter !((#<in% t$e
(rin+i(#es of res(onsi"i#it< set out in +#!use 5 !n) t$e (rovisions of t$is !%ree,ent %ener!##<4
!1/1"$
11 Confidentiality
1141 E!+$ (!rt< s$!## !t !## ti,es use its "est en)e!vours to Cee( +onfi)enti!# (!n) to (ro+ure t$!t its e,(#o<ees>
su"'+ontr!+tors !n) !%ents s$!## Cee( +onfi)enti!#) !n< infor,!tion of ! +onfi)enti!# n!ture 2$i+$ it or t$e<
,!< $!ve !+;uire) or ,!< !t !n< ti,e !fter t$e )!te of t$is !%ree,ent !+;uire in re#!tion to t$e +#ients>
"usiness or !ff!irs of t$e ot$er (!rt< !n) s$!## not use or )is+#ose su+$ infor,!tion e9+e(t 2it$ t$e +onsent of
t$e ot$er (!rt< or 2$en re;uire) "< #!24
114 T$e o"#i%!tions in +#!use 1141 s$!## +ontinue 2it$out #i,it in (oint of ti,e "ut s$!## +e!se to !((#< to !n<
infor,!tion for t$e ti,e "ein% in t$e (u"#i+ )o,!in ot$er2ise t$!n "< ! (!rt<As "re!+$ of t$ose o"#i%!tions>
"ut not$in% in +#!use 1141 s$!## (revent ! (!rt< fro, )is+#osin% !n< infor,!tion to t$e e9tent re;uire) in or in
+onne+tion 2it$ #e%!# (ro+ee)in%s !risin% out of t$is !%ree,ent or t$e /rin+i(!# Contr!+t4
114& :or t$e (ur(oses of t$is +#!use 11 t$e e9(ression D(!rt<A s$!## in+#u)e t$e su"si)i!r< +o,(!nies of t$!t (!rt<
!n) t$!t (!rt<As $o#)in% +o,(!n< !n) !n< su"si)i!r< +o,(!nies of t$!t $o#)in% +o,(!n< !n) !n< ot$er
+o,(!n< +ontro##e) "< t$!t (!rt< !n) t$e e,(#o<ees or !%ents of t$!t (!rt< or its su"si)i!r<> $o#)in% or
+ontro##e) +o,(!nies4
!1/12$
1% -mployees
E!+$ (!rt< !%rees )urin% t$e ter, not to ,!Ce !n< offer to e,(#o< or en%!%e !s ! +onsu#t!nt or su"'+ontr!+tor !n<
e,(#o<ee of t$e ot$er (!rt<4
1( *a5ation
11
1&41 E!+$ (!rt< s$!## "e!r its o2n #i!"i#it< for !n< t!9!tion or )ut< +$!r%e!"#e in t$e Unite) Bin%)o, in res(e+t of
its (!rti+i(!tion in t$e venture !n) e!+$ un)ert!Ces to in)e,nif< t$e ot$er in res(e+t of !n< su+$ t!9!tion
!ssesse) on !n) (!i) "< t$e ot$er in res(e+t of 2$i+$ t$e for,er is (ri,!ri#< #i!"#e4
1&4 An< su((#< ,!)e "< one (!rt< to t$e ot$er (ursu!nt to t$is !%ree,ent s$!## "e e9+#usive of !n< VAT
+$!r%e!"#e on it> 2$i+$ s$!## "e (!i) "< t$e (!rt< to 2$o, t$e su((#< is ,!)e in !))ition to t$e (!<,ent for
t$e su((#<> su"je+t to t$e (rovision to it of ! v!#i) VAT invoi+e4
!1/%#$
1&4& A## (!<,ents ,!)e "< one (!rt< to t$e ot$er (ursu!nt to t$is !%ree,ent s$!## "e (!i) free !n) +#e!r of !##
2it$$o#)in%s !n) )e)u+tions in res(e+t of t!9!tion> s!ve !s re;uire) "< #!24 If su+$ 2it$$o#)in% or )e)u+tion
is so re;uire) "< #!2> t$en !t$e (!rt< ,!Cin% t$e (!<,ent s$!## in+re!se t$e !,ount of t$e (!<,ent so t$!t
t$e ot$er (!rt< re+eives t$e s!,e !,ount !s it 2ou#) $!ve re+eive) in t$e !"sen+e of t$e re;uire,ent to ,!Ce
t$e 2it$$o#)in% or )e)u+tion> !n)$ t$e (!rt< ,!Cin% t$e (!<,ent s$!## %ive to t$e ot$er (!rt< !n !((ro(ri!te
+ertifi+!te !s ,!< "e re;uire) "< #!2 s$o2in% t$e !,ount of t$e 2it$$o#)in% or )e)u+tion4
!If t$e (!rt< re+eivin% t$e (!<,ent su"se;uent#< o"t!ins re#ief or +re)it in res(e+t of t$e
2it$$o#)in% or )e)u+tion> t$en it s$!## (ro,(t#< re(!< to t$e (!rt< 2$i+$ ,!)e t$e (!<,ent !n !,ount e;u!#
to t$e +re)it or re#ief o"t!ine) u( to ! ,!9i,u, of t$e !,ount "< 2$i+$ t$e (!<,ent 2!s in+re!se) to t!Ce
!++ount of t$e 2it$$o#)in% or )e)u+tion4 T$e (!rties s$!## +o'o(er!te 2it$ ! vie2 to !##o2in% e!+$ ot$er to
o"t!in !n< !v!i#!"#e re#ief or +re)it in res(e+t of !n< su+$ 2it$$o#)in% or )e)u+tion in res(e+t of t!9!tion!>
!n) in (!rti+u#!r "ut 2it$out (reju)i+e to t$e fore%oin% %ener!#it< s$!## %ive !n< infor,!tion re!son!"#<
re;uire) "< t$e ot$er (!rt< in +onne+tion 2it$ t$e ,!Cin% of ! +#!i, for re#ief un)er !n !((#i+!"#e )ou"#e
t!9!tion tre!t<$4$
!1/%1$
1) 8eneral
1*41 T$is !%ree,ent is "in)in% u(on t$e (!rties !n) t$eir res(e+tive su++essors !n) (er,itte) !ssi%ns4 Neit$er of
t$e (!rties s$!## "e entit#e) to !ssi%n t$is !%ree,ent or !n< of its ri%$ts !n) o"#i%!tions un)er it 2it$out t$e
+onsent of t$e ot$er (2$i+$ +onsent t$e ot$er (!rt< ,!< in its !"so#ute )is+retion 2it$$o#))4 If ! (!rt< su"'
+ontr!+ts !n< of its o"#i%!tions un)er t$e /rin+i(!# Contr!+t to ! t$ir) (!rt<> su+$ su"'+ontr!+tin% s$!## not
!ffe+t !n< of t$e (rovisions of t$is !%ree,ent or t$e o"#i%!tions of t$!t (!rt<> 2$o s$!## re,!in #i!"#e su"je+t
to !n< re,e)ies it ,!< $!ve !%!inst t$e su"'+ontr!+tor4
1*4 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t> (o2er or re,e)< veste) eit$er (!rt< un)er
or (ursu!nt to t$is !%ree,ent s$!## +onstitute ! 2!iver "< t$!t (!rt< of t$!t or !n< ot$er ri%$t> (o2er or
re,e)<4
1*4& E!+$ (!rt< s$!## "e!r its o2n +osts of or in +onne+tion 2it$ t$e (re(!r!tion !n) e9e+ution of t$is !%ree,ent4
!1/%%$
1*4* Neit$er (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
+onsent of t$e ot$er (!rt< !(e9+e(t !s re;uire) "< t$e Sto+C E9+$!n%e> 2$en t$e (!rt< s$!## first su((#< !
+o(< of t$e st!te,ent> re#e!se or )is+#osure to t$e ot$er !n) s$!## in+or(or!te !n< !,en),ents or !))itions
re!son!"#< re;uire) "< t$!t ot$er (!rt<)$4
1*40 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ it or referre)
to in it) +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to its su"je+t ,!tter !n) su(erse)es !##
(rior !%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to it4 No v!ri!tion of t$is
1*41 If !n< (!rt of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e #!2> st!tute or re%u#!tion> it s$!## "e
)ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n) effe+t !n) t$is !%ree,ent s$!## re,!in
in fu## for+e !n) effe+t !s if t$!t (!rt $!) not ori%in!##< "een +ont!ine) in t$is !%ree,ent> !n) t$e (!rties s$!##
ne%oti!te in %oo) f!it$ to tr< to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n) s!tisf!+tor< !#tern!tive
(rovision4
1*43 T$is !%ree,ent ,!< "e e9e+ute) in !n< nu,"er of +ounter(!rts or )u(#i+!tes e!+$ of 2$i+$ s$!## "e !n
!1*45 Ti,e s$!## "e of t$e essen+e for t$e (ur(oses of e!+$ (rovision of t$is !%ree,ent4$
!1/%($
1, Notices
1041 An< noti+e to "e %iven "< eit$er (!rt< to t$is !%ree,ent s$!## "e in 2ritin% !n) s$!## "e )ee,e) )u#< serve) if
)e#ivere) (erson!##< or "< f!9 or "< (re(!i) re%istere) (ost (!ir,!i# in t$e +!se of !n !))ress for servi+e
F Co 1insert address0 .a7 number and person .or whose attention it should be marked6
? Co 1insert address0 .a7 number and person .or whose attention it should be marked6
104 An< noti+e sent "< f!9 s$!## "e )ee,e) serve) 2$en tr!ns,itte) !n) !n< noti+e serve) "< (re(!i) re%istere)
(ost s$!## "e )ee,e) serve) *5 $ours !fter (ostin% to !n !))ress in t$e Unite) Bin%)o, !or !0 1or as
re>uired6$ )!<s !fter (ostin% to !n !))ress in t$e Unite) Bin%)o,4$ In (rovin% t$e servi+e of !n< noti+e it
2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s (ro(er#< st!,(e)> !))resse) !n) (#!+e) in
t$e (ost> or )e#ivere) or #eft !t t$e (ro(er !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9> t$!t t$e f!9
2!s )u#< ,!)e to t$e (ro(er f!9 nu,"er4
!1/%)$
1. :a0 and jurisdiction
1141 T$is !%ree,ent s$!## "e %overne) "< !n) +onstrue) in !++or)!n+e 2it$ En%#is$ #!24
114 !In +!se !n< )is(ute or )ifferen+e s$!## !rise "et2een t$e (!rties !s to t$e +onstru+tion of t$is !%ree,ent or
!n< ,!tter or t$in% of 2$!tsoever n!ture !risin% or in +onne+tion 2it$ it (e9+#u)in% !n< )is(ute or )ifferen+e
un)er +#!use 1&) t$en t$e )is(ute or )ifferen+e s$!## "e !n) is $ere"< referre) to t$e !r"itr!tion !n) fin!#
)e+ision of ! (erson to "e !%ree) "et2een t$e (!rties to !+t !s !r"itr!tor or> f!i#in% !%ree,ent 2it$in 1* )!<s
!fter eit$er (!rt< $!s %iven to t$e ot$er ! 2ritten re;uest to +on+ur in t$e !((oint,ent of !n !r"itr!tor> !
(erson to "e !((ointe) !t t$e re;uest of eit$er (!rt< "< !t$e /resi)ent or Vi+e'(resi)ent for t$e ti,e "ein% of
t$e Ro<!# Institute of -ritis$ Ar+$ite+ts$4 T$e !2!r) of t$e !r"itr!tor s$!## "e fin!# !n) "in)in% u(on t$e
(!rties4 T$e (rovisions of t$e Ar"itr!tion A+t 1661 s$!## !((#< to !n< !r"itr!tion un)er t$is !%ree,ent
13
4
1or6
(A) In re#!tion to !n< #e%!# !+tion or (ro+ee)in% to enfor+e t$is !%ree,ent or !risin% out of or in
+onne+tion 2it$ t$is !%ree,ent (D(ro+ee)in%sA) e!+$ of t$e (!rties irrevo+!"#< su",its to t$e
juris)i+tion of t$e +ourts of En%#!n) !n) 7!#es !n) 2!ives !n< o"je+tion to (ro+ee)in%s in su+$
+ourts on t$e %roun)s of venue or on t$e %roun)s t$!t t$e (ro+ee)in%s $!ve "een "rou%$t in !n
in+onvenient foru,4
!(-) T$ese su",issions s$!## not !ffe+t t$e ri%$t of ! (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion
nor s$!## t$e t!Cin% of (ro+ee)in%s in !n< juris)i+tion (re+#u)e !n< (!rt< fro, t!Cin% (ro+ee)in%s
in !n< ot$er juris)i+tion4$$
!1/%,$
!114& 1.orei!n part,6 irrevo+!"#< !((oints 1process a!ent6 of 1address6 !s its (ro+ess !%ent to re+eive on its "e$!#f
servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n) !n) 7!#es4 Su+$ servi+e s$!## "e )ee,e) +o,(#ete on
)e#iver< to t$e (ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If t$e
(ro+ess !%ent +e!ses to !+t> or "e+o,es in+!(!"#e of !+tin%> !s (ro+ess !%ent> or no #on%er $!s !n !))ress in
En%#!n) !n) 7!#es> 1.orei!n part,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e
ot$er (!rt< !n) to )e#iver ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent to t$e ot$er (!rt<
2it$in &8 )!<s
15
4
!114* 1.orei!n part,6 irrevo+!"#< +onsents to !n< (ro+ess in !n< (ro+ee)in%s !n<2$ere "ein% serve) in !++or)!n+e
2it$ t$e (rovisions of t$is !%ree,ent re#!tin% to t$e servi+e of noti+es !"ut to "e+o,e effe+tive !&8$ )!<s !fter
t$e )!te of servi+e )ee,e) "< +#!use 104$4 T$is )oes not !ffe+t t$e ri%$t to serve (ro+ess in !n< ot$er
!1/%.$
!AS 1or6 IN$ 7ITNESS et+ 1see vol :9 1:CCF Reissue6 DEED#0 )GREE(E*'# )*D DE&L)R)'8O*# Form C5 N:DC:O et
se> or Form C; N:DCFO et se>6
!SC.EDULE 1
A##o+!tion of 2orC et+ to "e (rovi)e) (ursu!nt to t$e /rin+i(!# Contr!+t
/!rt A
To "e (rovi)e) "< F Co
1insert details6
/!rt -
To "e (rovi)e) "< ? Co
1insert details6$
SC.EDULE !$
T$e =!n!%e,ent Co,,ittee
/!rt A
Co,(osition of t$e =!n!%e,ent Co,,ittee
1insert details6
/!rt -
N!,es of first ,e,"ers of t$e =!n!%e,ent Co,,ittee
1list names6
!/!rt C
C!te%ories of ,eetin%s to "e ,inute)
1insert details6$
!1/%/$
!SC.EDULE !&$
/#!nt !n) too#s to "e (rovi)e)
/!rt A
/#!nt !n) too#s to "e (rovi)e) "< F Co4
Co#u,n 1Co#u,n
1insert description o. e>uipment6 1insert amount to be paid b, E &o6
/!rt -
/#!nt !n) too#s to "e (rovi)e) "< ? Co4
Co#u,n 1Co#u,n
1insert description o. e>uipment6 1insert amount to be paid b, I &o6
!SC.EDULE !*$
E;ui(,ent to "e o"t!ine) joint#< fro, t$ir) (!rties
/!rt A
E;ui(,ent to "e .ire)
1describe e>uipment6
/!rt -
E;ui(,ent to "e /ur+$!se)
1describe e>uipment6$
1si!natures 1or common seals6 o. both parties6
!1/%"$
1
T$is for, ,!< "e !)!(te) for use "< ,ore t$!n t2o (!rties4
To i##ustr!te t$e use of t$is (re+e)ent e9!,(#es re#!tin% to ! "ui#)in% (roje+t $!ve "een inserte) t$rou%$out4 T$e use of t$is
(re+e)ent is not #i,ite) to t$e joint (erfor,!n+e of "ui#)in% +ontr!+ts4
&
It is i,(ort!nt to est!"#is$ t$e n!ture of t$e "usiness or t$e (roje+t 2$i+$ t$e (!rties $!ve in ,in)> in+#u)in% t$e t<(e of !+tivit<
!n) its %eo%r!($i+!# s+o(e> !n) t$e e9tent to 2$i+$ !n< (!rt< is +o,,itte) "< it to t$e e9+#usion of ot$er si,i#!r !+tivities4
*
7$et$er t$is )efinition is re;uire) )e(en)s on t$e 2or)in% of +#!use 184 J1315K4
0
E% fin!# ,e!sure,ent !n) v!#u!tion> #i!"i#it< to ,!Ce %oo) )efe+ts4
1
T$e #i!"i#it< of t$e (!rties for "re!+$ of t$e joint venture !%ree,ent !n) t$eir #i!"i#it< un)er t$e (rin+i(!# +ontr!+t s$ou#) "e +o'
ter,inous !n) t$erefore it ,!< "e !((ro(ri!te for t$e joint venture !%ree,ent to "e un)er se!#4
3
It is !ssu,e) t$!t t$e o"#i%!tions un)er t$e (rin+i(!# +ontr!+t !re joint !n) sever!#4 In !n< event t$e (!rties ,ust !%ree t$eir
res(e+tive !re!s of res(onsi"i#it< +#e!r#<4
5
T$is !ssu,es t$e (rin+i(!# +ontr!+t +ont!ins (rovisions (see e% t$e JCT St!n)!r) :or, of -ui#)in% Contr!+t 1658 E)ition +#!use
1&) 2$ere"< t$e n!ture ;u!#it< or !,ount of 2orC !n) ,!teri!#s to "e su((#ie) ,!< "e v!rie)4
6
It 2ou#) "e in+onsistent 2it$ ! joint venture "et2een e;u!#s to (er,it one venturer to "in) t$e ot$er to !,en),ents to t$e
(rin+i(!# +ontr!+t4
!1/%2$
18
T$e (ur(ose of t$e ,!n!%e,ent +o,,ittee )e(en)s u(on t$e e9tent to 2$i+$ #i!ison "et2een t$e venturers is re;uire)4 T$us>
t$e +o,,ittee ,!< $!ve !n e9e+utive !s 2e## !s ! +o'or)in!tin% ro#e !n) ,!< t$en ,eet 2it$ %re!ter fre;uen+<4
11
A +o##e+tion !++ount 2i## "e re;uire) 2$ere t$e +onsi)er!tion un)er t$e (rin+i(!# +ontr!+t is (!i) to t$e (!rties joint#< on interi,
v!#u!tions or "< st!%e (!<,ents4
1
T$e (ur(ose of +#!use 541 is to ,!Ce (rovisions for !)just,ents "et2een t$e venturers 2$ere> )ue to t$e f!u#t "< one or "ot$ of
t$e,> t$e (erfor,!n+e of t$e (rin+i(!# +ontr!+t is not s!tisf!+tor< or so,e ot$er +#!i, !rises4
1&
C!re s$ou#) "e t!Cen to $!r,onise t$ese (rovisions 2it$ t$e ter,in!tion (rovisions in t$e /rin+i(!# Contr!+t4
1*
See for e9!,(#e t$e JCT St!n)!r) :or, of -ui#)in% Contr!+t 1658 E)ition +#!use 34
10
T$e (erio) of 3 )!<s is 2it$in t$e 1* )!< (erio) sti(u#!te) in t$e JCT St!n)!r) :or, of -ui#)in% Contr!+t 1658 E)ition4 C!re
s$ou#) "e t!Cen to $!r,onise t$e (erio) of noti+e 2it$ t$e noti+e (rovisions (if !n<) in t$e (rin+i(!# +ontr!+t4
11
S(e+ifi+ !)vi+e s$ou#) !#2!<s "e t!Cen !s to t$e t!9 tre!t,ent of t$e (!rti+u#!r tr!ns!+tion> !s t$e t!9 i,(#i+!tions 2i## v!r<
!++or)in% to t$e n!ture of t$e joint venture !n) t$e juris)i+tions in 2$i+$ t$e (!rties !re t!9 resi)ent4 /!rti+u#!r issues 2$i+$
,!< "e re#ev!nt 2i## in+#u)e t$e fo##o2in%:
(A) If one of t$e (!rties is non'UB resi)ent for t!9 (ur(oses !n) t$e ot$er is not> +onsi)er!tion s$ou#) "e %iven to
2$et$er t$e UB resi)ent (!rt< 2i## "e +$!r%e!"#e to UB t!9 on t$e (rofit s$!re of t$e non'resi)ent (!rt< !s its !%ent4
T$e in)e,nit< in +#!use 1&41 J138K 2i## +over su+$ t!9> "ut if t$ere is !n !%en+< for t!9 (ur(oses t$en t$is 2or)in%
+ou#) "e e9(!n)e) to furt$er (rote+t t$e !%ent4
(-) If ! 2it$$o#)in% t!9 o"#i%!tion is #iCe#< to !rise> t$en +onsi)er!tion s$ou#) "e %iven !s to 2$et$er t$e %ross'u( in
+#!use 1&4& J131K is !((ro(ri!te4 7$ere "ot$ (!rties !re resi)ent in t$e UB> t$e fin!# 2or)s in +#!use 1&4& +!n
nor,!##< "e )e#ete)4
(C) If one of t$e (!rties is non'UB resi)ent !n) t$e ot$er is not> !n) "ot$ !re un)er +o,,on +ontro# or (!rt of ! joint
venture 2it$ *8L +o,,on o2ners$i(> t$en s(e+i!# +!re ,ust "e t!Cen %iven t$e s+o(e of t$e e9ten)e) UB tr!nsfer
(ri+in% #e%is#!tion: see t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 S+$ 5AA !s inserte) "< t$e :in!n+e A+t 1665 s
185> S+$ 114
(D) .= Custo,s N E9+ise ,i%$t tre!t su+$ !n !rr!n%e,ent !s re%istr!"#e for VAT (ur(oses !s ! (!rtners$i(4
13
It is !)vis!"#e to use !n !r"itr!tion +#!use e9+e(t in t$e +!se of t$e si,(#est +ontr!+ts4
15
:or use 2$ere eit$er (!rt< is )o,i+i#e) outsi)e En%#!n) !n) 7!#es4 :or !n !#tern!tive (ro+e)ure see +#!use 114* J131K4
!1/(#$
1#
A'reement bet0een t0o prospectie joint enturers to ne'otiate 0ith or submit a tender jointly to a third party
for a specific contract and to enter into a joint enture a'reement if they are successful
1
(1) 1name o. .irst venturer6 ! company incorporated in En%#!n) un)er nu,"er 1compan, re!istration number6
2$ose re%istere) offi+e is !t 1address6 (Dt$e UserA)H !n)
() 1name o. second venturer6 ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1compan, re!istration number6
2$ose re%istere) offi+e is !t 1address6 (Dt$e /ro)u+erA)
-ACBGROUND
(A) !T$e User is ! "ui#)in% +ontr!+tor 2it$ (#!nt e;ui(,ent !n) o(er!tives +!(!"#e of %ener!# "ui#)in% !n)
+onstru+tion 1or as re>uired6$4
(-) !T$e /ro)u+er is ! ,e+$!ni+!# !n) e#e+tri+!# en%ineerin% +ontr!+tor (2it$ (#!nt> e;ui(,ent !n) tr!)es,en)
s(e+i!#isin% in t$e )esi%n> ,!nuf!+ture !n) inst!##!tion of ,e+$!ni+!# !n) e#e+tri+!# en%ineerin% servi+es 1or
as re>uired6$4
(C) T$e (!rties $!ve !%ree) to su",it ! joint ten)er to 1e! the PPP Re!ional @ealth )uthorit,6 for 1e! the
construction o. PPP General @ospital pursuant to the Bills o. Auantities and instructions to 'enderers
dated PPP64
(D) A++or)in%#< t$e (!rties $!ve !%ree) to enter into +ert!in +o,,it,ents !n) to re%u#!te t$eir ri%$ts in re#!tion
to t$e joint ten)er !s set out in t$is !%ree,ent4
!1/(1$
NO7 T.IS AGREE=ENT 7ITNESSES !s fo##o2s:
1 7nterpretation
(A) Dt$e -i)A ,e!ns t$e offer to "e ,!)e joint#< "< t$e (!rties in 2ritin% to t$e E,(#o<er !!s +ont!ine)
in t$e Ten)er to "e su",itte)$ settin% out t$e ter,s> +on)itions> (ri+es !n) !## ot$er )et!i#s re#!tin%
to t$e (erfor,!n+e of t$e /roje+t "< t$e (!rties if t$e -i) is !++e(te) "< t$e E,(#o<er> su"je+t to
,o)ifi+!tion in !++or)!n+e 2it$ +#!use *H
(-) Dt$e E,(#o<erA ,e!ns 1name and address6H
(C) Dt$e Joint Venture A%ree,entA ,e!ns !n !%ree,ent in t$e for, set out in s+$e)u#e 1 "e#o2 to "e
,!)e in !++or)!n+e 2it$ +#!use 0 of t$is !%ree,entH
(D) Dt$e /rin+i(!# Contr!+tA ,e!ns !n !%ree,ent to "e ,!)e> if t$e -i) is su++essfu#> "et2een t$e
(!rties !n) t$e E,(#o<er for t$e (erfor,!n+e of t$e /roje+tH
(E) Dt$e /roje+tA ,e!ns 1de.ine the pro/ect64
14& .e!)in%s !re inserte) for +onvenien+e !n< !n) s$!## not !ffe+t t$e +onstru+tion of t$is !%ree,ent4
!n) vi+e vers!4
143 Referen+es to D+onsentA or 2or)s to si,i#!r effe+t ,e!n ! +onsent %iven in !)v!n+e in 2ritin% si%ne) "< or on
"e$!#f of t$e (!rt< 2$ose +onsent is to "e %iven4
145 Referen+es to D%oo)sA in+#u)e !n< (#!nt> too#s or e;ui(,ent4
!1/(%$
4 T$is !%ree,ent s$!## ter,in!te
&
u(on t$e e!r#iest of t$e fo##o2in% events:
(A) t$e E,(#o<er reje+ts t$e -i)H or
(-) t$e -i) is !++e(te) "< t$e E,(#o<er !n) t$e Joint Venture A%ree,ent +o,es into for+eH or
(C) t$e e9(ir< of !1 1or as re>uired6$ ,ont$s fro, su",ission of t$e -i)4
( Preparation and submission of the Bid
&41 T$e (!rties s$!## 2it$in 1number6 !2eeCs 1or as re>uired6$ (re(!re ! fu##< (ri+e) !n) )et!i#e) "i) in
!++or)!n+e 2it$ !t$e re;uire,ents of t$e E,(#o<er 1or6 t$e "i) +riteri! set out in s+$e)u#e "e#o2$4
&4 T$e (ri+es !n) )et!i#s +ont!ine) in t$e -i) s$!## "e t$ose t$!t> t!Cin% into !++ount t$e !((#i+!"#e ter,s !n)
+on)itions> !re !++e(t!"#e to t$e (!rt< "< 2$o, (erfor,!n+e ou%$t to "e un)ert!Cen in !++or)!n+e 2it$
+#!use & of t$e Joint Venture A%ree,ent4
&4& T$e (!rties s$!## ensure t$!t t$e -i) is su",itte) "< 1date64
!1/(($
) Ne'otiations follo0in' submissions of the Bid
*41 7$ere t$e E,(#o<er re;uires +#!rifi+!tion of !n< ite, in t$e -i) t$en t$e (!rt< $!vin% res(onsi"i#it< for t$e
(erfor,!n+e of t$!t ite, un)er t$e (rovisions of +#!use & of t$e Joint venture A%ree,ent s$!## (rovi)e
!((ro(ri!te infor,!tion !s ,!< "e re!son!"#e4
*4 7$ere t$e E,(#o<er seeCs to (ersu!)e t$e (!rties to +$!n%e !n< (ri+e or ot$er )et!i# in t$e -i) t$en ! +$!n%e
,!< "e ,!)e on#< 2it$ t$e +onsent of "ot$ (!rties4
, Procedure if the Bid is accepted
If t$e E,(#o<er !++e(ts t$e -i)> t$en t$e (!rties !%ree to enter into t$e /rin+i(!# Contr!+t !++or)in%#< !n) to e9e+ute
t$e Joint Venture A%ree,ent fort$2it$4
. No competition
E!+$ (!rt< !%rees t$!t t$rou%$out t$e ter, of t$is !%ree,ent it s$!## not> 2$et$er on its o2n or joint#< 2it$ !n< t$ir)
(!rt< or t$rou%$ !n< ot$er +o,(!n< un)er its o2ners$i( or +ontro#> enter into !n< ot$er ne%oti!tions 2it$> or su",it
!n< ot$er offer or ten)er to> t$e E,(#o<er 2$i+$ re#!tes to t$e /roje+t4
!1/()$
/ Confidentiality
341 E!+$ (!rt< s$!## !t !## ti,es use its "est en)e!vours to Cee( +onfi)enti!# (!n) to (ro+ure t$!t its e,(#o<ees>
su"'+ontr!+tors !n) !%ents Cee( +onfi)enti!#) !n< infor,!tion of ! +onfi)enti!# n!ture 2$i+$ it or t$e< ,!<
$!ve !+;uire) or ,!< !t !n< ti,e $ere!fter !+;uire in re#!tion to t$e +#ients> "usiness or !ff!irs of t$e ot$er
(!rt< $ereto !n) s$!## not use or )is+#ose su+$ infor,!tion e9+e(t 2it$ t$e +onsent of t$e ot$er (!rt< or 2$en
re;uire) "< #!24
34 T$e o"#i%!tions in +#!use 341 s$!## +ontinue 2it$out #i,it in (oint of ti,e "ut s$!## +e!se to !((#< to !n<
infor,!tion for t$e ti,e "ein% in t$e (u"#i+ )o,!in ot$er2ise t$!n "< ! (!rt<As "re!+$ of t$ose o"#i%!tions>
"ut not$in% in +#!use 341 s$!## (revent ! (!rt< fro, )is+#osin% !n< infor,!tion to t$e e9tent re;uire) in or in
+onne+tion 2it$ #e%!# (ro+ee)in%s !risin% out of t$is !%ree,ent or t$e /rin+i(!# Contr!+t4
34& :or t$e (ur(oses of t$is +#!use 3 t$e e9(ression D(!rt<A s$!## in+#u)e t$e su"si)i!r< +o,(!nies of t$!t (!rt<
!n) t$!t (!rt<As $o#)in% +o,(!n< !n) !n< su"si)i!r< +o,(!nies of t$!t $o#)in% +o,(!n< !n) !n< ot$er
+o,(!n< +ontro##e) "< t$!t (!rt< !n) t$e e,(#o<ees or !%ents of t$!t (!rt< or its su"si)i!r<> $o#)in% or
+ontro##e) +o,(!nies4
!1/(,$
" Nature of this a'reement
T$is !%ree,ent re#!tes on#< to t$e sin%#e joint venture it refers to4 It )oes not +onstitute eit$er (!rt< t$e !%ent of t$e
ot$er (!rt<> !n) it )oes not +onstitute ! (!rtners$i( "et2een t$e (!rties4
2 8eneral
641 T$is !%ree,ent is "in)in% u(on t$e (!rties !n) t$eir res(e+tive su++essors !n) (er,itte) !ssi%ns4 Neit$er of
+onsent of t$e ot$er (2$i+$ +onsent t$e ot$er (!rt< ,!< in its !"so#ute )is+retion 2it$$o#))4
64 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t> (o2er or re,e)< veste) eit$er (!rt< un)er
re,e)<4
64& E!+$ (!rt< s$!## "e!r its o2n +osts of or in +onne+tion 2it$ t$e (re(!r!tion !n) e9e+ution of t$is !%ree,ent4
64* Neit$er (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
!640 Ti,e s$!## "e of t$e essen+e for t$e (ur(oses of e!+$ (rovision of t$is !%ree,ent4$
!1/(.$
1# :a0 and =urisdiction
!184 In re#!tion to !n< #e%!# !+tion or (ro+ee)in%s to enfor+e t$is !%ree,ent or !risin% out of or in +onne+tion 2it$
t$is !%ree,ent (D(ro+ee)in%sA) e!+$ of t$e (!rties irrevo+!"#< su",its to t$e juris)i+tion of t$e +ourts of
En%#!n) !n) 7!#es !n) 2!ives !n< o"je+tion to (ro+ee)in%s in su+$ +ourts on t$e %roun)s of venue or on t$e
%roun)s t$!t t$e (ro+ee)in%s $!ve "een "rou%$t in !n in+onvenient foru,4 T$ese su",issions s$!## not !ffe+t
t$e ri%$t of ! (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!## t$e t!Cin% of (ro+ee)in%s in !n<
juris)i+tion (re+#u)e !n< (!rt< fro, t!Cin% (ro+ee)in%s in !n< ot$er juris)i+tion4
184& 1.orei!n part,6 irrevo+!"#< !((oints 1process a!ent6 of 1address6 !s its (ro+ess !%ent to re+eive on its "e$!#f
servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n) !n) 7!#es4 Su+$ servi+e s$!## "e )ee,e) +o,(#ete on
)e#iver< to t$e (ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If t$e
(ro+ess !%ent +e!ses to !+t> or "e+o,es in+!(!"#e of !+tin%> !s (ro+ess !%ent> or no #on%er $!s !n !))ress in
En%#!n) !n) 7!#es> 1.orei!n part,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e
ot$er (!rt< !n) to )e#iver ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent to t$e ot$er (!rt<
2it$in &8 )!<s4$
SC.EDULE 1
Joint Venture A%ree,ent
1insert .orm o. /oint venture a!reement-see Form C N:<5:O ante6
SC.EDULE
-i) Criteri!
1set out the material matters 1e! prices0 >uantities0 time and place o. per.ormance0 e7clusions o. liabilit,
etc6 that must be dealt with b, the parties when preparin! the bid6
1si!natures 1or common seals6 o. both parties6
1
T$is :or, is inten)e) for use in +onjun+tion 2it$ :or, 6 J1381K !nte4
To i##ustr!te t$e use of t$is (re+e)ent e9!,(#es re#!tin% to ! "ui#)in% (roje+t $!ve "een inserte) t$rou%$out4 T$e use of t$is
(re+e)ent is not #i,ite) to t$e joint (erfor,!n+e of "ui#)in% +ontr!+ts4
&
See :or, 6 +#!use J138*K !nte4
!1/(/$
11
A'reement bet0een t0o co+enturers to co+operate in the desi'n and deelopment of a product
(1) 1name o. compan,6 ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address) (Dt$e UserA)H !n)
() 1name o. compan,6 ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address) (Dt$e /ro)u+erA)4
-ACBGROUND:
(A) T$e User !s(e+i!#ises in t$e )esi%n> ,!rCetin% !n) )istri"ution of 2i)%ets 1or6 uses (#!sti+ 2i)%ets in t$e
+onstru+tion !n) !sse,"#< of en%ineerin% (ro)u+ts 1or as the case ma, be6$4
(-) !T$e /ro)u+er s(e+i!#ises in t$e )eve#o(,ent !n) ,!nuf!+ture of (#!sti+ 2!res 1or as the case ma, be6$4
(C) !T$e User 2is$es to +re!te ! +on+e(t )esi%n for ! ne2 (#!sti+ 2i)%et (Dt$e Ne2 7i)%etA) !n) t$e /ro)u+er
2is$es to )eve#o( ! (ro+ess for ,!nuf!+turin% t$e Ne2 7i)%et4 T$e (!rties $!ve !%ree) to +o'o(er!te in t$e
)esi%n )eve#o(,ent !n) ,!nuf!+ture !n) s!#e of t$e Ne2 7i)%et4 1or as the case ma, be6$
(D) A++or)in%#< t$e (!rties $!ve !%ree) to enter into +ert!in ,utu!# +o,,it,ents !n) to re%u#!te t$eir ri%$ts in
re#!tion to t$eir joint venture !s set out in t$is !%ree,ent4
!1/("$
NO7 T.IS DEED 7ITNESSES !s fo##o2s:
1 7nterpretation
(A) Dinte##e+tu!# (ro(ert< ri%$tsA ,e!ns !## ri%$ts !v!i#!"#e for t$e (rote+tion of !n< )is+over<>
invention> n!,e> )esi%n> (ro+ess or 2orCs in 2$i+$ +o(<ri%$t or !n< ri%$ts in t$e n!ture of
+o(<ri%$t su"sist !n) !## (!tents> +o(<ri%$ts> re%istere) )esi%ns> )esi%n ri%$ts> tr!)e ,!rCs> servi+e
,!rCs !n) ot$er for,s of (rote+tion fro, ti,e to ti,e su"sistin% in re#!tion to t$e s!,e> in+#u)in%
t$e ri%$t to !((#< for !n< su+$ (rote+tion !n) tr!)e se+rets !n) ot$er un(u"#is$e) infor,!tionH
(-) D,!teri!#sA ,e!ns !n< notes> +!#+u#!tions> s(e+ifi+!tions> re(orts> )esi%ns> )r!2in%s> ,o)e#s
(rotot<(es or !n< infor,!tion in ! +o,(uter're!)!"#e for,H
(C) Dt$e /ro)u+tA ,e!ns t$e !(#!sti+ 2i)%ets 1or as the case ma, be6$ (ro)u+e) usin% t$e )esi%ns !n)
too#in% (ro)u+e) )urin% t$e /roje+tH
(D) Dt$e /roje+tA ,e!ns t$e )esi%n> )eve#o(,ent> +re!tion of too#in% !n) t$e (ro)u+tion of ! ne2 )esi%n
of (#!sti+ 2i)%etH
(E) Dt$e Too#in%A ,e!ns t$e !(#!sti+ inje+tion ,ou#)in% 1or as the case ma, be6$ too#!s$ for t$e
(ro)u+tion of +o,(onents for t$e /ro)u+t !!n) t$e ji%s !n) (resses for t$e !sse,"#< of t$e /ro)u+t$
(ro)u+e) (ursu!nt to +#!use &41H !n)
(:) D<e!rA ,e!ns ! (erio) of 1 +onse+utive ,ont$s t$e first su+$ (erio) +o,,en+in% on t$e
!++e(t!n+e of t$e Too#in% in !++or)!n+e 2it$ +#!use &434
14& .e!)in%s !re inserte) for +onvenien+e !n) s$!## not !ffe+t t$e +onstru+tion of t$is !%ree,ent4
!n) vi+e vers!4
!1/(2$
4 T$is !%ree,ent +ontinues unti# ter,in!tion in !++or)!n+e 2it$ +#!use 04
( Commencement; pro'ress and completion of the Project
&41 T$e (!rties s$!## (erfor, t$e (re#i,in!r< tests !n) stu)ies set out in s+$e)u#e 1 +o#u,n 1 "< 1date64
&4 T$e User s$!## +re!te ! )esi%n +on+e(t !n) (erfor,!n+e s(e+ifi+!tion for t$e /roje+t 2it$in 1number6 2eeCs
of )ue (erfor,!n+e of +#!use &41 !n) )e#iver !s ,!teri!#s !!& 1or as re>uired6$ 2ritten +o(ies 1or speci.,
acceptable t,pes o. computer%processable materials0 such as spreadsheets6$ to t$e /ro)u+er4
&4& 7it$in 1number6 2eeCs of t$e )e#iver< of t$e ,!teri!#s referre) to in +#!use &4> t$e /ro)u+er s$!## (re(!re !
)esi%n !n!#<sis !n) )eve#o(,ent !n) +ost stu)< !n) )e#iver !s ,!teri!#s !!& 1or as re>uired6$ 2ritten +o(ies
1or speci., acceptable t,pes o. computer%processable materials0 such as spreadsheets6$ to t$e User4
&4* T$e (!rties s$!## +onsi)er !n) )is+uss t$e )esi%n +on+e(t> (erfor,!n+e s(e+ifi+!tion> )esi%n !n!#<sis !n)
)eve#o(,ent !n) +ost stu)< 2it$ ! vie2 to re!+$in% !%ree,ent u(on ! )esi%n for fin!# )eve#o(,ent !n)
(ro)u+tion
1
4
!1/)#$
&40 7it$in !& ,ont$s 1or as re>uired6$ of t$e !%ree,ent (ursu!nt to +#!use &4* of ! )esi%n> t$e /ro)u+er s$!##
(ro)u+e !n) )e#iver 1number6 (re'(ro)u+tion (rotot<(es of t$e /ro)u+t for testin% !n) ev!#u!tion to t$e User4
At t$e s!,e ti,e t$e /ro)u+er s$!## notif< t$e User of t$e +ost of too#in% for (ro)u+tion of finis$e) (ro)u+ts
in !++or)!n+e 2it$ t$e ,!nuf!+turin% +!(!+it< sti(u#!te) in +#!use *4& !n) ! (ri+e for t$e /ro)u+t4 !T$e (ri+e
for t$e /ro)u+t s$!## e;u!# its +ost of (ro)u+tion> in+#u)in% !n !((ro(ri!te +ontri"ution to over$e!)s on ! Don
+ostA "!sis> (#us ! ,!rC u( for t$e /ro)u+er of TTL of su+$ +ost of (ro)u+tion 1or state an, other basis on
which the price is to be set6$4 T$e +ost of too#in% s$!## ,e!n t$e +ost to t$e /ro)u+er of ,!nuf!+turin% t$e
too#in%> or $!vin% it ,!nuf!+ture) (#us> in t$e for,er +!se> !n !((ro(ri!te +ontri"ution to over$e!)s on !n
Don +ostA "!sis4
&41 If t$e User !n) t$e /ro)u+er !%ree u(on ! (ri+e for t$e too#in% !n) ! (ri+e for t$e /ro)u+t t$en e!+$ (!rt<
s$!## "e!r one $!#f of t$e +ost of t$e too#in%4 T$e User s$!## (!< t$e /ro)u+er one $!#f of t$e !%ree) +ost of
t$e too#in% !n) t$e /ro)u+er s$!## (ro)u+e too#in% in !++or)!n+e 2it$ t$e )esi%n !%ree) (ursu!nt to +#!use
&4*4
&43 U(on +o,(#etion of t$e Too#in%> t$e /ro)u+er s$!## (ro)u+e !8 1or as re>uired6$ test s$ots suffi+ient to s$o2
t$e (ro)u+tion ;u!#it< of t$e too#in% !n) )e#iver !18 1or as re>uired6$ su+$ test s$ots to t$e User4 T$e User
s$!## notif< t$e /ro)u+er of !n< )is+re(!n+ies "et2een t$e test s$ots !n) t$e )esi%n !%ree) (ursu!nt to +#!use
&4* !n) t$e /ro)u+er s$!## (ro,(t#< !#ter t$e Too#in% to re,e)< t$e )is+re(!n+ies !n) su",it ! furt$er !18
1or as re>uired6$ test s$ots to t$e User !1 )!<s 1or as re>uired6$ !fter "ein% notifie) of t$e )is+re(!n+ies4
T$e Too#in% s$!## "e )ee,e) to "e s!tisf!+tor< to t$e User if> test s$ots $!vin% "een )e#ivere)> t$e User )oes
not notif< t$e /ro)u+er of )is+re(!n+ies 2it$in 1* )!<s4
!1/)1$
) <anufacture and sale of the Product
*41 !1where the parties intend that the Product shall be supplied e7clusivel, to the $ser6
T$e /ro)u+er s$!## not su((#< t$e /ro)u+t to !n< t$ir) (!rt< !n) s$!## use t$e Too#in% on#< for t$e (ro)u+tion
of t$e /ro)u+t for s!#e to t$e User4
1or where the manu.acturer produces products on a non%e7clusive basis)
T$e /ro)u+er s$!## ,!nuf!+ture !n) su((#< t$e /ro)u+t to t$e User !n) t$ir) (!rties !(rovi)e) t$!t t$e
/ro)u+er s$!## not su((#< t$e /ro)u+t for res!#e in t$e Unite) Bin%)o, ot$er2ise t$!n to t$e User$4 T$e
/ro)u+er s$!## (!< to t$e User ! ro<!#t< in res(e+t of t$e /ro)u+t ,!nuf!+ture) )urin% t$e ter, of t$is
!%ree,ent> ot$er t$!n t$e /ro)u+t su((#ie) to t$e User (or !n< of t$e /ro)u+t 2$i+$ is ,!nuf!+ture) 2it$
)efe+ts !n) not offere) for s!#e) !t t$e r!te of !OTTT (er unit of t$e /ro)u+t 1or6 TTL of t$e %ross
se##in% (ri+e of t$e /ro)u+t> 2$i+$ s$!## ,e!n t$e entire !,ount invoi+e) "< t$e /ro)u+er to its +usto,er for
t$e /ro)u+t #ess on#< s!#es !n) ot$er t!9es !n) (!+C!%in%> tr!nsfer !n) insur!n+e +osts$4 T$e ro<!#t< s$!## "e
+!#+u#!te) !n) (!i) !;u!rter#< 1or as re>uired6$ 2it$in !1* )!<s 1or as re>uired6$ of t$e en) of e!+$ !+!#en)!r
;u!rter 1or as re>uired6$4 E!+$ (!<,ent s$!## "e !++o,(!nie) "< ! st!te,ent s$o2in% t$e !,ount of ro<!#t<
)ue !n) t$e ;u!ntit< of t$e /ro)u+t ,!)e )urin% t$e ;u!rter in ;uestion4 T$e /ro)u+er s$!## ensure t$!t !##
ne+ess!r< ,!nuf!+turin% !n) s!#es re+or)s !re Ce(t !n) ,!)e !v!i#!"#e on re!son!"#e noti+e to t$e User for
t$e (ur(ose of verif<in% t$e ;u!ntit< of t$e /ro)u+t ,!nuf!+ture) usin% t$e Too#in% !n) t$e !,ount of
ro<!#t< )ue to t$e User4$
!1/)%$
*4 E9+e(t !s ot$er2ise (rovi)e) in t$is !%ree,ent> t$e User s$!## not (ur+$!se t$e /ro)u+t !or !n< si,i#!r ite,s$
fro, !n< t$ir) (!rt< !n) s$!## (ur+$!se t$e /ro)u+t !or si,i#!r ite,s$ on#< fro, t$e /ro)u+er4
*4& T$e User un)ert!Ces to use its re!son!"#e +o,,er+i!# en)e!vours to or)er fro, t$e /ro)u+er !n) t$e
/ro)u+er un)ert!Ces to $!ve t$e +!(!+it< to ,!nuf!+ture ! ,ini,u, ;u!ntit< of !188>888 1or as re>uired6$
units of t$e /ro)u+t in e!+$ <e!r !for t$e first !&$ <e!rs$4
*4* T$e /ro)u+er s$!## "e "oun) to !++e(t or)ers for t$e /ro)u+t (#!+e) "< t$e User (rovi)e) t$!t:
(A) t$e ti,e "et2een )e#iver< of !n or)er "< t$e User !n) t$e )!te s(e+ifie) in t$e or)er for )es(!t+$ of
t$e /ro)u+t fro, t$e /ro)u+erAs 2orCs s$!## "e no #ess t$!n !one ,ont$ 1or as re>uired6$H
(-) e!+$ or)er s$!## "e for no #ess t$!n !5>888 1or as re>uired6$ !n) no ,ore t$!n !1>888 1or as
re>uired6$ units of t$e /ro)u+tH !n)
(C) t$e !%%re%!te of !## or)ers )oes not re;uire t$e /ro)u+er to ,!nuf!+ture ,ore t$!n !11>888 1or as
re>uired6$ units of t$e /ro)u+t in !n< (erio) of * +onse+utive 2eeCs4
*40 T$e ter,s !((#i+!"#e to ever< +ontr!+t "et2een t$e (!rties for t$e (ur+$!se !n) s!#e of t$e /ro)u+t s$!## "e
!t$e UserAs st!n)!r) ter,s !n) +on)itions of (ur+$!se 1or6 t$e ter,s !n) +on)itions set out in s+$e)u#e
"e#o2 1or as re>uired6$ "ut in t$e event of !n< +onf#i+t "et2een su+$ ter,s !n) t$is !%ree,ent> t$is
!%ree,ent s$!## (rev!i#4
*41 :or !1 ,ont$s 1or as re>uired6$ !fter +o,(#etion of t$e Too#in% t$e (ri+e of t$e /ro)u+t (!<!"#e "< t$e User
to t$e /ro)u+er s$!## "e t$e (ri+e !%ree) (ursu!nt to +#!use &414 T$ere!fter> t$e (ri+e of t$e /ro)u+t s$!## "e
fi9e) "< t$e /ro)u+er in !++or)!n+e 2it$ t$e (rin+i(#es set out in +#!use &40 !(rovi)e) t$!t t$e /ro)u+er ,!<
on#< in+re!se t$e (ri+e of t$e /ro)u+t !t interv!#s of !1 ,ont$s 1or as re>uired6$ on !one ,ont$As (rior 2ritten
noti+e$$4
*43 Un#ess ot$er2ise !%ree)
!## t$e /ro)u+t )e#ivere) s$!## +onfor, to t$e test s$ots )e#ivere) to t$e User #!st
"efore !++e(t!n+e (ursu!nt to +#!use &434
!1/)($
, *ermination
041 /rior to !%ree,ent "ein% ,!)e on t$e ,!tters sti(u#!te) in +#!use &41> t$is !%ree,ent ,!< "e ter,in!te) "<
eit$er (!rt< on !&8 )!<s 1or as re>uired6$ 2ritten noti+e in t$e event t$!t t$e (!rties f!i# !in ! re!son!"#e ti,e
1or6 2it$in !1* )!<s 1or as re>uired6$$ to re!+$ !%ree,ent on !n< of t$e ,!tters s(e+ifie) in +#!uses &41 to &41
in+#usive
&
4 In t$e event of ter,in!tion (ursu!nt to t$is +#!use 041 neit$er (!rt< s$!## $!ve !n< #i!"i#it< to t$e
ot$er for #oss or )!,!%e )ue to ter,in!tion "ut !n< !++rue) ri%$ts for (revious "re!+$es of t$is !%ree,ent !re
un!ffe+te)4
04 :o##o2in% !%ree,ent (ursu!nt to +#!use &41> t$is !%ree,ent ,!< "e ter,in!te) "< eit$er (!rt< in t$e event
t$!t t$e ot$er (!rt< +o,,its !n< "re!+$ of t$is !%ree,ent !n)> if t$e "re!+$ is +!(!"#e of "ein% re,e)ie)>
f!i#s 2it$in !&8 )!<s 1or as re>uired6$ of 2ritten noti+e to re,e)< it4 An< su+$ ter,in!tion s$!## "e 2it$out
(reju)i+e to t$e !++rue) ri%$ts of t$e (!rties !n) to !n< (rovision to t$is !%ree,ent 2$i+$ is e9(resse) to
survive ter,in!tion4
04& T$is !%ree,ent s$!## in !n< event ter,in!te on t$e "!sis set out in +#!use 04 2$en t$e Too#in% is> t!Cin% into
!++ount t$e +ost of !n< re(!irs 2$i+$ ,!< "e ,!)e> no #on%er +!(!"#e of e+ono,i+!##< (ro)u+in% (ro)u+ts
2$i+$ +onfor, to t$e test s$ots !s re;uire) "< +#!use *43 !n) t$e /ro)u+er %ives noti+e to t$e User of t$e f!+t4
!1/))$
. 7ntellectual property ri'hts
)
141 E!+$ (!rt< s$!## re,!in t$e o2ner of !## inte##e+tu!# (ro(ert< ri%$ts it o2ns !t t$e )!te of t$is !%ree,ent in
!n< ,!teri!#s 2$i+$ it $!s +re!te) or t$e +re!tion of 2$i+$ 2!s un)ert!Cen "< ! t$ir) (!rt< 2$i+$ it
+o,,issione) to +re!te t$ose ,!teri!#s4
14 !7$ere !n< ne2 ,!teri!#s !re +re!te) for t$e (ur(ose of t$is joint venture "< eit$er (!rt< t$en> s!ve to t$e
e9tent t$!t su+$ ,!teri!#s e,"o)< t$e inte##e+tu!# (ro(ert< ri%$ts of t$e ot$er (!rt<> !## t$e inte##e+tu!#
(ro(ert< ri%$ts in> or !((e!rin% fro,> su+$ ne2 ,!teri!# s$!## "e#on% to t$e (!rt< 2$i+$ +re!tes t$e,
*
4
1or where intellectual propert, is to be held /ointl,6
(A) An< ne2 ,!teri!# +re!te) joint#< "< t$e (!rties s$!##> s!ve to t$e e9tent t$!t it in+or(or!tes
inte##e+tu!# (ro(ert< ri%$ts "e#on%in% to eit$er (!rt< !t t$e )!te of +re!tion t$ereof> "e#on% to t$e
(!rties joint#<4
(-) 2$ere in t$e +ourse of +re!tin% !n< ,!teri!# to 2$i+$ t$is +#!use 14 !((#ies !n< inte##e+tu!#
(ro(ert< ri%$ts !re "rou%$t into e9isten+e su+$ inte##e+tu!# (ro(ert< ri%$ts s$!## "e#on% to t$e (!rties
joint#< !n) t$e (!rties s$!## !t t$eir joint e9(ense t!Ce !## re!son!"#e ste(s ne+ess!r< to (rote+t t$e
s!,e "< !((#<in% for UB /!tents !n) UB Re%istere) Desi%ns !n) su+$ +orres(on)in% forei%n
ri%$ts or re%istr!tions !s ,!< "e re!son!"#e4
(C) If !n< inte##e+tu!# (ro(ert< ri%$ts "e#on%in% to t$e (!rties joint#< !re infrin%e) "< ! t$ir) (!rt< t$en>
un#ess t$e (!rties !%ree to t!Ce !+tion joint#< in res(e+t of t$e infrin%e,ent> eit$er (!rt< ,!< on
"e$!#f of t$e (!rties !s joint o2ners t!Ce !## re!son!"#e ste(s in t$e joint n!,es of t$e (!rties
ne+ess!r< to enfor+e t$ose inte##e+tu!# (ro(ert< ri%$ts (rovi)e) t$!t !## #e%!# +osts !n) e9(enses
in+urre) "< eit$er (!rt< in re#!tion to su+$ !+tion !n) !n< )!,!%es or +osts !2!r)e) to t$e t$ir)
(!rt< in +onse;uen+e s$!## "e "orne "< t$e (!rties in e;u!# s$!res4 If !n< )is(ute !rises "et2een t$e
(!rties !s to t$e ste(s to "e t!Cen> t$e ,!tter s$!## "e returne) to ! "!rrister or so#i+itor 2e## verse)
in inte##e+tu!# (ro(ert< )is(utes of !t #e!st 0 <e!rs st!n)in% !((ointe) "< !%ree,ent "et2een t$e
(!rties or f!i#in% !%ree,ent> !((ointe) "< t$e /resi)ent for t$e ti,e "ein% of t$e L!2 So+iet<> !n)
t$e (!rties s$!## !+t in !++or)!n+e 2it$ t$e !)vi+e of t$!t "!rrister or so#i+itor4 E!+$ (!rt< s$!## t!Ce
!## ste(s !n) (rovi)e !## infor,!tion !n) !ssist!n+e re!son!"#< re;uire) for t$e (ur(ose of su+$
(ro+ee)in%s4 An< su,s re+overe) !s ! resu#t of (ro+ee)in%s t!Cen to enfor+e t$e joint inte##e+tu!#
(ro(ert< ri%$ts of t$e (!rties s$!## !fter )e)u+tion of !## #e%!# fees !n) ot$er e9(enses in+urre) !n)
!n< )!,!%es !2!r)e) !%!inst t$e (!rties> "e )ivi)e) e;u!##< "et2een or> in t$e +!se of ! )efi+ien+<>
"orne e;u!##< "<> t$e (!rties4$
14& E!+$ (!rt< $ere"< %r!nts ! #i+en+e to t$e ot$er to use its inte##e+tu!# (ro(ert< ri%$ts in+or(or!te) in or
!((e!rin% fro, t$e ,!teri!#s referre) to in +#!use 141 or 14 for t$e (ur(oses of t$e (erfor,!n+e of t$is
!%ree,ent> "ut not ot$er2ise4 T$e ot$er (!rt< !%rees not to use !n< of t$ese inte##e+tu!# (ro(ert< ri%$ts
e9+e(t for t$e (ur(oses of (erfor,in% t$is !%ree,ent4
!1/),$
14* U(on ter,in!tion of t$is !%ree,ent e!+$ (!rt< s$!##:
(A) )e#iver u( to t$e ot$er (!rt< !## ,!teri!#s (rovi)e) "< t$e ot$er (!rt< to%et$er 2it$ !n< +o(ies
t$ereof 2$i+$ re,!in in its (ossession (o2er or +ontro#> !n) s$!## er!se !## referen+e to t$e
,!teri!#s $e#) on !## its +o,(uter s<ste,s !n) ot$er infor,!tion retriev!# s<ste,sH !n)
(-) 2it$in 3 )!<s )estro< !n< ,!teri!#s +re!te) for t$e (ur(oses of t$is !%ree,ent 2$i+$ e,"o)< !n<
of t$e inte##e+tu!# (ro(ert< ri%$ts of t$e ot$er (!rt< to t$is !%ree,ent4
140 !If eit$er (!rt< "e#ieves t$!t !n< t$ir) (!rt< is infrin%in% !n< inte##e+tu!# (ro(ert< ri%$ts in t$e /ro)u+t it s$!##
notif< t$e ot$er (!rt<4 If eit$er (!rt< 2is$es to t!Ce !+tion !%!inst !n< t$ir) (!rt< for infrin%e,ent of !n< of
t$!t (!rt<As inte##e+tu!# (ro(ert< ri%$ts in t$e /ro)u+t it s$!## %ive noti+e to t$e ot$er (!rt<4
1or6
If eit$er (!rt< "e#ieves t$!t !n< t$ir) (!rt< is infrin%in% !n< inte##e+tu!# (ro(ert< ri%$ts in t$e /ro)u+t> it s$!##
notif< t$e ot$er (!rt< !n) t$e (!rties s$!## +onsu#t 2it$ e!+$ ot$er !s to t$e !+tion to "e t!Cen4 Eit$er (!rt<
(Dt$e O2nerA) s$!## "e free to t!Ce su+$ !+tion !s it 2is$es !%!inst !n< t$ir) (!rt< for infrin%e,ent of t$!t
(!rt<As inte##e+tu!# (ro(ert< ri%$ts in t$e /ro)u+t> in 2$i+$ +!se it s$!## "e!r !## t$e #e%!# !n) ot$er e9(enses
in+urre) in re#!tion to t$e !+tion> !n) !## )!,!%es !2!r)e) !%!inst it> !n) s$!## "e entit#e) to !## su,s
re+overe)4 T$e ot$er (!rt< s$!## !#so "e entit#e) "< noti+e to re;uest t$e O2ner to t!Ce su+$ !+tion in re#!tion
to su+$ infrin%e,ent !s t$e ot$er (!rt< re;uires !n) s(e+ifies in t$e noti+e> u(on ter,s t$!t !## #e%!# !n) ot$er
e9(enses in+urre) in re#!tion to t$e !+tion> !n) !## )!,!%es !2!r)e) !%!inst t$e O2ner> !n) !## su,s
re+overe) in t$e +ourse of t$e !+tion s$!## "e )ivi)e) "et2een t$e (!rties !s fo##o2s:
(A) in t$e +!se of !n< infrin%e,ent or !##e%e) infrin%e,ent of t$e /ro)u+erAs inte##e+tu!# (ro(ert< TT
L !s to t$e /ro)u+er !n) TTL !s to t$e UserH !n)
(-) in t$e +!se of !n< infrin%e,ent or !##e%e) infrin%e,ent of t$e UserAs inte##e+tu!# (ro(ert< TTL !s
to t$e /ro)u+er !n) TTL !s to t$e User4
T$e O2ner s$!## t$en "e+o,e "oun) to t!Ce t$e re;uire) !+tion
1
> un#ess t$e O2ner is of t$e o(inion t$!t t$e
re;ueste) !+tion is #iCe#< to f!i#> or is un#iCe#< to resu#t in t$e re+over< of !n !,ount suffi+ient to )is+$!r%e
t$e #e%!# !n) ot$er e9(enses #iCe#< to "e in+urre)4 If t$e ot$er (!rt< )is(utes t$!t o(inion t$e ,!tter s$!## "e
referre) to ! "!rrister or so#i+itor of !t #e!st 0 <e!rs st!n)in%> 2e## verse) in inte##e+tu!# (ro(ert< )is(utes>
!((ointe) "< !%ree,ent "et2een t$e (!rties> or f!i#in% !%ree,ent> !((ointe) "< t$e /resi)ent for t$e ti,e
"ein% of t$e L!2 So+iet<> !n) t$e O2ner s$!## t!Ce su+$ !+tion !s su+$ "!rrister or so#i+itor s$!## !)vise4 T$e
fees of su+$ "!rrister or so#i+itor s$!## for, (!rt of t$e #e%!# e9(enses of t$e !+tion> to "e "orne !s set out
!"ove4 T$e ot$er (!rt< s$!## (rovi)e to t$e O2ner !## infor,!tion !n) !ssist!n+e re!son!"#< re;uire) of it "<
t$e O2ner for t$e (ur(ose of t$e re;uire) !+tion4
!1/).$
/ *oolin'
341 T$e /ro)u+er s$!## Cee( t$e Too#in% in its (ossession !n) s$!##:
(A) ensure t$!t !t !## ,!teri!# ti,es t$e Too#in% is in %oo) 2orCin% +on)ition !n) fit for t$e (ur(ose of
(ro)u+in% t$e /ro)u+tH !n)
(-) ensure t$!t !t !## ti,es t$e Too#in% is (ro,inent#< !n) in)e#i"#< ,!rCe) 2it$ ! st!te,ent t$!t it is
t$e joint (ro(ert< of t$e (!rties
3
4
Neit$er (!rt< s$!## (#e)%e> ,ort%!%e> +$!r%e> or se## its interest in t$e Too#in% or !%ree to )o so or !##o2 !n<
#ien to !rise in res(e+t t$ereof4 T$e /ro)u+er s$!## not )is(ose of or (!rt 2it$ (ossession of t$e Too#in% s!ve
in !++or)!n+e 2it$ +#!use 34&4
34 T$rou%$out t$e ter, of t$is !%ree,ent t$e /ro)u+er s$!## Cee( t$e Too#in% insure) in t$e joint n!,es of t$e
(!rties !%!inst #oss or )!,!%e "< fire> ,!#i+ious )!,!%e t$eft !n) A+t of Go) for t$e fu## re(#!+e,ent +ost4
In t$e event of )!,!%e to or #oss or )estru+tion of t$e Too#in%> t$e /ro)u+er s$!## (ro,(t#< notif< t$e User4
An< (ro+ee)s of !n insur!n+e +#!i, s$!## "e !((#ie) in re(!irin% or re(#!+in% t$e Too#in%4
/1( !1where the toolin! is to be destro,ed6
U(on ter,in!tion of t$is !%ree,ent for !n< re!son t$e /ro)u+er s$!## )estro< t$e Too#in% !n) s$!## (rovi)e
(roof of t$e )estru+tion to t$e User4
1or where provision re>uired .or continued use o. toolin! b, either part, .ollowin! termination until the end
o. its use.ul li.e6
Not2it$st!n)in% ter,in!tion of t$is !%ree,ent (e9+e(t un)er +#!use 04&) t$e Too#in% ,!< "e use) "< eit$er
(!rt< to (ro)u+e (ro)u+ts !s fo##o2s:
(A) -efore ,!Cin% use of t$e Too#in% or t!Cin% (ossession of it t$e (!rt< 2is$in% to )o so s$!## %ive !1*
)!<sA 1or as re>uired6$ noti+e to t$e ot$er4 A noti+e %iven "< t$e User s$!## "e effe+tive on#< if
%iven 2it$in !& ,ont$s 1or as re>uired6$ fro, ter,in!tion4
(-) At t$e ti,e t$!t noti+e is %iven un)er +#!use 34&(A) t$e (!rt< %ivin% noti+e s$!## ,!Ce (!<,ent of
t$!t (!rt of t$e too#in% +ost "orne (ursu!nt to +#!use &41 "< t$e (!rt< to 2$o, noti+e is %iven4
(C) If t$e noti+e is %iven "< t$e User> t$en t$e /ro)u+er s$!##> un#ess t$e Too#in% $!s "een )estro<e)
(rior to t$e %ivin% of noti+e> (er,it t$e User to +o##e+t t$e Too#in% u(on re!son!"#e noti+e4
(D) T$e (!rt< usin% t$e Too#in% s$!## (!< to t$e ot$er (!rt< ! ro<!#t< !of OTTT (er unit of (ro)u+t
,!nuf!+ture) usin% t$e too#in% 1or emplo, an alternative method o. determinin! ro,alties set out in
an anne76$4 Su+$ ro<!#t< s$!## "e +!#+u#!te) !n) (!i) ;u!rter#< 2it$in 1* )!<s of t$e en) of e!+$
+!#en)!r ;u!rter4 T$e (!rt< usin% t$e Too#in% s$!## ensure t$!t !## ne+ess!r< ,!nuf!+turin% !n)
s!#es re+or)s !re Ce(t !n) ,!)e !v!i#!"#e on re!son!"#e noti+e to t$e ot$er (!rt< for t$e (ur(ose of
verif<in% t$e ;u!ntit< of (ro)u+ts ,!nuf!+ture) usin% t$e Too#in%4
(E) If "ot$ (!rties seeC to use t$e Too#in% t$en t$e (!rt< 2$i+$ first %ives noti+e (ursu!nt to +#!use
34&(A) s$!## "e entit#e) to )o so "ut s$!## "e "oun) to su((#< (ro)u+ts to t$e ot$er !t t$e (ri+e !t
2$i+$ t$e (!rt< usin% t$e Too#in% is for t$e ti,e "ein% se##in% t$e (ro)u+ts !#ess ! )is+ount of TT
L$4
(:) Unti# t$e e9(ir< of !& ,ont$s 1or as re>uired6$ fro, ter,in!tion> t$e /ro)u+er s$!## (reserve t$e
Too#in% in t$e s!,e +on)ition !s on ter,in!tion4 U(on t$e e9(ir< of t$e (erio) of !& ,ont$s 1or as
re>uired6$ t$en> un#ess eit$er (!rt< $!s serve) noti+e !n) ,!)e (!<,ent (ursu!nt to +#!use 34&(A)>
t$e /ro)u+er s$!## )estro< t$e Too#in% !n) %ive (roof of t$e )estru+tion to t$e User4$
!1/)/$
" Nature of this a'reement
T$is !%ree,ent re#!tes on#< to t$e sin%#e joint venture it refers to4 It )oes not +onstitute eit$er (!rt< t$e !%ent of t$e
ot$er (!rt<> !n) it )oes not +onstitute ! (!rtners$i( "et2een t$e (!rties4
2 *a5ation
641 E!+$ (!rt< s$!## "e!r its o2n #i!"i#it< for !n< t!9!tion or )ut< +$!r%e!"#e in t$e Unite) Bin%)o, in res(e+t of
its (!rti+i(!tion in t$e venture !n) e!+$ un)ert!Ces to in)e,nif< t$e ot$er in res(e+t of !n< su+$ t!9!tion
!ssesse) on !n) (!i) "< t$e ot$er in res(e+t of 2$i+$ t$e for,er is (ri,!ri#< #i!"#e4
64 An< su((#< ,!)e "< one (!rt< to t$e ot$er (ursu!nt to t$is !%ree,ent s$!## "e e9+#usive of !n< VAT
+$!r%e!"#e t$ereon> 2$i+$ s$!## "e (!i) "< t$e (!rt< to 2$o, t$e su((#< is ,!)e in !))ition to t$e (!<,ent
for t$e su((#<> su"je+t to t$e (rovision to it of ! v!#i) VAT invoi+e4
64& A## (!<,ents ,!)e "< one (!rt< to t$e ot$er (ursu!nt to t$is !%ree,ent s$!## "e (!i) free !n) +#e!r of !##
2it$$o#)in%s !n) )e)u+tions in res(e+t of t!9!tion> s!ve !s re;uire) "< #!24 If su+$ 2it$$o#)in% or )e)u+tion
is so re;uire) "< #!2> t$en !t$e (!rt< ,!Cin% t$e (!<,ent s$!## in+re!se t$e !,ount of t$e (!<,ent so t$!t
t$e ot$er (!rt< re+eives t$e s!,e !,ount !s it 2ou#) $!ve re+eive) in t$e !"sen+e of t$e re;uire,ent to ,!Ce
t$e 2it$$o#)in% or )e)u+tion> !n)$ t$e (!rt< ,!Cin% t$e (!<,ent s$!## %ive to t$e ot$er (!rt< !n !((ro(ri!te
+ertifi+!te !s ,!< "e re;uire) "< #!2 s$o2in% t$e !,ount of t$e 2it$$o#)in% or )e)u+tion4
!If t$e (!rt< re+eivin% t$e (!<,ent su"se;uent#< o"t!ins re#ief or +re)it in res(e+t of t$e 2it$$o#)in% or
)e)u+tion> t$en it s$!## (ro,(t#< re(!< to t$e (!rt< 2$i+$ ,!)e t$e (!<,ent !n !,ount e;u!# to t$e +re)it or
re#ief o"t!ine) u( to ! ,!9i,u, of t$e !,ount "< 2$i+$ t$e (!<,ent 2!s in+re!se) to t!Ce !++ount of t$e
2it$$o#)in% or )e)u+tion4 T$e (!rties s$!## +o'o(er!te 2it$ ! vie2 to !##o2in% e!+$ ot$er to o"t!in !n<
!v!i#!"#e re#ief or +re)it in res(e+t of !n< su+$ 2it$$o#)in% or )e)u+tion in res(e+t of t!9!tion!> !n) in
(!rti+u#!r "ut 2it$out (reju)i+e to t$e fore%oin% %ener!#it< s$!## %ive !n< infor,!tion re!son!"#< re;uire) "<
t$e ot$er (!rt< in +onne+tion 2it$ t$e ,!Cin% of ! +#!i, for re#ief un)er !n !((#i+!"#e )ou"#e t!9!tion
tre!t<$4$
5
!1/)"$
1# Force majeure
1841 :or t$e (ur(oses of t$is +#!use 18> Dfor+e ,!jeureA ,e!ns !n< +ir+u,st!n+es not foreseen !t t$e )!te of t$is
!%ree,ent !n) not 2it$in t$e re!son!"#e +ontro# of t$e (!rt< !ffe+te) "< t$e s!,e> in+#u)in% 2it$out
#i,it!tion> striCes> #o+Couts> s$ort!%es of #!"our> ,!teri!#s or +o,(onents> +ivi# +o,,otion> riot> inv!sion>
2!r> t$re!t of or (re(!r!tion for 2!r> un!voi)!"#e !++i)ent> fire> e9(#osion> stor,> f#oo)> e!rt$;u!Ce>
su"si)en+e> e(i)e,i+ or ot$er n!tur!# ($<si+!# )is!ster4
184 If !n) to t$e e9tent t$!t eit$er (!rt< is (revente) or )e#!<e) "< for+e ,!jeure fro, (erfor,in% !n< of its
o"#i%!tions un)er t$is !%ree,ent !n) (ro,(t#< so notifies t$e ot$er (!rt<> s(e+if<in% t$e ,!tters +onstitutin%
t$e for+e ,!jeure !n) s(e+if<in% t$e (erio) for 2$i+$ it is esti,!te) t$!t t$e (revention or )e#!< 2i##
+ontinue> t$en t$e (!rt< so !ffe+te) s$!## "e re#ieve) of #i!"i#it< to t$e ot$er for f!i#ure to (erfor, or for )e#!<
in (erfor,in% su+$ o"#i%!tions (!s t$e +!se ,!< "e) "ut s$!## nevert$e#ess use !## re!son!"#e en)e!vours to
resu,e fu## (erfor,!n+e t$ereof> !n) t$e (!rties s$!## join in ,!Cin% su+$ !#tern!tive !rr!n%e,ents !s t$e<
,!< +onsi)er (r!+ti+!"#e> 2it$out in+urrin% ,!teri!# !))ition!# e9(ense> to restore fu## (erfor,!n+e or to
re)u+e !n< )e#!< in (erfor,!n+e4
184& If t$e for+e ,!jeure +ontinues for ! (erio) of !& ,ont$s 1or as re>uired6$ or ,ore !n) no !#tern!tive
!rr!n%e,ents 2$i+$ !re effe+tive to restore fu## (erfor,!n+e !re ,!)e 2it$in t$!t ti,e> t$e (!rt< not !ffe+te)
"< t$e for+e ,!jeure ,!< ter,in!te t$is !%ree,ent "< %ivin% not #ess t$!n &8 )!<sA (rior noti+e to t$e ot$er
(!rt<> "ut t$e noti+e s$!## "e of no effe+t if t$e (!rt< !ffe+te) "< t$e for+e ,!jeure resu,es fu## (erfor,!n+e
of its o"#i%!tions "efore t$e e9(ir< of t$e noti+e (erio)4 If t$e (!rt< entit#e) to serve su+$ noti+e is t$e User>
!n) t$e for+e ,!jeure is (reventin% or su"st!nti!##< )e#!<in% (ro)u+tion or )e#iver< of t$e /ro)u+t> t$e User
,!< !#tern!tive#< serve ! noti+e on t$e User t$!t t$e restri+tion in +#!use *4 s$!## +e!se to !((#<> 2$ereu(on
t$e User s$!## "e+o,e entit#e) to (ur+$!se !n< (ro)u+ts si,i#!r to t$e /ro)u+t unti# su+$ ti,e !s t$e /ro)u+er
serves noti+e on t$e User t$!t /ro)u+er is !"#e to resu,e fu## (ro)u+tion !n) )e#iver< of t$e /ro)u+t4 If t$e
/ro)u+er $!s not serve) su+$ noti+e 2it$in !1 ,ont$s 1or as re>uired6$ of t$e UserAs noti+e or> $!vin% serve)
noti+e> f!i#s to resu,e fu## (ro)u+tion !n) )e#iver< of t$e /ro)u+t 2it$in ! furt$er (erio) of ! 2eeCs 1or as
re>uired6$> t$e User s$!## "e entit#e) to %ive noti+e to t$e /ro)u+er ter,in!tin% t$is !%ree,ent fort$2it$4
!1/)2$
11 4arranties
E!+$ (!rt< 2!rr!nts to t$e ot$er:
1141 t$!t it is t$e "enefi+i!# o2ner free fro, en+u,"r!n+es of !## t$e inte##e+tu!# (ro(ert< ri%$ts 2$i+$ su"sist in
!## t$e ,!teri!#s 2$i+$ it no2 or #!ter +ontri"utes to t$e /roje+t !n) is entit#e) to %r!nt !## #i+en+es in res(e+t
of t$e, 2$i+$ it is re;uire) to %r!nt "< t$is !%ree,ent> !n) to t$e "est of its infor,!tion> Cno2#e)%e !n)
"e#ief> no su+$ ,!teri!#s infrin%e t$e inte##e+tu!# (ro(ert< ri%$ts of !n< ot$er (erson
6
H !n)
!114 t$!t it $!s !v!i#!"#e t$e re;uisite sCi##s> Cno2#e)%e !n) e9(erien+e !n) fin!n+i!# resour+es to un)ert!Ce !n)
+!rr< t$rou%$ t$e /roje+t to +o,(#etion !n) in t$e +!se of t$e /ro)u+er to un)ert!Ce t$e ,!nuf!+ture of t$e
/ro)u+ts$4
1add such other warranties as to the .inancial standin! o. the parties0 and as to nature and scope o. each part,3s
intellectual propert, ri!hts as ma, be appropriate6
!1/,#$
1% Confidentiality
141 E!+$ of t$e (!rties s$!## !t !## ti,es use its "est en)e!vours to Cee( +onfi)enti!# (!n) to (ro+ure its res(e+tive
e,(#o<ees> !%ents> +onsu#t!nts !n) su"'+ontr!+tors s$!## Cee( +onfi)enti!#) !n< +onfi)enti!# infor,!tion
+on+ernin% t$e /roje+t or t$e +#ients> "usiness !n) !ff!irs of t$e ot$er (!rt< (or its su"si)i!ries or its $o#)in%
+o,(!n< or !n< of t$e su"si)i!ries of su+$ $o#)in% +o,(!n<) 2$i+$ ,!< no2 or !t !n< ti,e $ere!fter "e in
its (ossession !n) s$!## not )is+#ose it e9+e(t 2it$ t$e +onsent of t$e ot$er (!rt< !n)> e9+e(t to t$e e9tent t$!t
su+$ +onfi)enti!# infor,!tion is !n inte%r!# (!rt of !n< ,!teri!#s t$e inte##e+tu!# (ro(ert< in 2$i+$ is or ,!<
!t !n< ti,e "e #i+ense) to it> s$!## not use for its o2n "enefit !n< of t$e +onfi)enti!# infor,!tion e9+e(t 2it$
+onsent of t$e ot$er (!rt<4
14 :or t$e (ur(oses of t$is +#!use 1> D+onfi)enti!# infor,!tionA ,e!ns !n< infor,!tion i,(!rte) to eit$er (!rt<
or its e,(#o<ees> !%ents> +onsu#t!nts or su"'+ontr!+tors (Dt$e Re+eivin% /!rt<A) 2$i+$ 2!s i,(!rte) to t$e
Re+eivin% /!rt< on t$e "!sis t$!t it is to "e Ce(t +onfi)enti!#> or 2ou#) "< its n!ture nor,!##< "e re%!r)e) !s
"ein% +onfi)enti!#> or to t$e Cno2#e)%e of t$e Re+eivin% /!rt< 2!s o"t!ine) "< t$e ot$er (!rt< on t$e "!sis
t$!t it 2!s to "e Ce(t +onfi)enti!#> or is of +o,,er+i!# v!#ue in re#!tion to t$e /roje+t or t$e /ro)u+t> "ut s$!##
not in+#u)e !n< infor,!tion 2$i+$ is for t$e ti,e "ein% in t$e (u"#i+ )o,!in ot$er2ise t$!n "< re!son of its
2ron%fu# )is+#osure "< t$e Re+eivin% /!rt<4
14& T$is +#!use 1 s$!## +ontinue 2it$out #i,it of ti,e> !n) s$!## survive t$e ter,in!tion of t$is !%ree,ent4
14* T$is +#!use 1 s$!## not (revent t$e )is+#osure of !n< +onfi)enti!# infor,!tion re#!tin% to t$e /roje+t or t$e
/ro)u+t 2$i+$ is re!son!"#< )is+#ose) for t$e furt$er!n+e of t$e /roje+t or t$e (ro,otion of s!#es of t$e
/ro)u+t> (rovi)e) t$!t t$e (!rt< )is+#osin% t$e infor,!tion t!Ces !## ste(s t$!t !re +o,,er+i!##< (r!+ti+!"#e to
(reserve t$e +onfi)enti!#it< of t$e infor,!tion> !n) s$!## not (revent t$e )is+#osure of !n< +onfi)enti!#
infor,!tion 2$ere re;uire) "< #!24
140 E!+$ (!rt< un)ert!Ces to !use its "est en)e!vours to$ o"t!in +onfi)enti!#it< un)ert!Cin%s +o,(#<in% 2it$ t$is
+#!use 1 fro, its e,(#o<ees> !%ents> +onsu#t!nts !n) su"'+ontr!+tors !t !n< ti,e en%!%e) on t$e /roje+t or
invo#ve) 2it$ t$e /ro)u+t4
!1/,1$
1( <utual indemnities and limitation of liability
18
1&41 Durin% t$e +ourse of t$e /roje+t e!+$ (!rt< s$!## "e res(onsi"#e for ensurin% t$e s!fet< of its o2n e,(#o<ees
!n) s$!## +o,(#< 2it$ !## #e%!# re;uire,ents 2$et$er i,(ose) "< st!tute> st!tutor< instru,ent> re%u#!tion>
+o,,on #!2 or ot$er2ise 2$i+$ is re;uire) to "e o"serve) "< it )urin% t$e +ourse of t$e /roje+t4
1&4 E!+$ (!rt< (Dt$e In)e,nif<in% /!rt<A) s$!## in)e,nif< !n) Cee( in)e,nifie) t$e ot$er in res(e+t of !##
#i!"i#ities> +osts> +#!i,s> )e,!n)s> e9(enses> fines !n) ot$er (en!#ties (in+#u)in% #e%!# fees !n) e9(enses)
2$i+$ t$e ot$er (!rt< ,!< in+ur or sust!in !n) 2$i+$ in !n< 2!< re#!te to or !rise fro, t$e In)e,nif<in%
/!rt<As f!i#ure to (erfor, its o"#i%!tions un)er +#!use 1&414
1&4& Neit$er (!rt< s$!## "e #i!"#e to t$e ot$er in res(e+t of !n< in)ire+t or +onse;uenti!# #oss> in+#u)in% #oss of
!nti+i(!te) (rofits> %oo)2i## or re(ut!tion> $o2soever +!use) !s!ve in t$e +!se of /ro)u+er> t$ose in+urre) to
t$ir) (!rties "< t$e User in +onse;uen+e of its s!#e of t$e /ro)u+t$4
1&4* Not$in% in t$is +#!use 1& or e#se2$ere in t$is !%ree,ent s$!## e9+#u)e> restri+t or #i,it t$e #i!"i#it< of eit$er
(!rt< for )e!t$ or (erson!# injur< +!use) "< t$!t (!rt<As ne%#i%en+e or for fr!u)4
!1/,%$
1) 8eneral
1*41 T$is !%ree,ent is "in)in% u(on t$e (!rties !n) t$eir res(e+tive su++essors !n) (er,itte) !ssi%ns4 Neit$er of
+onsent of t$e ot$er (2$i+$ +onsent t$e ot$er (!rt< ,!< in its !"so#ute )is+retion 2it$$o#))4 If ! (!rt< su"'
+ontr!+ts !n< of its o"#i%!tions un)er t$e (rin+i(!# +ontr!+t to ! t$ir) (!rt<> su+$ su"'+ontr!+tin% s$!## not
!ffe+t !n< of t$e (rovisions of t$is !%ree,ent or t$e o"#i%!tions of t$!t (!rt<> 2$o s$!## re,!in #i!"#e su"je+t
to !n< re,e)ies it ,!< $!ve !%!inst t$e su"'+ontr!+tor4
1*4 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t> (o2er or re,e)< veste) eit$er (!rt< un)er
re,e)<4
1*4& E!+$ (!rt< s$!## "e!r its o2n +osts of or in +onne+tion 2it$ t$e (re(!r!tion !n) e9e+ution of t$is !%ree,ent4
1*4* Neit$er (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
!1/,($
1*40 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ it or referre)
to in it) +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to its su"je+t ,!tter !n) su(erse)es !##
(rior !%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to it4 No v!ri!tion of t$is
1*41 If !n< (!rt of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e #!2> st!tute or re%u#!tion> it s$!## "e
)ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n) effe+t !n) t$is !%ree,ent s$!## re,!in
in fu## for+e !n) effe+t !s if t$!t (!rt $!) not ori%in!##< "een +ont!ine) in t$is !%ree,ent> !n) t$e (!rties s$!##
ne%oti!te in %oo) f!it$ to tr< to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n) s!tisf!+tor< !#tern!tive
(rovision4
1*43 T$is !%ree,ent ,!< "e e9e+ute) in !n< nu,"er of +ounter(!rts or )u(#i+!tes e!+$ of 2$i+$ s$!## "e !n
!1*45 Ti,e s$!## "e of t$e essen+e for t$e (ur(oses of e!+$ (rovision of t$is !%ree,ent4$
!1/,)$
1, Notices
User 1insert address0 .a7 number 6 !,!rCe) for t$e !ttention of 1name6$
/ro)u+er 1insert address0 .a7 number 6 !,!rCe) for t$e !ttention of 1name6$
re>uired6$ )!<s !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,$4 In (rovin% t$e servi+e of !n< noti+e
it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s (ro(er#< st!,(e)> !))resse) !n) (#!+e)
in t$e (ost> or )e#ivere) or #eft !t t$e (ro(er !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9> t$!t t$e
f!9 tr!ns,ission 2!s )u#< ,!)e to t$e (ro(er f!9 nu,"er4
t$is !%ree,ent (D(ro+ee)in%sA) e!+$ of t$e (!rties irrevo+!"#< su",its to t$e juris)i+tion of t$e +ourts of
En%#!n) !n) 7!#es !n) 2!ives !n< o"je+tion to (ro+ee)in%s in su+$ +ourts on t$e %roun)s of venue or on t$e
%roun)s t$!t t$e (ro+ee)in%s $!ve "een "rou%$t in !n in+onvenient foru,4 T$ese su",issions s$!## not !ffe+t
t$e ri%$t of ! (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!## t$e t!Cin% of (ro+ee)in%s in !n<
juris)i+tion (re+#u)e !n< (!rt< fro, t!Cin% (ro+ee)in%s in !n< ot$er juris)i+tion
11
4
!1/,,$
IN 7ITNESS> ETC 1see vol :9 1:CCF Reissue6 DEED#0 )GREE(E*'# )*D DE&L)R)'8O*# Form C; N:DCFO et se>6
SC.EDULE 1
/re#i,in!r< Tests !n) Stu)ies
TestEStu)< D!te for Co,(#etion
!SC.EDULE
Ter,s of Tr!)in%
1set out terms and conditions6
1si!natures 1or common seals6 o. the parties6
1
T$e (rovisions of +#!uses &4* J13*8K> &40 !n) &41 J13*1K !re !%ree,ents to !%ree !n) t$erefore unenfor+e!"#e4 T$us> t$e
re,!inin% o"#i%!tions of +#!uses &41> &43 J13*1K !n) * J13*K !re +on)ition!# u(on t$ese ,!tters "ein% !%ree)4
Ensure t$!t t$e ter,s s(e+ifie) in +#!use *40 J13*&K )o not +ontr!)i+t t$is (rovision4
&
See note 1 !"ove4
*
7$ere eit$er (!rt< $!s tr!)e se+rets 2$i+$ !re to for, (!rt of t$e venture ! +onfi)enti!#it< +#!use s$ou#) "e !))e)4
!1/,.$
0
7$ere e9tensive joint rese!r+$ or )eve#o(,ent 2orC is to "e un)ert!Cen +onsi)er!tion s$ou#) "e %iven to +re!tin% joint
o2ners$i( of t$e resu#tin% inte##e+tu!# (ro(ert<4 See t$e !#tern!tive +#!use "e#o24
1
T$e r!tion!#e of !##o2in% t$e ot$er (!rt< t$e ri%$t to re;uire !+tion to "e t!Cen is t$!t !#t$ou%$ t$e o2ner $!s t$e inte##e+tu!#
(ro(ert<> t$!t (ro(ert< $!s "een in+or(or!te) in t$e (ro)u+t> s!#es of 2$i+$ ,!< "e !ffe+te) if t$e infrin%e,ent is not st!,(e)
out4 An !#tern!tive so,eti,es seen is to !##o2 t$e ot$er (!rt< t$e ri%$t to t!Ce !+tion !t entire#< its o2n e9(ense !n) for its o2n
"enefit> 2it$ t$e o2ner #en)in% its n!,e to t$e !+tion4 .o2ever> in t$is t<(e of venture t$e fin!n+i!# interest of e!+$ (!rt< in t$e
infrin%e,ent ,!< )iffer $u%e#< !n) su+$ ! (rovision +ou#) f!i# to (rovi)e ! vi!"#e re,e)< for t$e ot$er (!rt<4
3
Consi)er!tion s$ou#) "e %iven to t$e +!(it!# !##o2!n+es i,(#i+!tions of (ro(ert< "ein% o2ne) joint#<4 In %ener!#> e!+$ (!rt< 2i##
sti## "e !"#e to +#!i, !##o2!n+es on its o2n e9(en)iture on t$e joint (ro(ert<> (rovi)e) t$!t it is use) for t$e (ur(oses of ! tr!)e
+!rrie) on "< t$!t (!rt<4
5
S(e+ifi+ !)vi+e s$ou#) !#2!<s "e t!Cen !s to t$e t!9 tre!t,ent of t$e (!rti+u#!r tr!ns!+tion> !s t$e t!9 i,(#i+!tions 2i## v!r<
!++or)in% to t$e n!ture of t$e joint venture !n) t$e juris)i+tions in 2$i+$ t$e (!rties !re t!9 resi)ent4 /!rti+u#!r issues 2$i+$
,!< "e re#ev!nt 2i## in+#u)e t$e fo##o2in%:
(A) If one of t$e (!rties is non'UB resi)ent for t!9 (ur(oses !n) t$e ot$er is not> t$en +onsi)er!tion s$ou#) "e %iven to
2$et$er t$e UB resi)ent (!rt< 2i## "e +$!r%e!"#e to UB t!9 on t$e (rofit s$!re of t$e non'resi)ent (!rt< !s its !%ent4
T$e in)e,nit< in +#!use 641 J13*5K 2i## +over su+$ t!9> "ut if t$ere is !n !%en+< for t!9 (ur(oses t$en t$is 2or)in%
+ou#) "e e9(!n)e) to furt$er (rote+t t$e !%ent4
(-) If ! 2it$$o#)in% t!9 o"#i%!tion is #iCe#< to !rise> t$en +onsi)er!tion s$ou#) "e %iven !s to 2$et$er t$e %ross'u( in
+#!use 64& is !((ro(ri!te4 7$ere "ot$ (!rties !re resi)ent in t$e UB> t$e fin!# 2or)s in +#!use 64& +!n nor,!##< "e
)e#ete)4
(C) If one of t$e (!rties is non'UB resi)ent !n) t$e ot$er is not> !n) "ot$ !re un)er +o,,on +ontro# or (!rt of ! joint
venture 2it$ *8L +o,,on o2ners$i(> t$en s(e+i!# +!re ,ust "e t!Cen %iven t$e s+o(e of t$e e9ten)e) UB tr!nsfer
(ri+in% #e%is#!tion: see t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 S+$ 5AA !s inserte) "< t$e :in!n+e A+t 1665 s
185> S+$ 114
6
/!rties s$ou#) t!Ce +!re to ensure t$!t re#ev!nt inte##e+tu!# (ro(ert< !re in)ee) veste) in t$e,4 :or e9!,(#e> +o(<ri%$t in
)esi%ns +o,,issione) fro, non'e,(#o<ees ,!< 2e## "e#on% to t$e !ut$or4 C$e+C t$e +ontr!+ts4
18
It is !ssu,e) t$!t #i!"i#ities !risin% out of )efe+tive (ro)u+ts 2i## "e )e!#t 2it$ in t$e +on)itions of s!#e ,entione) in +#!use *40
J13*&K "ut> if not> !((ro(ri!te (rovisions s$ou#) "e inserte) $ere4 T$e (ro)u+er s$ou#) !ssu,e res(onsi"i#it< for )efe+tive
,!nuf!+ture> !n) 2i## nor,!##< offer ! %u!r!ntee #i,ite) in ti,e> in e9+$!n%e for e9+#usion of its #i!"i#ities !t st!tute !n)
+o,,on #!2 !n) 2i## !#so 2is$ to e9+#u)e +onse;uenti!# #osses> !#t$ou%$ t$e "ur)en of t$ese 2i## t$en "e t$ro2n on t$e user4
T$e (ro)u+er s$ou#) on#< !ssu,e #i!"i#it< for )esi%n )efe+ts to t$e e9tent t$!t its (!rt of t$e )esi%n 2!s !t f!u#t4 T$e !v!i#!"i#it<
of insur!n+e is of +riti+!# i,(ort!n+e to t$e !((ro!+$ to t$ese (rovisions4
11
T$is )r!ft )oes not +ont!in !n< restri+tion on +o,(etition4 If t$is is sou%$t t$e +o,(etition #!2 re;uire,ents of t$e Euro(e!n
Union s$ou#) "e +onsi)ere) +!refu##<> in (!rti+u#!r Arti+#e 50(1) !n) Re%u#!tion *15E504
!1/,/$
1%
A'reement for the proision of mana'erial support or other serices to a joint enture company by one of the
joint enturers
(1) 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er +o,(!n< nu,"er 1re!istration number6 2$ose
re%istere) offi+e is !t 1address6 (DF Co,(!n<A)H !n)
() 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er +o,(!n< nu,"er 1re!istration number6 2$ose
re%istere) offi+e is !t 1address6 (Dt$e Joint Venture Co,(!n<A)4
7.EREAS:
(A) T$e Joint Venture Co,(!n< $!s "een for,e) !s ! joint venture ve$i+#e to un)ert!Ce t$e "usiness of 1insert
details64
(-) F Co,(!n< is t$e $o#)er of 1number6 s$!res in t$e Joint Venture Co,(!n< $!vin% su"s+ri"e) for t$e s!,e
(ursu!nt to !n !%ree,ent 1set out description0 date and parties to the /oint venture a!reement64
(C) F Co,(!n< $!s> (ursu!nt to +#!use * of !%ree,ent referre) in re+it!# (-)> !%ree) to enter into t$is !%ree,ent
to (rovi)e 1brie. description o. services6 to t$e Joint Venture Co,(!n< on t$e ter,s set out "e#o24
!1/,"$
1 7nterpretation
(A) Dt$e Effe+tive D!teA ,e!ns 1date6H
(-) Dt$e Joint Venture A%ree,entA ,e!ns t$e !%ree,ent referre) to in re+it!# (-)H
(C) referen+es to D(!rt<A or D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or (!rties to t$is
!%ree,entH !n)
(D) Dt$e Servi+esA ,e!ns t$e servi+es to "e (erfor,e) "< F Co,(!n< for t$e Joint Venture Co,(!n<
u(on t$e ter,s of t$is !%ree,ent> ! )et!i#e) )es+ri(tion of 2$i+$ is set out in t$e !((en)i9 $ereto
!s !,en)e) fro, ti,e to ti,e4
14 Referen+es to D(ersonsA !n) D(!rtiesA s$!## in+#u)e "o)ies +or(or!te !n) unin+or(or!te) !sso+i!tions !n)
(!rtners$i(s4
14& Referen+es to +#!uses !n) t$e !((en)i9 !re to +#!uses of !n) t$e !((en)i9 to t$is !%ree,ent4 Referen+es to
t$is !%ree,ent in+#u)e t$e !((en)i94
14* T$e $e!)in%s !re inserte) for +onvenien+e on#< !n) s$!## not !ffe+t t$e +onstru+tion of t$is !%ree,ent4
!1/,2$
% Duration
Su"je+t !s (rovi)e) in +#!use 11> t$is !%ree,ent s$!## +o,,en+e on t$e Effe+tive D!te !n) +ontinue un#ess !n) unti#
ter,in!te) "< eit$er (!rt< %ivin% to t$e ot$er not #ess t$!n !& ,ont$sA 1or as re>uired6$ noti+e in 2ritin% e9(irin% on or
!t !n< ti,e !fter !t$e 1number6 !nnivers!r< of t$e Effe+tive D!te 1or as re>uired6$4
( Proision of the 3erices
F Co,(!n< s$!## (rovi)e t$e servi+es to t$e Joint Venture Co,(!n< !t t$e ti,es !n) !t t$e (#!+es> in t$e ,!nner !n) in
!++or)!n+e 2it$ t$e ter,s set out in t$e !((en)i94
) Char'es
T$e Joint Venture Co,(!n< s$!## (!< +$!r%es for t$e Servi+es in t$e !,ounts !n) !t t$e ti,es set out in t$e !((en)i94
Su+$ +$!r%es s$!## "e e9+#usive of !n< VAT +$!r%e!"#e on it> 2$i+$ s$!## "e (!i) "< t$e Joint Venture Co,(!n< in
!))ition to su+$ +$!r%es> su"je+t to t$e (rovision to it of v!#i) VAT invoi+es4
!1/.#$
, 7ndependent contractor
In (erfor,in% t$e servi+es in +!rr<in% out its o"#i%!tions un)er t$is !%ree,ent> F Co,(!n< s$!## !+t !s !n in)e(en)ent
+ontr!+tor !n) not t$e !%ent of t$e Joint Venture Co,(!n<> !n) neit$er F Co,(!n< nor !n< of its )ire+tors> e,(#o<ees
or !%ents s$!## $!ve !n< !ut$orit< to ne%oti!te or enter into +ontr!+ts on "e$!#f of or ot$er2ise to "in) t$e Joint Venture
Co,(!n< (e9+e(t 2$ere !ut$orise) e9(ress#< in 2ritin%)4
. 3tandard of 0or>
In (erfor,in% t$e Servi+es F Co,(!n< s$!## use re!son!"#e +!re !n) sCi##> +o,(#< 2it$ t$e ter,s set out in t$e
!((en)i9 !n) 2it$ %ener!##< !++e(te) st!n)!r)s of %oo) (r!+ti+e4 T$e s!i) o"#i%!tions s$!## re(#!+e !## +on)itions !n)
2!rr!nties 2$i+$ 2ou#) ot$er2ise "e i,(#ie) $erein "< st!tute> +o,,on #!2 or ot$er2ise (in+#u)in%> 2it$out #i,it> t$e
Su((#< of Goo)s !n) Servi+es A+t 165) !## of 2$i+$ !re $ere"< e9(ress#< e9+#u)e)4
!1/.1$
!/ 7ntellectual property and confidential information
341 To t$e e9tent t$!t in t$e (rovision of t$e Servi+es F Co,(!n< ,!Ces use of !n< inventions> )is+overies>
(ro+esses> +onfi)enti!# infor,!tion> )esi%ns or ot$er 2orCs in 2$i+$ F Co,(!n< $!s !n< in)ustri!# or
inte##e+tu!# (ro(ert< ri%$ts> F Co,(!n< %r!nts> so f!r !s su+$ %r!nt )oes not +onf#i+t 2it$ !n< o"#i%!tion
o2e) "< F Co,(!n< to !n< t$ir) (!rt<> to t$e Joint Venture Co,(!n< ! non'e9+#usive ro<!#t<'free
!(er(etu!#$ #i+en+e to use t$e s!,e in re#!tion to !n< (ro)u+ts or servi+es in !n< 2!< )erive) fro, t$e
(rovision of t$e Servi+es> !2it$in t$e Joint Venture Co,(!n< !re! of interest to "e )efine)>$ 2it$ fu## (o2er
for t$e Joint Venture Co,(!n< to !ssi%n t$e #i+en+e !n) to %r!nt su"'#i+en+es su"je+t to t$e Joint Venture
Co,(!n<> t$e !ssi%nees !n) su"'#i+ensees> if !n<> un)ert!Cin% to F Co,(!n< to ,!int!in !s +onfi)enti!# !n<
+onfi)enti!# infor,!tion of F Co,(!n< #i+ense) un)er t$is !%ree,ent4
34 F Co,(!n< un)ert!Ces to t$e Joint Venture Co,(!n< t$!t it 2i## not in t$e (rovision of t$e Servi+es
Cno2in%#< infrin%e !n< (!tents> +o(<ri%$ts or !n< ot$er inte##e+tu!# or in)ustri!# (ro(ert< ri%$ts of !n< t$ir)
(!rt< in !n< (!rt of t$e 2or#) !n) t$!t F Co,(!n< 2i## in)e,nif< !n) Cee( in)e,nifie) t$e Joint Venture
Co,(!n< in res(e+t of !## #i!"i#ities> +osts> +#!i,s> )e,!n)s !n) e9(enses (in+#u)in% #e%!# fees !n) e9(enses)
2$i+$ t$e Joint Venture Co,(!n< ,!< in+ur or sust!in to !n< t$ir) (!rt< !s ! resu#t of t$e "re!+$ "< F
Co,(!n< of t$e fore%oin% un)ert!Cin%4
34& F Co,(!n< s$!## not )urin% t$is !%ree,ent or !t !n< ti,e t$ere!fter> use or )is+#ose to !n< (erson (ot$er t$!n
!s !ut$orise) "< t$e Joint Venture Co,(!n< or !s re;uire) in t$e (rovision of t$e Servi+es) !n< tr!)e se+rets
or ot$er infor,!tion 2$i+$ is for t$e ti,e "ein% +onfi)enti!# re#!tin% to t$e "usiness of t$e Joint Venture
Co,(!n< or !n< of its su"si)i!ries !n) to its +#ients> +usto,ers !n) ot$er t$ir) (!rties 2it$ 2$o, t$e Joint
Venture Co,(!n< or !n< of its su"si)i!ries $!s "usiness )e!#in%s "ein% infor,!tion 2$i+$ is ,!rCe)
+onfi)enti!# or 2$i+$ t$e Joint Venture Co,(!n< s$!## $!ve notifie) F Co,(!n< is to "e Ce(t +onfi)enti!# or
2$i+$ to t$e Cno2#e)%e of F Co,(!n< $!s "een o"t!ine) "< t$e Joint Venture Co,(!n< or !n< of its
su"si)i!ries fro, ! t$ir) (!rt< on ter,s t$!t t$e Joint Venture Co,(!n< or su+$ su"si)i!r< is to Cee( it
+onfi)enti!#> !n) F Co,(!n< s$!## ensure t$!t !n< (ersons to 2$o, its o"#i%!tions !re +ontr!+te) "< virtue
of +#!use 141 !re eit$er +ontr!+tu!##< "oun) to F Co,(!n< to o"serve t$e s!,e o"#i%!tion or !re !2!re of
t$eir o"#i%!tions un)er +o,,on #!2 !n) F Co,(!n< 2i## t!Ce !## re!son!"#e ste(s to enfor+e su+$
+ontr!+tu!# re;uire,ents !n)Eor o"#i%!tions !t +o,,on #!2 (rovi)e) t$!t not$in% in t$is o"#i%!tion s$!##
e9ten) to infor,!tion or Cno2#e)%e 2$i+$ is for t$e ti,e "ein% in t$e (u"#i+ )o,!in (ot$er2ise t$!n "<
re!son of its 2ron%fu# )is+#osure) or 2$i+$ is re;uire) to "e )is+#ose) "< #!2)4$
!1/.%$
!" Cealth and safety
541 7$ere t$e (rovision of t$e Servi+es re;uires e,(#o<ees or su"'+ontr!+tors of F Co,(!n< to 2orC on t$e
(re,ises of t$e Joint Venture Co,(!n< t$en:
(A) t$e Joint Venture Co,(!n< s$!## ensure t$!t its (re,ises !n) !## (#!nt !n) e;ui(,ent 2$i+$ is use)
"< su+$ e,(#o<ees or su"'+ontr!+tors or 2it$ 2$i+$ t$e< ,!< +o,e into +ont!+t or to 2$i+$ t$e<
,!< "e e9(ose) +o,(#ies 2it$ !## .e!#t$ !n) S!fet< Re;uire,entsH
(-) F Co,(!n< s$!## ensure t$!t !## its e,(#o<ees or su"'+ontr!+tors fro, ti,e to ti,e 2orCin% on t$e
(rovision of t$e Servi+es !re (ro(er#< tr!ine) in !## re#ev!nt $e!#t$ !n) s!fet< re;uire,ents for t$e
s!fet< of t$e,se#ves !n) ot$ers !n) !re issue) 2it$ !## e;ui(,ent for t$eir (erson!# s!fet< re;uire)
"< #!2 or 2$i+$ it is "est (r!+ti+e to (rovi)e !n) t$!t !## (#!nt !n) e;ui(,ent "rou%$t "< !n< su+$
e,(#o<ee or !%ent onto t$e Joint Venture Co,(!n<As (re,ises +o,(#ies 2it$ !## $e!#t$ !n) s!fet<
re;uire,ents !n) 2i## not "e ! )!n%er to t$e, or to ot$ers4
54 In t$is +#!use 5> D$e!#t$ !n) s!fet< re;uire,entsA ,e!ns in res(e+t of t$e Joint Venture Co,(!n< !n) F
Co,(!n< !## of t$eir o"#i%!tions un)er t$e .e!#t$ !n) S!fet< !t 7orC et+ A+t 163*> !## re#ev!nt st!tutor<
(rovisions (!s )efine) in t$!t A+t) !n) !## ot$er o"#i%!tions i,(ose) "< st!tute !n) +o,,on #!2 re#!tin% to
$e!#t$ !n) s!fet<4
54& T$e (!rties s$!## e!+$ in)e,nif< !n) Cee( in)e,nifie) t$e ot$er in res(e+t of !## #i!"i#ities> +osts> +#!i,s>
)e,!n)s> e9(enses> fines !n) ot$er (en!#ties (in+#u)in% #e%!# fees !n) e9(enses) 2$i+$ t$e ot$er ,!< in+ur
or sust!in !n) 2$i+$ in !n< 2!< re#!te to or !rise fro, t$e "re!+$ "< t$e in)e,nif<in% (!rt< of !n< of its
o"#i%!tions un)er +#!use 5414$
!1/.($
2 :imitation of liability
!641 In res(e+t of t$ose of t$e Servi+es 2$i+$ !re of ! ,!n!%eri!# or !)visor< n!ture (!s i)entifie) in t$e !((en)i9)
F Co,(!n< s$!## not "e #i!"#e to t$e Joint Venture Co,(!n< for !n< #oss suffere) or #i!"i#it< in+urre) "< t$e
Joint Venture Co,(!n< !risin% out of !n< !+t> o,ission or error of ju)%e,ent !(2$et$er or not ne%#i%ent)$
2$i+$ ,!< "e +o,,itte) "< F Co,(!n< or "< !n< of its e,(#o<ees> !%ents or su"+ontr!+tors in t$e +ourse of
t$e (rovision of t$ose of t$e Servi+es e9+e(t 2$ere su+$ #oss or #i!"i#it< !rises fro, t$e !ne%#i%en+e>$
)is$onest< or 2i#fu# )ef!u#t of F Co,(!n< or of !n< of su+$ e,(#o<ees> !%ents or su"+ontr!+tors4$
64 F Co,(!n< s$!## not "e #i!"#e to t$e Joint Venture Co,(!n< in res(e+t of !n< in)ire+t or +onse;uenti!# #oss>
in+#u)in% #oss of !nti+i(!te) (rofits> %oo)2i## or re(ut!tion> $o2soever +!use) 2$i+$ is suffere) "< t$e Joint
Venture Co,(!n<> !ot$er2ise t$!n "< re!son of ! +#!i, "< ! t$ir) (!rt< for 2$i+$ F Co,(!n< is #i!"#e to
in)e,nif< t$e Joint Venture Co,(!n< un)er +#!uses 3 or 5$4
!64& 1consider overall cap on I &ompan,3s liabilit, and/or a scale o. a!reed li>uidated dama!es in respect o.
direct losses arisin! .rom I &ompan,3s breach o. contract-*ote that the availabilit, o. insurance is an
important .actor in determinin! the approach o. the courts to liabilit,6$
64* Not$in% in t$is +#!use 6 or e#se2$ere in t$is !%ree,ent s$!## e9+#u)e> restri+t or #i,it t$e #i!"i#it< of eit$er
!1/.)$
1# Force majeure
1841 If !n) to t$e e9tent t$!t t$e (rovision of t$e Servi+es is (revente) or )e#!<e) "< for+e ,!jeure (!s )efine) "<
+#!use 184 "e#o2)> F Co,(!n< s$!## (ro,(t#< notif< t$e Joint Venture Co,(!n< s(e+if<in% t$e ,!tters
+onstitutin% t$e for+e ,!jeure !n) s(e+if<in% t$e (erio) for 2$i+$ it is esti,!te) t$!t t$e (revention or )e#!<
2i## +ontinue> !n) F Co,(!n< s$!## t$en "e re#ieve) of !n< #i!"i#it< for f!i#ure to (erfor, or for )e#!< in
(erfor,in% t$e Servi+es "ut s$!## nevert$e#ess use !## re!son!"#e en)e!vours to resu,e fu## (erfor,!n+e of
t$e, !n) s$!## ,!Ce su+$ !#tern!tive !rr!n%e,ents for )oin% so !s ,!< "e (r!+ti+!"#e 2it$out in+urrin%
,!teri!# !))ition!# e9(ense /ROVIDED t$!t if !s ! resu#t of t$e for+e ,!jeure t$e Servi+es !re not su((#ie)
for ,ore t$!n !1 ,ont$s 1or as re>uired6$> t$e Joint Venture Co,(!n< ,!< ter,in!te t$is !%ree,ent
fort$2it$ "< noti+e to F Co,(!n<4 !Durin% su+$ ti,e !s F Co,(!n< is re#ieve) of its o"#i%!tions to (erfor,
t$e Servi+es> t$e Joint Venture Co,(!n< s$!## #iCe2ise "e re#ieve) of #i!"i#it< to (!< for t$e Servi+es4$
184 :or t$e (ur(oses of t$is +#!use 18> Dfor+e ,!jeureA ,e!ns !n< +ir+u,st!n+es not foresee!"#e !t t$e )!te of t$is
!%ree,ent !n) not 2it$in t$e re!son!"#e +ontro# of F Co,(!n<> in+#u)in%> 2it$out #i,it!tion> striCes>
#o+Couts> s$ort!%es of #!"our> r!2 ,!teri!#s or +o,(onents> +ivi# +o,,otion> riot> inv!sion> 2!r> t$re!t of or
(re(!r!tion for 2!r> un!voi)!"#e !++i)ent> fire> e9(#osion> stor,> f#oo)> e!rt$;u!Ce> su"si)en+e> e(i)e,i+ or
ot$er n!tur!# ($<si+!# )is!ster4
!1/.,$
11 *ermination
1141 Eit$er (!rt< ,!< ter,in!te t$is !%ree,ent fort$2it$ "< noti+e to t$e ot$er if t$e ot$er s$!## $!ve +o,,itte) !
,!teri!# "re!+$ of t$is !%ree,ent 2$i+$ is in+!(!"#e of re,e)< or (if so +!(!"#e) is not re,e)ie) 2it$in &8
)!<s of t$e (!rt< +o,,ittin% t$e "re!+$ $!vin% "een serve) 2it$ noti+e "< t$e ot$er (!rt<> s(e+if<in% t$e
"re!+$ !n) re;uirin% its re,e)<4
1consider termination on insolvenc,-it ma, be thou!ht inappropriate .or I &ompan, to have the ri!ht to
terminate on the +oint "enture &ompan,3s insolvenc, because termination is likel, to pre/udice an,
realisation available to I &ompan, or a rescue o. the +oint "enture &ompan,6
114 T$is !%ree,ent s$!## !uto,!ti+!##< ter,in!te 2it$out !n< ne+essit< for noti+e s$ou#) !!t$e Joint Venture
A%ree,ent "e ter,in!te) for !n< re!son$ !or$ !F Co,(!n< +e!se to "e t$e "enefi+i!# o2ner of !n< s$!res in
t$e Joint Venture Co,(!n<$ 1or as re>uired6$4
1consider a !race period to enable the other /oint venturers to make other arran!ements6
114& Ter,in!tion of t$is !%ree,ent s$!## "e 2it$out (reju)i+e to !n< ri%$ts or +#!i,s 2$i+$ eit$er (!rt< ,!< $!ve
!%!inst t$e ot$er 2$i+$ !re su"sistin% !t t$e ti,e of ter,in!tion !n) !## (rovisions of t$is !%ree,ent 2$i+$
!re e9(resse) to $!ve effe+t !fter ter,in!tion s$!## +ontinue in for+e !++or)in%#<4
!1/..$
1% 8eneral
141 F Co,(!n< ,!< su"+ontr!+t !n< of its o"#i%!tions un)er t$is !%ree,ent !to (ersons !((rove) "< t$e Joint
Venture Co,(!n<$ !su+$ !((rov!# not to "e unre!son!"#< 2it$$e#) or )e#!<e)$4 T$is !%ree,ent s$!## "e
"in)in% u(on t$e (!rties !n) t$eir su++essors !n) (er,itte) !ssi%ns "ut neit$er of t$e (!rties ,!< !ssi%n !n<
of !n< of t$eir res(e+tive ri%$ts !n) o"#i%!tions un)er t$is !%ree,ent 2it$out t$e (rior 2ritten +onsent of t$e
ot$er !s!ve t$!t t$e Joint Venture Co,(!n< ,!< !ssi%n its ri%$ts !n) o"#i%!tions $ereun)er to !n< (ur+$!ser
of t$e 2$o#e or !n< (!rt of t$e un)ert!Cin% of t$e Joint Venture Co,(!n<> !n) if so re;ueste) "< t$e Joint
Venture Co,(!n<> F Co,(!n< s$!## enter into ! nov!tion of t$is !%ree,ent 2it$ !n< su+$ (ur+$!ser
2$ere"< t$e Joint Venture Co,(!n< is re#e!se) fro, t$is !%ree,ent !n) t$e (ur+$!ser su"stitute) !s ! (!rt<
for t$e Joint Venture Co,(!n< 2it$ effe+t fro, t$e )!te of e9e+ution of t$e nov!tion$4
14 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t (o2er or re,e)< veste) in eit$er (!rt< s$!##
+onstitute ! 2!iver "< t$!t (!rt< of t$!t or !n< ot$er ri%$t (o2er or re,e)<4
14& Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties nor +onstitute eit$er
(!rt< t$e !%ent of t$e ot$er or ot$er2ise entit#e eit$er (!rt< to $!ve !ut$orit< to "in) t$e ot$er (!rt< for !n<
(ur(ose4
14* T$is !%ree,ent +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to t$e su"je+t ,!tter $ereof
!n) no v!ri!tion of t$is !%ree,ent s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of !
)u#< !ut$orise) re(resent!tive of e!+$ of t$e (!rties4
140 In t$e event t$!t !n< ter, +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e
#!2 st!tute or re%u#!tion t$e s!,e s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e
!n) effe+t !n) t$is !%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if su+$ ter,> +on)ition or (rovision $!)
not ori%in!##< "een +ont!ine) in t$is !%ree,ent4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< su+$
)e#etion t$e (!rties !%ree to ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n)
s!tisf!+tori#< !#tern!tive (rovision in (#!+e of t$e (rovision so )e#ete)4
!1/./$
1( Notices
1&41 An< noti+e to "e %iven un)er t$is !%ree,ent "< eit$er (!rt< to t$e ot$er s$!## "e in 2ritin% !n) s$!## "e
)ee,e) )u#< serve) if )e#ivere) (erson!##< or sent "< f!9 or "< (re(!i) re%istere) (ost (!ir,!i# in t$e +!se of
!n !))ress for servi+e outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or (!s t$e +!se ,!< "e) t$e
f!9 nu,"er of t$!t (!rt< set o((osite its n!,e "e#o2:
F Co,(!n<: 1address6> ,!rCe) Dfor t$e !ttention of 1name6AH f!9 nu,"er 1number6
Joint Venture Co,(!n<: 1address6> ,!rCe) Dfor t$e !ttention of 1name6AH f!9 nu,"er 1number6
1&4 An< noti+e sent "< f!9 s$!## "e )ee,e) serve) 2$en )es(!t+$e) !n) !n< noti+e serve) "< (re(!i) re%istere)
(ost s$!## "e )ee,e) serve) *5 $ours !fter (ostin% to !n !))ress in t$e Unite) Bin%)o, or 2$ere serve) "<
!ir,!i#> 0 )!<s !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,4 In (rovin% t$e servi+e of !n< noti+e
it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t su+$ #etter 2!s (ro(er#< st!,(e)> !))resse) !n)
(#!+e) in t$e (ost or )e#ivere) or #eft !t t$e +urrent !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9>
t$!t t$e f!9 2!s )u#< )es(!t+$e) to t$e f!9 nu,"er of t$e !))ressee %iven !"ove or su"se;uent#< notifie) for
t$e (ur(oses of t$is !%ree,ent4
!1/."$
1) :a0 and jurisdiction
1*41 T$is !%ree,ent s$!## "e %overne) "<> !n) +onstrue) in !## res(e+ts in !++or)!n+e 2it$> En%#is$ #!24
1*4 In re#!tion to !n< #e%!# !+tion or (ro+ee)in%s to enfor+e t$is !%ree,ent or !risin% out of or in +onne+tion 2it$
!1*4& T$ese su",issions s$!## not !ffe+t t$e ri%$t of !n< (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!##
juris)i+tion4$
!1/.2$
!1*4* 1.orei!n compan,6 irrevo+!"#< !((oints 1process a!ent6 of 1address6 !s its (ro+ess !%ent to re+eive on its
"e$!#f servi+e of (ro+ess in !n< (ro+ee)in%s in En%#!n)4 Servi+e s$!## "e )ee,e) +o,(#ete) on )e#iver< to
su+$ (ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n compan,6)4 If for !n< re!son
t$!t (ro+ess !%ent +e!ses to "e !"#e to !+t !s (ro+ess !%ent> or no #on%er $!s !n !))ress in En%#!n)> 1.orei!n
compan,6 irrevo+!"#< !%rees to !((oint ! su"stitute (ro+ess !%ent !++e(t!"#e to t$e ot$er (!rt< $ereto !n) to
)e#iver to t$!t ot$er (!rt< ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent 2it$in &8 )!<s4 $
!1*40 1.orei!n compan,6 irrevo+!"#< +onsents to !n< (ro+ess in !n< (ro+ee)in%s !n<2$ere "ein% serve) in
!++or)!n+e 2it$ t$e (rovisions of t$is !%ree,ent re#!tin% to t$e servi+e of noti+es4 Servi+e s$!## "e+o,e
effe+tive &8 )!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is +#!use s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n<
AS 7ITNESS et+1see vol :9 1:CCF Reissue6 DEED#0 )GREE(E*'# )*D DE&L)R)'8O*# Form C5 N:DC:O et se>6
1si!natures on behal. o. both parties6
A//ENDIF
T$e Servi+es
1detail the #ervices and the char!es to be made .or them6
!1//#$
1(
-uropean -conomic 7nterest 8roupin' a'reement desi'ned to comply 0ith Council &e'ulation %1(/E",
T.IS AGREE=ENT is ,!)e t$e TTT of TTTT -ET7EEN:
(1) 1name o. .irm6 (DFA)> ! (!rtners$i( +onstitute) un)er t$e #!2 of 1countr,6 re%istere) in 1member state6 2it$
nu,"er 1re!istration number6 of 1address6H!n)
() 1name o. individual6 (D?A)> !tr!)in% !s 1tradin! name6$ !re%istere) in 1member state6$ 2it$ nu,"er
1re!istration number6 of !))ress1address6H !n)
(&) 1name o. compan, or other corporate bod,6 (DRA)> in+or(or!te) 2it$ !#i,ite) 1or6 un#i,ite)$ #i!"i#it<
re%istere) in 1member state6 2it$ nu,"er 1re!istration number6 !n) $!vin% its !!))ress 1or6 re%istere) offi+e$
!t 1address6
1
4
-ACBGROUND:
T$e (!rties e!+$ !+!rr< on t$e !"usiness 1or6 (rofession$ of 1insert details 1or6 !re en%!%e) in 1insert details6$ in t$eir
res(e+tive +ountries !n) $!ve !%ree) 2it$ e!+$ ot$er to for, ! Euro(e!n E+ono,i+ Interest Grou(in% in or)er to
f!+i#it!te !n) )eve#o( t$eir !"usinesses 1or6 interests$ ,ore effe+tive#< !n) +onvenient#<4
!1//1$
NO7 IT IS AGREED AS :OLLO7S:
141 Un#ess t$e +onte9t ot$er2ise re;uires t$e fo##o2in% 2or)s s$!## $!ve t$e ,e!nin%s set out "e#o2:
(A) Dt$e Grou(in%A ,e!ns t$e Euro(e!n E+ono,i+ Interest Grou(in% to "e for,e) (ursu!nt to t$is
!%ree,ent4
(-) D,e,"ersA refers to F> ? !n) R !n) !n< !))ition!# ,e,"ers !),itte) in !++or)!n+e 2it$ +#!use 134
14 7or)s i,(ortin% t$e sin%#e nu,"er s$!## in+#u)e t$e (#ur!# nu,"er !n) vi+e vers!> !n) 2or)s i,(ortin% !n<
%en)er s$!## in+#u)e !## ot$er %en)ers4
14& Referen+es to Coun+i# Re%u#!tion (EEC) 1&3E50 s$!## "e +onstrue) !s referen+es to t$!t re%u#!tion !s
!,en)e) or re(#!+e) fro, ti,e to ti,e4
14* C#!use $e!)in%s !re inserte) for e!se of referen+e on#< !n) s$!## not !ffe+t t$e inter(ret!tion of t$is
!%ree,ent4 Referen+es to +#!uses !re to t$e +#!uses of t$is !%ree,ent4
140 7or)s i,(ortin% one %en)er in+#u)e !## ot$er %en)ers !n) 2or)s i,(ortin% t$e sin%u#!r in+#u)e t$e (#ur!#
!n) vi+e vers!4
!1//%$
% Formation
T$e (!rties $ere"< !%ree to for, ! Euro(e!n E+ono,i+ Interest Grou(in% un)er Coun+i# Re%u#!tion (EEC) 1&3E504
( Name
T$e n!,e of t$e Grou(in% s$!## "e D1name6 Euro(e!n E+ono,i+ Interest Grou(in%A4
) Address
T$e offi+i!# !))ress
of t$e Grou(in% s$!## "e 1insert details64

, ?bjects
T$e Grou(in%As o"je+ts
&
!re to 1insert details64
. Duration
T$e Grou(in% s$!## +o,,en+e on t$e )!te of t$is !%ree,ent !n) s$!## +ontinue unti# )eter,ine) !s $erein!fter
(rovi)e)> /ROVIDED t$!t t$e nu,"er of ,e,"ers s$!## not "e+o,e #ess t$!n t2o
*
> e!+$ of 2$i+$ s$!## "e fro, !
)ifferent =e,"er St!te4
/ Capital and profits
341 C!(it!# +ontri"utions to t$e Grou(in% 2i## "e )e+i)e) "< t$e ,e,"ers fro, ti,e to ti,e !!n) s$!## "e ,!)e
"< t$e ,e,"ers in !e;u!# s$!res$$4
34 An< (rofits !risin% fro, t$e !+tivities of t$e Grou(in% s$!## "e )ivi)e)
0
"et2een t$e ,e,"ers !in t$e s!,e
(ro(ortions !s t$ose in 2$i+$ t$e< $!ve ,!)e +!(it!# +ontri"utions to t$e Grou(in%$4
!1//($
" &esponsibilities of the members
Su"je+t to t$e (rovisions of t$is !%ree,ent> t$e ,e,"ers s$!## !s "et2een t$e,se#ves "e o"#i%e)
1
to +ontri"ute to t$e
)e"ts !n) #osses !n) ot$er #i!"i#ities of !n< n!ture of t$e Grou(in% in t$e s!,e (ro(ortions !s t$e< $!ve +ontri"ute) to
t$e +!(it!# of t$e Grou(in% fro, ti,e to ti,e4
2 <ana'ement and administration
641 E!+$ (!rt< s$!## !((oint !one$ ,!n!%er
3
4
64 T$e first ,!n!%ers of t$e Grou(in% s$!## "e 1insert names64
64& A ,!n!%er ,!< "e re,ove) fro, offi+e !t !n< ti,e "< t$e (!rt< "< 2$o, $e 2!s !((ointe) !n) t$!t (!rt<
,!< !((oint ! ne2 ,!n!%er in (#!+e of ! ,!n!%er 2$o, it $!s re,ove) or 2$o $!s resi%ne) or $!s +e!se) to
"e ;u!#ifie) to !+t !s ! ,!n!%er4
64* Su"je+t to t$e (rovisions of Coun+i# Re%u#!tion (EEC) 1&3E50 !n) to t$e e9tent t$!t )e+isions !re not
re;uire) to "e t!Cen "< t$e ,e,"ers un)er +#!use 14* of t$is !%ree,ent> t$e "usiness of t$e Grou(in% s$!##
"e ,!n!%e) "< t$e ,!n!%ers !+tin% to%et$er 2$o ,!< e9er+ise !## t$e (o2ers of t$e Grou(in%4
640 T$e Grou(in% ,!< "e v!#i)#< "oun)
5
on#< "< t2o or ,ore ,!n!%ers !+tin% joint#<4
!1//)$
1# <eetin's of mana'ers
1841 An< ,!n!%er ,!< +!## ! ,eetin% of t$e ,!n!%ers "< not #ess t$!n 3 +#e!r )!<sA noti+e in 2ritin% sent to ever<
,!n!%er> /ROVIDED t$!t ! ,eetin% ,!< "e +!##e) "< s$orter noti+e if so !%ree) in 2ritin% "< !t #e!st one
,!n!%er !((ointe) "< e!+$ of t$e ,e,"ers4 T$e !++i)ent!# non're+ei(t of noti+e of ! ,eetin% "< !n< (erson
entit#e) to re+eive noti+e s$!## not inv!#i)!te (ro+ee)in%s !t t$!t ,eetin%4
184 T$e ;uoru, for ! ,eetin% of t$e ,!n!%ers s$!## "e +onstitute) "< !t #e!st one ,!n!%er !((ointe) "< e!+$ of
t$e ,e,"ers (resent in (erson or "< t$eir (ro9<4
184& @uestions !risin% !t ! ,eetin% of t$e ,!n!%ers s$!## "e )e+i)e) "< t$e vote of ,!n!%ers re(resentin% !t #e!st
!& 1or as re>uired6$ ,e,"ers4
184* A reso#ution in 2ritin% e9e+ute) "< !t #e!st one ,!n!%er !((ointe) "< e!+$ of t$e ,e,"ers s$!## "e !s
effe+tu!# !s if it $!) "een (!sse) !t ! ,eetin% of t$e ,!n!%ers )u#< +onvene) !n) $e#) !n) ,!< +onsist of
sever!# instru,ents in t$e #iCe for, e!+$ e9e+ute) "< or on "e$!#f of one or ,ore of t$e ,!n!%ers4
1840 T$e ,!n!%ers !t ! ,eetin% of t$e ,!n!%ers ,!< )e#e%!te !n< of t$eir (o2ers to one or ,ore ,!n!%ers !+tin%
joint#< or se(!r!te#<4
!1//,$
11 <eetin's of members
1141 T$e ,e,"ers !+tin% !s ! "o)< ,!< t!Ce !n< )e+ision for t$e (ur(ose of !+$ievin% t$e o"je+ts of t$e
Grou(in%4
114 E!+$ ,e,"er s$!## $!ve one vote !for e!+$ 1unit o. currenc,6 2$i+$ $e $!s +ontri"ute) to t$e +!(it!# of t$e
Grou(in% su"je+t to ! ,!9i,u, nu,"er of votes 2$i+$ is e;u!# to t$e !%%re%!te nu,"er of votes e9er+is!"#e
"< !## ot$er =e,"ers$
6
4
114& A %ener!# ,eetin% of t$e ,e,"ers of t$e Grou(in% s$!## t!Ce (#!+e !t #e!st on+e e!+$ +!#en)!r <e!r4
114* A %ener!# ,eetin% ,!< "e +!##e) "< re;uest of one of t$e ,e,"ers or "< ! ,!n!%er "< not #ess t$!n 3 +#e!r
)!<sA noti+e in 2ritin% sent to ever< ,e,"er (rovi)e) t$!t ! ,eetin% ,!< "e +!##e) "< s$orter noti+e if ever<
,e,"er so !%rees4
1140 T$e ,eetin%s 2i## "e $e#) !t ! venue !%ree) "et2een t$e (!rties in !)v!n+e4
!1//.$
1% Proceedin's at 'eneral meetin's
141 T$e ;uoru, for ! %ener!# ,eetin% of t$e ,e,"ers s$!## "e !& 1or as re>uired6$ ,e,"ers )u#< re(resente)4
14 No "usiness s$!## "e tr!ns!+te) !t !n< %ener!# ,eetin% un#ess ! ;uoru, is (resent4
14& E9+e(t 2$ere Coun+i# Re%u#!tion (EEC) 1&3E50 (rovi)es t$!t )e+isions ,ust "e t!Cen un!ni,ous#< or t$is
!%ree,ent (rovi)es ot$er2ise> ! reso#ution in %ener!# ,eetin% 2i## "e (!sse) "< ! ,!jorit< of t$e votes
e9er+ise) !t t$e ,eetin%4
14* A un!ni,ous )e+ision is re;uire) in re#!tion to t$e fo##o2in%
18
:
(A) t$e !+;uisition or )is(os!# of (re,isesH
(-) t$e en%!%e,ent or )is,iss!# of st!ffH
(C) !((rov!# of !nnu!# revenue !n) +!(it!# "u)%etsH
(D) +!(it!# e9(en)iture not in+#u)e) in ! "u)%etH
(E) e9+e(tion!# or e9tr!or)in!r< e9(en)itureH
(:) o(enin% of ne2 offi+esH
(G) ,er%er> !##i!n+es or s(e+i!# re#!tions$i(s 2it$ ot$er fir,sH !n)
(.) !++ountin% !n) infor,!tion te+$no#o%< (o#i+<4
140 A reso#ution in 2ritin% e9e+ute) "< or on "e$!#f of e!+$ ,e,"er 2$i+$ 2ou#) $!ve "een entit#e) to vote
u(on it if it $!) "een (ro(ose) !t ! %ener!# ,eetin% !t 2$i+$ t$e ,e,"er 2!s (resent s$!## "e !s effe+tu!# !s
if it $!) "een (!sse) !t ! %ener!# ,eetin% )u#< +onvene) !n) $e#)> !n) ,!< +onsist of sever!# instru,ents in
t$e #iCe for, e!+$ e9e+ute) "< or on "e$!#f of one or ,ore of t$e ,e,"ers4
!1///$
1( Confidentiality
1&41 E!+$ of t$e (!rties s$!## !t !## ti,es use !## re!son!"#e en)e!vours to Cee( +onfi)enti!# (!n) to ensure t$!t its
offi+ers> e,(#o<ees !n) !%ents s$!## Cee( +onfi)enti!#) !n< infor,!tion of ! +onfi)enti!# n!ture 2$i+$ it $!s
!+;uire) or ,!< !t !n< ti,e $ere!fter !+;uire in re#!tion to t$e Grou(in% or in re#!tion to t$e +usto,ers>
"usiness or !ff!irs of !n< ot$er (!rt< or of t$e Grou(in% !n) s$!## not use su+$ infor,!tion for t$e "enefit of
itse#f or !not$er or )is+#ose t$e s!,e e9+e(t
(A) 2it$ t$e +onsent of t$e (!rt< to 2$i+$ su+$ infor,!tion re#!tesH or
(-) in t$e +!se of infor,!tion re#!tin% to t$e Grou(in% for t$e (ro(er (ur(oses of t$e Grou(in% or !s
!##o2e) "< t$e Grou(in%4
T$is restri+tion s$!## not e9ten) to infor,!tion 2$i+$ is for t$e ti,e "ein% 2it$in t$e (u"#i+ )o,!in
ot$er2ise t$!n "< re!son of its 2ron%fu# )is+#osure un)er t$is +#!use 1&41> or 2$i+$ is re;uire) "< #!2 to "e
)is+#ose)4
1&4 E!+$ ,e,"er s$!## (ro+ure t$!t t$e Grou(in% s$!## use !## re!son!"#e en)e!vours to ensure t$!t its e,(#o<ees
o"serve ! si,i#!r o"#i%!tion of +onfi)en+e in f!vour of e!+$ of t$e ,e,"ers4
1&4& T$e (rovisions of t$is +#!use 1& s$!## survive ter,in!tion of t$is !%ree,ent !n) s$!## +ontinue 2it$out #i,it
of ti,e4
!1//"$
1) *ermination of membership
An< ,e,"er s$!## "e entit#e) to %ive not #ess t$!n 1 ,ont$sA noti+e in 2ritin% to t$e Grou(in% !t its offi+i!# !))ress of
its )esire to #e!ve t$e Grou(in% e9(irin% !t !n< ti,e !!fter 1date6$4 Its ,e,"ers$i( of t$e Grou(in% s$!## ter,in!te
u(on e9(ir< of t$e noti+e4
1, -5pulsion of members and cessation of membership
1041 A ,e,"er ,!< "e e9(e##e) fro, t$e Grou(in% if t$e ,e,"er:
(A) +o,,its !n< %r!ve or (ersistent "re!+$es of !n< of its o"#i%!tions un)er t$is !%ree,ent !n) f!i#s to
re,e)< su+$ "re!+$ (if +!(!"#e of re,e)<) 2it$in &8 )!<s !fter "ein% %iven noti+e "< t$e Grou(in%
or !not$er ,e,"er to )o soH
(-) enters into #i;ui)!tion or "e+o,es "!nCru(t or inso#ventH
(C) is %ui#t< of !n< +on)u+t 2$i+$ $!s !ffe+te) or is #iCe#< to !ffe+t t$e st!n)in% or re(ut!tion of t$e
Grou(in% or !n< of its ,e,"ersH
(D) +!uses or t$re!tens to +!use serious )isru(tion to t$e Grou(in%H or
(E) enters> 2it$out t$e (rior +onsent of t$e ot$er ,e,"ers of t$e Grou(in%> into ! joint venture>
(!rtners$i(> Euro(e!n E+ono,i+ Interest Grou(in% or e;uiv!#ent !rr!n%e,ent !2it$in 1area6$ 2it$
!n< t$ir) (!rt< 2$i+$ $!s o"je+ts or 2$i+$ +!rries on or is inten)e) to +!rr< on !+tivities 2$i+$ !re
su"st!nti!##< si,i#!r to t$ose of t$e Grou(in%
11
4
104 E9(u#sion s$!## "e effe+te) "< ! reso#ution (!sse) un!ni,ous#< !t ! ,eetin% of t$e ,e,"ers "< !## t$e
,e,"ers of t$e Grou(in% ot$er t$!n t$e ,e,"er to "e e9(e##e)4
104& T$e ,e,"erAs e9(u#sion s$!## "e+o,e effe+tive i,,e)i!te#< on t$e (!ssin% of t$e s!i) reso#ution4
104* A ,e,"er s$!## +e!se !uto,!ti+!##< to "e#on% to t$e Grou(in% s$ou#) $e )ie or "e no #on%er ;u!#ifie) to "e !
,e,"er in !++or)!n+e 2it$ Arti+#e * of Coun+i# Re%u#!tion (EEC) 1&3E504
!1//2$
1. Conse6uences of leain'
1141 If !n< ,e,"er #e!ves or is e9(e##e) or +e!ses to "e ! ,e,"er> t$e Grou(in% 2i## +ontinue to o(er!te 2it$ its
re,!inin% ,e,"ers4
114 T$e out%oin% ,e,"er
1
s$!## "e (!i):
(A) !n< (rofits )ue to it in res(e+t of t$e (erio) u( to t$e )!te of ter,in!tion of $is ,e,"ers$i(4
(-) t$e out%oin% ,e,"erAs s$!re in t$e +!(it!# of t$e Grou(in% (e9+#u)in% %oo)2i##) 2$i+$ s$!## "e
!s+ert!ine) "< t!Cin% t$e v!#ue s$o2n in t$e Grou(in%As "ooCs of !## t$e !ssets of t$e Grou(in% !t
t$e )!te of ter,in!tion of $is ,e,"ers$i( !n) )e)u+tin% t$erefro, !## t$e Grou(in%s #i!"i#ities !t
su+$ ti,e> !n) t$e (rofits ,!)e u( to t$!t ti,e> !n) )ivi)in% t$e "!#!n+e "et2een t$e ,e,"ers in
t$e s!,e (ro(ortions !s t$eir res(e+tive +!(it!# +ontri"utions "e!r to one !not$er4
1/ Ne0 members
Ne2 ,e,"ers of t$e Grou(in% s$!## "e !((ointe) on#< "< un!ni,ous )e+ision of t$e ,e,"ers4
1" Assi'nment of participation
No ,e,"er ,!< !ssi%n its (!rti+i(!tion in t$e Grou(in% to ! non',e,"er 2it$out t$e un!ni,ous +onsent of !## t$e
ot$er ,e,"ers4 If (!rti+i(!tion is )u#< !ssi%ne)> t$en> su"je+t to !n< re;uire) +onsent> t$e +!(it!# +ontri"ute) "< t$e
!ssi%nor u( to t$e ti,e of t$e !ssi%n,ent s$!## "e re%!r)e) !s +ontri"ute) "< t$e !ssi%nee for t$e (ur(oses of t$is
!%ree,ent4 T$e ot$er ,e,"ers ,!< re;uire !s ! +on)ition of +onsent t$!t t$e !ssi%nee enters into )ire+t un)ert!Cin%s
2it$ e!+$ of t$e, to o"serve !n) (erfor, t$e (rovisions of t$is !%ree,ent "in)in% on t$e !ssi%nor4
!1/"#$
12 Hse of participation as security
A ,e,"er ,!< not use its (!rti+i(!tion in t$e Grou(in% !s se+urit< in !n< for, !e9+e(t 2it$ t$e un!ni,ous +onsent of
!## t$e ot$er ,e,"ers$4
%# =oint and seeral liability
T$e ,e,"ers s$!## $!ve un#i,ite) joint !n) sever!# #i!"i#it< for t$e )e"ts !n) ot$er #i!"i#ities of t$e Grou(in% !"ut !
ne2 ,e,"er s$!## not "e #i!"#e for )e"ts !n) ot$er #i!"i#ities t$!t 2ere in+urre) (rior to $is "e+o,in% ! ,e,"er$
1&
4
%1 4indin'+up
141 T$e Grou(in% ,!< "e 2oun) u( "< ! reso#ution !t ! ,eetin% of t$e ,e,"ers (!sse) !un!ni,ous#< 1or6 "< !
,!jorit< re(resentin% !t #e!st !30L 1or as re>uired6$ of t$e votes e9er+is!"#e of t$!t ,eetin%$4
14 S$ou#) t$e nu,"er of t$e ,e,"ers of t$e Grou(in% "e insuffi+ient
1*
to en!"#e t$e Grou(in% to +o,(#< 2it$
Arti+#e * (!r!%r!($ of Coun+i# Re%u#!tion (EEC) 1&3E50> t$en t$e ,e,"ers or t$e re,!inin% ,e,"er
s$!## "e+o,e "oun) to (ro+ure its i,,e)i!te 2in)in% u(4
14& If t$ere s$!## "e !n< sur(#us !fter t$e (!<,ent of !## +re)itors !n) #i!"i#ities of t$e Grou(in%> t$e sur(#us s$!##
"e )ivi)e) !,on%st t$e ,e,"ers in t$e (ro(ortion to t$eir res(e+tive s$!res in t$e Grou(in% !t t$!t )!te>
)eter,ine) in !++or)!n+e 2it$ +#!use 114(-)> !n) in event of !n< )efi+ien+< t$e ,e,"ers s$!## "e!r t$e
)efi+ien+< in t$e s!,e (ro(ortions in 2$i+$ t$e< $!ve +ontri"ute) t$e +!(it!# of t$e Grou(in%
10
4
!1/"1$
%% Deelopment of the 8roupin'
E!+$ of t$e (!rties s$!## use its "est en)e!vours to )eve#o( t$e !+tivities of t$e Grou(in% in !++or)!n+e 2it$ t$e o"je+ts
set out in +#!use 04
%( No a'ency
Not$in% in t$is !%ree,ent s$!## !ut$orise !n< (!rt< to !ssu,e or !tte,(t to !ssu,e !n< o"#i%!tion in t$e n!,e of or on
"e$!#f of t$e ot$ers4
%) 3eerability
If !n< (rovision of t$is !%ree,ent is foun) to "e voi) or unenfor+e!"#e> it s$!## "e )ee,e) to "e )e#ete) fro, t$is
!%ree,ent !n) t$e re,!inin% (rovisions of t$is !%ree,ent s$!## +ontinue in fu## for+e !n) effe+t4 Not2it$st!n)in% t$e
fore%oin%> t$e ,e,"ers s$!## t$ereu(on ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< s!tisf!+tor<
(rovision to "e su"stitute) for t$e (rovision so foun) to "e voi) or unenfor+e!"#e4
%, 8oernin' la0
041 T$is !%ree,ent s$!## "e %overne) in !## res(e+ts "< t$e #!2s of 1member state64
04 If !n< )is(ute s$!## !rise "et2een t$e (!rties !s to t$e ,e!nin% or effe+t of t$is !%ree,ent or !s to t$e ri%$ts
or #i!"i#ities of t$e (!rties un)er it or !s to !n< ot$er ,!tter or t$in% re#!tin% to t$is !%ree,ent or !risin% out
of or in +onne+tion 2it$ it> eit$er )urin% t$e +ontinu!n+e of t$is !%ree,ent or !fter !n< ter,in!tion or
(ur(orte) ter,in!tion of it> t$e )is(ute s$!## "e fin!##< )eter,ine) "< ! sin%#e !r"itr!tor !%ree) "< t$e (!rties>
or in )ef!u#t of !%ree,ent> !((ointe) in !++or)!n+e 2it$ t$e ru#es of t$e Intern!tion!# C$!,"er of
Co,,er+e4 T$e !r"itr!tion (ro+ee)in%s s$!## t!Ce (#!+e in 1member state6 !n) t$e #!n%u!%e of t$e !r"itr!tion
s$!## "e 1lan!ua!e64
!1/"%$
%. Notices
FG!))ress: 1address6H f!9 nu,"er: 1number6H !,!rCe) Dfor t$e !ttention of 1name6A$
?G!))ress: 1address6H f!9 nu,"er: 1number6H !,!rCe) Dfor t$e !ttention of 1name6A$
RG!))ress: 1address6H f!9 nu,"er: 1number6H !,!rCe) Dfor t$e !ttention of 1name6A$
re>uired6$ )!<s !fter (ostin% to !n !))ress in t$e Unite) Bin%)o,$4 In (rovin% t$e servi+e of !n< noti+e it
2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s (ro(er#< st!,(e)> !))resse) !n) (#!+e) in
t$e (ost> or )e#ivere) or #eft !t t$e (ro(er !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9> t$!t t$e f!9
tr!ns,ission 2!s )u#< ,!)e to t$e (ro(er f!9 nu,"er4
SIGNED et+
1si!natures o. or on behal. o. each part,6
!1/"($
1
T$is s$o2s t$e infor,!tion re;uire) for t$e ,ost #iCe#< for,s of entit< 2$o 2i## "e ,e,"ers of Euro(e!n E+ono,i+ Interest
Grou(in%sGsee t$e Euro(e!n E+ono,i+ Interest Grou(in%s Re%u#!tion 1&3E50> OJ L166 !rt 04 Art * s(e+ifies t$e entities
2$i+$ ,!< "e ,e,"ers of Euro(e!n E+ono,i+ Interest Grou(in%s4
T$e offi+i!# !))ress ,ust "e 2it$in t$e Euro(e!n Union (see Re%u#!tion 1&3E50 !rt 1) !n) ,ust "e 2$ere t$e %rou( $!s its
+entr!# !),inistr!tion or 2$ere one of t$e ,e,"ers $!s its +entr!# !),inistr!tion> or in t$e +!se of !n in)ivi)u!#> $is (rin+i(!#
!+tivit<> (rovi)e) t$e %rou(in% +!rries on !n !+tivit< t$ere4
&
T$e o"je+ts or (ur(ose of ! Euro(e!n E+ono,i+ Interest Grou(in% ,ust "e to f!+i#it!te or )eve#o( t$e e+ono,i+ !+tivities of its
,e,"ers or in+re!se t$e resu#ts of t$ese !+tivitiesH !n) not to ,!Ce (rofits for itse#f4 Its !+tivities ,ust "e re#!te) to t$e
e+ono,i+ !+tivities of its ,e,"ers !n) ,ust not "e ,ore t$!n !n+i##!r< to t$ose !+tivitiesGsee Re%u#!tion 1&3E50 !rt &> (!r! 14
*
T2o ,e,"ers is t$e ,ini,u, !##o2e)Gsee Re%u#!tion 1&3E50 !rt *4
0
In t$e !"sen+e of !n< ot$er (rovision> (rofits !re s$!re) e;u!##<Gsee Re%u#!tion 1&3E50 !rt 1 (!r! 4
1
In t$e !"sen+e of !n< ot$er !%ree,ent t$e ,e,"ers !re #i!"#e in e;u!# s$!resGsee Re%u#!tion 1&3E50 !rt 1> (!r! 4 As re%!r)s
t$ir) (!rties e!+$ ,e,"er $!s un#i,ite) joint !n) sever!# #i!"i#it< for t$e )e"ts !n) #i!"i#ities 2$i+$ +!nnot "e ,et out of t$e
!ssets of t$e Grou(in% itse#fGsee Re%u#!tion 1&3E50 !rt &K4
3
See Re%u#!tion 1&3E50 !rt 16 !s to 2$o ,!< "e !((ointe) !n) serve !s ! ,!n!%er
!1/")$
5
To "in) t$ir) (!rties t$is (rovision ,ust "e (u"#i+ise) in !++or)!n+e 2it$ Re%u#!tion 1&3E50 !rt 54
6
-< Re%u#!tion 1&3E50 !rt 13> un#ess ot$er2ise !%ree)> e!+$ ,e,"er $!s one vote> "ut t$e !%ree,ent for t$e for,!tion of t$e
%rou(in% ,ust not !##o2 !n< one ,e,"er to $o#) ! ,!jorit< of t$e votes4
18
Re%u#!tion 1&3E50 !rt 13 (!r! +ont!ins ! #ist of ,!tters re;uirin% un!ni,ous !((rov!# 2$i+$ !re !))ition!# to t$ose set out in
+#!use 14* J1333K4
11
T$is restri+tion is un#iCe#< to %ive rise to +on+erns un)er Euro(e!n Co,,unit< +o,(etition #!2> !s it is #iCe#< to "e )ee,e) to "e
!n+i##!r< to t$e +re!tion of t$e Euro(e!n E+ono,i+ Interest Grou(in% in t$e first (#!+e4 It ,!<> $o2ever> "rin% t$e !%ree,ent
2it$in t$e s+o(e of t$e Restri+tive Tr!)e /r!+ti+es A+t 16314
1
T$e out%oin% ,e,"er 2i## +ontinue to "e #i!"#e to t$ir) (!rties for t$e )e"ts !n) ot$er #i!"i#ities of t$e Grou(in% in res(e+t of its
!+tivities u( to t$e ti,e of su+$ +ess!tion> "ut not !fter2!r)sGsee Re%u#!tion 1&3E50 !rt &*4
1&
T$e "r!+Cete) o(tion +!nnot "e re#ie) u(on !s !%!inst t$ir) (!rties un#ess (u"#i+ise) in !++or)!n+e 2it$ Re%u#!tion 1&3E50 !rt
54
1*
T2o ,e,"ers is t$e ,ini,u, !##o2e)Gsee Re%u#!tion 1&3E50 !rt *4
10
If t$ere is no !%ree,ent !"out t$is> t$e< +ontri"ute e;u!##<Gsee Re%u#!tion 1&3E50 !rt 1 (!r! 4
!1/",$
1)
A'reement for the proision of technical assistance or collaboration to a joint enture company by one of the
joint enturers
T.IS AGREE=ENT is ,!)e t$e TTT )!< of TTTT -ET7EEN:
(1) 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 (DF Co,(!n<A)H !n)
() 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 (Dt$e Joint Venture Co,(!n<A)4
7.EREAS:
(A) T$e Joint Venture Co,(!n< $!s "een for,e) to un)ert!Ce> or%!nise !n) (ro,ote t$e rese!r+$ !n)
)eve#o(,ent of ne2 (ro)u+ts !n) (ro+esses in t$e !re! of t$e :ie#) 2it$ ! vie2 to t$e ,!rCetin% s!#e!>
#i+ensin%$ !n) %ener!# e9(#oit!tion of su+$ (ro)u+ts !n) (ro+esses4
(-) F Co,(!n< $o#)s TTL of t$e or)in!r< s$!re +!(it!# of t$e Joint Venture Co,(!n<> $!vin% su"s+ri"e) for
t$e s!,e u(on t$e ter,s of 1set out description date and parties to the /oint venture a!reement64
(C) F Co,(!n< is e9(erien+e) in t$e :ie#) !n) in !++or)!n+e 2it$ +#!use * of t$e !%ree,ent referre) to in re+it!#
(-) $!s !%ree) to enter into t$is !%ree,ent to !ssist t$e Joint Venture Co,(!n< "< (rovi)in% it 2it$ rese!r+$
!n) )eve#o(,ent !ssist!n+e on t$e ter,s set out "e#o24
!1/".$
1 7nterpretation
(A) Dt$e DEffe+tive D!teA ,e!ns 1date6H
(-) Dt$e :ie#)A ,e!ns 1insert details6H
(C) Dt$e Joint Venture A%ree,entA ,e!ns t$e !%ree,ent referre) to in re+it!# (-) !"oveH
(D) Dt$e /roje+tA ,e!ns t$e rese!r+$ !n) )eve#o(,ent (roje+t )et!i#e) in t$e !((en)i9 to t$is
!%ree,ent
1
H !n)
(E) Dt$e 7orCA ,e!ns !## 2orC (erfor,e) in t$e +ourse of t$e /roje+t4
14 Referen+es to D(!rt<A !n) D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is !%ree,ent4
14& Referen+es to D(ersonsA or D(!rtiesA s$!## in+#u)e "o)ies +or(or!te> unin+or(or!te) !sso+i!tions !n)
(!rtners$i(s4
14* Referen+es to st!tutor< (rovisions s$!## "e +onstrue) !s referen+es to t$ose (rovisions !s !,en)e) or re'
en!+te) or !s t$eir !((#i+!tion is ,o)ifie) "< ot$er (rovisions fro, ti,e to ti,e !n) s$!## in+#u)e referen+es
to !n< (rovisions of 2$i+$ t$e< !re re'en!+t,ents (2$et$er 2it$ or 2it$out ,o)ifi+!tion)4
140 Referen+es to +#!uses !re to +#!uses of t$is !%ree,ent4 Referen+es to t$is !%ree,ent s$!## in+#u)e t$e
!((en)i94
!1/"/$
% Duration
Su"je+t !s (rovi)e) in +#!use 1&> t$is !%ree,ent s$!## +o,,en+e on t$e Effe+tive D!te !n) +ontinue unti# t$e
+o,(#etion of t$e /roje+t> 2$i+$ F Co,(!n< s$!## use !## re!son!"#e en)e!vours to !+$ieve "< 1date64
( *he Project
F Co,(!n< s$!## +!rr< out t$e 7orC +o,(rise) in t$e /roje+t !n) for t$e (erfor,!n+e of t$e 7orC s$!## (rovi)e !t its
o2n e9(ense !n !)e;u!te su((#< of suit!"#< ;u!#ifie) !n) e9(erien+e) st!ff> !n) !## ne+ess!r< ,!teri!#s !n) fin!n+i!#
!n) ot$er resour+es +onsi)ere) !)e;u!te "< t$e (!rties to se+ure +o,(#etion of t$e /roje+t "< 1date64 F Co,(!n<
!%rees t$!t !## its 2orC on t$e /roje+t s$!## "e for t$e "enefit of t$e Joint Venture Co,(!n<4 F Co,(!n< s$!## )is+#ose
t$e resu#ts of t$e 7orC to t$e Joint Venture Co,(!n< or (ro+ure su+$ )is+#osure4
) Payment
On t$e +o,(#etion of e!+$ ($!se of t$e /roje+t to t$e re!son!"#e s!tisf!+tion of t$e Joint Venture Co,(!n<> it s$!## (!<
to F Co,(!n< t$e fee for t$!t ($!se !s )et!i#e) in t$e /roje+t
4 Su+$ fees s$!## "e e9+#usive of !n< VAT +$!r%e!"#e on

t$e,> 2$i+$ s$!## "e (!i) "< t$e Joint Venture Co,(!n< in !))ition to su+$ fees> su"je+t to t$e (rovision to it of v!#i)
VAT invoi+es4
!1/""$
, 7ntellectual property ri'hts and confidential information
041 A## )is+overies> inventions> )esi%ns> (ro+esses or 2orCs 2$i+$ !re +!(!"#e of (rote+tion "< ,e!ns of !n<
for, of inte##e+tu!# or in)ustri!# (ro(ert< ri%$t (Dinte##e+tu!# (ro(ert< ri%$tsA> 2$i+$ e9(ression s$!## in+#u)e
2it$out #i,it!tion (!tents> tr!)e ,!rCs> servi+e ,!rCs> ri%$ts (re%istere) or unre%istere)) in !n< )esi%nsH
!((#i+!tions for !n< of t$e fore%oin%H tr!)e or "usiness n!,esH +o(<ri%$t (in+#u)in% ri%$ts in +o,(uter
soft2!re) !n) to(o%r!($< ri%$tsH #ists of su((#iers !n) +usto,ers !n) ot$er +onfi)enti!# !n) (ro(riet!r<
Cno2#e)%e !n) infor,!tionH ri%$ts (rote+tin% %oo)2i## !n) re(ut!tionH Cno2'$o2H )!t!"!se ri%$ts !n) !##
ri%$ts !n) for,s of (rote+tion of ! si,i#!r n!ture to !n< of t$e fore%oin% or $!vin% e;uiv!#ent effe+t
!n<2$ere in t$e 2or#)) in !n< 2!< !risin% )urin% t$e +ourse of t$e 7orC s$!## "e#on% to t$e Joint Venture
Co,(!n<4
04 F Co,(!n< $ere"< !%rees to !ssi%n !n) use !## re!son!"#e en)e!vours to (ro+ure t$!t its e,(#o<ees> su"'
+ontr!+tors> +onsu#t!nts !n) !## ot$ers it $!s en%!%e) in t$e +ourse of t$e /roje+t s$!## t!Ce !## ste(s ne+ess!r<
to !ssi%n to t$e Joint Venture Co,(!n< !## inte##e+tu!# (ro(ert< ri%$ts t$!t su"sist in !n< (!rt of t$e 2or#)>
!n) s$!## !t t$e re;uest !n) !t t$e e9(ense of t$e Joint Venture Co,(!n< t!Ce !## ne+ess!r< ste(s re!son!"#<
re;uire) "< t$e Joint Venture Co,(!n< to re%ister or ot$er2ise (erfe+t ever< su+$ !ssi%n,ent4
04& F Co,(!n< s$!## !t t$e re;uest !n) !t t$e e9(ense of t$e Joint Venture Co,(!n< t!Ce !## ste(s 2$i+$ t$e
Joint Venture Co,(!n< ,!< +onsi)er ne+ess!r< or )esir!"#e to re%ister !n< of t$e inte##e+tu!# (ro(ert< ri%$ts4
04* As soon !s !n< )is+over< or invention is ,!)e in t$e +ourse of t$e /roje+t 2$i+$ is +!(!"#e of (!tent or ot$er
(rote+tion> F Co,(!n< s$!## +o,,uni+!te fu## )et!i#s t$ereof to t$e Joint Venture Co,(!n< !n) to no ot$er
(erson4 F Co,(!n< s$!## (rovi)e !t t$e re;uest !n) +ost of t$e Joint Venture Co,(!n< !## !ssist!n+e 2$i+$
t$e Joint Venture Co,(!n< s$!## re!son!"#< re;uire in re#!tion to t$e ,!Cin% of !n< !((#i+!tion for ! (!tent
or ot$er (rote+tion !n) t$e (rose+ution of t$e !((#i+!tion> in+#u)in% if so re;uire) "< t$e Joint Venture
Co,(!n< t$e ,!Cin% !n) (rose+ution of !n< su+$ !((#i+!tion in t$e n!,e of F Co,(!n< or t$e ori%in!#
inventor "ut for t$e "enefit of t$e Joint Venture Co,(!n<4
!1/"2$
040 F Co,(!n< s$!## not )is+#ose to !n< (!rt< ot$er t$!n t$e Joint Venture Co,(!n< !n) its no,in!te)
e,(#o<ees or !%ents t$e resu#ts of !n< of t$e 7orC or !n< of t$e infor,!tion to "e )is+#ose) to t$e Joint
Venture Co,(!n< un)er +#!uses 041 !n) 04*> in+#u)in% t$e +ontents of !n< re(orts or ot$er )o+u,ent!tion
+re!te) )urin% t$e /roje+t (Dt$e Confi)enti!# Infor,!tionA)4 F Co,(!n< s$!## use !!## re!son!"#e 1or6 its
"est$ en)e!vours to ensure t$!t no (erson 2orCin% on t$e /roje+t s$!## )is+#ose to !n< t$ir) (!rt< !n< of t$e
Confi)enti!# Infor,!tion> in+#u)in% 2it$out #i,it!tion> t$e su",ission for (u"#i+!tion of !n< re(ort> !rti+#e or
(!(er re#!tin% )ire+t#< or in)ire+t#< to t$e /roje+t4 F Co,(!n< s$!## ensure t$!t !## (ersons 2$o $!ve !++ess
to !n< of t$e Confi)enti!# Infor,!tion !re !2!re of t$ese restri+tions !n) F Co,(!n< s$!## ensure t$!t !##
su+$ (ersons !re +ontr!+tu!##< "oun) to F Co,(!n< to o"serve t$e s!,e !n) !re !2!re of t$eir o"#i%!tions
un)er +o,,on #!2> !n) F Co,(!n< 2i## t!Ce !## re!son!"#e ste(s to enfor+e su+$ +ontr!+tu!# re;uire,ents
!n) o"#i%!tions un)er +o,,on #!24
041 F Co,(!n< s$!## not )urin% t$is !%ree,ent or !t !n< ti,e t$ere!fter> use or )is+#ose to !n< (erson (ot$er t$!n
!s !ut$orise) "< t$e Joint Venture Co,(!n< or !s re;uire) in t$e (erfor,!n+e of t$e 2orC) !n< tr!)e se+rets
or ot$er infor,!tion 2$i+$ is for t$e ti,e "ein% +onfi)enti!# re#!tin% to t$e "usiness of t$e Joint Venture
Venture Co,(!n< or !n< of its su"si)i!ries $!s "usiness )e!#in%s> "ein% infor,!tion 2$i+$ is ,!rCe)
D+onfi)enti!#A or 2$i+$ t$e Joint Venture Co,(!n< s$!## $!ve notifie) F Co,(!n< is to "e Ce(t +onfi)enti!#
or 2$i+$ to t$e Cno2#e)%e of F Co,(!n< $!s "een o"t!ine) "< t$e Joint Venture Co,(!n< or !n< of its
su"si)i!ries fro, ! t$ir) (!rt< on ter,s t$!t t$e Joint Venture Co,(!n< or su+$ su"si)i!r< is to Cee( it
+onfi)enti!#4 F Co,(!n< s$!## ensure t$!t !n< (ersons to 2$o, its o"#i%!tions !re +ontr!+te) "< virtue of
+#!use 1*41 !re eit$er +ontr!+tu!##< "oun) to F Co,(!n< to o"serve t$e s!,e o"#i%!tion or !re !2!re of t$eir
o"#i%!tions un)er +o,,on #!2 !n) F Co,(!n< 2i## t!Ce !## re!son!"#e ste(s to enfor+e su+$ +ontr!+tu!#
re;uire,ents or o"#i%!tions !t +o,,on #!24 Not$in% in t$is o"#i%!tion s$!## e9ten) to infor,!tion or
Cno2#e)%e 2$i+$ is for t$e ti,e "ein% in t$e (u"#i+ )o,!in (ot$er2ise t$!n "< re!son of its 2ron%fu#
)is+#osure) or 2$i+$ is re;uire) "< #!2 to "e )is+#ose)4
043 To t$e e9tent t$!t t$e 7orC e,"o)ies !n< inventions> )is+overies> (ro+esses> )esi%ns> +onfi)enti!#
infor,!tion or ot$er 2orCs in 2$i+$ F Co,(!n< $!s !n< in)ustri!# or inte##e+tu!# (ro(ert< ri%$ts> F
Co,(!n< $ere"< %r!nts to t$e Joint Venture Co,(!n<> so f!r !s su+$ %r!nt )oes not +onf#i+t 2it$ !n<
o"#i%!tions o2e) "< F Co,(!n< to !n< t$ir) (!rt<> ! non'e9+#usive ro<!#t<'free (er(etu!# #i+en+e to use t$e
s!,e in re#!tion to !n< (ro)u+ts or servi+es in !n< 2!< )erive) fro, t$e /roje+t !n) 2$i+$ !re 2it$in t$e
:ie#)> 2it$ fu## (o2er for t$e Joint Venture Co,(!n< to !ssi%n su+$ #i+en+e !n) to %r!nt su"'#i+en+es> su"je+t
to t$e Joint Venture Co,(!n<> !n) su+$ !ssi%nees !n) su"'#i+en+es if !n<> un)ert!Cin% to F Co,(!n< to
,!int!in !s +onfi)enti!# !n< +onfi)enti!# infor,!tion F Co,(!n< #i+enses $ereun)er4
!1/2#$
!. :icence in faour of I Company
141 U(on t$e re;uest of F Co,(!n< !n) !t its +ost !n) e9(ense> t$e Joint Venture Co,(!n< s$!## %r!nt to F
Co,(!n< ! non'e9+#usive ro<!#t<'free #i+en+e to use t$e 2$o#e or !n< (!rt of t$e resu#ts of t$e 7orC4 T$e
#i+en+e s$!## "e:
(A) #i,ite) to !((#i+!tions outsi)e t$e :ie#)H !n)
(-) in+!(!"#e of !ssi%n,ent> su" #i+ensin% or tr!nsfer to !n< ot$er (erson> !ot$er t$!n for t$e (ur(oses
of ,!nuf!+ture or s!#e "< F Co,(!n<$4
14 T$e Joint Venture Co,(!n< %ives no 2!rr!nt< !s to t$e (erfor,!n+e or suit!"i#it< for !n< (ur(ose of t$e
su"je+t ,!tter of t$e #i+en+e !n) )is+#!i,s !## #i!"i#it< (ot$er t$!n in res(e+t of !n< #i!"i#it< for ne%#i%en+e
+!usin% )e!t$ or injur<) in re#!tion to t$e #i+en+e !n) !## +on)itions> 2!rr!nties or ter,s (2$et$er e9(ress or
i,(#ie) "< +o,,on #!2> st!tute or ot$er2ise) s$!## "e e9+#u)e) fro, it4
14& It s$!## "e ! ter, of ever< su+$ #i+en+e t$!t F Co,(!n< s$!## in)e,nif< !n) Cee( t$e Joint Venture Co,(!n<
in)e,nifie) !%!inst !## #i!"i#it< of 2$!tsoever n!ture !risin% out of F Co,(!n<As use of t$e resu#ts of t$e
7orC un)er t$e ter,s of t$e #i+en+e4$
!1/21$
/ &oyalties
1it is assumed that I &ompan, will participate in the e7ploitation o. the Pro/ect throu!h its shareholdin! in the +oint
"enture &ompan,0 but i. there is to be a ro,alt, to I &ompan,0 set out its terms here6
&
" 3tandard of 0or>; reports etc
541 A## t$e 7orC s$!## "e +on)u+te) in !++or)!n+e 2it$ %ener!##< !++e(te) st!n)!r)s of %oo) (r!+ti+e !t t$e ti,e
!t 2$i+$ t$e 7orC is un)ert!Cen !n) F Co,(!n< s$!## "e res(onsi"#e for t$e i,(#e,ent!tion of !n)
+o,(#i!n+e 2it$ !## s!fet< !n) ot$er #e%is#!tive re;uire,ents 2$i+$ !((#< to t$e 7orC4 F Co,(!n< s$!## use
!## re!son!"#e en)e!vours to ensure t$!t t$e (ro)u+t or (ro+ess resu#tin% fro, t$e /roje+t +o,(#ies in !##
res(e+ts 2it$ !## s!fet<> $e!#t$> $<%iene !n) ot$er #e%is#!tive re;uire,ents !in t$e +ountries in 2$i+$ t$e Joint
Venture Co,(!n< inten)s to ,!rCet t$e s!,e> !s !%ree) "et2een t$e Joint Venture Co,(!n< !n) F Co,(!n<
fro, ti,e to ti,e 1or set out the intended countries in a schedule)$4
!54 7$ere t$e /roje+t re;uires t$e (ro)u+tion for F Co,(!n< of !n e9(eri,ent!# or (rotot<(e ,o)e#> F
Co,(!n< s$!## use !## re!son!"#e en)e!vours to (ro+ure t$!t t$e s!,e is %ener!##< suit!"#e for t$e (ur(ose
for 2$i+$ it is (ro)u+e) !n) 2i## (erfor, %ener!##< in !++or)!n+e 2it$ t$e (ro)u+t s(e+ifi+!tion set out in t$e
/roje+t !n) F Co,(!n< s$!## )e#iver to t$e Joint Venture Co,(!n< or its no,inee t$e s!i) e9(eri,ent!# or
(rotot<(e (ro)u+t to%et$er 2it$ ! re(ort on its (erfor,!n+e !n) ! 1or as re>uired6$ +o(ies of user !n)
te+$ni+!# su((ort )o+u,ent!tion for use 2it$ t$e s!,e4$
!54& 7$ere t$e /roje+t invo#ves t$e )eve#o(,ent of ! (ro+ess> F Co,(!n< s$!## use !## re!son!"#e en)e!vours to
ensure t$!t t$e (ro+ess ,eets t$e s(e+ifi+!tion set out in t$e /roje+t !n) F Co,(!n< s$!## )e#iver to t$e Joint
Venture Co,(!n< or its no,inee su+$ infor,!tion !s 2i## en!"#e t$e Joint Venture Co,(!n< to +!rr< out t$e
(ro+ess in t$e ,!nner envis!%e) in t$e /roje+t4$
54* F Co,(!n< s$!## (rovi)e t$e Joint Venture Co,(!n< 2it$ re(orts !s to t$e (ro%ress on t$e /roje+t !t !& 1or
as re>uired6$ ,ont$#< interv!#s4
!1/2%$
2 4arranty by I Company
F Co,(!n< 2!rr!nts to t$e Joint Venture Co,(!n< t$!t F Co,(!n< is free to enter into t$e /roje+t !n) t$!t to t$e "est
of F Co,(!n<As Cno2#e)%e infor,!tion !n) "e#ief t$ere !re no (!tents> +o(<ri%$ts or ot$er inte##e+tu!# or in)ustri!#
(ro(ert< ri%$ts of !n< t$ir) (!rt< in !n< (!rt of t$e 2or#) 2$i+$ !re #iCe#< to "e infrin%e) )urin% t$e +ourse of t$e
/roje+t or 2$i+$ ,i%$t (reju)i+e t$e su"se;uent e9(#oit!tion of t$e (ro)u+t or (ro+ess resu#tin% fro, t$e /roje+t4
!1# Cealth and safety
1841 7$ere t$e (erfor,!n+e of t$e 7orC +o,(rise) in t$e /roje+t re;uires e,(#o<ees or su"'+ontr!+tors of F
Co,(!n< to 2orC on t$e (re,ises of t$e Joint Venture Co,(!n< t$en:
(A) t$e Joint Venture Co,(!n< s$!## ensure t$!t its (re,ises !n) !## (#!nt !n) e;ui(,ent 2$i+$ is use)
"< su+$ e,(#o<ees or su"'+ontr!+tors or 2it$ 2$i+$ t$e< ,!< +o,e into +ont!+t or to 2$i+$ t$e<
,!< "e e9(ose) +o,(#ies 2it$ !## $e!#t$ !n) s!fet< re;uire,entsH !n)
(-) F Co,(!n< s$!## ensure t$!t !n< su+$ e,(#o<ees or su"'+ontr!+tors !re (ro(er#< tr!ine) in !##
re#ev!nt $e!#t$ !n) s!fet< re;uire,ents for t$e s!fet< of t$e,se#ves !n) ot$ers !n) !re issue) 2it$
!## e;ui(,ent for t$eir (erson!# s!fet< re;uire) "< #!2 or 2$i+$ it is "est (r!+ti+e to (rovi)e !n)
t$!t !n< (#!nt !n) e;ui(,ent "rou%$t "< !n< su+$ e,(#o<ee or su"'+ontr!+tor onto t$e Joint
Venture Co,(!n<As (re,ises +o,(#ies 2it$ !## $e!#t$ !n) s!fet< re;uire,ents !n) 2i## not "e !
)!n%er to t$e,se#ves or to ot$ers4
184 In t$is +#!use 18> D$e!#t$ !n) s!fet< re;uire,entsA ,e!ns in res(e+t of t$e Joint Venture Co,(!n< !n) F
Co,(!n< e!+$ of t$eir res(e+tive o"#i%!tions> un)er t$e .e!#t$ !n) S!fet< !t 7orC et+ A+t 163*> !## re#ev!nt
st!tutor< (rovisions (!s )efine) in t$!t A+t) !n) !## ot$er o"#i%!tions i,(ose) "< st!tute !n) +o,,on #!2
re#!tin% to $e!#t$ !n) s!fet<4
184& T$e (!rties s$!## e!+$ in)e,nif< !n) Cee( in)e,nifie) t$e ot$er in res(e+t of !## #i!"i#ities> +osts> +#!i,s>
)e,!n)s> e9(enses> fines !n) ot$er (en!#ties (in+#u)in% #e%!# fees !n) e9(enses) 2$i+$ t$e ot$er ,!< in+ur
or sust!in !n) 2$i+$ in !n< 2!< re#!te to or !rise fro, t$e "re!+$ "< t$e in)e,nif<in% (!rt< of !n< of its
o"#i%!tions un)er +#!use 184$
!1/2($
11 :iability of I Company
1141 F Co,(!n< !%rees to in)e,nif< !n) Cee( in)e,nifie) t$e Joint Venture Co,(!n< in res(e+t of !## #i!"i#ities>
+osts> +#!i,s> )e,!n)s !n) e9(enses (in+#u)in% #e%!# +osts) 2$i+$ t$e Joint Venture Co,(!n< ,!< in+ur to
!n< t$ir) (!rt< in re#!tion to or in +onne+tion 2it$ t$e /roje+t or !n< su"se;uent s!#e> #i+ensin% or ot$er
e9(#oit!tion of !n< (ro)u+t or (ro+ess resu#tin% t$erefro, 2$i+$ !rises fro, !n< 2i#fu# )ef!u#t> fr!u)> or
ne%#i%ent !+t or o,ission on t$e (!rt of F Co,(!n< or of !n< (erson !##o2e) "< F Co,(!n< to 2orC on or
(!rti+i(!te on t$e /roje+t4
114 7it$out (reju)i+e to t$e in)e,nit< +ont!ine) in +#!use 1141> F Co,(!n< s$!## not "e #i!"#e to t$e Joint
Venture Co,(!n< in res(e+t of !n< in)ire+t or +onse;uenti!# #oss in+#u)in% #oss of !nti+i(!te) (rofits>
%oo)2i## or re(ut!tion $o2soever +!use)> 2$i+$ is suffere) "< t$e Joint Venture Co,(!n<> ot$er2ise t$!n "<
re!son of !n< +#!i, "< ! t$ir) (!rt< in+#u)e) in +#!use 11414
114& 1consider overall cap on I &ompan,3s liabilit, .or direct losses arisin! out o. I &ompan,3s breach o.
contract-the availabilit, o. insurance is an important .actor in determinin! the court3s approach to liabilit,6
114* Not$in% in t$is +#!use 11 or e#se2$ere in t$is !%ree,ent s$!## e9+#u)e> restri+t or #i,it t$e #i!"i#it< of eit$er
!1/2)$
1% Force majeure
141 If !n) to t$e e9tent t$!t t$e /roje+t is (revente) or )e#!<e) "< for+e ,!jeure (!s )efine) "< +#!use 14)
suffere) "< F Co,(!n<> F Co,(!n< s$!## (ro,(t#< notif< t$e Joint Venture Co,(!n< s(e+if<in% t$e ,!tters
+onstitutin% t$e for+e ,!jeure !n) s(e+if<in% t$e (erio) for 2$i+$ it is esti,!te) t$!t t$e (revention or )e#!<
2i## +ontinue> !n) F Co s$!## t$en "e re#ieve) of !n< #i!"i#it< for f!i#ure to (erfor, or for )e#!< in (erfor,in%
t$e 7orC "ut s$!## nevert$e#ess use !## re!son!"#e en)e!vours to resu,e fu## (erfor,!n+e of it !n) s$!## ,!Ce
su+$ !#tern!tive !rr!n%e,ents for )oin% so !s ,!< "e (r!+ti+!"#e 2it$out in+urrin% ,!teri!# !))ition!#
e9(ense> /ROVIDED t$!t if !s ! resu#t of su+$ for+e ,!jeure t$e /roje+t is )e#!<e) "< ,ore t$!n !1 1or as
re>uired6$ ,ont$s> t$e Joint Venture Co,(!n< ,!< ter,in!te t$is !%ree,ent fort$2it$ "< noti+e to F
Co,(!n<4 !Durin% su+$ ti,e !s F Co,(!n< is re#ieve) of its o"#i%!tions to (erfor, t$e 7orC> t$e Joint
Venture Co,(!n< s$!## #iCe2ise "e re#ieve) of #i!"i#it< to (!< for t$e 7orC4$
14 :or t$e (ur(oses of t$is +#!use 1> Dfor+e ,!jeureA ,e!ns !n< +ir+u,st!n+es not foresee!"#e !t t$e )!te of t$is
!%ree,ent !n) not 2it$in t$e re!son!"#e +ontro# of F Co,(!n<> in+#u)in%> 2it$out #i,it!tion> striCes>
#o+Couts> s$ort!%es of #!"our> r!2 ,!teri!#s or +o,(onents> +ivi# +o,,otion> riot> inv!sion> 2!r> t$re!t of or
(re(!r!tion for 2!r> un!voi)!"#e !++i)ent> fire> e9(#osion> stor,> f#oo)> e!rt$;u!Ce> su"si)en+e> e(i)e,i+ or
ot$er n!tur!# ($<si+!# )is!ster4
!1/2,$
1( *ermination
1&41 7it$in !&8 1or as re>uired6$ )!<s of t$e +on+#usion of e!+$ ($!se of t$e /roje+t t$e Joint Venture Co,(!n<
,!< "< noti+e to F Co,(!n< e#e+t not to +ontinue 2it$ t$e ne9t ($!se if in its re!son!"#e o(inion t$e /roje+t
is un#iCe#< to resu#t in ! +o,,er+i!##< vi!"#e !(ro)u+t 1or6 servi+e$> !n) if su+$ noti+e s$!## "e serve) t$is
!%ree,ent s$!## ter,in!te 2it$out #i!"i#it< on t$e (!rt of eit$er (!rt< !n) F Co,(!n< s$!## not "e entit#e) to
t$e fees !((#<in% to t$e +!n+e##e) ($!se or ($!ses4
1&4 Eit$er (!rt< ,!< ter,in!te t$is !%ree,ent fort$2it$ "< noti+e to t$e ot$er if t$e ot$er s$!## $!ve +o,,itte) !
,!teri!# "re!+$ of t$is !%ree,ent 2$i+$ is in+!(!"#e of re,e)< or is ot$er2ise not re,e)ie) 2it$in &8 )!<s
of t$e (!rt< +o,,ittin% t$e "re!+$ $!vin% "een serve) 2it$ noti+e "< t$e ot$er (!rt<> s(e+if<in% t$e "re!+$
!n) re;uirin% its re,e)<4
1&4& T$is !%ree,ent s$!## !uto,!ti+!##< ter,in!te 2it$out !n< ne+essit< for noti+e s$ou#) !t$e Joint Venture
A%ree,ent "e ter,in!te) for !n< re!son 1or6 F Co,(!n< +e!se to "e t$e "enefi+i!# o2ner of !n< s$!res in
t$e Joint Venture Co,(!n<$4 1consider a !race period to enable the other /oint venturers to make other
arran!ements6
1&4* Ter,in!tion of t$is !%ree,ent s$!## "e 2it$out (reju)i+e to !n< ri%$ts or +#!i,s 2$i+$ eit$er (!rt< ,!< $!ve
!%!inst t$e ot$er 2$i+$ !re su"sistin% !t t$e ti,e of ter,in!tion !n) to t$e Joint Venture Co,(!n<As
!+;uisition of t$e inte##e+tu!# (ro(ert< ri%$ts !n) t$e #i+en+es in f!vour of e!+$ (!rt< +ont!ine) in t$is
!%ree,ent !n) !## (rovisions of t$is !%ree,ent 2$i+$ !re e9(resse) to $!ve effe+t !fter ter,in!tion s$!##
+ontinue in for+e !++or)in%#<4
!1/2.$
1) 8eneral
1*41 F Co,(!n< ,!< su"+ontr!+t !n< of its o"#i%!tions un)er t$is !%ree,ent !to (ersons !((rove) "< t$e Joint
Venture Co,(!n<$ !su+$ !((rov!# not to "e unre!son!"#< 2it$$e#) or )e#!<e)$ "ut s$!## ensure t$!t t$e
(rovision of +#!use 040 is +o,(#ie) 2it$ in re#!tion to ever< su+$ su"'+ontr!+tor4 T$is !%ree,ent s$!## "e
"in)in% u(on t$e (!rties !n) t$eir su++essors !n) (er,itte) !ssi%ns "ut neit$er of t$e (!rties ,!< !ssi%n t$eir
res(e+tive ri%$ts !n) o"#i%!tions un)er t$is !%ree,ent 2it$out t$e (rior 2ritten +onsent of t$e ot$er> !s!ve
t$!t t$e Joint Venture Co,(!n< ,!< !ssi%n its ri%$ts !n) o"#i%!tions un)er t$is !%ree,ent to !n< (ur+$!ser
of t$e 2$o#e or !n< (!rt of t$e un)ert!Cin% of t$e Joint Venture Co,(!n<> !n) if so re;ueste) "< t$e Joint
Venture Co,(!n<> F Co,(!n< s$!## enter into ! nov!tion of t$is !%ree,ent 2it$ !n< su+$ (ur+$!ser "<
2$i+$ t$e Joint Venture Co,(!n< s$!## "e re#e!se) fro, t$is !%ree,ent !n) t$e (ur+$!ser su"stitute) !s !
(!rt< for t$e Joint Venture Co,(!n< 2it$ effe+t fro, t$e )!te of e9e+ution of t$e nov!tion$4
1*4 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t (o2er or re,e)< veste) in eit$er (!rt< s$!##
+onstitute ! 2!iver "< t$!t (!rt< or t$!t or !n< ot$er ri%$t (o2er or re,e)<4
1*4& Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties or +onstitute eit$er
(!rt< t$e !%ent of t$e ot$er> or ot$er2ise entit#e eit$er (!rt< to $!ve !ut$orit< to "in) t$e ot$er (!rt< for !n<
(ur(ose4
1*4* T$is !%ree,ent +onstitutes t$e entire !%ree,ent t$e (!rties in re#!tion to t$e su"je+t ,!tter of t$is !%ree,ent
!n) no v!ri!tion of t$is !%ree,ent s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of !
)u#< !ut$orise) re(resent!tive of e!+$ of t$e (!rties4
1*40 In t$e event t$!t !n< ter, +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e
#!2 st!tute or re%u#!tion t$e s!,e s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e
!n) effe+t !n) t$is !%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if su+$ ter,> +on)ition or (rovision $!)
not ori%in!##< "een +ont!ine) in t$is !%ree,ent4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< su+$
)e#etion t$e (!rties !%ree to ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n)
s!tisf!+tori#< !#tern!tive (rovision in (#!+e of t$e (rovision so )e#ete)4
!1/2/$
1, Notices
1041 An< noti+e to "e %iven un)er t$is !%ree,ent "< eit$er (!rt< s$!## "e in 2ritin% !n) s$!## "e )ee,e) )u#<
serve) if )e#ivere) (erson!##< or sent "< f!9 or "< (re(!i) re%istere) (ost (!ir,!i# in t$e +!se of !n !))ress
for servi+e outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or (!s t$e +!se ,!< "e) t$e f!9
nu,"er of t$!t (!rt< set o((osite its n!,e "e#o2:
F Co,(!n<: 1address6> ,!rCe) Dfor t$e !ttention of 1name6AH f!9 nu,"er 1number6
Joint Venture Co,(!n<: 1address6> ,!rCe) Dfor t$e !ttention of 1name6AH f!9 nu,"er 1number6
it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t t$e #etter 2!s (ro(er#< st!,(e)> !))resse) !n) (#!+e)
in t$e (ost or )e#ivere) or #eft !t t$e +urrent !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9> t$!t t$e
f!9 2!s )u#< )es(!t+$e) to t$e f!9 nu,"er of t$e !))ressee %iven !"ove or su"se;uent#< notifie) for t$e
(ur(oses of t$is !%ree,ent4
!1/2"$
!114& T$ese su",issions s$!## not !ffe+t t$e ri%$t of !n< (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!##
juris)i+tion4$
&8 )!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is +#!use s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n< ot$er
!1/22$
1si!natures on behal. o. the parties6
A//ENDIF
1insert description o. the Pro/ect and the work re>uired to be per.ormed b, I &ompan,6
1
T$e !((en)i9 s$ou#) in+#u)e fu## )et!i#s of t$e rese!r+$ !n)Eor )eve#o(,ent 2orC re;uire)> 2$i+$ 2i## nor,!##< "e )ivi)e) into
($!ses> ! (!<,ent "ein% ,!)e !t t$e +o,(#etion of e!+$ ($!se4 T$e !((en)i9 s$ou#) )et!i# 2$!t is re;uire) to "e )e#ivere) to
+onstitute t$e +o,(#etion of e!+$ ($!se e% t$e )e#iver< of ! re(ort on rese!r+$ resu#ts> ! 2orCin% (rotot<(e> ! (re'(ro)u+tion
(rotot<(e> or 2$!tever4 A fee for e!+$ ($!se s$ou#) "e set out or ! ,et$o) for !rrivin% !t it> if not ! fi9e) su,4
Note t$!t if one (!rt< is resi)ent outsi)e t$e Unite) Bin%)o, for t!9 (ur(oses> +onsi)er!tion 2i## $!ve to "e %iven to t$e #eve# of
fees +$!r%e) "< F Co,(!n< in t$e #i%$t of t$e e9ten)e) Unite) Bin%)o, tr!nsfer (ri+in% #e%is#!tion in t$e In+o,e !n)
Cor(or!tion T!9es A+t 1655 s 5AA> inserte) "< t$e :in!n+e A+t 1665 s 185> S+$ 114
&
If ! ro<!#t< is to "e (!i) to F Co,(!n< "< t$e joint venture +o,(!n<> +onsi)er!tion 2i## !#so $!ve to "e %iven to t$e 2it$$o#)in%
t!9 i,(#i+!tions> !n) if ! 2it$$o#)in% t!9 o"#i%!tion )oes !rise> 2$et$er ! %rou( in+o,e e#e+tion is !v!i#!"#e to !##o2 (!<,ent to
"e ,!)e %ross or 2$et$er (if one (!rt< is non'UB resi)ent) !n< tre!t< re#ief is !v!i#!"#e4
If ! ro<!#t< is to "e (!i) t$e !%ree,ent ,!< "e st!,(!"#e un)er t$e St!,( A+t 1561 s 064 C!re s$ou#) "e t!Cen to ,iti%!te
t$e st!,( )ut< (!<!"#e4 /!rti+u#!r !ttention s$ou#) "e (!i) to t$e effe+ts of t$e St!,( A+t 1561 s 014
!1"##$
1,
A'reement for secondment of employees to a joint enture company by one of the joint enturers
(1) 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 (DF Co,(!n<A)H !n)
() 1name o. compan,6> ! +o,(!n< re%istere) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 (Dt$e Joint Venture Co,(!n<A)4
7.EREAS:
(A) F Co,(!n< $o#)s TTL of t$e or)in!r< s$!re +!(it!# of t$e Joint Venture Co,(!n<> $!vin% !%ree) to
su"s+ri"e for su+$ s$!res un)er t$e ter,s of 1set out description0 date and parties to the /oint venture
a!reement64
(-) Un)er +#!use * of t$e !%ree,ent referre) to in re+it!# (A) F Co,(!n< $!s !%ree) to enter into t$is !%ree,ent
to se+on) so,e of its e,(#o<ees to t$e Joint Venture Co,(!n<> in or)er to !ssist t$e Joint Venture Co,(!n<
in t$e )eve#o(,ent !n) o(er!tion of its "usiness4
!1"#1$
NO7 IT IS .ERE-? AGREED !s fo##o2s:
1 7nterpretation
(A) Dt$e Effe+tive D!teA ,e!ns 1date6H
(-) Dt$e E,(#o<eesA ,e!ns t$e /resent E,(#o<ees !n) !n< ot$er e,(#o<ees of F Co,(!n< 2$o !re for
t$e ti,e "ein% se+on)e) to t$e Joint Venture Co,(!n< un)er t$e ter,s of t$is !%ree,ent> 2$et$er
in re(#!+e,ent of !n< of t$ose #iste) in s+$e)u#e 1 or ot$er2ise4
(C) Dt$e Joint Venture A%ree,entA ,e!ns t$e !%ree,ent referre) to in re+it!# (A) !"oveH
(D) Dt$e /resent E,(#o<eesA ,e!ns t$e e,(#o<ees of F Co,(!n< 2$ose n!,es !n) inten)e) fun+tions
in t$e Joint Venture Co,(!n< !re set out in s+$e)u#e 1 "e#o24
!14 Referen+es to D(!rt<A or D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is !%ree,ent4 $
14& Referen+es to D(ersonsA !n) D(!rtiesA s$!## in+#u)e "o)ies +or(or!te> unin+or(or!te) !sso+i!tions !n)
(!rtners$i(s4
14* Referen+es to st!tutor< (rovisions s$!## "e +onstrue) !s referen+es to t$ose (rovisions !s !,en)e) or re'
en!+te) or !s t$eir !((#i+!tion is ,o)ifie) "< ot$er (rovisions fro, ti,e to ti,e !n) s$!## in+#u)e referen+es
to or !n< (rovisions of 2$i+$ t$e< !re re'en!+t,ents (2$et$er 2it$ or 2it$out ,o)ifi+!tion)4
140 Referen+es to +#!uses !re to +#!uses of t$is !%ree,ent4 Referen+es to t$is !%ree,ent in+#u)e t$e s+$e)u#es4
!1"#%$
% 3econdment
41 :or so #on% !s t$is !%ree,ent +ontinues in for+e F Co,(!n< s$!## ,!Ce !v!i#!"#e to t$e Joint Venture
Co,(!n< t$e servi+es of e!+$ of t$e /resent E,(#o<ees !n) !n< e,(#o<ees re(#!+in% or in !))ition to t$e,
for so #on% !s t$e< e!+$ re,!in in t$e e,(#o<,ent of F Co,(!n< !n) !re ot$er2ise !v!i#!"#e to (rovi)e
t$eir servi+es to t$e Joint Venture Co,(!n<4
4 If !t !n< ti,e t$e Joint Venture Co,(!n< s$!## re;uire t$e servi+es of !n< !))ition!# e,(#o<ees of F
Co,(!n< to ,eet !n< in+re!se) re;uire,ents of t$e Joint Venture Co,(!n<As "usiness> t$e Joint Venture
Co,(!n< ,!< %ive noti+e of t$!t re;uire,ent to F Co,(!n<> s(e+if<in% t$e fun+tion t$!t e!+$ !))ition!#
e,(#o<ee is to (erfor,> !n) F Co,(!n< s$!## use !## re!son!"#e en)e!vours> in t$e #i%$t of its t$en e9istin%
,!n(o2er resour+es !n) its o2n re;uire,ents> to se+on) su+$ !))ition!# e,(#o<ees u(on t$e ter,s of t$is
!%ree,ent4
4& If !n< of t$e E,(#o<ees s$!## +e!se to "e in t$e e,(#o<,ent of F Co,(!n< !or !re not ot$er2ise !v!i#!"#e to
(rovi)e t$eir servi+es to t$e Joint Venture Co,(!n<$> F Co,(!n< s$!## !not$ "e re;uire) to (rovi)e !
re(#!+e,ent !!n) e!+$ su+$ re(#!+e,ent s$!## "e ! (erson !((rove) "< t$e Joint Venture Co,(!n< (su+$
!((rov!# not to "e unre!son!"#< 2it$$e#) or )e#!<e))$4
4* !1.ull%time secondment6 T$e servi+es of e!+$ of t$e E,(#o<ees s$!## "e (rovi)e) !on ! fu##'ti,e "!sis$ "ut
su"je+t to non'!v!i#!"i#it< )ue to i##'$e!#t$ or injur< !n) )urin% $o#i)!<s %r!nte) in !++or)!n+e 2it$ t$e
nor,!# (o#i+< of F Co,(!n< in for+e fro, ti,e to ti,e> !n) F Co,(!n< s$!## not "e re;uire) to (rovi)e !n<
re(#!+e,ent to +over !n< su+$ (erio)s of non'!v!i#!"i#it<4
1or where secondment is not .ull%time6
T$e E,(#o<ees s$!## e!+$ )evote su+$ of t$eir ti,e to t$e servi+es of t$e Joint Venture Co,(!n< !s t$e Joint
Venture Co,(!n< s$!## fro, ti,e to ti,e re;uire "< noti+e to F Co,(!n< !t #e!st !* 1or as re>uired6$ 2eeCs
in !)v!n+e> "ut su"je+t to t$e !%ree,ent of F Co,(!n<4$
40 F Co,(!n< s$!## se+on) t$e E,(#o<ees to t$e Joint Venture Co,(!n< on t$e ter,s u(on 2$i+$ t$e< !re
fro, ti,e to ti,e e,(#o<e) "< F Co,(!n<> +o(ies of 2$i+$ $!ve "een (rovi)e) to t$e Joint Venture
Co,(!n<> !n) F Co,(!n< s$!## notif< to t$e Joint Venture Co,(!n< !## +$!n%es in t$e ter,s of e!+$ su+$
e,(#o<,ent !!n) s$!## +onsu#t t$e Joint Venture Co,(!n< in !)v!n+e +on+ernin% ever< (ro(ose) +$!n%e
)urin% t$e ter, of t$is !%ree,ent$4
!1"#($
( Hnderta>in's by I Company
F Co,(!n< s$!## use !## re!son!"#e en)e!vours to (ro+ure t$!t:
&41 e!+$ of t$e E,(#o<ees s$!## $!ve t$e re;uisite +o,(eten+e> e9(erien+e !n) ;u!#ifi+!tions to (erfor, t$e
fun+tion 2it$in t$e Joint Venture Co,(!n< set !%!inst $is n!,e in t$e s+$e)u#e or t$e fun+tion (erfor,e) "<
t$e E,(#o<ee 2$o, $e $!s re(#!+e)> or su+$ ot$er fun+tion !s ,!< fro, ti,e to ti,e !%ree) "et2een t$e
Joint Venture Co,(!n< !n) F Co,(!n<> !n) s$!## +!rr< out t$!t fun+tion 2it$ re!son!"#e sCi## !n) +!re> "ut
F Co,(!n< )oes not un)ert!Ce t$!t !n< of t$e E,(#o<ees 2i## "e +o,(etent to +!rr< out !n< ot$er )uties
fro, ti,e to ti,e !ssi%ne) to t$e, "< t$e Joint Venture Co,(!n<H
&4 e!+$ of t$e E,(#o<ees s$!## !+t u(on t$e )ire+tions of t$e Joint Venture Co,(!n<H
&4& 2$ere !n< of t$e E,(#o<ees is re;uire) "< t$e Joint Venture Co,(!n< to serve !s offi+ers> !ut$orise)
si%n!tories> no,inees or in !n< ot$er +!(!+it< on "e$!#f of t$e Joint Venture Co,(!n< or !n< of its
su"si)i!ries> t$!t e,(#o<ee s$!## resi%n fro, !n< su+$ !((oint,ents 2it$out +o,(ens!tion> !n) 2i## e9e+ute
su+$ )o+u,ents !s t$e Joint Venture Co,(!n< re!son!"#< re;uires to vest in t$e Joint Venture Co,(!n< or
!n< of its su"si)i!ries !n< (ro(ert< "e#on%in% to !n< of t$e, t$e #e%!# tit#e to 2$i+$ is $e#) "< t$e e,(#o<ee
in e!+$ +!se 2$enever re;ueste) "< t$e Joint Venture Co,(!n< !n) on t$e e!r#iest to o++ur of t$e ter,in!tion
of t$is !%ree,ent> t$e ter,in!tion of t$e se+on),ent of t$e e,(#o<ee $ereun)er> or t$e ter,in!tion of t$e
e,(#o<,ent of t$e e,(#o<ee 2it$ F Co,(!n<H
!1"#)$
&4* none of t$e E,(#o<ees s$!##> )urin% t$is !%ree,ent or !t !n< ti,e t$ere!fter> use for $is o2n (ur(oses or
"enefit or )ivu#%e or +o,,uni+!te to !n< (erson (ot$er t$!n !s !ut$orise) "< t$e Joint Venture Co,(!n< or
!s re;uire) for t$e (ur(oses of (rovi)in% t$e servi+es +onte,(#!te) un)er t$is !%ree,ent) !n< tr!)e se+rets or
ot$er infor,!tion 2$i+$ is for t$e ti,e "ein% +onfi)enti!# re#!tin% to t$e "usiness of t$e Joint Venture
Venture Co,(!n< or !n< of its su"si)i!ries $!s "usiness )e!#in%s> "ein% infor,!tion 2$i+$ is ,!rCe)
D+onfi)enti!#A or 2$i+$ t$e Joint Venture Co,(!n< s$!## $!ve notifie) t$e E,(#o<ees is to "e Ce(t
+onfi)enti!# or 2$i+$ 2ou#) "< its n!ture nor,!##< "e re%!r)e) !s "ein% +onfi)enti!# or 2$i+$ to t$e
Cno2#e)%e of t$e E,(#o<ees or !n< of t$e, or F Co,(!n< $!s "een o"t!ine) "< t$e Joint Venture Co,(!n<
or !n< of its su"si)i!ries fro, ! t$ir) (!rt< on ter,s t$!t t$e Joint Venture Co,(!n< or su+$ su"si)i!r< is to
Cee( it +onfi)enti!#> "ut t$is o"#i%!tion s$!## not e9ten) to infor,!tion or Cno2#e)%e 2$i+$ is for t$e ti,e
"ein% in t$e (u"#i+ )o,!in (ot$er2ise t$!n "< re!son of its 2ron%fu# )is+#osure) or 2$i+$ is re;uire) to "e
)is+#ose) "< #!2H
&40 e!+$ of t$e E,(#o<ees s$!## u(on re;uest "< t$e Joint Venture Co,(!n< !n) !#so u(on t$e ter,in!tion of t$is
!%ree,ent> t$e ter,in!tion of t$e se+on),ent of t$e e,(#o<ee $ereun)er or t$e ter,in!tion of t$e
e,(#o<,ent of t$e e,(#o<ee 2it$ F Co,(!n< (2$i+$ever is t$e e!r#ier) return to t$e Joint Venture Co,(!n<
!## notes> ,e,or!n)!> too#s> s!,(#es> ,o)e#s> ,!teri!#s> (rotot<(es> )o+u,ents> )r!2in%s> s(e+ifi+!tions>
ot$er 2ritten ,!teri!#> +o,(uter soft2!re !n) ot$er (ro(ert< 2$!tsoever "e#on%in% to t$e Joint Venture
Co,(!n< !n) !n< of its su"si)i!ries> in+#u)in% !## +o(ies of !n< of su+$ )o+u,ents> )r!2in%s> s(e+ifi+!tions>
ot$er 2ritten ,!teri!# or +o,(uter soft2!re !n) s$!## use !## re!son!"#e en)e!vours to ensure t$!t !##
infor,!tion in !n< 2!< re#!tin% t$ereto is er!se) fro, !n< (erson!# +o,(uter or ot$er infor,!tion retriev!#
s<ste, of t$e E,(#o<ee !t t$e s!,e ti,e4
F Co,(!n< s$!## "e re%!r)e) !s +o,(#<in% 2it$ t$e o"#i%!tions +ont!ine) in su"'+#!uses &4&> &4* !n) &40 if it o"t!ins
!((ro(ri!te un)ert!Cin%s fro, e!+$ of t$e E,(#o<ees !n) t$ere!fter t!Ces !## re!son!"#e )is+i(#in!r< !n) ot$er ste(s to
enfor+e t$e s!,e4
!1"#,$
) Hnderta>in's by the =oint Aenture Company
T$e Joint Venture Co,(!n< un)ert!Ces 2it$ F Co,(!n< to:
*41 o"serve t$e ter,s un)er 2$i+$ t$e E,(#o<ees !re e,(#o<e) "< F Co,(!n<> !s if t$e Joint Venture Co,(!n<
2!s t$e e,(#o<er of t$e E,(#o<ees (ot$er t$!n t$e (!<,ent of re,uner!tion 2$i+$ s$!## "e t$e res(onsi"i#it<
of F Co,(!n<) !n) s$!## not )o or o,it to )o !n<t$in% 2$i+$ 2ou#) +!use F Co,(!n< to "re!+$ !n< of its
o"#i%!tions to t$e E,(#o<eesH
*4 re(ort to F Co,(!n< !1 ,ont$#< 1or as re>uired6$ !in 2ritin%$ on t$e +on)u+t !n) (ro%ress of e!+$ of t$e
E,(#o<eesH !n)
*4& notif< F Co,(!n< of !n< )iffi+u#t< of ! )is+i(#in!r< or ot$er n!ture !risin% in res(e+t of !n< of t$e
E,(#o<ees )urin% t$eir se+on),ent> !n) F Co,(!n< s$!## "e entit#e) to )e!# 2it$ su+$ )iffi+u#ties !s it
+onsi)ers !((ro(ri!te4 T$e Joint Venture Co,(!n< s$!## not $!ve !ut$orit<> 2it$out e9(ress !ut$oris!tion
fro, F Co,(!n<> to )is,iss or ot$er2ise )is+i(#ine !n< of t$e E,(#o<ees4
!1"#.$
, Cealth and safety
041 T$e Joint Venture Co,(!n< !%rees t$!t it 2i## +o,(#< 2it$ its )uties un)er
(!) t$e .e!#t$ !n) S!fet< !t 7orC et+ A+t 163*H
(") !## re#ev!nt st!tutor< (rovisions (!s )efine) in t$!t A+t)H
(+) !## ot$er st!tutes !n) re%u#!tions re#!tin% to $e!#t$ !n) s!fet<H !n)
()) +o,,on #!2 in res(e+t of t$e E,(#o<ees
!n) t$!t it 2i## in)e,nif< !n) Cee( in)e,nifie) F Co,(!n< in res(e+t of !## #i!"i#ities> +osts> +#!i,s>
)e,!n)s> e9(enses> fines !n) ot$er (en!#ties (in+#u)in% #e%!# fees !n) e9(enses) 2$i+$ F Co,(!n< ,!<
in+ur or sust!in !s ! resu#t of !n< f!i#ure "< t$e Joint Venture Co,(!n< to so +o,(#<4
04 7it$out (reju)i+e to +#!use 041> t$e (!rties !%ree t$!t t$e E,(#o<ees s$!##> 2$i#st (erfor,in% )uties for t$e
Joint Venture Co,(!n<> "e )ee,e) to "e t$e !%ents of t$e Joint Venture Co,(!n< !n) t$!t t$e Joint Venture
Co,(!n< s$!## "e #i!"#e to F Co,(!n< for !n< #i!"i#it< in+urre) "< F Co,(!n< !risin% out of !n< !+t>
o,ission or error of ju)%e,ent (2$et$er or not ne%#i%ent) 2$i+$ ,!< "e +o,,itte) "< !n< of t$e E,(#o<ees
2$i#st (erfor,in% su+$ )uties e9+e(t 2$ere t$e s!,e !rises out of ! "re!+$ "< F Co,(!n< of t$e (rovisions
of su"'+#!use &41 or t$rou%$ t$e )is$onest< or 2i#fu# )ef!u#t or ne%#e+t of !n< of t$e E,(#o<ees !n) t$e Joint
Venture Co,(!n< s$!## in)e,nif< !n) Cee( in)e,nifie) F Co,(!n< in res(e+t of !## #i!"i#ities> +osts>
+#!i,s> )e,!n)s> e9(enses> fines !n) ot$er (en!#ties (in+#u)in% #e%!# fees !n) e9(enses) 2$i+$ F Co,(!n<
,!< in+ur or sust!in "< re!son of su+$ !n !+t o,ission or error of ju)%e,ent 2$et$er !risin% out of +o,,on
#!2> st!tute or ot$er2ise> "ut in res(e+t of su+$ !n !+t> o,ission or error of ju)%e,ent e9+#u)e) fro, t$e
Joint Venture Co,(!n<As res(onsi"i#it< "< t$is +#!use 04 F Co,(!n< s$!## si,i#!r#< in)e,nif< t$e Joint
Venture Co,(!n<4
04& F Co,(!n< s$!## not "e #i!"#e to t$e Joint Venture Co,(!n< in res(e+t of !n< in)ire+t or +onse;uenti!# #oss
in+#u)in% #oss of !nti+i(!te) (rofits> %oo)2i## or re(ut!tion $o2soever +!use) 2$i+$ is suffere) "< t$e Joint
Venture Co,(!n<> ot$er2ise t$!n "< re!son of ! +#!i, "< ! t$ir) (!rt< in res(e+t of 2$i+$ F Co,(!n< is
#i!"#e to in)e,nif< t$e Joint Venture Co,(!n< un)er +#!use 041 or +#!use 044
!04* 1consider overall cap on I &ompan,3s liabilit, and/or a scale o. a!reed li>uidated dama!es in respect o.
direct losses arisin! out o. I &ompan,3s breach o. contract-'he availabilit, o. insurance is an important
.actor in determinin! the approach to liabilit,6$
1
040 Not$in% in t$is +#!use 0 or ot$er2ise +ont!ine) in t$is !%ree,ent s$!## e9+#u)e> restri+t or #i,it t$e #i!"i#it< of
eit$er (!rt< for )e!t$ or (erson!# injur< +!use) "< t$!t (!rt<As ne%#i%en+e or for fr!u)4
!1"#/$
. Payment
141 T$e Joint Venture Co,(!n< s$!## (!< to F Co,(!n< fees for t$e se+on),ent of t$e E,(#o<ees !2$i+$ s$!##
"e su+$ su, !s fro, ti,e to ti,e re(resents t$e fu## +ost in+urre) "< F Co,(!n< in res(e+t of s!#!r<> "onus
!n) su+$ ot$er !,ounts or "enefits (!i) to or (rovi)e) to t$e E,(#o<ees "< F Co,(!n< )urin% t$eir
res(e+tive (erio)s of se+on),ent> 2$i+$ s$!## in+#u)e !## t!9es> (ension !n) n!tion!# insur!n+e +ontri"utions
!n) !n< ot$er so+i!# se+urit< +ontri"utions (!<!"#e "< F Co,(!n< in res(e+t of t$e E,(#o<ees$ !ot$er +osts
su+$ !s tr!ve##in% $ote# !n) su"sisten+e e9(enses of (!rt ti,e se+on)ees if !n<$ !n) su+$ +ost in re#!tion to
e!+$ of t$e /resent E,(#o<ees !s is set out in s+$e)u#e $ !"ut su"je+t to !n over!## #i,it of OTTT ! <e!r
1or set out whatever other basis is to appl,6$4 !F Co,(!n< $ere"< !%rees not to in+re!se> !)just or !,en)
!n< of t$e s!#!r<> "onus or ot$er !,ounts or "enefits (!i) or (rovi)e) to t$e E,(#o<ees !t !n< ti,e )urin%
t$e +ontinu!n+e of t$is !%ree,ent 2it$out t$e (rior 2ritten !%ree,ent of t$e Joint Venture Co,(!n< (su+$
+onsent not to "e unre!son!"#< 2it$$e#))> ot$er2ise t$!n in !++or)!n+e 2it$ !n< %ener!# +$!n%es t$!t ,!< "e
,!)e fro, ti,e to ti,e to t$e s!#!r<> "onus !n) ot$er !,ounts or "enefits (!i) or (rovi)e) to e,(#o<ees of
F Co,(!n<$4
14 T$e fees set out in +#!use 141 s$!## "e e9+#usive of !n< VAT +$!r%e!"#e on t$e,> 2$i+$ s$!## "e (!i) "< t$e
Joint Venture Co,(!n< in !))ition to su+$ fees> su"je+t to t$e (rovision to it of VAT t!9 invoi+es
4
14& F Co,(!n< s$!## invoi+e t$e Joint Venture Co,(!n< ,ont$#< in res(e+t of su+$ fees in !!)v!n+e 1or6
!rre!rs$ on t$e 1number6 )!< of e!+$ ,ont$> e!+$ su+$ invoi+e re#!tin% to t$e servi+es of t$e E,(#o<ees to "e
ren)ere) in t$e !(revious 1or6 fo##o2in%$ ,ont$ !n) t$e Joint Venture Co,(!n< s$!## (!< e!+$ su+$ invoi+e
2it$in !1* 1or as re>uired6$ )!<s of t$e issue of it4
!14* On t$e ter,in!tion of t$e se+on),ent of !n< of t$e E,(#o<ees for !n< re!son> !!n< su, (!i) "< t$e Joint
Venture Co,(!n< to F Co,(!n< in !)v!n+e in res(e+t of t$e servi+es of su+$ E,(#o<ee s$!## "e refun)e) "<
F Co,(!n< to t$e Joint Venture Co,(!n< 1or6 t$e Joint Venture Co,(!n< s$!## (!< to F Co,(!n< !n< su,
outst!n)in% in res(e+t of t$e servi+es of su+$ E,(#o<ee to t$e )!te of ter,in!tion$4$
!140 In !))ition to t$e (!<,ent of t$e s!i) fees to F Co,(!n<> t$e Joint Venture Co,(!n< s$!## (!<> )is+$!r%e
in)e,nif< !n) Cee( F Co,(!n< in)e,nifie) !%!inst !## e9(enses !n) )is"urse,ents re!son!"#< !n) (ro(er#<
in+urre) "< t$e E,(#o<ees in +onne+tion 2it$ t$e (erfor,!n+e !n) )is+$!r%e of t$eir )uties on "e$!#f of t$e
Joint Venture Co,(!n<> u(on (resent!tion to t$e Joint Venture Co,(!n< of !## !((ro(ri!te su((ortin%
invoi+es !n) re+ei(ts in res(e+t of su+$ e9(enses !n) )is"urse,ents4$
!1"#"$
/ Duration and termination
341 Su"je+t !s (rovi)e) in +#!use 34> t$is !%ree,ent s$!## +o,,en+e on t$e Effe+tive D!te !n) +ontinue un#ess
!n) unti# ter,in!te) "< eit$er (!rt< %ivin% to t$e ot$er in 2ritin% not #ess t$!n !& 1or as re>uired6$ ,ont$As
noti+e> e9(irin% !t !n< ti,e on or !fter !t$e 1number6 !nnivers!r< of t$e Effe+tive D!te$4
34 Not2it$st!n)in% +#!use 341> t$e Joint Venture Co,(!n< ,!< "< noti+e to F Co,(!n< re;uire t$!t !n< of t$e
E,(#o<ees "e 2it$)r!2n fro, se+on),ent to t$e Joint Venture Co,(!n< !!n) t$e fees referre) to in +#!use
141 !"!te) !++or)in%#<$ !!n) t$!t su+$ e,(#o<ee "e re(#!+e) "< !not$er$ 2$ere:
(A) t$e e,(#o<ee $!s +o,,itte) !n< !+t or o,ission (2$et$er or not in +onne+tion 2it$ $is
se+on),ent) 2$i+$ 2ou#) entit#e t$e Joint Venture Co,(!n< to )is,iss t$e e,(#o<ee su,,!ri#< if
$e 2!s e,(#o<e) "< t$e Joint Venture Co,(!n< on t$e ter,s !n) +on)itions un)er 2$i+$ $e is
e,(#o<e) "< F Co,(!n<H
(-) t$e e,(#o<,ent of t$e e,(#o<ee 2it$ F Co,(!n< is ter,in!te) for 2$!tever re!son !n) 2$et$er
!t t$e inst!n+e of F Co,(!n< or t$e e,(#o<eeH
(C) t$e e,(#o<ee $!s +on)u+te) $i,se#f in ! ,!nner (reju)i+i!# to t$e "usiness of t$e Joint Venture
Co,(!n<H or
(D) t$e e,(#o<ee is %ui#t< of )is$onest< or +onvi+te) of ! +ri,in!# offen+e> ot$er t$!n ! ,otorin%
offen+e not resu#tin% in i,(rison,ent (2$et$er or not in +onne+tion 2it$ t$e se+on),ent)4
34& Not2it$st!n)in% +#!use 341> eit$er (!rt< ,!< ter,in!te t$is !%ree,ent fort$2it$ "< noti+e to t$e ot$er if t$e
ot$er s$!## $!ve +o,,itte) ! ,!teri!# "re!+$ of t$is !%ree,ent 2$i+$ is in+!(!"#e of re,e)<> or (if so
+!(!"#e) is not re,e)ie) 2it$in &8 )!<s of t$e (!rt< +o,,ittin% t$e "re!+$ $!vin% "een serve) 2it$ noti+e "<
t$e ot$er (!rt<> s(e+if<in% t$e "re!+$ !n) re;uirin% its re,e)<4
34* Not2it$st!n)in% +#!use 341 t$is !%ree,ent s$!## !uto,!ti+!##< ter,in!te 2it$out !n< ne+essit< for noti+e
s$ou#) !t$e Joint Venture A%ree,ent "e ter,in!te) for !n< re!son$ !F Co,(!n< +e!se to "e t$e "enefi+i!#
o2ner of !n< s$!res in t$e Joint Venture Co,(!n<$4 1consider !race period to enable the other /oint
venturers to make other arran!ements6
340 Ter,in!tion of t$is !%ree,ent s$!## "e 2it$out (reju)i+e to !n< ri%$ts or +#!i,s 2$i+$ eit$er (!rt< s$!## $!ve
!%!inst t$e ot$er !n) 2$i+$ su"sist !t t$e ti,e of ter,in!tion !n) !## (rovisions of t$is !%ree,ent 2$i+$ !re
e9(resse) to $!ve effe+t !fter ter,in!tion s$!## +ontinue in for+e !++or)in%#<4
!1"#2$
" 7ntellectual property
T$e (!rties !%ree t$!t !n<:
541 )is+over<> invention> )esi%n> (ro+ess or 2orCs (in+#u)in%> 2it$out #i,it!tion (!tents> tr!)e ,!rCs> servi+e
,!rCs> ri%$ts (re%istere) or unre%istere)) in !n< )esi%ns> !n) !n< !((#i+!tions for !n< of t$e fore%oin%H
54 tr!)e or "usiness n!,esH
54& +o(<ri%$t (in+#u)in% ri%$ts in +o,(uter soft2!re) !n) to(o%r!($< ri%$tsH
54* #ists of su((#iers !n) +usto,ers !n) ot$er +onfi)enti!# !n) (ro(riet!r< Cno2#e)%e !n) infor,!tionH
540 ri%$ts (rote+tin% %oo)2i## !n) re(ut!tionH
541 Cno2'$o2H
543 )!t!"!se ri%$ts !n)
545 !## ri%$ts !n) for,s of (rote+tion of ! si,i#!r n!ture to !n< of t$e fore%oin% or $!vin% e;uiv!#ent effe+t
!n<2$ere in t$e 2or#) 2$i+$ !re +!(!"#e of (rote+tion "< #!2 "< ,e!ns of !n< for, of inte##e+tu!# or
in)ustri!# (ro(ert< ri%$t
(Dinte##e+tu!# (ro(ert< ri%$tsA 2$i+$ e9(ression s$!## in+#u)e t$e ri%$t to !((#< for (rote+tion of t$e,) ,!)e or )evise)
"< !n< of t$e E,(#o<ees )urin% t$e (erfor,!n+e of $is )uties )urin% se+on),ent to t$e Joint Venture Co,(!n< s$!##>
!s f!r !s t$e #!2 !##o2s> "e t$e (ro(ert< of t$e Joint Venture Co,(!n<4 F Co,(!n< s$!## !t t$e re;uest of t$e Joint
Venture Co,(!n< !ssi%n to t$e Joint Venture Co,(!n< !## inte##e+tu!# (ro(ert< ri%$ts !n) s$!## use !## re!son!"#e
en)e!vours to (ro+ure t$!t t$e re#ev!nt E,(#o<ees s$!## !ssi%n to t$e Joint Venture Co,(!n< !n< inte##e+tu!# (ro(ert<
ri%$ts 2$i+$ !re veste) in t$e,4 F Co,(!n< s$!## use !## re!son!"#e en)e!vours to ensure t$!t t$e +ontr!+ts of
e,(#o<,ent of !## t$e E,(#o<ees !re !,en)e) (rior to t$e +o,,en+e,ent of t$eir se+on),ent to in+#u)e ! ter, !s to
t$e o2ners$i( of inte##e+tu!# (ro(ert< ri%$ts in +onfor,it< 2it$ t$is +#!use 54
!1"1#$
!2 Non+competition
1consider provisions under which the +oint "enture &ompan, a!rees not to seek to en!a!e the services o. the
Emplo,ees and under which I &ompan, a!rees to use all reasonable endeavours to procure that the Emplo,ees enter
into a direct covenant with the +oint "enture &ompan, not to compete with the +oint "enture &ompan, a.ter
termination o. their emplo,ment with I &ompan,6$
1# 8eneral
1841 No e9er+ise or f!i#ure to e9er+ise or )e#!< in e9er+isin% !n< ri%$t (o2er or re,e)< veste) in eit$er (!rt< s$!##
+onstitute ! 2!iver "< t$!t (!rt< of t$!t or !n< ot$er ri%$t or re,e)<4
184 Not$in% in t$is !%ree,ent s$!## +re!te ! (!rtners$i( "et2een t$e (!rties or +re!te t$e re#!tions$i( of e,(#o<er
!n) e,(#o<ee !s "et2een t$e Joint Venture Co,(!n< !n) t$e E,(#o<ees4
184& T$is !%ree,ent +onstitutes t$e entire !%ree,ent "et2een t$e (!rties !s to its su"je+t ,!tter !n) no v!ri!tion
of it s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "< or on "e$!#f of ! )u#< !ut$orise) re(resent!tive
of e!+$ of t$e (!rties4
184* If !n< ter,> +on)ition or (rovision of t$is !%ree,ent is $e#) to "e +ontr!r< to !n< !((#i+!"#e #!2> st!tute or
re%u#!tion> it s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n) effe+t> !s if t$!t
ter,> +on)ition or (rovision $!) not "een ori%in!##< +ont!ine) in t$is !%ree,ent4 Not2it$st!n)in% t$e
fore%oin%> t$e (!rties !%ree to ne%oti!te in %oo) f!it$ in or)er to !%ree t$e ter,s of ! ,utu!##< !++e(t!"#e !n)
s!tisf!+tor< !#tern!tive (rovision in (#!+e of t$e (rovision so )e#ete)4
1840 T$is !%ree,ent s$!## "e "in)in% on t$e (!rties !n) t$eir su++essors !n) (er,itte) !ssi%ns4 Neit$er (!rt< s$!##
"e entit#e) to !ssi%n or su"+ontr!+t t$eir res(e+tive ri%$ts !n) o"#i%!tions un)er t$is !%ree,ent> 2it$out t$e
(rior 2ritten +onsent of t$e ot$er> !s!ve t$!t t$e Joint Venture Co,(!n< ,!< !ssi%n its ri%$ts !n) o"#i%!tions
un)er t$is !%ree,ent to !n< (ur+$!ser of t$e 2$o#e or !n< (!rt of t$e un)ert!Cin% of t$e Joint Venture
Co,(!n<> !n) if so re;ueste) "< t$e Joint Venture Co,(!n<> F Co,(!n< s$!## enter into ! nov!tion of t$is
!%ree,ent 2it$ !n< su+$ (ur+$!ser 2$ere"< t$e Joint Venture Co,(!n< is re#e!se) fro, t$is !%ree,ent !n)
t$e (ur+$!ser su"stitute) !s ! (!rt< for t$e Joint Venture Co,(!n< 2it$ effe+t fro, t$e )!te of e9e+ution of
t$e nov!tion$4
!1"11$
11 Notices
1141 An< noti+e to "e %iven un)er t$is !%ree,ent "< eit$er (!rt< s$!## "e in 2ritin% !n) s$!## "e )ee,e) )u#<
serve) if )e#ivere) (erson!##< or sent "< f!9 or "< (re(!i) re%istere) (ost (!ir,!i# in t$e +!se of !n !))ress
for servi+e outsi)e t$e Unite) Bin%)o,) to t$e !))ressee !t t$e !))ress or (!s t$e +!se ,!< "e) t$e f!9
nu,"er of t$!t (!rt< set o((osite its n!,e "e#o2:
F Co,(!n<: !))ress 1address6> ,!rCe) D:or t$e !ttention of 1name6H f!9 nu,"er 1number6
Joint Venture Co,(!n<: !))ress 1address6> ,!rCe) D:or t$e !ttention of 1name6H f!9 nu,"er 1number6
(rovisions of t$is +#!use 11) for t$e (ur(oses of t$is !%ree,ent4
it 2i## "e suffi+ient to (rove> in t$e +!se of ! #etter> t$!t su+$ #etter 2!s (ro(er#< st!,(e)> !))resse) !n)
(#!+e) in t$e (ost or )e#ivere) or #eft !t t$e +urrent !))ress if )e#ivere) (erson!##< !n)> in t$e +!se of ! f!9>
t$!t t$e f!9 2!s )u#< )es(!t+$e) to t$e f!9 nu,"er of t$e !))ressee %iven !"ove or su"se;uent#< notifie) for
t$e (ur(oses of t$is !%ree,ent4
!1"1%$
1% :a0 and jurisdiction
!14& T$ese su",issions s$!## not !ffe+t t$e ri%$t of !n< (!rt< to t!Ce (ro+ee)in%s in !n< ot$er juris)i+tion nor s$!##
juris)i+tion4$
)!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is +#!use 1 s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n< ot$er
!1"1($
SC.EDULE 1
T$e /resent E,(#o<ees
1insert details o. emplo,ees and responsibilities6
SC.EDULE
:ees for Se+on),ent of t$e /resent E,(#o<ees
1insert details6
1
7$ere t$e Joint Venture Co,(!n< is not fu##< t!9!"#e for VAT (ur(oses !n) is t$erefore un!"#e to re+over in fu## !n< VAT
+$!r%e) to it on t$e fees (!<!"#e to F Co,(!n<> +onsi)er!tion s$ou#) "e %iven to 2$et$er t$e !rr!n%e,ents +ou#) "e stru+ture)
so !s to f!## 2it$in t$e VAT e9e,(tions set out in .= Custo,s !n) E9+ise Noti+e 388E&* (St!ff)4
T$e su((#< of st!ff to t$e joint venture +o,(!n< is ! VAT!"#e su((#< (if +onsi)er!tion is %iven for t$e se+on),ent) 2$i+$
t!Ces (#!+e 2$ere it is re+eive)4 If t$e joint venture +o,(!n< "e#on%s in t$e Unite) Bin%)o, !n) t$e +urrent e,(#o<er is
re%istere) for Unite) Bin%)o, VAT> t$e su((#< is su"je+t to VAT4 If t$e +urrent e,(#o<er is not situ!te) in t$e Unite) Bin%)o,>
t$e joint venture +o,(!n< ,ust !++ount for it s in(ut t!9 un)er t$e reverse +$!r%e ru#es4 If t$e joint venture +o,(!n< )oes not
"e#on% in t$e Unite) Bin%)o, t$e Unite) Bin%)o, e,(#o<er ,!< not +$!r%e VAT4
Consi)er !#so 2$et$er t$e (rovision of !n< insur!n+e in res(e+t of #i!"i#ities of t$e e,(#o<ees fro, t$eir e,(#o<,ent 2i## "e
tre!te) !s ! "enefit in Cin)> or 2$et$er t$e re#ief in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 81AA !s inserte) "< t$e
:in!n+e A+t 1665 (*M** .!#s"ur<As St!tutes (*t$ E)n) TAFATION) 2i## !((#<4 .o2ever> t$e f!+t t$!t t$e e,(#o<ee is on
se+on),ent s$ou#) not of itse#f !ffe+t t$e !v!i#!"i#it< of re#ief4
!1"1)$
1.
A'reement for the establishment and operation of a joint enture companyG% principal shareholders only; 0ith
class ri'hts and Ddeadloc> articles of association
1
(1) 1.irst venturer6!> ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (DFA)H !n)
() 1second venturer6!> ! +o,(!n< in+or(or!te) in En%#!n) un)er nu,"er 1re!istration number6 2$ose re%istere)
offi+e is !t 1address6 1or6 of 1address6$ (D?A)4
7.EREAS:
(A) 1name o. /oint venture compan,6 is ! +o,(!n< #i,ite) "< s$!res !n) in+or(or!te) in En%#!n) 2it$ nu,"er
1re!istration number6 un)er t$e Co,(!nies A+t 1650 !n) $!s !t t$e )!te $ereof !n !ut$orise) s$!re +!(it!# of
OTTT )ivi)e) into 1number6 or)in!r< s$!res of O1 e!+$ of 2$i+$ !$ s$!res $!ve "een issue) !n) !re fu##<
(!i) u(> "enefi+i!##< o2ne) "< F !n) re%istere) in t$e n!,e of F or !its 1or6 $is$ no,inees4 T$e (resent
)ire+tors of t$e +o,(!n< !re 1name6 !n) 1name6
4
(-) T$e (!rties (ro(ose t$!t 1name o. /oint venture compan,6 s$ou#) "e use) !s t$eir joint venture ve$i+#e to
1speci., proposed business or purpose o. the /oint compan,64
(C) A++or)in%#< t$e (!rties $!ve !%ree) to su"s+ri"e for s$!res in 1name o. /oint venture compan,6 !n) to enter
into +ert!in +o,,it,ents !n) to re%u#!te t$e e9er+ise of t$eir ri%$ts in re#!tion to su+$ joint +o,(!n< in t$e
,!nner !((e!rin% "e#o24
!1"1,$
1 7nterpretation
se+tion *81
&
H
(E) Dsu"si)i!r<A !n) D$o#)in% +o,(!n<A s$!## "e!r t$e s!,e res(e+tive ,e!nin%s !s in t$e Co,(!nies
(:) D+ontro#A or D+ontro##e)A s$!## "e )eter,ine) "< referen+e to t$e (rovisions of !t$e In+o,e !n)
*
e9e+ution of t$is !%ree,ent (or t$e )!te su+$ (!rt< "e+o,es "oun) "< t$e ter,s of t$is !%ree,ent
(if #!ter)) su"se;uent#< +e!se to +ontro# it or if !n< (erson or (ersons su"se;uent#< !+;uire +ontro#
of itH
14 referen+es to D(!rt<A !n) D(!rtiesA s$!## "e +onstrue) !s referen+es to ! (!rt< or t$e (!rties to t$is !%ree,ent
!ot$er t$!n t$e Co,(!n<$4
14& Referen+es to st!tutor< (rovisions s$!## "e +onstrue) !s referen+es to t$ose (rovisions !s res(e+tive#<
14* An< )o+u,ent referre) to !s "ein% Din t$e !%ree) for,A s$!## ,e!n ! )o+u,ent in ! for, !%ree) "< t$e
140 Referen+es to +#!uses !re to +#!uses of t$is !%ree,ent4
!1"1.$
s$ort noti+e !n) t$!t t$e s(e+i!# reso#ution set out in t$e !%ree) for, ,!rCe) DAA
0
is (ro(ose) !n)
(!sse) !t t$!t ,eetin%> t$e ne2 o"je+ts referre) to in (!r!%r!($ () of t$e s!i) reso#ution "ein%
t$ose +ont!ine) in +#!use & of t$e ,e,or!n)u, of !sso+i!tion in t$e !%ree) for, ,!rCe) D-A !n)
t$e ne2 !rti+#es of !sso+i!tion referre) to in (!r!%r!($ (&) of t$e s!i) reso#ution "ein% t$ose in t$e
!%ree) for, ,!rCe) DCA
1
H !n)
(-) su"je+t to !n) fort$2it$ u(on t$e reso#ution in +#!use 41(A) !"ove "ein% (ro(ose) !n) (!sse):
(1) F s$!## (ro+ure t$!t 1name6 !n) 1name6 s$!## (su"je+t to t$e, res(e+tive#< +onsentin% to
!+t) "e !((ointe) !s !))ition!# )ire+tors of t$e Co,(!n<H !n)
() F s$!## su"s+ri"e for +!s$ !!t (!r$ 1number6 ne2 DAA s$!res of O1 e!+$ (t$ere"< in+re!sin%
its $o#)in% of DAA s$!res in t$e Co,(!n< to 1number6 DAA s$!res of O1 e!+$) !n) ? s$!##
su"s+ri"e for +!s$ !!t (!r$ 1number6 ne2 D-A s$!res of O1 e!+$ (F 2!ivin% !n< ri%$ts of
(re'e,(tion $o2soever !risin% 2$i+$ it ,i%$t $!ve in res(e+t of su+$ su"s+ri(tion) !n)
t$e (!rties s$!## (ro+ure t$!t ! "o!r) ,eetin% of t$e Co,(!n< s$!## "e $e#) !t 2$i+$ su+$
s$!res s$!## "e !##otte) to F !n) ? res(e+tive#< !n) re%istere) in t$eir n!,es in t$e
nu,"ers res(e+tive#< su"s+ri"e) "< t$e, +re)ite) !s fu##< (!i) !!t (!r$ !%!inst i,,e)i!te
(!<,ent of t$e re#ev!nt su"s+ri(tion ,one<
3
4
!1"1/$
4 :ort$2it$ fo##o2in% t$e )ue (erfor,!n+e of t$e (rovisions of +#!use 41 !"ove t$e (!rties s$!## (ro+ure t$!t:
(C) t$e Co,(!n<As !++ountin% referen+e )!te s$!## "e +$!n%e) to 1date6 !+o,,en+in% on 1date6 (so t$!t
its first !++ountin% referen+e (erio) s$!## "e fro, its )!te of in+or(or!tion to 1date6 ("ot$ )!tes
in+#usive))$H
(D) t$e "!nCers to t$e Co,(!n< s$!## "e 1name o. bank6 of 1branch address6!H !n)
&41 T$e (!rties !+Cno2#e)%e t$!t t$eir res(e+tive entit#e,ents to !((oint )ire+tors s$!## "e +ont!ine) in t$e ne2
!rti+#es of !sso+i!tion to "e !)o(te) (ursu!nt to +#!use 41(A) !"ove4
&4 Un#ess ot$er2ise !%ree) t$e (!rties s$!## (ro+ure t$!t "o!r) ,eetin%s !re +onvene) !n) $e#) !t #e!st
1number6 ti,es ! <e!r !!n) t$!t ! 2ritten !%en)! s(e+if<in% t$e ,!tters to "e r!ise) !t !n< "o!r) ,eetin% of
t$e Co,(!n< s$!## (to%et$er 2it$ t$e noti+e +onvenin% t$e ,eetin% or (if not) not #ess t$!n !3 1or as
re>uired6$ )!<s (rior to t$e )!te of t$e ,eetin%) "e sent to !## )ire+tors (or t$eir !#tern!tes) entit#e) to re+eive
noti+e of !n< su+$ ,eetin%$4
!1"1"$
*41 T$e "usiness of t$e Co,(!n< s$!## un#ess !n) unti# t$e (!rties ot$er2ise !%ree "e +onfine) to 1insert details64
*4 Su+$ "usiness s$!## "e +!rrie) on "< t$e Co,(!n< itse#f or t$rou%$ "r!n+$es or su"si)i!r< +o,(!nies
est!"#is$e) in !t$e Unite) Bin%)o, 1or as the case ma, be6$ or e#se2$ere !n) t$e Co,(!n< s$!## est!"#is$
su+$ offi+es or ot$er (re,ises !s t$e -o!r) ,!< )e+i)e4
1insert details6
5
referre) to in +#!use !"ove !n) t$ere!fter "< #o!ns fro, F !n) ? on su+$ ter,s !s t$e< ,!< !%ree 2it$ t$e
-o!r) or "< #o!ns fro, t$e Co,(!n<As "!nCers or "ot$
6
4
18
!1"12$
1insert details6
11
(-) !,ont$#<$ ,!n!%e,ent !++ounts !!n) re(orts$ +ont!inin% su+$ infor,!tion !s eit$er (!rt< s$!##
re!son!"#< re;uire s$!## "e (re(!re) !n) )es(!t+$e) "< t$e Co,(!n< to t$e (!rties 2it$in !&8 1or
as re>uired6$ )!<s of t$e en) of t$e !,ont$$ in ;uestionH !n)
!54
(A) T$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## (re(!re !n !nnu!# "usiness (#!n (t$e D-usiness
/#!nA) 2$i+$ s$!## in+#u)e t$e fo##o2in%:
s$eet fore+!stH
(-) T$e first -usiness /#!n in res(e+t of t$e fin!n+i!# <e!r en)in% 1date6 s$!## "e !in t$e !%ree) for,
,!rCe) DEA 1or6 (re(!re) 2it$in !&8 1or as re>uired6$ )!<s of t$e )!te of t$is !%ree,ent$4 -usiness
/#!ns in res(e+t of su"se;uent fin!n+i!# <e!rs s$!## "e su",itte) for !((rov!# "< t$e -o!r) not #!ter
t$!n !18 1or as re>uired6$ )!<s "efore t$e +o,,en+e,ent of t$e fin!n+i!# <e!r in ;uestion4$
fin!n+i!# <e!r 1or6 !## of its !+onso#i)!te)$ (rofits !s !re t$en !v!i#!"#e for )istri"ution$
1
4
!1"%#$
2 Promotion of the Companys business
641 E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts 2it$ e!+$ ot$er (!rt< to use !## re!son!"#e en)e!vours to
(ro,ote !n) )eve#o( t$e "usiness of t$e Co,(!n< to t$e "est !)v!nt!%e in !++or)!n+e 2it$ %oo) "usiness
(r!+ti+e !n) t$e $i%$est et$i+!# st!n)!r)s4
!64 E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts 2it$ e!+$ ot$er (!rt< t$!t for !s #on% !s it is ! (!rt< to t$is
!%ree,ent !n) for t$e fo##o2in% (erio) of !* 1or as re>uired6$ ,ont$s it s$!## not !n) s$!## (ro+ure t$!t no
en%!%e)> +on+erne) or intereste) eit$er )ire+t#< or in)ire+t#< !n) 2$et$er on its o2n "e$!#f or on "e$!#f of or
in !sso+i!tion 2it$ ot$ers or in !n< +!(!+it< 2$!tsoever in +!rr<in% on in +o,(etition 2it$ t$e Co,(!n< or
!n< su"si)i!r< of t$e Co,(!n< !n<2$ere 2it$in 1area6 t$e "usiness of 1business64
64& E!+$ of t$e (!rties to t$is !%ree,ent +oven!nts t$!t for !s #on% !s it is ! (!rt< to t$is !%ree,ent !n) for t$e
fo##o2in% (erio) of !* 1or as re>uired6$ ,ont$s it s$!## not !n) s$!## (ro+ure t$!t no +o,(!n< o2ne) or
+ontro##e) "< it !n) no (erson on its or t$eir "e$!#f s$!## in re#!tion to !n< %oo)s or servi+es su((#ie) "< t$e
Co,(!n< or !n< su"si)i!r< of t$e Co,(!n< in re#!tion to su+$ %oo)s or servi+es4
64*
effe+tive4
1&
!1"%1$
1# Confidentiality
!+;uire in re#!tion to t$e Co,(!n< !n) its su"si)i!ries or in re#!tion to t$e +#ients> "usiness or !ff!irs of !n<
infor,!tion e9+e(t 2it$ t$e +onsent of ever< ot$er (!rt< !n)Eor of t$e Co,(!n< or its re#ev!nt su"si)i!r< (!s
184
of ti,e "ut s$!## +e!se to !((#< to !n< infor,!tion +o,in% into t$e (u"#i+ )o,!in ot$er2ise t$!n
"< "re!+$ "< !n< su+$ (!rt< of its o"#i%!tions +ont!ine) in +#!use 1841 (rovi)e) t$!t not$in%
!1"%%$
11 *a5 matters
1141
in ! (osition v!#i)#< to %ive !n) s$!## %ive t$e 2!rr!nt< !n) un)ert!Cin% +ont!ine) in t$is
+#!use 1141(-)4
"ein% +o,(!nies resi)ent on#< in t$e Unite) Bin%)o,
1*
4
114
su+$ (!rties s$!## t$en (ro+ure) t$!t its re#ev!nt (ro(ortion ($erein!fter )efine)) of t$e Co,(!n<As
tr!)in% #osses !n) ot$er !,ounts e#i%i"#e for re#ief fro, t!9!tion s$!## "e surren)ere) to it (or su+$
ot$er +o,(!n< !s ,!< "e its %rou( ,e,"er 2$ere su+$ +o,(!n< is entit#e) to re+eive t$e s!,e
su+$ (!rt< in t$e Co,(!n< "e!rs to t$e tot!# no,in!# v!#ue of t$e entire issue) or)in!r< s$!re
+!(it!# of t$e Co,(!n<4
surren)er "< !## t$e (!rties (or t$e %rou( ,e,"ers) to t$e Co,(!n< !n) +!(!"#e of "ein% uti#ise)
res(e+t of t$!t (!rt not !##o2e)
10
4
!((ro(ri!te (!rt< or (!rties or t$eir %rou( ,e,"er(s) 2it$in t$e re;uisite (erio)4
+o,(!n< in f!+t (!<in% t$e re+i(ient +o,(!n< t$e ,onies )ue 2it$in t$e s!i) 5 )!< (erio)
11
4
!%ree,ent> "< t$e /resi)ent for t$e ti,e "ein% of t$e Institute of C$!rtere) A++ount!nts of En%#!n)
!1"%($
!114& T$e (!rties s$!##:
13
114*
15
4
1% 3hare transfers
S!ve !s ot$er2ise e9(ress#< (rovi)e) in t$is !%ree,ent> neit$er (!rt< s$!## )urin% t$e ter, of t$is !%ree,ent eit$er se##>
tr!nsfer> +$!r%e> en+u,"er> %r!nt o(tions over or ot$er2ise )is(ose of> or of !n< #e%!# or "enefi+i!# interest in> !n< of
t$e s$!res no2 o2ne) or su"se;uent#< !+;uire) "< it in t$e Co,(!n< un)er or (ursu!nt to t$is !%ree,ent or "< virtue
of its s$!re$o#)in% in t$e Co,(!n< !e9+e(t 2it$ t$e (rior 2ritten +onsent of t$e ot$er (!rt< (2$i+$ ,!< "e 2it$$e#) for
!n< re!son or 2it$out %ivin% !n< re!son) !n) in +o,(#i!n+e 2it$ t$e (rovisions of t$e !rti+#es of !sso+i!tion of t$e
Co,(!n< !n) (rovi)e) t$!t t$e (rovisions of +#!use 1541 !re +o,(#ie) 2it$
16
4
!1"%)$
8
1&41 :or t$e (ur(oses of t$is +#!use 1& ! D)e!)#o+CA s$!## "e )ee,e) to $!ve o++urre) if:
(A)
(1) ! ,!tter re#!tin% to or !ffe+tin% t$e Co,(!n< $!s "een r!ise) !t !n)Eor +onsi)ere) "< !
,eetin% of t$e -o!r) or ! %ener!# ,eetin% !n)
() no reso#ution $!s "een (!sse) "< su+$ ,eetin% "< re!son of !n e;u!#it< of votes for !n)
!%!inst !n< reso#ution (ro(ose) re#!tin% to su+$ ,!tter !n)
(&) eit$er (!rt< $!s su"se;uent#< notifie) t$e ot$er !2it$in !5 1or as re>uired6$ )!<s !fter
su+$ "o!r) or %ener!# ,eetin%$ t$!t t$e ,!tter $!s not "een reso#ve) to its s!tisf!+tionH or
!(-) ! ;uoru, is not (resent !t t2o su++essive "o!r) or %ener!# ,eetin%s (or (ro(ose) "o!r) or %ener!#
,eetin%s) )u#< +onvene)4$
1
1consider 2!in and tonic3 provision .or resolution o. deadlockH see Form ;; N:C5CO post6
1&4
(A) In t$e event of ! )e!)#o+C eit$er (!rt< (Dt$e ServerA) s$!## "e entit#e) !!t !n< ti,e 2it$in 68 )!<s of
t$e "o!r) or %ener!# ,eetin% referre) to in +#!use 1&41(A) !"ove or t$e se+on) of t$e (ro(ose)
"o!r) ,eetin%s referre) to in +#!use 1&41(-) !"ove$ to serve ! noti+e (D! )e!)#o+C reso#ution
noti+eA) on t$e ot$er (!rt< (Dt$e Re+i(ientA) offerin% eit$er to se## !## ("ut not so,e on#<) of its
s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re s(e+ifie) "< it (Dt$e S(e+ifie) /ri+eA) or to (ur+$!se !##
("ut not so,e on#<) of t$e Re+i(ientsA s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re e;u!# to t$e
S(e+ifie) /ri+e4 On+e %iven ! )e!)#o+C reso#ution noti+e +!nnot "e 2it$)r!2n 2it$out t$e 2ritten
+onsent of t$e Re+i(ient4
(-) 7it$in !&8$ )!<s of servi+e of ! )e!)#o+C reso#ution noti+e t$e Re+i(ient s$!## "< noti+e to t$e
server (D! +ounter noti+eA) "e entit#e) eit$er to !++e(t t$e offer +ont!ine) in t$e )e!)#o+C reso#ution
noti+e or (if t$e offer +ont!ine) in it 2!s to (ur+$!se t$e Re+i(ientAs s$!res) to e#e+t to (ur+$!se !##
("ut not so,e on#<) of t$e serverAs s$!res in t$e Co,(!n< !t ! (ri+e (er s$!re e;u!# to t$e S(e+ifie)
/ri+e or (if t$e offer +ont!ine) in t$e )e!)#o+C reso#ution noti+e 2!s to se## t$e ServerAs s$!res) to
e#e+t to se## !## ("ut not so,e on#<) of t$e Re+i(ientAs s$!res in t$e Co,(!n< to t$e Server !t ! (ri+e
(er s$!re e;u!# to t$e S(e+ifie) /ri+e4 If no +ounter noti+e is serve) "< t$e Re+i(ient on t$e Server
2it$in t$e (erio) referre) to> t$e Re+i(ient s$!## "e )ee,e) to $!ve !++e(te) t$e offer +ont!ine) in
t$e )e!)#o+C reso#ution noti+e4
(C) U(on )ee,e) !++e(t!n+e of t$e )e!)#o+C reso#ution noti+e or u(on servi+e of t$e +ounter noti+e (!s
!((#i+!"#e) t$e (!rties s$!## "e+o,e res(e+tive#< "oun) to "u< or se## !++or)in%#< !n) +o,(#etion
of !n< su+$ s!#e !n) (ur+$!se s$!## t!Ce (#!+e !t t$e re%istere) offi+e of t$e Co,(!n< !t !18488 !,
1or as re>uired6$ on t$e !tent$ 1or as re>uired6$ "usiness )!< !fter su+$ event (or su+$ ot$er ti,e
!n)Eor (#!+e !s t$e (!rties ,!< !%ree) !n) in res(e+t of 2$i+$ t$e (rovisions of +#!uses 104*> 1040>
1041 !n) 1043 s$!## t$en $!ve effe+t4
!1"%,$
1) *ermination
t$is +#!use> "ut no su+$ ter,in!tion s$!## !ffe+t !n< (rovision of t$is !%ree,ent e9(resse) to $!ve effe+t !fter
su+$ ter,in!tion or !n< ri%$ts 2$i+$ eit$er (!rt< ,!< $!ve !%!inst t$e ot$er su"sistin% !t t$e ti,e of
ter,in!tion
4
1*4 If:
(A) eit$er (!rt< s$!## +o,,it !n< !,!teri!#$ "re!+$ of !n< of its o"#i%!tions un)er t$is !%ree,ent !n)
s$!## f!i# to re,e)< su+$ "re!+$ (if +!(!"#e of re,e)<) 2it$in &8 )!<s !fter "ein% %iven noti+e "<
t$e ot$er (!rt< so to )oH or
(-) eit$er (!rt< ("ein% ! +o,(!n<) s$!## %o into #i;ui)!tion 2$et$er +o,(u#sor< or vo#unt!r< (e9+e(t
for t$e (ur(oses of ! "on! fi)e re+onstru+tion or !,!#%!,!tion 2it$ t$e +onsent of t$e ot$er (!rt<>
su+$ +onsent not to "e unre!son!"#< 2it$$e#)) or if eit$er (!rt< s$!## $!ve !n !),inistr!tor
!((ointe) or if ! re+eiver> !),inistr!tive re+eiver or ,!n!%er s$!## "e !((ointe) over !n< (!rt of
t$e !ssets or un)ert!Cin% of eit$er (!rt<!H or
(C) eit$er (!rt< ("ein% !n in)ivi)u!#) s$!## "e !)ju)%e) "!nCru(t or s$!## )ie or "e+o,e ! (!tient for t$e
(ur(oses of !n< st!tute re#!tin% to ,ent!# $e!#t$$
&
!H or
(D) eit$er (!rt< ("ein% !n in)ivi)u!#) s$!## +e!se for !n< re!son to ,!Ce $is su"st!nti!##< fu## ti,e
servi+es !v!i#!"#e to t$e Co,(!n< !n)Eor !n< su"si)i!r< of t$e Co,(!n<$
*
!H or if t$ere s$!## "e !n< +$!n%e in t$e +ontro# of eit$er (!rt<$
0
> t$e ot$er (!rt< s$!## "e entit#e) to ter,in!te
t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e first (!rt< !or in t$e +!se of ! noti+e serve) un)er +#!use
1*4(D) to ever< (!rt< 2$o $o#)s !t t$e ti,e of t$e noti+e !n< of t$e s$!res (revious#< $e#) "< t$e in)ivi)u!#
2$ose servi+es $!ve +e!se)$ !("ut not !fter 68 )!<s of t$e event in ;uestion first +o,in% to t$e !ttention of
t$e (!rt< entit#e) to %ive t$e noti+e)$4
!1"%.$
!1*4& Eit$er (!rt< ,!< !t !n< ti,e !fter 1date6 ter,in!te t$is !%ree,ent fort$2it$ "< noti+e in 2ritin% to t$e ot$er
(!rt<4$
1*4* T$is !%ree,ent s$!## ter,in!te if> !t !n< ti,e !s ! resu#t of ! tr!nsfer of s$!res ,!)e in !++or)!n+e 2it$ t$is
!%ree,ent (in+#u)in%> 2it$out #i,it> +o,(#i!n+e 2it$ t$e (rovisions of +#!use 141) t$!t (!rt< $o#)s no s$!res
in t$e +!(it!# of t$e Co,(!n<4
1, Conse6uences of notices under clauses 1( and 1)
1041 If eit$er (!rt< s$!## serve ! v!#i) noti+e of ter,in!tion un)er +#!use 1*> !"ove t$!t (!rt< (Dt$e Ter,in!torA)
s$!## "e entit#e) "< t$!t noti+e to re;uire t$e ot$er (!rt< (Dt$e Ter,in!teeA) eit$er:
(A) (in t$e +!se of ! noti+e serve) un)er +#!use 1*4(A) (D) or (E) or +#!use 1*4& on#<) to (ur+$!se !##
("ut not so,e on#<) of t$e s$!res in t$e Co,(!n< of t$e Ter,in!torH or
(-) to se## to t$e Ter,in!tor !## ("ut not so,e on#<) of t$e s$!res in t$e Co,(!n< of t$e Ter,in!tor
in eit$er +!se !t ! (ri+e )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of +#!use 104 "e#o24 U(on e9er+ise of
!n< su+$ ri%$t t$e Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e "oun) to res(e+tive#< se## or (ur+$!se u(on
t$e ter,s set out "e#o24 If> in ! v!#i) ter,in!tion noti+e> t$e (o2er of s!#e or (ur+$!se is not e9er+ise) "< t$e
Ter,in!tor t$en> in t$e +!se of ! noti+e serve) un)er +#!use 1*4& on#<> t$e Ter,in!tee ,!< 2it$in &8 )!<s of
t$e Ter,in!torAs noti+e serve ! +ounter noti+e on t$e Ter,in!tor re;uirin% t$e Ter,in!tor to se## to t$e
Ter,in!tee !## ("ut not so,e on#<) of t$e s$!res in t$e Co,(!n< of t$e Ter,in!tor in 2$i+$ +!se t$e
Ter,in!tor !n) t$e Ter,in!tee s$!## "e+o,e "oun) res(e+tive#< to se## !n) (ur+$!se su+$ s$!res on t$e ter,s
set out "e#o2 "ut ot$er2ise t$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## "e i,,e)i!te#< 2oun) u(4
!1"%/$
104 T$e (ur+$!se (ri+e of t$e s$!res to "e "ou%$t !n) so#) (ursu!nt to +#!use 1041 !"ove s$!## "e t$e f!ir v!#ue of
t$e s$!res !s !%ree) "et2een t$e (!rties to t$e s!#e !n) (ur+$!se or> in )ef!u#t of !%ree,ent 2it$in 10 )!<s
!fter t$e servi+e of t$e noti+e of ter,in!tion> su+$ su, !s s$!## "e +ertifie) "< t$e !u)itors for t$e ti,e "ein%
of t$e Co,(!n< (!t t$e re;uest of eit$er su+$ (!rt<) to "e t$e f!ir v!#ue of t$e s$!res on t$e )!te 2$en t$e
ter,in!tion noti+e 2!s serve)4 In so +ertif<in% t$e !u)itors !re irrevo+!"#< instru+te) to v!#ue t$e or)in!r<
s$!res to "e "ou%$t !n) so#) !s t$e s!,e (ro(ortion of t$e ,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e on t$!t
)!te !s t$e re#ev!nt or)in!r< s$!re$o#)in% "e!rs to t$e 2$o#e issue) or)in!r< s$!re +!(it!# of t$e Co,(!n< on
t$!t )!te "ut ot$er2ise t$e< s$!## t!Ce into !++ount !## +ir+u,st!n+es t$!t s$!## see, to t$e, re#ev!nt4 !In !
+!se 2$ere t$e s$!res to "e so "ou%$t !n) so#) !re o2ne) "< t$e (!rt< u(on 2$o, ! ter,in!tion noti+e un)er
+#!use 1*4(A) $!s "een serve)> t$e !u)itors s$!## )eter,ine t$e ,!rCet v!#ue of t$e Co,(!n< !s ! 2$o#e>
"ot$ in t$e #i%$t of t$e "re!+$ +on+erne) !n) on t$e "!sis t$!t su+$ "re!+$ $!) not "een +o,,itte)> !n) if t$e
first of t$ose v!#u!tions is #o2er t$!n t$e se+on)> t$e 2$o#e !,ount of t$e re)u+tion in t$e v!#ue of t$e
Co,(!n< s$!## "e !ttri"ute) to t$e s$!res of t$e (!rt< in "re!+$> so t$!t $e s$!## re+eive !n !,ount 2$i+$ is
t$e (ro(ortion of t$e se+on) v!#u!tion !ttri"ut!"#e to t$e s$!res> ,inus t$e 2$o#e !,ount of t$e re)u+tion$
1
4
In so !+tin% su+$ !u)itors !re instru+te) to !+t !s e9(erts !n) not !s !r"itr!tors !n) t$eir )e+ision s$!## (s!ve
in res(e+t of ,!nifest error) "e fin!# !n) "in)in% on t$e (!rties to t$e s!#e !n) (ur+$!se for !## (ur(oses !n)
t$eir fees !n) e9(enses s$!## "e "orne in e;u!# s$!res "< t$e (!rties4
104& Co,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to t$e (rovisions of +#!use 1041 s$!## t!Ce (#!+e !t t$e
re%istere) offi+e of t$e Co,(!n< !t !18488 !, 1or as re>uired6$ on t$e !se+on) 1or as re>uired6$ "usiness )!<
!fter t$e (ri+e (!<!"#e for t$e, $!s "een !%ree) or )eter,ine) in !++or)!n+e 2it$ t$e (rovisions of +#!use
104 (or su+$ ot$er ti,e !n)Eor (#!+e !s t$e (!rties ,!< !%ree) !n) t$e (rovisions of +#!uses 104*> 1040> 1041
!n) 1043 s$!## t$en $!ve effe+t4
!1"%"$
104* At !n< +o,(#etion of t$e s!#e !n) (ur+$!se of s$!res (ursu!nt to eit$er +#!use 1& or 10 of t$is !%ree,ent> in
return for ! "!nCersA )r!ft )r!2n on ! Lon)on +#e!rin% "!nC (or su+$ ot$er ,e!ns of (!<,ent !s is !%ree) "<
t$e se##er) for t$e fu## !,ount of t$e (ur+$!se ,one< for t$e s$!res "ein% "ou%$t !n) so#) ()eter,ine) in
!++or)!n+e 2it$ t$e res(e+tive (rovisions of +#!uses 1& or 10 (!s !((#i+!"#e)) !n) su+$ ot$er !,ounts !s !re
referre) to in +#!use 1040 "e#o2> t$e se##er s$!## )e#iver to t$e (ur+$!ser )u#< e9e+ute) s$!re tr!nsfers for t$e
s$!res "ein% so#) in f!vour of t$e (ur+$!ser or !s !$e 1or6 it$ ,!< )ire+t to%et$er 2it$ t$e re#!tive s$!re
+ertifi+!te(s) for t$e, (or !n !++e(t!"#e in)e,nit< in #ieu of t$e +ertifi+!tes)4
!1040 If !n< (!rt< (Dt$e Out%oin% /!rt<A) s$!## e#e+t or "e+o,e "oun) to tr!nsfer !## !$is 1or6 its$ s$!res in t$e
Co,(!n< to !n< ot$er (!rt< un)er or (ursu!nt to t$e fore%oin% (rovisions of +#!uses 1& or 10 t$!t ot$er (!rt<
s$!##> u(on or i,,e)i!te#< (rior to +o,(#etion of t$e tr!nsfer> (ro+ure:
(A) t$e i,,e)i!te re#e!se of !## %u!r!ntees> in)e,nities !n) si,i#!r +oven!nts (if !n<) %iven "< t$e
Out%oin% /!rt< in f!vour or for t$e "enefit of t$e Co,(!n< un)er or (ursu!nt to +#!use 1 (!n)
(en)in% su+$ re#e!se s$!## in)e,nif< !n) Cee( t$e Out%oin% /!rt< fu##< !n) effe+tive#< in)e,nifie)
fro, !n) !%!inst !## +#!i,s !risin% un)er t$e,) !n)
ju)%e,ent)4$
!1041 If !n< (!rt< s$!## +e!se to "e ! s$!re$o#)er in t$e Co,(!n< 2$ere t$e +or(or!te n!,e of t$e Co,(!n< or !n<
(!rt +ont!ins !n< 2or) or 2or)s t$e s!,e or si,i#!r to t$e +or(or!te n!,e or !n< )istin+tive (!rt of t$e
+or(or!te n!,e of t$!t s$!re$o#)er> t$e re,!inin% (!rt< s$!## (ro+ure t$!t 2it$in &8 )!<s of t$e +ess!tion t$e
+or(or!te n!,e of t$e Co,(!n< s$!## "e +$!n%e) so !s to e9+#u)e t$e 2or) or 2or)s4$
3
1043 C#!use 1& !n) t$is +#!use )o not !#ter !n< (rovision or (rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion of
t$e Co,(!n< restri+tin% t$e tr!nsfer of s$!res4 .o2ever> t$e (!rties s$!## e9er+ise !## votin% !n) ot$er ri%$ts
!v!i#!"#e to t$e, to ensure t$e i,(#e,ent!tion of t$e fore%oin% (rovisions of +#!use 1& !n) t$is +#!use !n)
!n< (rovisions +ont!ine) in t$e !rti+#es of !sso+i!tion of t$e Co,(!n< restri+tin% tr!nsfers of s$!res
(in+#u)in%> 2it$out #i,it> t$e (rovisions of !rti+#e 3) !re 2!ive) or sus(en)e) to !##o2 su+$ s!#es !n)
(ur+$!ses to (ro+ee) !s (rovi)e) !"ove !n) t$e (!rties s$!## (ro+ure t$e re%istr!tion of !n< tr!nsfer of !n<
s$!res in t$e Co,(!n< !++or)in%#<4
!1"%2$
1. 4arranties
!1141 F 2!rr!nts !n) re(resents to ? t$!t i,,e)i!te#< (rior to t$e e9e+ution of t$is !%ree,ent:
(-) t$e Co,(!n<:
(i) $!s not tr!)e)H
(ii) $!s no !ssets> +ontr!+ts> or e,(#o<ees or in)e"te)ness or !n< ot$er #i!"i#ities 2$et$er
(iii) $!s not )e+#!re) !n< )ivi)en)s or ot$er )istri"utionsH
(iv) $!s not (re(!re) !n< !++ountsH !n)
(v) $!s +o,(#ie) 2it$ !## re#ev!nt re;uire,ents of t$e Co,(!nies A+t 1650
5
4
!1"(#$
,e,or!n)u, !n)Eor !rti+#es of !sso+i!tion to t$e e9tent ne+ess!r< to (er,it t$e Co,(!n< !n) its !ff!irs to "e
+!rrie) out !s (rovi)e) in t$is !%ree,ent4 :or t$e !voi)!n+e of )ou"t> t$e ,e,or!n)u, !n) !rti+#es of
t$e Co,(!n< so !s to (ro+ure (so f!r !s e!+$ is res(e+tive#< !"#e "< t$e e9er+ise of su+$ ri%$ts !n) (o2ers)
t$!t !t !## ti,es )urin% t$e ter, of t$is !%ree,ent t$e (rovisions +on+ernin% t$e stru+ture !n) or%!nis!tion of
t$e Co,(!n< !n) t$e re%u#!tion "< t$e (!rties of its !ff!irs set out in t$is !%ree,ent !re )u#< o"serve) !n)
%iven fu## for+e !n) effe+t !n) !## !+tions re;uire) of t$e (!rties un)er t$is !%ree,ent !re +!rrie) out in !
ti,e#< ,!nner4 7it$out (reju)i+e to t$e %ener!#it< of t$e fore%oin% e!+$ (!rt< s$!## (ro+ure t$!t e!+$ of its
no,inees 2$o !re s$!re$o#)ers in t$e Co,(!n< !n) (su"je+t to t$eir fi)u+i!r< )uties) e!+$ of t$e )ire+tors
!((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use or un)er t$e !rti+#es of !sso+i!tion of
t$e Co,(!n< s$!## e9e+ute !n) )o !## su+$ !+ts !n) t$in%s !n) %ive !n) +onfer !## su+$ (o2ers !n)
!ut$orities !s t$e< 2ou#) $!ve "een re;uire) to e9e+ute> )o %ive !n)Eor +onfer $!) t$e< "een ! (!rt< !n) $!)
+oven!nte) in t$e s!,e ter,s !s t$e (!rt< for 2$i+$ t$e< !re ! no,inee (if ! s$!re$o#)er) or 2$i+$ !((ointe)
t$e, (if ! )ire+tor)4
!134& Not2it$st!n)in% !n< ot$er (rovision of t$is !%ree,ent if eit$er (!rt< !(or !n< (erson +onne+te) 2it$ eit$er
(!rt<)$ s$!## "e in )is(ute 2it$ or s$!## $!ve ! +onf#i+t of interest 2it$ t$!t of t$e Co,(!n<> t$!t (!rt< in its
+!(!+it< !s s$!re$o#)er s$!## not )o !n<t$in% or o,it to )o !n<t$in%> !n) s$!## (ro+ure t$!t t$e )ire+tor or
)ire+tors !((ointe) or )ee,e) to "e !((ointe) "< it un)er or (ursu!nt to +#!use & !"ove s$!## not )o or o,it
!n<t$in%> 2$i+$ 2ou#) or "e #iCe#< to (revent t$e Co,(!n< fro, e9er+isin% or fro, )e+i)in% 2$et$er or not
it)$ in ;uestion4$
!1"(1$
1" 8eneral
s$!res in t$e Co,(!n< for t$e ti,e "ein% #e%!##< or "enefi+i!##< o2ne) "< $i, or of !n< interest t$erein in
f!vour of !n< (erson (Dt$e Tr!nsfereeA) 2$o is not ! (!rt< to t$is !%ree,ent t$!t t$e s!#e> tr!nsfer or ot$er
)is(osition ("ein% one 2$i+$ is ot$er2ise (er,itte) un)er or (ursu!nt to t$e (rovisions of +#!use 141 !"ove)
s$!## not "e effe+te) un#ess t$e Tr!nsferee (!n) !n< ot$er (erson 2$o 2i## in +onse;uen+e of t$e tr!nsfer or
ot$er )is(os!# $!ve !n< "enefi+i!# interest in t$e s$!res +on+erne)) s$!## first enter into !n un)ert!Cin% 2it$
t$e ot$er (!rt< to t$is !%ree,ent !!n) 2it$ !## ot$er (ersons 2$o !re for t$e ti,e "ein% "oun) "< t$is
!%ree,ent !n) 2i## re,!in so !fter t$e s!#e> tr!nsfer or ot$er )is(osition$> 2$ere"< t$e Tr!nsferee !%rees to
"e "oun) !n) to +o,(#< 2it$ !## t$e (rovisions of t$is !%ree,ent "in)in% u(on $is tr!nsferor (ot$er t$!n !n<
2$i+$ i,(ose ! (erson!# o"#i%!tion u(on $is tr!nsferor 2$i+$ is not !#so un)ert!Cen "< t$e ot$er (!rt< to t$is
!%ree,ent !n) !n< 2!rr!nties %iven "< $is tr!nsferor) !n) su+$ un)ert!Cin% s$!## "e in t$e for, (!s ne!r#< !s
+ir+u,st!n+es 2i## (er,it) set out in s+$e)u#e 14 T$e (!rties s$!## !#so (ro+ure t$!t no s$!res of t$e
Co,(!n< s$!## "e issue) e9+e(t u(on t$e +on)ition t$!t t$e (erson to 2$o, t$e s$!res !re to "e issue) !n)
!n< (erson 2$o 2i##> fo##o2in% t$e issue> $!ve !n< "enefi+i!# interest in t$e s$!res issue)> s$!## !#so enter
into su+$ !n un)ert!Cin%4
!((#i+!"#e (rovisions of t$is !%ree,ent re#!tin% to t$e tr!nsfer of su+$ s$!res (in+#u)in%> 2it$out #i,it> +#!use
+#!uses !64>$ ! 64&>$ !64*>$ 18 !n) 114
154* T$is !%ree,ent s$!## "e +!(!"#e of "ein% !,en)e) "< !n instru,ent e9e+ute) "< e!+$ of t$e (!rties $ereto for
t$e ti,e "ein%4
re,e)<4
!1"(%$
1541 Not$in% in t$is !%ree,ent s$!## "e )ee,e) to +onstitute ! (!rtners$i( "et2een t$e (!rties to it nor +onstitute
!n< (!rt< t$e !%ent of t$e ot$er (!rt< or ot$er2ise entit#e !n< (!rt< to $!ve !ut$orit< to "in) t$e ot$er (!rt<
for !n< (ur(ose
6
4
1545 Neit$er (!rt< s$!## "e entit#e) to ,!Ce or (er,it or !ut$orise t$e ,!Cin% of !n< (ress re#e!se or ot$er (u"#i+
(rior 2ritten +onsent of t$e ot$er (!rt< !(e9+e(t !s re;uire) "< t$e Sto+C E9+$!n%e 2$en t$e (!rt< s$!## first
su((#< ! +o(< of t$e st!te,ent> re#e!se or )is+#osure to t$e ot$er !n) s$!## in+or(or!te !n< !,en),ents or
!))itions re!son!"#< re;uire) "< t$e ot$er (!rt<)$4
1546 T$is !%ree,ent (to%et$er 2it$ !## !%ree,ents !n) )o+u,ents e9e+ute) +onte,(or!neous#< 2it$ t$is
!%ree,ent or referre) to in it) +onstitutes t$e entire !%ree,ent "et2een t$e (!rties in re#!tion to t$e su"je+t
,!tter of it !n) su(erse)es !## (rior !%ree,ents !n) un)erst!n)in%s 2$et$er or!# or 2ritten 2it$ res(e+t to
t$!t su"je+t ,!tter4 No v!ri!tion of t$is !%ree,ent s$!## "e effe+tive un#ess re)u+e) to 2ritin% !n) si%ne) "<
or on "e$!#f of ! )u#< !ut$orise) re(resent!tive of e!+$ of t$e (!rties4
15418 If !n< ter,> +on)ition or (rovision of t$is !%ree,ent is $e#) to "e ! vio#!tion of !n< !((#i+!"#e #!2 st!tute or
re%u#!tion> it s$!## "e )ee,e) to "e )e#ete) fro, t$is !%ree,ent !n) s$!## "e of no for+e !n) effe+t !n) t$is
!%ree,ent s$!## re,!in in fu## for+e !n) effe+t !s if t$e ter,> +on)ition or (rovision $!) not ori%in!##< "een
+ont!ine) in t$is !%ree,ent4 Not2it$st!n)in% t$e fore%oin%> in t$e event of !n< su+$ )e#etion t$e (!rties
!1"(($
12 Notices
F: !))ress 1address6H f!9 nu,"er 1number6
?: !))ress 1address6H f!9 nu,"er 1number6
or !t su+$ ot$er !))ress (or te#e9 or f!9 nu,"er) !s t$e (!rt< to "e serve) ,!< $!ve notifie) (in !++or)!n+e
2it$ t$e (rovisions of t$is +#!use) for t$e (ur(oses of t$is !%ree,ent4
!ir,!i# !0 1or as re>uired6$ )!<s !fter (ostin% to !n !))ress outsi)e t$e Unite) Bin%)o,4 In (rovin% t$e
!1"()$
juris)i+tion4
(ro+ess !%ent (2$et$er or not it is for2!r)e) to !n) re+eive) "< 1.orei!n part,6)4 If for !n< re!son t$!t
)e#iver to su+$ ot$er (!rt< ! +o(< of t$e ne2 (ro+ess !%entAs !++e(t!n+e of t$!t !((oint,ent 2it$in &8 )!<s4
840 1.orei!n part,6 irrevo+!"#< +onsents to !n< (ro+ess in !n< (ro+ee)in%s !n<2$ere "ein% serve) in !++or)!n+e
&8 )!<s !fter )es(!t+$4 Not$in% +ont!ine) in t$is !%ree,ent s$!## !ffe+t t$e ri%$t to serve (ro+ess in !n<
&8
!1"(,$
1in certain circumstances it mi!ht be appropriate .or the entire a!reement to be made conditional on certain
.undamental thin!s or pre%conditions happenin! e! the award o. a particular contract to the &ompan, or the !rant o. a
particular licence etc-see Form 9D N:C59O post6
SC.EDULE 1
T$e :or, of Un)ert!Cin%
(1) 1new shareholder6 of 1address6 (Dt$e Ne2 S$!re$o#)erA)H !n)
() T$e (ersons 2$ose n!,es !n) !))resses !((e!r in t$e S+$e)u#e "e#o2 (Dt$e E9istin% S$!re$o#)ersA)4
7.EREAS
(A) 1recite date and parties to /oint venture a!reement) (Dt$e Joint Venture A%ree,entA)
(C) T$e Ne2 S$!re$o#)er $!s "e+o,e entit#e) to !! tr!nsfer of 1or6 "e issue) 2it$$ 1number and class6 or)in!r<
s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<4
effe+te) un#ess t$e !tr!nsferee 1or6 (erson to 2$o, su+$ s$!res !re to "e issue)$ s$!## $!ve first entere) into !
)ee) in t$e for, of t$is )ee)4
!1"(.$
effe+t fro, t$e )!te of t$is )ee)$ t$e Ne2 S$!re$o#)er 2i## "e "oun) "< !n) 2i## o"serve !n) (erfor, ever< (rovision
of t$e Joint Venture A%ree,ent !"< 2$i+$ 1out!oin! part,6 2!s "oun)$ in ever< 2!< !s if t$e Ne2 S$!re$o#)er $!)
"een n!,e) t$erein ! (!rt< to it 2it$ t$e e9+e(tion of +#!uses 1insert numbers o. an, clauses which contain personal
obli!ations or warranties64
T.E SC.EDULE
T$e E9istin% S$!re$o#)ers
1insert names and addresses6
!1"(/$
1
joint venture !%ree,ent: see :or, 1 J1081K !nte4
&
T$is )efinition is re;uire) on#< for t$e (ur(ose of t$e +onsortiu, re#ief (rovisions in +#!use 11 JK (see note 10 "e#o2)4
*
Note t$!t t$e )efinition of D+ontro#A in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s *11 is ver< 2i)e !n) often resu#ts in ,ore
t$!n one (erson $!vin% +ontro# of t$e s!,e +o,(!n<4 C!re s$ou#) "e t!Cen to ensure in e!+$ inst!n+e 2$ere +ontro# is referre)
to in t$e !%ree,ent t$!t t$is 2i)e )efinition ref#e+ts 2$!t is inten)e) +o,,er+i!##<4 :or e9!,(#e> if t$e s *11 +ontro# test !((#ies
to t$e +$!n%e of +ontro# (rovisions> t$en t$ese (rovisions 2i## !((#< 2$enever one of t$e ,u#ti(#e +ontro##ers +$!n%e)4 In ,!n<
+!ses> it ,!< "e ,ore !((ro(ri!te to use t$e n!rro2er )efinition +ont!ine) in t$e In+o,e !n) Cor(or!tion T!9es A+t 1655 s 5*84
0
:or t$e !%ree) for, ,!rCe) DAA see :or, 13 J15*0K (ost4
1
:or t$e !%ree) for, ,!rCe) DCA see :or, 15 J15*3K (ost4
3
T$e use of t$is for, is on#< !((#i+!"#e 2$ere t2o (!rties (to%et$er 2it$ t$eir res(e+tive no,inees) $o#) e;u!# s$!re$o#)in%s in
t$e Co,(!n<4 If t$ere !re ,ore t$!n t2o s$!re$o#)ers see :or,s J101&K or & J1031K !nte4
5
In ,ost !%ree,ents e!+$ of t$e (!rties !ssu,es +ert!in s(e+ifi+ o"#i%!tions in re#!tion to t$e joint +o,(!n<4 T$ese ,i%$t in+#u)e
t$e tr!nsfer of s(e+ifi+ !ssets or ri%$ts to t$e +o,(!n< or t$e #i+ensin% or %r!nt of t$e ri%$t to use su+$ !ssets or ri%$ts (e% $ive'
!%ree,ent4
6
t$e Co,(!n< fro, t$ir) (!rties4 It 2i## "e i,(ort!nt to s(e+if< (re+ise#< 2$!t t$ese +o,,it,ents !re4 :or (ossi"#e for,s of
+#!uses see :or,s J1551K> & J155*K !n) * J1550K (ost> !#t$ou%$ !n< nu,"er of v!ri!tions is (ossi"#e in (r!+ti+e4
!1"("$
18
t$!t ,e,"erH
11
In ! D)e!)#o+CA +o,(!n< 2$ere e!+$ of t$e s$!re$o#)ers o2ns 08L of t$e joint +o,(!n< !n) e!+$ of 2$o, is entit#e) to $!ve
!((ointe) !n e;u!# nu,"er of )ire+tors !n) 2$ere t$e +$!ir,!n $!s no +!stin% vote un)er t$e (ro(ose) !rti+#es of !sso+i!tion> it
,!< not "e ne+ess!r< to in+or(or!te restri+tions on +ert!in !+tions on t$e "!sis t$!t eit$er (!rt< +!n "#o+C t$e, !t "ot$ "o!r) !n)
s$!re$o#)er #eve#4 .o2ever> if t$ere is t$e (ossi"i#it< of !),ission of furt$er (!rties> on t$e tr!nsfer of !n< s$!res $e#) "< t$e
ori%in!# (!rties or on !n issue of s$!res to ! t$ir) (!rt<> restri+tions on +ert!in !+tions 2it$out un!ni,ous !((rov!# or t$e
!((rov!# of ! (!rti+u#!r ,!jorit<> !re #iCe#< to "e )esir!"#e4 If it is inten)e) to in+or(or!te restri+tions ! s(e+i,en +#!use ,!< "e
foun) in :or, J101&K !nte (!#t$ou%$ it 2i## "e !((re+i!te) %iven t$e f#e9i"#e n!ture of joint venture !rr!n%e,ents t$!t t$is #ist
is "< no ,e!ns e9$!ustive !n) in)ee) ,!< 2e## nee) to "e D(rune)A or e9ten)e) to ,eet t$e re;uire,ents of e!+$ (!rti+u#!r
+!se)4
!1"(2$
1
1&
Restri+tions of t$is t<(e on t$e (!rt of t2o or ,ore (!rties re;uire +!refu# +onsi)er!tion of t$e !((ro(ri!te +o,(etition #!2
+onse;uen+es4
1*
30L +o,,on o2ners$i(4 If t$e Co,(!n< is o2ne) "< ! +onsortiu,> one of t$e "enefits is t$!t su+$ #osses (!n) +ert!in ot$er t!9
re#iefs) +!n "e surren)ere) (ro'r!t! to or fro, t$e s$!re$o#)ers "< or to t$e Co,(!n<4 A furt$er "enefit of ! +onsortiu, is t$!t
To ;u!#if< !s ! +onsortiu,> or ,ore UB resi)ent +o,(!nies ,ust o2n !t #e!st 30L of t$e or)in!r< s$!re +!(it!# of t$e
Co,(!n<> 2it$ e!+$ o2in% not #ess t$!n 0L of t$e or)in!r< s$!re +!(it!#4 T$e !"i#it< to surren)er or +#!i, #osses et+ is !#so
e9ten)e) to t$e Co,(!n<As 68L tr!)in% su"si)i!ries4 Consortiu, re#ief ,!< !#so "e !v!i#!"#e to +ert!in +o,(!nies in t$e s!,e
+onsortiu, re#ief "ut t$is )oes not "re!C t$e +onsortiu,G
T$e (rovisions in +#!use 11 J15&K !re )esi%ne) to ensure t$!t t$e Co,(!n< is tre!te) !s UB t!9 resi)ent !n) t$!t t$e
,ore t$!n 0L of t$e Co,(!n<As s$!re +!(it!#> so t$!t +onsortiu, re#ief 2ou#) not "e !v!i#!"#e in !n< event)> t$en +#!uses
1141(-)> (C) !n) 114 J15&K +ou#) "e )e#ete)4 In (r!+ti+e t$is is un#iCe#< to "e t$e +!se> "e+!use 2$ere t$ere is ! joint venture
"et2een ! UB +o,(!n< !n) ! forei%n entit< 2it$ t$e UB +o,(!n< "rin%in% #o+!# e9(ertise> t$e UB +o,(!n< 2i## nor,!##<
insist t$!t t$e forei%n joint venturer invests in t$e joint venture vi! ! UB su"si)i!r<4 In t$ese +ir+u,st!n+es> t$e forei%n joint
venturer 2i## re;uire !)vi+e on> inter alia> fin!n+in% its invest,ents in t$e joint venture> )ivi)en) !n) interest re(!tri!tion !n)
+!(it!# %!ins t!9 ,iti%!tion on )is(os!#4
If t$ere is no +onsortiu, !n) no (!rt< o2ns !t #e!st 01L of t$e s$!re +!(it!# of t$e Co,(!n<> t$en %rou( in+o,e e#e+tions
(see note 13 "e#o2) 2i## not "e !v!i#!"#e !n) +#!uses 1141(A) J15&K !n) 114& J15*K +ou#) !#so "e )e#ete)4
!1")#$
10
C#!use 114(A) J15&K (rovi)es for t$e Co,(!n< to surren)er its #osses et+ to t$e s$!re$o#)ers> in return for ! (!<,ent to t$e
Co,(!n< of t$e !,ount of t!9 s!ve) "< t$e surren)er4 As )r!fte)> e!+$ s$!re$o#)er +!n re;uire t$e Co,(!n< to ,!Ce !
surren)er of t$e !((ro(ri!te (ro(ortion of its #osses et+ (even if> for e9!,(#e> t$e ot$er s$!re$o#)ers 2ou#) (refer t$e Co,(!n<
to uti#ise t$ese #osses et+ in !not$er 2!<)4 T$is ,!< not "e !((ro(ri!te in !## +!ses !n) so,eti,es t$is (rovision is !,en)e) so
t$!t surren)ers +!n on#< "e ,!)e on+e t$e Co,(!n< $!s no furt$er use for t$e #osses et+ (ot$er t$!n "< +!rr<in% t$e, for2!r))
or 2it$ t$e +onsent of t$e ot$er s$!re$o#)ers4
C#!use 114(-) J15&K (rovi)es for t$e s$!re$o#)ers to surren)er t$eir #osses et+4 to t$e Co,(!n< in return for ! (!<,ent
"< t$e Co,(!n< of t$e !,ount of t!9 s!ve) "< t$e surren)er4 As )r!fte)> t$e s$!re$o#)ers +!n re;uire t$e Co,(!n< to !++e(t
su+$ surren)ers in (riorit< to !n< ot$er t!9 re#iefs t$e Co,(!n< ,!< $!ve to s$e#ter its t!94 A%!in> t$is ,!< not "e !((ro(ri!te in
!## +!ses !n) so,eti,es t$is (rovision is !,en)e) so t$!t t$e Co,(!n< is on#< o"#i%e) to !++e(t su+$ surren)ers on+e !n< ot$er
t!9 re#iefs !v!i#!"#e to it $!ve "een uti#ise)> or 2it$ t$e +onsent of t$e ot$er s$!re$o#)ers4
7$ere t$e !++ountin% referen+e )!tes of t$e s$!re$o#)ers of t$e Co,(!n< !re t$e s!,e> t$!t )!te 2i## nor,!##< !#so "e
+$osen !s t$e !++ountin% referen+e )!te of t$e Co,(!n<4 .o2ever> 2$ere t$e s$!re$o#)ers $!ve )ifferent !++ountin% referen+e
)!tes> +onsi)er!tion s$ou#) "e %iven to t$e ,ost !((ro(ri!te )!te for t$e Co,(!n<As !++ountin% referen+e (erio) !s +onsortiu,
re#ief is %iven !++or)in% to t$e Co,(!n<As !++ountin% (erio)4
Cno2n> it ,!< "e !)vis!"#e to !,en) t$e (!<,ent )!tes in +#!uses 114(A) !n) (-) for joint ventures invo#vin% #!r%e +o,(!nies
to %ive %re!ter (re+ision in t$e #i%$t of t$e +$!n%es4
re#ief4
!1")1$
11
T$is (rovision +ou#) !#so "e e9ten)e) to (rovi)e for interest on #!te (!<,ent of su,s )ue un)er +#!use 11 J15&K4
13
C#!use 114& J15*K (rovi)es for t$e Co,(!n< to ,!Ce !((ro(ri!te %rou( in+o,e e#e+tions so t$!t (!<,ents of )ivi)en)s>
interest et+ +!n "e ,!)e "< t$e Co,(!n< to its +onsortiu, ,e,"ers or ! 01L s$!re$o#)er 2it$out !++ountin% for !)v!n+e
+or(or!tion t!9 or )e)u+tin% !n< 2it$$o#)in% t!94 Note t$!t !)v!n+e +or(or!tion t!9 is !"o#is$e) 2it$ effe+t fro, 1 A(ri# 1666>
!fter 2$i+$ )!te +#!use 114&(-)(1) +!n "e )e#ete)4 .o2ever> C#!use 114&(-)() 2i## re,!in re#ev!nt if t$ere is ! +onsortiu, or if
!n< s$!re$o#)er $o#)s !t #e!st 01L of t$e Co,(!n<As or)in!r< s$!re +!(it!#4
15
It 2i## not nor,!##< "e !((ro(ri!te for t$e Co,(!n< to "e VAT %rou(e) 2it$ !n< of its s$!re$o#)ers> !#t$ou%$ ! VAT %rou(
"et2een t$e Co,(!n< !n) !n< su"si)i!ries it $!s 2ou#) often "e )esir!"#e4 .o2ever> t$e (referre) VAT %rou(in% (osition
16
In !n !%ree,ent "et2een t2o (!rties !s $ere> it is +o,,on for t$e (!rties to i,(ose !n !"so#ute restri+tion on t$e ri%$t of
tr!nsfer4 .o2ever> in +ert!in +ir+u,st!n+es> it ,!< "e !((ro(ri!te to !##o2 for:
(A) (er,itte) tr!nsfers (e% intr! %rou(Gsee :or, 5 J168*K (ost) !n)Eor
(-) tr!nsfers in !++or)!n+e 2it$ (re'e,(tion (rovisions in t$e !rti+#es of !sso+i!tion4
T$e !rti+#es of !sso+i!tion for use 2it$ t$is for, +ont!in (re'e,(tion (rovisions: see :or, 15 !rti+#e 34* J150*K (ost4
!1")%$
8
A s(e+i!# +#!use (rovi)in% for ! reso#ution of )e!)#o+C ,!< not "e !((#i+!"#e to !## joint venture +o,(!nies4 .o2ever> if it is
inten)e) to restri+t tr!nsfers ("< e9+#u)in% t$e (re'e,(tion (ro+e)ure in !rti+#es of !sso+i!tion) !n) $!ve !n in)efinite )ur!tion
for t$e !%ree,ent it is $i%$#< )esir!"#e to $!ve ! +ontr!+tu!# ,e!ns of )e!)#o+C reso#ution "e+!use ot$er2ise t$e on#< !#tern!tive
to reso#ve ! )is(ute (ot$er2ise t$!n "< !%ree,ent "et2een t$e (!rties) ,!< "e !n !((#i+!tion "< eit$er (!rt< to t$e +ourt to 2in)
u( t$e Co,(!n< on t$e "!sis t$!t it is just !n) e;uit!"#e to )o: see Ebrahimi v Westbourne Galleries Ltd J163&K AC &18> J163K
A## ER *6> .L4 T$e un+ert!int< of t$e out+o,e of t$e DRussi!n rou#etteA )e!)#o+C reso#ution (ro+e)ure "< !n< inten)in%
s$!re$o#)er is )esi%ne) to )eter its use in !## "ut t$e ,ost serious +!ses of )e!)#o+C4 .o2ever> it ,ust "e !+Cno2#e)%e) t$!t its
f!irness in (r!+ti+e !s ! ,e!ns of reso#vin% ! )is(ute is> (re+ise#< "e+!use of su+$ un+ert!int<> o(en to ;uestion4
Consi)er !s !n !#tern!tive t$e (ro+e)ures in :or, &1 J1610K (ost !)!(te) to suit t$e +!se4
Consortiu, re#ief 2i## not "e !v!i#!"#e to t$e (!rties !n) t$e Co,(!n< fro, t$e outset of t$e joint venture if t$ere !re !t t$!t ti,e
D!rr!n%e,entsA in (#!+e for t$e +onsortiu, re#!tions$i( to "e "roCen4 T$ere is !++or)in%#< ! risC t$!t t$e tr!nsfer> )e!)#o+C or
ter,in!tion (rovisions in t$e joint venture !%ree,ent +ou#) !,ount to su+$ !rr!n%e,ents so t$!t +onsortiu, re#ief 2ou#) "e
un!v!i#!"#e4 .o2ever> !n In#!n) Revenue e9tr!'st!tutor< +on+ession (ESC C18) !n) St!te,ent of /r!+ti+e (S/ &E6&) +onfir,
tri%%erin% event o++urs> so t$!t t$e +onsortiu, is not "roCen unti# t$!t ti,e4
T$e tri%%erin% events to 2$i+$ t$e +on+ession !((#ies in+#u)e:
!sso+i!tionH
T$e +on+ession!r< tre!t,ent 2i## !((#< 2$ere t$e joint venture !%ree,ent (rovi)es for t$e re,!inin% ,e,"ers to !+;uire
t$e s$!res of ! )e(!rtin% ,e,"er> or for ! )e(!rtin% ,e,"er to tr!nsfer its s$!res to t$e re,!inin% ,e,"ers> on t$e o++urren+e
of ! tri%%erin% event> on t$e "!sis of:
(i) !n offer (ro r!t! to t$e re,!inin% ,e,"ersA s$!re$o#)in%s> 2it$ t$e (ri+e fi9e) "< !%ree,ent or in)e(en)ent
v!#u!tionH
(ii) ! +o,(etitive ten)er !,on% t$e re,!inin% ,e,"ersH
(iii) ! re+i(ro+!# (ro+ess 2$ere"< ,e,"ers $!ve ,!t+$in% (ut !n) +!## o(tions over e!+$ ot$ersA s$!resH or
(iv) !n< ot$er !rr!n%e,ents )esi%ne) to ensure t$!t ! (ri+e !((ro(ri!te to t$e +o,,er+i!# +ir+u,st!n+es is stru+C4
As )r!fte)> t$e (rovisions set out in +#!uses 1* J151K !n) 10 J153K f!## 2it$in t$e ter,s of t$e +on+ession4 .o2ever> it is
!1")($
1
T$is is not ne+ess!r< if t$e !rti+#es +ont!in (rovisions re#!9in% t$e ;uoru, re;uire,ents 2$ere ! ,eetin% $!s "een !)journe)
t$rou%$ #!+C of ! ;uoru,4 T$e !rti+#es for use 2it$ t$is for, +ont!in su+$ ! (rovision: see :or, 15 J15*3K (ost4
re#ev!nt (erio) of )ur!tion in re#!tion to t$e Co,(!n< !n) t$e (!rtiesA s$!re$o#)in%s et+4 T$e ,e+$!nis,s in +#!use 10 J153K
,!< "e (refer!"#e to ! 2in)in% u(4
&
In t$e +!se of #i;ui)!tion or "!nCru(t+<> it ,!< "e t$ou%$t (refer!"#e to re#< on ! (rovision of t$e !rti+#es of !sso+i!tion un)er
2$i+$ t$e s$!res of t$e #i;ui)!te) or "!nCru(te) s$!re$o#)er !re to "e offere) u( for s!#e un)er t$e (re'e,(tion (rovisions4
*
i,(ort!nt fe!ture of t$e venture t$!t one or ,ore of t$e in)ivi)u!#s s$!## ,!Ce t$eir fu##'ti,e servi+es !v!i#!"#e4 As )r!fte)> it
)is,isse)4 E9e,(tions !re !#so often seen for ! D%oo) #e!verA 2$o retires or +e!se) to 2orC t$rou%$ i##'$e!#t$> !#t$ou%$ it ,!<
"e +onsi)ere) t$!t ter,in!tion 2ou#) "e !((ro(ri!te in t$ese +ir+u,st!n+es4
0
A +$!n%e of +ontro# (!s )efine) in t$e !%ree,ent) ,!<> of +ourse> "e Dinvo#unt!r<A !n) t$erefore it is for +onsi)er!tion 2$et$er it
1
3
,!rCs of eit$er of t$e (!rties if t$ese !re inten)e) to "e use) "< t$e Co,(!n< (e% ! for,!# tr!)e ,!rC #i+en+e)4
5
ot$er t<(e of e9istin% +o,(!n< is "ein% use) (er$!(s !t t$e inst!n+e of one (!rt< t$e ot$er 2ou#) "e 2e## !)vise) to +onsi)er
2$< su+$ ! +o,(!n< is "ein% (ut for2!r) !n) if !n e9istin% +o,(!n< D2it$ ! $istor<A is !%ree) to "e use) !s its ve$i+#e t$e ot$er
s$ou#) +ert!in#< +onsi)er ,ore e9tensive 2!rr!nties !n) in)e,nities4 T$e +#!use (or !n< v!ri!tion) is usu!##< unne+ess!r< for !
+o,(!n< not <et for,e)4
6
re#!tions$i( "et2een t$e ,e,"ers of t$e joint venture4 A++or)in%#< it 2i## "e+o,e even ,ore re#ev!nt> in re#!tion to joint
!not$er (!rt<4 T$e +onfir,!tion in +#!use 1541 J15&&K 2i## "e usefu# evi)en+e in (rovin% t$e #!+C of su+$ !%en+< to t$e In#!n)
&8
C#!uses 84* !n) 840 J15&0K +!n "e )e#ete) if !## t$e (!rties !re "!se) in En%#!n)4
!1"))$
1/
3pecial resolution alterin' the share capital of an e5istin' company to be used as a joint enture company
1name o. compan,6 (Dt$e Co,(!n<A)
NOTICE is $ere"< %iven t$!t !n e9tr!or)in!r< %ener!# ,eetin% of t$e Co,(!n< 2i## "e $e#) !t 1place6 on 1date6 !t
1time6 to +onsi)er !n)> if t$ou%$t fit> (!ss t$e fo##o2in% reso#ution 2$i+$ 2i## "e (ro(ose) !s ! s(e+i!# reso#ution of t$e
Co,(!n<:
S/ECIAL RESOLUTION
T.AT:
(1) t$e !ut$orise) s$!re +!(it!# of t$e Co,(!n< "e !n) t$e s!,e is no2 in+re!se) fro, OTTT to OTTT "<
t$e +re!tion of 1number6 ne2 A or)in!r< s$!res of O1 e!+$ (DA s$!resA) !n) 1number6 ne2 - or)in!r< s$!res
of O1 e!+$ (D- s$!resA) $!vin% res(e+tive#< !tt!+$e) to t$e, t$e ri%$ts !n) restri+tions set out in t$e ne2
!rti+#es of !sso+i!tion referre) to in (!r!%r!($ (*) "e#o2H
() e!+$ of t$e ! 1or as the case ma, be6$ e9istin% or)in!r< s$!res of O1 e!+$ "e !n) t$e< !re no2 +onverte) into
!n) re')esi%n!te) !s A s$!res of O1 e!+$ $!vin% !tt!+$e) to t$e, t$e ri%$ts !n) restri+tions set out in t$e ne2
!rti+#es of !sso+i!tion referre) to in (!r!%r!($ (*) "e#o2H
(&) t$e )r!ft o"je+ts +ont!ine) in t$e )o+u,ent su",itte) to t$e ,eetin%> !n) for t$e (ur(oses of i)entifi+!tion
initi!##e) "< t$e +$!ir,!n of it> "e !n) t$e s!,e !re no2 !((rove) !n) t$e (rovisions of +#!use & of t$e
,e,or!n)u, of !sso+i!tion of t$e Co,(!n< "e !n) t$e< !re no2 !#tere) "< t$e !)o(tion of t$ose )r!ft
o"je+ts !s t$e o"je+ts of t$e Co,(!n< in su"stitution for !n) to t$e e9+#usion of t$e e9istin% o"je+ts of t$e
Co,(!n<!H !n)$
(*) t$e )r!ft re%u#!tions +ont!ine) in t$e )o+u,ent su",itte) to t$e ,eetin%> !n) for t$e (ur(oses of
i)entifi+!tion initi!##e) "< t$e +$!ir,!n of it> "e !n) t$e s!,e !re no2 !((rove) !n) !)o(te) !s t$e !rti+#es of
!sso+i!tion of t$e Co,(!n< in su"stitution for !n) to t$e e9+#usion of !## e9istin% !rti+#es of !sso+i!tion of t$e
Co,(!n<!H !n)
(0) t$e n!,e of t$e Co,(!n< "e +$!n%e) to 1new name6$4
!1"),$
DATED 1date6
-< Or)er of t$e -o!r)
1si!nature o. secretar,6
Se+ret!r<
Re%istere) Offi+e:
1address6
Note: A ,e,"er entit#e) to !tten) !n) vote !t t$e ,eetin% +onvene) "< t$is noti+e is entit#e) to !((oint ! (ro9< to
!tten) !n) on ! (o## vote in $is (#!+e4 A (ro9< nee) not "e ! ,e,"er of t$e Co,(!n<4
CONSENT TO S.ORT NOTICE
7e> t$e un)ersi%ne)> "ein% !## t$e ,e,"ers of t$e !"ove n!,e) !%ree t$!t t$e s!i) ,eetin% s$!## "e )ee,e) to $!ve
"een )u#< +!##e) !n) t$!t t$e s(e+i!# reso#ution set out in t$e s!i) noti+e ,!< "e (ro(ose) !n) (!sse) not2it$st!n)in%
t$!t s$orter noti+e t$!n t$!t s(e+ifie) in t$e Co,(!nies A+t 1650 or t$e Co,(!n<As !rti+#es of !sso+i!tion $!s "een
%iven4
!1").$
1"
Articles of association for a Ddeadloc> ,#E,# company 0ith t0o shareholders includin' class ri'hts
Co,(!nies A+t 1650
Ne2 Arti+#es of Asso+i!tion
of 1name6 Li,ite) (Dt$e Co,(!n<A)
1 *able A
!t t$e )!te of !)o(tion of t$ese !rti+#es (DT!"#e AA) s$!##> e9+e(t 2$ere t$e s!,e !re e9+#u)e) or v!rie) "< or
in+onsistent 2it$ t$ese !rti+#es> !((#< to t$e Co,(!n< to t$e e9+#usion of !## ot$er re%u#!tions set out in !n< st!tute or
st!tutor< instru,ent +on+ernin% +o,(!nies4
!1")/$
% 7nterpretation
(A) Dt$ese !rti+#esA ,e!ns t$ese !rti+#es of !sso+i!tion in t$eir (resent for, or !s fro, ti,e to ti,e !#tere)H
(-) Dt$e Co,(!nies A+tsA ,e!ns ever< st!tute fro, ti,e to ti,e in for+e +on+ernin% +o,(!nies in so f!r !s t$e
(C) D,e,"erA ,e!ns ! ,e,"er of t$e Co,(!n<H
(D) ever< referen+e in T!"#e A to Dt$e A+tA s$!## "e +onstrue) !s if t$e referen+e 2!s to t$e Co,(!nies A+tsH
(E) !n< 2or)s or e9(ressions )efine) in t$e Co,(!nies A+ts in for+e !t t$e )!te 2$en t$ese !rti+#es or !n< (!rt of
su+$ (!rt (!s t$e +!se ,!< "e)H !n)
(:) 2$ere for !n< (ur(ose !n or)in!r< reso#ution of t$e Co,(!n< is re;uire)> ! s(e+i!# or e9tr!or)in!r<
!#so "e effe+tive4
!1")"$
&41 T$e s$!re +!(it!# of t$e Co,(!n< !t t$e )!te of t$e !)o(tion of t$ese !rti+#es is OTTT )ivi)e) into:
1number6 A or)in!r< s$!res of O1 e!+$ (DA s$!resA)
1number6 - or)in!r< s$!res of O1 e!+$ (D- s$!resA)
1
&4 T$e A s$!res !n) t$e - s$!res s$!## e!+$ +onstitute )ifferent +#!sses of s$!res for t$e (ur(oses of t$e A+t "ut
s!ve !s ot$er2ise (rovi)e) in t$ese !rti+#es s$!## r!nC (!ri (!ssu in !## res(e+ts4
) Aariation of ri'hts
T$e ri%$ts for t$e ti,e "ein% res(e+tive#< !tt!+$e) to !n< A s$!res !n)Eor - s$!res for t$e ti,e "ein% in issue ,!< fro,
ti,e to ti,e (2$et$er or not t$e Co,(!n< is "ein% 2oun) u() "e v!rie) or !"ro%!te) 2it$ t$e +onsent in 2ritin% of t$e
$o#)ers of not #ess t$!n 30L in no,in!# v!#ue of t$e issue) s$!res of t$e re#ev!nt +#!ss or 2it$ t$e s!n+tion of !n
e9tr!or)in!r< reso#ution (!sse) !t ! se(!r!te %ener!# ,eetin% of t$e $o#)ers of t$e s$!res of t$e +#!ss4 To !n< su+$
se(!r!te %ener!# ,eetin% !## t$e (rovisions of t$ese !rti+#es !s to %ener!# ,eetin%s of t$e Co,(!n< s$!## ,ut!tis
,ut!n)is !((#<> "ut so t$!t t$e ne+ess!r< ;uoru, s$!## "e one $o#)er of t$e re#ev!nt +#!ss (resent in (erson or "< (ro9<
!n) $o#)in% or re(resentin% not #ess t$!n &&4&L in no,in!# v!#ue of t$e issue) s$!res of t$e re#ev!nt +#!ss> t$!t ever<
$o#)er of s$!res of t$e +#!ss s$!## "e entit#e) on ! (o## to one vote for ever< su+$ s$!re $e#) "< $i, !n) t$!t !n< $o#)er
of s$!res of t$e +#!ss (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise) re(resent!tive ,!<
)e,!n) ! (o##4 :or t$e (ur(ose of t$is !rti+#e one $o#)er (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< !
)u#< !ut$orise) re(resent!tive ,!< +onstitute ! ,eetin%4
!1")2$
, Hnissued share capital
041 Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts !n) t$ese !rti+#es !n) to !n< )ire+tion to t$e +ontr!r< 2$i+$
!##ot> %r!nt o(tions over or %r!nt !n< ri%$t or ri%$ts to su"s+ri"e for su+$ s$!res or !n< ri%$t or ri%$ts to
+onvert !n< se+urit< into su+$ s$!res or ot$er2ise )is(ose of t$e, to su+$ (ersons> !t su+$ ti,es !n) for su+$
04 :or t$e (ur(oses of t$e Co,(!nies A+t 1650 se+tion 58 "ut su"je+t to t$e (rovisions of t$ese !rti+#es> t$e
)ire+tors !re %ener!##< !n) un+on)ition!##< !ut$orise) to e9er+ise !## (o2ers of t$e Co,(!n< to !##ot re#ev!nt
se+urities !s )efine) in t$!t se+tion u( to !n !%%re%!te no,in!# !,ount of OTTT4 T$is !ut$orit< s$!##
e9(ire 0 <e!rs fro, t$e )!te on 2$i+$ t$e reso#ution !)o(tin% t$ese !rti+#es is (!sse) "ut ,!< "e (revious#<
revoCe) or v!rie) "< t$e Co,(!n< in %ener!# ,eetin% !n) ,!< fro, ti,e to ti,e "e rene2e) "< t$e
Co,(!n< in %ener!# ,eetin% for ! furt$er (erio) not e9+ee)in% 0 <e!rs4 T$e Co,(!n< ,!< ,!Ce !n< offer
or !%ree,ent "efore t$e e9(ir< of t$is !ut$orit< t$!t 2ou#) or ,i%$t re;uire re#ev!nt se+urities to "e !##otte)
!fter t$is !ut$orit< $!s e9(ire) !n) t$e )ire+tors ,!< !##ot re#ev!nt se+urities in (ursu!n+e of !n< su+$ offer
or !%ree,ent !s if t$is !ut$orit< $!) not e9(ire)4
!1",#$
04& Arti+#e 04 s$!## not !((#< to re)ee,!"#e s$!res> 2$i+$ s$!## "e %overne) "< t$e (rovisions of !rti+#e 14
04* T$e Co,(!nies A+t 1650 se+tions 56(1) !n) 68(1)M(1) (in+#usive) s$!## not !((#<4
040 !An< s$!res for t$e ti,e "ein% unissue) s$!##> "efore t$e< !re issue)> "e offere) to t$e ,e,"ers $o#)in%
or)in!r< s$!res in (ro(ortion !s ne!r#< !s t$e +ir+u,st!n+es !),it to t$eir e9istin% $o#)in%s of or)in!r<
s$!res4 Su+$ offer s$!## "e ,!)e "< noti+e s(e+if<in% t$e nu,"er of s$!res offere) !n) #i,ite) to ! ti,e
2it$in 2$i+$ t$e offer> if not !++e(te)> 2i## "e )ee,e) to "e )e+#ine) !n) !fter t$e e9(ir!tion of su+$ ti,e> or
if e!r#ier on t$e re+ei(t of !n inti,!tion fro, t$e (erson to 2$o, t$e offer $!s "een ,!)e t$!t $e )e+#ines to
!++e(t t$e s$!res offere)> t$e )ire+tors ,!<> su"je+t to t$ese !rti+#es> )is(ose of t$e s!,e in su+$ ,!nner !s
t$e< t$inC ,ost "enefi+i!# to t$e Co,(!n<4 T$e )ire+tors ,!<> in #iCe ,!nner> )is(ose of !n< s$!res 2$i+$
"< re!son of t$e (ro(ortion "orne "< t$e, to t$e nu,"er of (ersons entit#e) to su+$ offer !s !fores!i) or "<
re!son of !n< )iffi+u#t< in !((ortionin% t$e s!,e +!nnot in t$e o(inion of t$e )ire+tors "e +onvenient#<
offere) in t$e ,!nner (rovi)e) !"ove4 T$e (rovisions of t$is !rti+#e ,!< "e re#!9e) or v!rie) to !n< e9tent
"< t$e 2ritten !%ree,ent of !## t$e ,e,"ers for t$e ti,e "ein%4
1or6
Su"je+t to t$e (rovisions of t$e Co,(!nies A+ts> !## s$!res 2$i+$ !re for t$e ti,e unissue) !n) 2$i+$ t$e
)ire+tors (ro(ose to issue s$!## first "e offere) to t$e ,e,"ers in (ro(ortion !s ne!r#< !s ,!< "e to t$e
nu,"er of e9istin% or)in!r< s$!res $e#) "< t$e, !un#ess t$e Co,(!n< s$!## "< s(e+i!# reso#ution ot$er2ise
)ire+t$4 T$e offer s$!## "e ,!)e "< noti+e s(e+if<in% t$e nu,"er of s$!res offere) !n) t$e su"s+ri(tion (ri+e
!n) #i,itin% ! (erio) (not "ein% #ess t$!n 1* )!<s) 2it$in 2$i+$ t$e offer> if not !++e(te)> s$!## "e )ee,e) to
"e )e+#ine)4 After t$e e9(ir!tion of t$!t (erio)> t$ose s$!res )ee,e) to "e )e+#ine) s$!## "e offere) to t$e
(ersons 2$o $!ve> 2it$in t$e s!i) (erio)> !++e(te) !## t$e s$!res offere) to t$e, in t$e (ro(ortion 2$i+$ t$eir
or)in!r< s$!re$o#)in%s "e!r to one !not$er4 T$is furt$er offer s$!## "e ,!)e in #iCe ter,s !n) in t$e s!,e
,!nner !n) #i,ite) "< ! #iCe (erio) !s t$e ori%in!# offer4 An< s$!res not !++e(te) (ursu!nt to su+$ offer or
furt$er offer !s !fores!i) !!n) !n< s$!res re#e!se) fro, t$e (rovisions of t$is !rti+#e "< !n< s(e+i!#
reso#ution$ s$!## "e un)er t$e +ontro# of t$e )ire+tors 2$o> su"je+t to t$e (rovisions of t$e Co,(!nies A+ts>
,!< !##ot> %r!nt o(tions over or ot$er2ise )is(ose of s!,e to su+$ (ersons> on su+$ ter,s> !n) in su+$
,!nner !s t$e< t$inC fit> (rovi)e) t$!t in t$e +!se of s$!res not !++e(te) !s !fores!i)> su+$ s$!res s$!## not "e
)is(ose) of on ter,s 2$i+$ !re ,ore f!vour!"#e to t$e su"s+ri"ers of t$e, t$!n t$e ter,s u(on 2$i+$ t$e<
2ere offere) to t$e ,e,"ers4 S$!res 2$i+$ !re issue) to ,e,"ers $o#)in% A s$!res s$!## "e )esi%n!te) !s A
s$!res !n) t$ose 2$i+$ !re issue) to ,e,"ers $o#)in% - s$!res s$!## "e )esi%n!te) !s - s$!res4 !7$ere
i,,e)i!te#< (rior to !n issue un)er t$is !rti+#e 040 ! ,e,"er $o#)s ,ore t$!n one +#!ss of s$!res> t$e s$!res
issue) to $i, un)er t$is !rti+#e 040 s$!## "e %iven t$e s!,e )esi%n!tions !s t$e s$!res (revious#< $e#) "< t$!t
,e,"er in t$e s!,e (ro(ortions !s t$e +#!sses of t$e s$!res so (revious#< $e#) "e!r to one !not$er4$ !7$ere
s$!res !re issue) un)er t$is !rti+#e 040 to ! (erson not (revious#< ! ,e,"er> t$e s$!res s$!## "e %iven t$e
)esi%n!tion t$e< 2ou#) $!ve re+eive) $!) t$e ,e,"er to 2$o, t$e< 2ere ori%in!##< offere) !++e(te) t$!t
offer4$$
!041 T$e ri%$ts +onferre) u(on t$e $o#)ers of !n< s$!res or +#!ss of s$!res s$!## not> un#ess ot$er2ise e9(ress#<
(rovi)e) in t$e ri%$ts !tt!+$in% to> or t$e ter,s of issue of> su+$ s$!res> "e )ee,e) to "e !#tere) "< t$e
+re!tion or issue of furt$er s$!res r!nCin% (!ri (!ssu 2it$ t$e,4$
&
!1",1$
. &edeemable shares
ter,s t$!t t$e< !re> or !t t$e o(tion of t$e Co,(!n< or t$e ,e,"er re%istere) in res(e+t of su+$ s$!res !re #i!"#e> to "e
re)ee,e) on su+$ ter,s !n) in su+$ ,!nner !s ,!< "e (rovi)e) for "< t$ese !rti+#es4 Re%u#!tion & of T!"#e A s$!## not
!((#<4
/ *ransfer of shares
*
341 !S!ve 2it$ t$e +onsent in 2ritin% of !## t$e ot$er ,e,"ers of t$e Co,(!n< for t$e ti,e "ein%> no ,e,"er
s$!## "e entit#e) to tr!nsfer !n< s$!res in t$e Co,(!n<4
1or6
!Su"je+t to !rti+#e 34 no 1or6 No$ tr!nsfer of !n< s$!re s$!## "e ,!)e or re%istere) 2it$out t$e (revious
s!n+tion of t$e )ire+tors 2$o ,!< in t$eir !"so#ute !n) unfettere) )is+retion> 2it$out !ssi%nin% !n< re!son>
refuse to %ive su+$ s!n+tion4 If su+$ s!n+tion s$!## not "e %iven 2it$in 5 2eeCs !fter t$e tr!nsfer is #o)%e) for
re%istr!tion t$e s!n+tion s$!## "e )ee,e) to $!ve "een refuse) !t t$e e9(ir!tion of su+$ (erio) !n) t$e
tr!nsferee notifie) of su+$ refus!#4 Re%u#!tion * of T!"#e A s$!## "e v!rie) !++or)in%#<4$
!1",%$
Co,(!n< or !n< interest in t$e, (Dt$e (ro(ose) tr!nsferorA) s$!##> "efore so )oin% or !%reein% so to )o>
infor, t$e Co,(!n< of $is intention "< %ivin% it noti+e in 2ritin% (D! tr!nsfer noti+eA)4 A tr!nsfer noti+e s$!##
noti+e (to%et$er 2it$ !## ri%$ts t$en !tt!+$e) to t$e,) !t t$e (res+ri"e) (ri+e ()eter,ine) !s (rovi)e) "e#o2)
to !n< ,e,"er in t$e ,!nner !((e!rin% "e#o2> !n) s$!## not "e revo+!"#e e9+e(t 2it$ t$e un!ni,ous
!%ree,ent of t$e )ire+tors4
34& If> not ,ore t$!n 1* )!<s !fter t$e )!te on 2$i+$ ! tr!nsfer noti+e s$!## $!ve "een %iven (or )ee,e) to $!ve
"een %iven)> t$e (ro(ose) tr!nsferor !n) t$e )ire+tors s$!## $!ve !%ree) in 2ritin% ! (ri+e (er s$!re !s
re(resentin% t$e f!ir v!#ue of t$e s$!res> or !s "ein% !++e(t!"#e to t$e (ro(ose) tr!nsferor !!n) not ,ore t$!n
t$e f!ir v!#ue of t$e s$!res$> t$en t$!t (ri+e s$!## "e t$e (res+ri"e) (ri+e4 In t$e !"sen+e of !n< !%ree,ent
$!vin% "een re!+$e) 2it$in t$!t (erio) of 1* )!<s t$e )ire+tors s$!## fort$2it$ re;uest t$e !u)itors for t$e
ti,e "ein% of t$e Co,(!n< to )eter,ine !n) +ertif< in 2ritin% to t$e Co,(!n< t$e su, (er s$!re +onsi)ere)
"< t$e, to "e t$e f!ir v!#ue of t$e s$!res !s "et2een ! 2i##in% ven)or !n) ! 2i##in% (ur+$!ser (i%norin% t$e
f!+t if su+$ "e t$e +!se> t$!t t$e s$!res )o not +!rr< effe+tive +ontro# of t$e Co,(!n<) !s !t t$e )!te on 2$i+$
t$e tr!nsfer noti+e 2!s %iven (or )ee,e) to $!ve "een %iven) !n) t$e su, (er s$!re so )eter,ine) !n)
+ertifie) s$!## "e t$e (res+ri"e) (ri+e4 T$e !u)itors s$!## !+t un)er t$is !rti+#e !t t$e +ost !n) e9(ense of t$e
(ro(ose) tr!nsferor> !s e9(erts !n) not !s !r"itr!tors> !n) t$eir )eter,in!tion s$!## "e fin!# !n) "in)in% for !##
(ur(oses (s!ve in res(e+t of ,!nifest error)4
!1",($
34* 7it$in 3 )!<s of t$e /res+ri"e) /ri+e "ein% so !%ree) or )eter,ine) !n) fi9e) !## s$!res in+#u)e) in t$e
Tr!nsfer Noti+e s$!## "e offere) for (ur+$!se !t t$e /res+ri"e) /ri+e "< noti+e in 2ritin% %iven "< t$e
Co,(!n< to !## ,e,"ers $o#)in% s$!res of 2$!tever +#!ss in t$e Co,(!n< (ot$er t$!n t$e ,e,"er to 2$ose
s$!res t$e Tr!nsfer Noti+e re#!tes)4 T$e offer s$!## "e on t$e "!sis t$!t in t$e +!se of +o,(etition for t$e, t$e
s$!res so offere) s$!## (in !++or)!n+e 2it$> "ut su"je+t to> t$e ne9t fo##o2in% !rti+#e) "e so#) to !++e(tors
$o#)in% s$!res of t$e s!,e +#!ss !s t$e s$!res "ein% offere)> in (ro(ortion (!s ne!r#< !s ,!< 2it$out
invo#vin% fr!+tions or in+re!sin% t$e nu,"er so#) to !n< ,e,"er "e<on) t$!t !((#ie) for "< $i,) to t$eir
e9istin% $o#)in%s of s$!res of t$e s!,e +#!ss !n) in t$e event of ,e,"ers $o#)in% s$!res of t$e s!,e +#!ss not
t!Cin% !## t$e s$!res so offere)> t$en t$e s$!res so offere) "ut not so so#) s$!## "e so#) to t$e ,e,"ers
$o#)in% s$!res of !n< ot$er +#!ss !n) in t$e +!se of +o,(etition on ! si,i#!r "!sis ,ut!tis ,ut!n)is !s
!fores!i)4 An< su+$ offer s$!## s(e+if< ! (erio) ("ein% not #ess t$!n 1 )!<s !n) not ,ore t$!n * )!<s)
2it$in 2$i+$ it ,ust "e !++e(te) or 2i## #!(se4
340 If ,e,"ers (D(ur+$!sersA) s$!## 2it$in t$e s!i) (erio) of t$e offer !%ree to (ur+$!se t$e s$!res +on+erne) or
!n< of t$e, t$e Co,(!n< s$!## fort$2it$ %ive noti+e in 2ritin% !s ,entione) "e#o2 to t$e (ro(ose)
tr!nsferor !n) to t$e (ur+$!sers> !n) u(on (!<,ent of t$e (res+ri"e) (ri+e t$e (ro(ose) tr!nsferor s$!## "e
"oun) to tr!nsfer t$e s$!res to t$e res(e+tive (ur+$!sers !++or)in%#<4 Ever< su+$ noti+e s$!## st!te t$e n!,e
!n) !))ress of e!+$ (ur+$!ser !n) t$e nu,"er !n) +#!ss of s$!res !%ree) to "e (ur+$!se) "< $i, !n) t$e
(ur+$!se s$!## "e +o,(#ete) !t ! (#!+e !n) ti,e to "e !((ointe) "< t$e )ire+tors> not "ein% #ess t$!n 3 )!<s
nor ,ore t$!n &8 )!<s !fter t$e )!te of t$e noti+e4 If t$e tr!nsfer noti+e s$!## st!te t$!t t$e (ro(ose)
tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e s$!res t$e su"je+t of t$e noti+e> t$e fore%oin% (rovisions
of t$is !rti+#e 340 s$!## not !((#< un#ess t$e Co,(!n< s$!## $!ve foun) (ur+$!sers for !## of t$e s$!res !n)
!n< offer referre) to in !rti+#e 34* s$!## "e )ee,e) to $!ve #!(se) 2it$out $!vin% "een v!#i)#< !++e(te)4
!1",)$
341 If t$e (ro(ose) tr!nsferor s$!## f!i# or refuse to tr!nsfer !n< s$!res to ! (ur+$!ser un)er t$is !rti+#e t$e
)ire+tors ,!< !ut$orise so,e (erson to e9e+ute t$e ne+ess!r< tr!nsfer !n) ,!< )e#iver it on $is "e$!#f !n) t$e
Co,(!n< ,!< re+eive t$e (ur+$!se ,one< in trust for t$e (ro(ose) tr!nsferor (2$i+$ it s$!## (!< into !
e9er+ise of t$ese (o2ers t$e v!#i)it< of t$e (ro+ee)in%s s$!## not "e ;uestione) "< !n< (erson4
343 If !t t$e e9(ir< of t$e (erio) for !++e(t!n+e of t$e offer referre) to in !rti+#e 34* !"ove> ,e,"ers of t$e
Co,(!n< s$!## not $!ve !%ree) to (ur+$!se !## t$e s$!res so offere)> t$e Co,(!n< s$!## fort$2it$ %ive noti+e
in 2ritin% of t$!t f!+t to t$e (ro(ose) tr!nsferor !n) !(su"je+t to t$e (revious s!n+tion of t$e -o!r)> su+$
s!n+tion not to "e unre!son!"#< 2it$$e#))$
0
$e s$!## t$en "e !t #i"ert< !t !n< ti,e t$ere!fter u( to t$e
e9(ir!tion of & ,ont$s !fter t$e %ivin% of t$!t noti+e to tr!nsfer t$ose s$!res 2$i+$ ,e,"ers s$!## not $!ve so
!%ree) to (ur+$!se to !n< (erson on ! "on! fi)e s!#e !t !n< (ri+e not "ein% #ess t$!n t$e (res+ri"e) (ri+e
/ROVIDED t$!t:
(A) if t$e tr!nsfer noti+e s$!## st!te t$!t t$e (ro(ose) tr!nsferor is not 2i##in% to tr!nsfer (!rt on#< of t$e
s$!res t$e su"je+t of t$e tr!nsfer noti+e $e s$!## not "e entit#e) to tr!nsfer !n< of t$e s$!res un#ess
in !%%re%!te t$e 2$o#e of t$e s$!res !re so tr!nsferre)H !n)
(-) t$e )ire+tors ,!< re;uire to "e s!tisfie) t$!t t$e s$!res !re "ein% tr!nsferre) in (ursu!n+e of ! "on!
fi)e s!#e for t$e +onsi)er!tion st!te) in t$e instru,ent of tr!nsfer 2it$out !n< )e)u+tion> re"!te or
!##o2!n+e 2$!tsoever "ein% %iven to t$e (ur+$!ser !n) if not so s!tisfie) ,!< refuse to re%ister t$e
instru,ent of tr!nsfer4
!1",,$
s$!re or !n< interest in it ot$er2ise t$!n in !++or)!n+e 2it$ t$e fore%oin% (rovisions of t$is !rti+#e 3> $e s$!##
"e )ee,e) to $!ve serve) ! tr!nsfer noti+e on t$e Co,(!n< in res(e+t of t$e s$!re i,,e)i!te#< (rior to su+$
!tte,(t !n) t$e (rovisions of t$is !rti+#e 3 s$!## t$ereu(on !((#< to t$e s$!re4 An< su+$ tr!nsfer noti+e s$!##
"e )ee,e) to $!ve "een serve) on t$e )!te on 2$i+$ t$e )ire+tors s$!## re+eive !+tu!# noti+e of su+$ !tte,(t4 $
!346 T$e e9e+utors or !),inistr!tors or ot$er (erson!# re(resent!tives (if !n<) of !n< )e+e!se) ,e,"er> or t$e
trustee in "!nCru(t+< of ! "!nCru(t ,e,"er> s$!## "e "oun) !t t$e e9(ir< of ,ont$s fro, t$e )!te of $is
of t$e )e+e!se) ,e,"er !t t$e )!te of $is )e!t$ or "!nCru(t+<> or su+$ of t$e, !s sti## re,!in so re%istere)4
S$ou#) t$e e9e+utors> !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tive f!i# to %ive !
tr!nsfer noti+e 2it$in 1* )!<s !fter t$e e9(ir< of su+$ (erio) of ,ont$s> or s$ou#) t$ere "e no su+$
e9e+utors or !),inistr!tors> trustee in "!nCru(t+< or ot$er (erson!# re(resent!tive !t t$e e9(ir< of su+$ (erio)
of ,ont$s> ! tr!nsfer noti+e s$!## "e )ee,e) to $!ve "een %iven (on t$e "!sis t$!t t$ere is no re;uire,ent
t$!t !## "ut not so,e on#< of t$e s$!res t$e su"je+t of t$e noti+e ,ust "e so#) to e9istin% ,e,"ers) !n) t$e
(rovisions of t$is !rti+#e 3 s$!## $!ve effe+t !++or)in%#<4$
!3418 If !n< ,e,"er ("ein% ! +or(or!tion) s$!## %o into #i;ui)!tion (+o,(u#sori#< or vo#unt!ri#<) or $!ve !n
!),inistr!tor !((ointe) or $!ve ! re+eiver> !),inistr!tive re+eiver or si,i#!r offi+i!# !((ointe) of t$e 2$o#e
or !n< (!rt of its !ssets> its #i;ui)!tor> !),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!#
n!,e of t$e ,e,"er4 In )ef!u#t of ! tr!nsfer noti+e "ein% %iven 2it$in &8 )!<s of it %oin% into #i;ui)!tion or
$!vin% !n !),inistr!tor re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# !((ointe)> t$e #i;ui)!tor>
!),inistr!tor> re+eiver> !),inistr!tive re+eiver or ot$er si,i#!r offi+i!# s$!## "e )ee,e) to $!ve %iven ! noti+e
!t t$e e9(ir!tion of t$e s!i) (erio) of &8 )!<s (on t$e "!sis t$!t t$ere is no re;uire,ent t$!t !## "ut not so,e
on#< of t$e s$!res t$e su"je+t of t$e noti+e ,ust "e so#) to e9istin% ,e,"ers) !n) t$e (rovisions of t$is !rti+#e
3 s$!## !((#< !++or)in%#<4$
1
!1",.$
" Alteration of capital
2 Purchase of o0n shares
3
1# Proceedin's at 'eneral meetin's
t$e ,eetin% t$e ,eetin% s$!## "e !)journe) to su+$ ti,e (not "ein% e!r#ier t$!n 3 )!<s fro, t$e )!te of t$e
ori%in!# ,eetin%) !n) (#!+e !s t$e )ire+tors ,!< )eter,ine4 If t$ere s$!## "e no ;uoru, !t t$e !)journe)
,eetin% 2it$in one $our !fter t$e ti,e !((ointe) for t$e ,eetin%> t$e ,eetin% s$!## !%!in "e !)journe) !s
!fores!i)4 If t$ere s$!## "e no ;uoru, !t t$e furt$er !)journe) ,eetin% 2it$in one $our !fter t$e ti,e
!((ointe) for t$e ,eetin%> t$e ,e,"er or ,e,"ers (resent> 2$!tever t$eir nu,"er !n) t$e +#!ss or +#!sses of
s$!res $e#) "< t$e, s$!## +onstitute ! ;uoru,4
184 Su"je+t to !rti+#e 1841 t$e ;uoru, !t !n< %ener!# ,eetin% (!n) !t !n< !)journe) %ener!# ,eetin%) s$!## "e
,e,"ers (resent in (erson or "< (ro9< or> "ein% ! +or(or!tion> "< ! )u#< !ut$orise) re(resent!tive> of 2$o,
one s$!## "e ! $o#)er of A s$!res !n) one ! $o#)er of - s$!res4
184& Re%u#!tions !&6>$ *8 !n) *1 of T!"#e A s$!## not !((#<4
184* At !n< %ener!# ,eetin% ! (o## ,!< "e )ire+te) "< t$e C$!ir,!n or )e,!n)e) "< !n< ,e,"er (resent in
(erson or "< (ro9< or> "ein% ! +or(or!tion> "< ! )u#< !ut$orise) re(resent!tive> !n) Re%u#!tion *1 of T!"#e A
s$!## "e v!rie) !++or)in%#<4
1841 In t$e +!se of ! +or(or!tion ! reso#ution in 2ritin% ,!< "e si%ne) on its "e$!#f "< ! )ire+tor or t$e se+ret!r<
of t$e +or(or!tion or "< its )u#< !((ointe) !ttorne< or )u#< !ut$orise) re(resent!tive !n) Re%u#!tion 0& s$!##
"e e9ten)e) !++or)in%#<4
!1",/$
11 Aotes of members
1141 Su"je+t to !n< ri%$ts or restri+tions for t$e ti,e "ein% !tt!+$e) to !n< +#!ss or +#!sses of s$!res (in+#u)in%>
2it$out #i,it> t$e (rovisions of !rti+#es 114 !n) 114& "e#o2)> on ! s$o2 of $!n)s ever< ,e,"er (resent in
(erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise) re(resent!tive s$!## $!ve one vote> !n) on !
(o## ever< ,e,"er (resent in (erson or "< (ro9< or ("ein% ! +or(or!tion) "< ! )u#< !ut$orise) re(resent!tive
s$!## $!ve one vote for e!+$ s$!re of 2$i+$ $e is t$e $o#)er
5
4 Re%u#!tion 0* of T!"#e A s$!## not !((#<4
114 U(on !n< reso#ution for t$e re,ov!# fro, offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er
t$e (rovisions of !rti+#e 1141 "< t$e $o#)ers of t$e A s$!res> no - s$!re s$!## +onfer u(on t$e $o#)er !n< ri%$t
to vote eit$er on ! (o## or ! s$o2 of $!n)s or ot$er2ise
6
4
114& U(on !n< reso#ution for t$e re,ov!# fro, offi+e of !n< )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er
t$e (rovisions of !rti+#e 114 "< t$e $o#)er of t$e - s$!res> no A s$!re s$!## +onfer u(on t$e $o#)er !n< ri%$t
to vote eit$er on ! (o## or ! s$o2 of $!n)s or ot$er2ise
18
4
114* T$e instru,ent !((ointin% ! (ro9< !n) t$e (o2er of !ttorne< or ot$er !ut$orit< (if !n<) un)er 2$i+$ it is
,eetin% or !n< instru,ent of (ro9< sent "< t$e Co,(!n< in re#!tion to t$e ,eetin%) !not #ess t$!n !one 1or as
re>uired6$ $our$ "efore t$e ti,e for $o#)in% t$e ,eetin% or !)journe) ,eetin% !t 2$i+$ t$e (erson n!,e) in
t$e instru,ent (ro(oses to vote> or $!n)e) to t$e C$!ir,!n of t$e ,eetin% or !)journe) ,eetin% "efore t$e
+o,,en+e,ent of su+$ ,eetin% !n)> in )ef!u#t> t$e instru,ent of (ro9< s$!## not "e tre!te) !s v!#i)4
!1","$
1% Number of directors
T$e nu,"er of )ire+tors s$!## not "e #ess t$!n ! 1or as re>uired6$ or ,ore t$!n 1number6
11
s$!## not !((#<4
1( Alternate directors
1&41 An< )ire+tor (ot$er t$!n !n !#tern!te )ire+tor) ,!< !((oint !n< (erson to "e !n !#tern!te )ire+tor !n) ,!<
re,ove fro, offi+e !n !#tern!te )ire+tor !((ointe) "< $i,
1
4 :or t$e (ur(oses of t$ese !rti+#es> !n !#tern!te
)ire+tor !((ointe) "< !n A )ire+tor s$!## "e )ee,e) to "e !n A )ire+tor !n) !n !#tern!te )ire+tor !((ointe) "<
! - )ire+tor s$!## "e )ee,e) to "e ! - )ire+tor4 A (erson +!n "e !((ointe) !n !#tern!te )ire+tor "< ,ore t$!n
one )ire+tor (rovi)e) !## su+$ !((ointors re(resent t$e s!,e +#!ss of s$!res "ut not ot$er2ise4
1&4 An !#tern!te )ire+tor ,!< "e (!i) e9(enses !n) s$!## "e entit#e) to "e in)e,nifie) "< t$e Co,(!n< to t$e
s!,e e9tent ,ut!tis ,ut!n)is !s if $e 2ere ! )ire+tor "ut s$!## not "e entit#e) to re+eive fro, t$e Co,(!n<
!n< fee in $is +!(!+it< !s !n !#tern!te )ire+tor e9+e(t on#< su+$ (!rt (if !n<) of t$e re,uner!tion ot$er2ise
(!<!"#e to t$e )ire+tor !((ointin% $i, !s su+$ )ire+tor ,!< "< noti+e in 2ritin% to t$e Co,(!n< fro, ti,e to
ti,e )ire+t4 An !#tern!te )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o, s$!## "e entit#e) to re+eive noti+e
of !## ,eetin%s of t$e )ire+tors !n) of !## ,eetin%s of +o,,ittees of )ire+tors of 2$i+$ $is !((ointor is !
,e,"er !t su+$ !))ress !s $e s$!## $!ve notifie) to t$e Se+ret!r<4 Re%u#!tions 10 !n) 11 of T!"#e A s$!## "e
v!rie) !++or)in%#<4
1&4& Ever< (erson !+tin% !s !n !#tern!te )ire+tor s$!## $!ve one vote for e!+$ )ire+tor for 2$o, $e !+ts !s
!#tern!te (in !))ition to $is o2n vote if $e is !#so ! )ire+tor) "ut $e s$!## +ount !s on#< one A )ire+tor or one -
)ire+tor (!s !((ro(ri!te) for t$e (ur(ose of )eter,inin% 2$et$er ! ;uoru, is (resent4 T$e si%n!ture of !n
!#tern!te )ire+tor to !n< reso#ution in 2ritin% of t$e )ire+tors or of ! +o,,ittee of t$e )ire+tors s$!##> un#ess
noti+e of $is !((oint,ent (rovi)es to t$e +ontr!r<> "e !s effe+tive !s t$e si%n!ture of $is !((ointor4
!1",2$
1) *he seal
Co,(!n< so#e#< !s ! resu#t of $!vin% "een e9e+ute) "< t$e Co,(!n<4 Re%u#!tion 181 of T!"#e A s$!## not !((#<
1&
4
1, Dele'ation of directors po0ers
T$e )ire+tors ,!< )e#e%!te !n< of t$eir (o2ers to !n< +o,,ittee +onsistin% of ! 1or as re>uired6$ or ,ore )ire+tors
one of 2$o, s$!## "e !n A )ire+tor !n) one ! - )ire+tor4 !T$e )ire+tors ,!< !#so entrust to !n) +onfer u(on !n<
)ire+tor !n< of t$e (o2ers e9er+is!"#e "< t$e,4$ An< su+$ )e#e%!tion ,!< "e ,!)e u(on su+$ ter,s !n) +on)itions
!n) 2it$ su+$ restri+tions !s t$e< ,!< t$inC fit> !n) eit$er +o##!ter!##< 2it$ or to t$e e9+#usion of t$eir o2n (o2ers> !n)
,!< fro, ti,e to ti,e revoCe> 2it$)r!2> !#ter or v!r< !## or !n< of su+$ (o2ers4 Su"je+t to !n< su+$ +on)itions> t$e
(ro+ee)in%s of su+$ ! +o,,ittee s$!## "e %overne) "< t$ese Arti+#es re%u#!tin% t$e (ro+ee)in%s of )ire+tors so f!r !s
t$e< !re +!(!"#e of !((#<in%4 Re%u#!tion 3 of T!"#e A s$!## not !((#<4
!1".#$
1. Appointment and retirement of directors
1141 T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) A s$!res fro, ti,e to
+!##e) DA )ire+torsA
1*
4
114 T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) - s$!res fro, ti,e to
+!##e) D- )ire+torsA4
114& An< !((oint,ent or re,ov!# un)er t$is !rti+#e 11 s$!## "e "< noti+e in 2ritin% #o)%e) !t t$e re%istere) offi+e
of t$e Co,(!n< or )e#ivere) to ! )u#< +onstitute) ,eetin% of t$e )ire+tors of t$e Co,(!n< !n) si%ne) un)er
t$e $!n) or $!n)s of t$e $o#)er or $o#)ers of ! ,!jorit< in no,in!# v!#ue of t$e issue) s$!res of t$e +#!ss
effe+tin% t$e s!,e4 An< su+$ !((oint,ent or re,ov!# s$!## t!Ce effe+t !s !t t$e ti,e of su+$ #o)%e,ent or
)e#iver< or !t su+$ #!ter ti,e !s s$!## "e s(e+ifie) t$erein4 In t$e +!se of ! +or(or!tion su+$ noti+e ,!< "e
si%ne) "< or on its "e$!#f "< ! )ire+tor or se+ret!r< of t$e +or(or!tion or "< its )u#< !((ointe) !ttorne< or
)u#< !ut$orise) re(resent!tive4
!1".1$
114* No )ire+tor s$!## "e re;uire) to retire or v!+!te $is offi+e or "e ine#i%i"#e for re!((oint,ent !s ! )ire+tor> nor
!%e4
1140 Re%u#!tions 3& to 58 (in+#usive) of T!"#e A s$!## not !((#<4
1141 T$e offi+e of ! )ire+tor s$!## "e v!+!te) if:
(D) $e is (ro$i"ite) fro, "ein% ! )ire+tor "< #!2 or "< t$e or)er of !n< +ourt or tri"un!# of +o,(etent
juris)i+tionH or
(E) "ein% ! )ire+tor !((ointe) or )ee,e) to "e !((ointe) un)er !rti+#e 11> $e is re,ove) fro, offi+e
un)er t$e (rovisions of t$!t !rti+#e!H or
(:) "ein% ! )ire+tor !((ointe) un)er !rti+#e 11> t$e ,e,"er or t$e ,e,"ers entit#e) to !((oint $i,
s$!## +e!se to "e so entit#e)$4
!1".%$
1/ Directors 'ratuities and pensions
T$e )ire+tors on "e$!#f of t$e Co,(!n< ,!< e9er+ise !## t$e (o2ers of t$e Co,(!n< to %r!nt (ensions> !nnuities>
Co,(!n<4
1" Proceedin's of directors
1541 @uestions !risin% !t !n< ,eetin% of t$e )ire+tors or of !n< +o,,ittee of t$e )ire+tors s$!##> un#ess ot$er2ise
)eter,ine) "< !## t$e ,e,"ers> "e )e+i)e) "< ! ,!jorit< of votes of t$e )ire+tors (resent (or t$eir !#tern!tes)4
T$e +$!ir,!n s$!## not $!ve ! se+on) or +!stin% vote4 Re%u#!tion 55 of T!"#e A s$!## "e v!rie) !++or)in%#<4
154 Su"je+t !s (rovi)e) in !rti+#e 154&> t$e ;uoru, ne+ess!r< for t$e tr!ns!+tion of t$e "usiness of t$e )ire+tors or
of !n< +o,,ittee of t$e )ire+tors s$!## t$rou%$out t$e ,eetin% "e )ire+tors of 2$o, one s$!## "e !n A
)ire+tor !n) one ! - )ire+tor4 A (erson 2$o $o#)s offi+e on#< !s !n !#tern!te )ire+tor s$!##> if t$e )ire+tor $e
$!s "een !((ointe) to re(resent is not (resent> "e +ounte) in t$e ;uoru,4 Re%u#!tion 56 T!"#e A s$!## not
!((#<4
!1".($
154& If t$ere s$!## "e no ;uoru, !t !n< ,eetin% of t$e )ire+tors 2it$in one $our !fter t$e ti,e fi9e) for t$e
ori%in!# ,eetin%) !s t$e )ire+tor or )ire+tors (resent !t t$e ,eetin% s$!## )eter,ine> or if none> s$!## "e
!)journe) ,eetin%> t$e ,eetin% s$!## "e furt$er !)journe) !s !fores!i)4 If t$ere s$!## "e no ;uoru, 2it$in
one $our !fter t$e ti,e fi9e) for t$e furt$er !)journe) ,eetin% 2it$in one $our !fter t$e ti,e fi9e) for t$e
,eetin% t$e )ire+tor or )ire+tors (resent> 2$!tever t$eir nu,"er !n) t$eir )esi%n!tions s$!## +onstitute !
;uoru,4
154* An< )ire+tor 2$o +e!ses to "e ! )ire+tor !t ! "o!r) ,eetin% ,!< +ontinue to "e (resent !n) to !+t !s !
1540 A )ire+tor s$!## "e tre!te) !s (resent in (erson !t ! ,eetin% of t$e )ire+tors or !n< +o,,ittee of t$e )ire+tors
if $e is in +o,,uni+!tion 2it$ t$e ,eetin% "< +onferen+e te#e($one or ot$er +o,,uni+!tion e;ui(,ent
!n) s$!## "e entit#e) to vote !t it4 A ,eetin% of t$e )ire+tors or of ! +o,,ittee to 2$i+$ t$is !rti+#e !((#ies
s$!## "e )ee,e) to t!Ce (#!+e 2$ere t$e ,!jorit< of t$ose (!rti+i(!tin% is !sse,"#e) or> if t$ere is no
,!jorit<> !t t$e (#!+e 2$ere t$e +$!ir,!n of t$e ,eetin% is (resent> !or if t$e ,eetin% is in t$e for, of ! series
of te#e($one +!##s fro, t$e +$!ir,!n of t$e )ire+tors or of ! +o,,ittee> !t t$e (#!+e fro, 2$i+$ t$e +$!ir,!n
is +!##in%$4
!1".)$
1541 Un#ess in !n< (!rti+u#!r +!se su+$ re;uire,ent is 2!ive) in 2ritin% "< !## ("ut not so,e on#<) of t$e )ire+tors
t$en in offi+e> not #ess t$!n !3 1or as re>uired6$ )!<sA (rior noti+e ,ust "e %iven of !n< ,eetin% of t$e
)ire+tors or of !n< +o,,ittee of )ire+tors +onvene) un)er or (ursu!nt to t$ese !rti+#es4 !It s$!## "e ne+ess!r<
to %ive noti+e of ! ,eetin% to ! )ire+tor 2$o is !"sent fro, t$e Unite) Bin%)o, !t su+$ !))ress !s $e s$!##
$!ve notifie) to t$e se+ret!r<4$
10
Re%u#!tion 55 of T!"#e A s$!## "e v!rie) !++or)in%#<4
1545 Su"je+t to t$e (rovisions of t$ese !rti+#es !n) (rovi)e) ! )ire+tor s$!## $!ve )is+#ose) su+$ interest in
!n< (ur(ose of t$e A+t> +onne+te) 2it$ ! )ire+tor s$!## "e tre!te) !s !n interest of t$e )ire+tor !n)> in re#!tion
to !n !#tern!te )ire+tor> !n interest of $is !((ointor s$!## "e tre!te) !s !n interest of t$e !#tern!te )ire+tor
2it$out (reju)i+e to !n< interest 2$i+$ t$e !#tern!te )ire+tor $!s ot$er2ise4 Re%u#!tions 6* to 65 (in+#usive)
of T!"#e A s$!## not !((#<4
te#e%r!, !n) ot$er ,et$o)s of re(ro)u+in% or +o,,uni+!tin% in 2ritin% in visi"#e for,4
!1".,$
12 Notices
t$e Co,(!n< eit$er (erson!##< or "< sen)in% it t$rou%$ t$e (ost in ! (re(!i) #etter !))resse) to su+$ ,e,"er
!t $is re%istere) !))ress !s !((e!rin% in t$e re%ister of ,e,"ers (2$et$er or not su+$ !))ress is 2it$in t$e
Unite) Bin%)o,)> or "< )e#iverin% it to or #e!vin% it !t su+$ re%istere) !))ress> !))resse) !s !fores!i)> or "<
"< first'+#!ss (ost> s$!## "e )ee,e) to $!ve "een serve) or )e#ivere) on t$e )!< !fter t$e )!< 2$en t$e s!,e
2!s (ut in t$e (ost> !n) in (rovin% su+$ servi+e or )e#iver< it s$!## "e suffi+ient to (rove t$!t t$e noti+e or
)o+u,ent 2!s (ro(er#< !))resse)> st!,(e) !n) (ut in t$e (ost4$
11
164 Noti+e of ever< %ener!# ,eetin% s$!## "e %iven in !n< ,!nner !ut$orise) "< or un)er t$ese !rti+#es to !##
$o#)> !re not entit#e) to re+eive su+$ noti+es fro, t$e Co,(!n< (rovi)e) t$!t !n< ,e,"er ,!< in 2ritin%
2!ive noti+e of !n< ,eetin% eit$er (ros(e+tive#< or retros(e+tive#< !n) if $e s$!## )o so it s$!## "e no
o"je+tion to t$e v!#i)it< of su+$ ,eetin% t$!t noti+e 2!s not %iven to $i,4 Re%u#!tions 11> 110 !n) 111 of
T!"#e A s$!## not !((#<4
!1"..$
%# 4indin' up
!1"./$
%1 7ndemnity
)ire+tor> se+ret!r< or ot$er offi+er of t$e Co,(!n< (e9+#u)in% !n< !u)itor) insur!n+e !%!inst !n< #i!"i#it< 2$i+$ "<
#i!"i#ities in+urre) "< $i, in t$e e9e+ution !n) )is+$!r%e of $is )uties or in re#!tion t$ereto in+#u)in% !n< #i!"i#it<
!1"."$
1
T$is (re+e)ent is )r!fte) on t$e "!sis of t2o se(!r!te +#!sses of s$!res on#< in ! D)e!)#o+CA or 08E08 +o,(!n<4
Use t$e se+on) !#tern!tive if it is inten)e) t$!t t$ere s$ou#) "e furt$er issues of s$!res> to ensure t$!t no ne2 or)in!r< s$!res
s$ou#) "e issue) un#ess t$e< !re )ivi)e) into t$e e9istin% +#!sses r!t$er t$!n "e un)esi%n!te) !n) (rovi)e for t$e re'offerin% to
,e,"ers 2$o $!ve !++e(te) t$e offer ,!)e to t$e,> of !n< s$!res not t!Cen u(4
&
If it is )e+i)e) t$!t t$e issue of ne2 s$!res is not to +onstitute ! v!ri!tion of +#!ss ri%$ts it ,i%$t "e !s 2e## to in+#u)e !rti+#e 041
J1501K to ,!Ce t$e (osition +#e!r4
*
7$et$er t$ere s$ou#) "e ! +o,(#ete restri+tion on s$!re tr!nsfers (e9+e(t 2it$ 2$!t is in effe+t t$e +onsent of "ot$ (!rties in !
08E08 +o,(!n<) or 2$et$er tr!nsfers s$ou#) "e !##o2e) (rovi)e) ! (re'e,(tion (ro+e)ure $!s "een fo##o2e) 2i## )e(en) u(on
t$e 2is$es of t$e (!rties !n) t$e (!rti+u#!r +ir+u,st!n+es of e!+$ +!se4 It ,!< "e )esir!"#e to $!ve !n !"so#ute restri+tion on
s$!re tr!nsfers e9+e(t for +ert!in +!te%ories of (er,itte) tr!nsferees4 :or ! (re+e)ent see :or, 5 J168*K (ost4 In !n< event t$e
(rovisions of !rti+#e 3 J150K s$ou#) "e +onsistent 2it$ +#!use 1 of t$e s$!re$o#)ers !%ree,ent (see :or, 11 +#!use 1 J15*K
!nte)4
0
s$!res if t$e "o!r) refuse to %ive t$eir s!n+tion to $is (ro(ose) tr!nsfer to ! t$ir) (!rt<4 T$is (!rt ,!< t$erefore nee) to "e
)e#ete) in !((ro(ri!te +!ses4
!1".2$
1
Arti+#es 346 !n) 3418 J1501K ,!< "e )e#ete) if it is inten)e) t$!t in t$e event of #i;ui)!tion> "!nCru(t+<> )e!t$ et+ of !n< (!rt<
t$e ter,in!tion (rovisions of t$e !%ree,ent (see :or, & +#!use 1*4 J1051K !nte) s$ou#) !((#<4 As to t$e t!9 i,(#i+!tions of
t$ese (rovisions see :or, 11 note 8 J15*&K !nte4
3
It ,!< "e ,ore )esir!"#e to )e#ete t$is !n) in+#u)e t$e (o2er !s one re;uirin% t$e +onsent of e!+$ +#!ss4
5
It is !ssu,e) t$!t e!+$ +#!ss of or)in!r< s$!re 2i## "e )ivi)e) into s$!res of t$e s!,e no,in!# v!#ue4 If not> it is for
+onsi)er!tion 2$et$er on ! (o## votes s$ou#) "e +ounte) "< referen+e to t$e tot!# nu,"er of units of ! %iven no,in!# v!#ue r!t$er
t$!n "< referen+e to e!+$ s$!re (er se4
6
If un!ni,it< is re;uire) !t s$!re$o#)er #eve# t$en !s !n !#tern!tive to !rti+#es 114 !n) 114& J1505K !n) in #ieu of ens$rinin%
(!rti+u#!r ,inorit< (rote+tions !s +#!ss ri%$ts> ! si,(#e ri%$t of veto +!n "e %iven to t$e $o#)ers of ! ,!jorit< of e!+$ +#!ss4 See
:or, 6 J1680K (ost4
18
If t$ere is #iCe#< to "e ,ore t$!n one $o#)er of e!+$ +#!ss of s$!res (i%norin% no,inees for t$is (ur(ose) it ,!< "e )esir!"#e to
in+or(or!te 2ei%$te) votin% ri%$ts so t$!t in t$e !"sen+e of !n< (!rti+u#!r s$!re$o#)er in t$!t +#!ss t$e re,!inin% $o#)er or
$o#)ers of s$!res of t$!t +#!ss +!n e9er+ise !## votin% ri%$ts !tt!+$in% to s$!res of t$!t +#!ss4
11
In vie2 of t$e ;uoru, re;uire,ents in !rti+#e 15 J151&K it is su%%este) t$!t t$e ,ini,u, nu,"er of )ire+tors s$ou#) "e one for
e!+$ +#!ss of or)in!r< s$!re4 It ,!< !#so "e )esir!"#e to #i,it t$e ,!9i,u, nu,"er of )ire+tors to no %re!ter nu,"er t$!n t$e
tot!# 2$i+$ ,!< "e !((ointe) "< t$e or)in!r< s$!re$o#)ers un)er t$eir se(!r!te +#!ss ri%$ts4
1
T$is %ives e!+$ )ire+tor t$e free)o, to +$oose !n !#tern!te !((rove) "< $i, r!t$er t$!n !s T!"#e A (rovi)es %ivin% t$e "o!r) t$e
ri%$t to veto !n< su+$ !((oint,ent4 A v!ri!tion 2ou#) "e to (rovi)e t$!t t$e !((oint,ent "e ,!)e "< t$e ,!jorit< $o#)ers of t$e
+#!ss 2$i+$ !((ointe) t$e ori%in!# )ire+tor: see :or, &8 J1681K (ost4 7$ere!s eit$er o(tion is (ro"!"#< )esir!"#e in ,ost
+ir+u,st!n+es t$is ,!< not "e 2$!t t$e (!rties 2!nt in +ert!in +!ses4
1&
It ,!< "e !((ro(ri!te to in+#u)e restri+tions on t$e )ire+torsA "orro2in% (o2ers4
1*
In or)er to ensure t$!t !n< e9istin% )ire+tors in offi+e !t t$e )!te of !)o(tion of t$e !rti+#es 2$o !re )esi%n!te) !s $!vin% "een
!((ointe) un)er !rti+#es 1141 or 114 J1511K res(e+tive#<> +!nnot "e re,ove) "< or)in!r< reso#ution of t$e s$!re$o#)ers ("<
virtue of t$e 2ei%$te) votin% ri%$ts +ont!ine) in !rti+#e 1* J1518K) it is ne+ess!r< to D)ee,A t$e, !s $!vin% "een !((ointe) un)er
t$e re#ev!nt (!r!%r!($ of !rti+#e 1141 or 114 res(e+tive#<4
10
It ,!< "e i,(r!+ti+!"#e to $!ve to %ive noti+es of ,eetin%s to )ire+tors Cno2n to "e !"sent fro, t$e Unite) Bin%)o,4 It ,!<
!#so "e unne+ess!r< if !#tern!te )ire+tors !re !((ointe)4 T$is senten+e ,!<> t$erefore> in ,!n< +!ses "e )e#ete)4
11
:or !n !#tern!tive (rovision 2$ere noti+es !re re;uire) to "e serve) !t re%istere) !))resses outsi)e t$e Unite) Bin%)o, see
:or, &0 J161*K (ost4
!1"/#$
12
:etter from employin' company to employee bein' seconded
De!r 1name o. emplo,ee6
!:urt$er to our )is+ussion 2e 1or6 7e$ !re invitin% <ou to !++e(t se+on),ent to 1name o. /oint venture compan,6 (Dt$e
Joint Venture Co,(!n<A) on t$e fo##o2in% ter,s:
1 Jou 0ill re,!in !n e,(#o<ee of 1name o. emplo,er compan,64
E9+e(t !s (rovi)e) "e#o2> <our ter,s !n) +on)itions of e,(#o<,ent !s set out in 1details o. contract6 re,!in
un+$!n%e)4
& In t$e event of !n< in+onsisten+< "et2een t$is #etter !n) <our ter,s !n) +on)itions of e,(#o<,ent> t$is #etter
s$!## (rev!i#4
* If !n< +$!n%es !re ,!)e to <our ter,s !n) +on)itions of e,(#o<,ent )urin% <our se+on),ent> t$e
se+on),ent s$!## +ontinue on t$e ter,s !n) +on)itions !s +$!n%e) !n) t$e ter,s of t$is #etter4
!1"/1$
0 ?our se+on),ent 2i## +o,,en+e on 1date6 !n) 2i## +ontinue> su"je+t to t$e ter,s of t$is #etter> unti# 1date64
1 At t$e en) of <our se+on),ent <our e,(#o<,ent 2it$ ourse#ves 2i## (e9+e(t !s ,entione) "e#o2) +ontinue4
3 Durin% t$e se+on),ent> <ou 2i## )evote !t$e 2$o#e of <our ti,e> !ttention !n) sCi## to t$e "usiness of t$e
Joint Venture Co,(!n< 1or6 su+$ of <our ti,e !ttention !n) sCi## ,!< "e re;uire) "< t$e Joint Venture
Co,(!n< fro, ti,e to ti,e !n) <ou 2i## "e re;uire) to (erfor, su+$ )uties !t su+$ ti,e or ti,es !n) !t su+$
noti+e !s t$e Joint Venture Co,(!n< ,!< re;uire> su"je+t to our (rior !%ree,ent$4
5 Durin% t$e se+on),ent:
(A) <ou 2i## !+t !s 1/ob title6 of t$e Joint Venture Co,(!n<> re(ortin% to 1name6 or su+$ ot$er (erson !s
t$e Joint Venture Co,(!n< ,!< fro, ti,e to ti,e re;uireH
(-) <ou 2i## "e #o+!te) !t 1place6H
(C) <ou 2i## !t !## ti,es use !## re!son!"#e sCi## !n) +!re in t$e (erfor,!n+e of <our )uties !n) 2i## !+t
in t$e "est interests of t$e Joint Venture Co,(!n<H
(D) <our s!#!r< 2i## +ontinue to "e (!i) !n) revie2e) "< usH !n)
(E) !## ot$er +ontr!+tu!# "enefits of <our e,(#o<,ent 2i## +ontinue to "e $onoure) "< us4
1add an, a!reed provision re!ardin! e7tra pa, or e7penses durin! the secondment6
!1"/%$
6 ?our se+on),ent s$!## +e!se:
(A) if <ou +e!se to "e e,(#o<e) "< us for !n< re!son> in+#u)in% <our resi%n!tionH
(-) if our se+on),ent !%ree,ent 2it$ t$e Joint Venture Co,(!n< ter,in!tes for !n< re!sonH or
(C) if so re;uire) "< t$e Joint Venture Co,(!n<> 2$o 2i## $!ve t$e ri%$t to so re;uire 2$ere:
(1) <ou +o,,it !n< !+t or o,ission (2$et$er or not in +onne+tion 2it$ t$e se+on),ent)
2$i+$ 2ou#) entit#e t$e Joint Venture Co,(!n< to )is,iss <ou su,,!ri#< if <ou 2ere
e,(#o<e) "< t$e Joint Venture Co,(!n< on t$e s!,e ter,s !s <ou !re e,(#o<e) "< usH
() <ou +on)u+t <ourse#f in ! ,!nner (reju)i+i!# to t$e "usiness of t$e Joint Venture
Co,(!n<H or
(&) <ou !re %ui#t< of )is$onest< or !re +onvi+te) of ! +ri,in!# offen+e ot$er t$!n ! ,otorin%
offen+e not resu#tin% in i,(rison,ent (2$et$er or not in +onne+tion 2it$ t$e
se+on),ent)4
S$ou#) !n< su+$ event o++ur 2e ,!< !#so 2is$ to su,,!ri#< ter,in!te <our e,(#o<,ent> !n) 2e reserve our
ri%$t to )o so4
18 An< )is+i(#in!r< ,!tter or %riev!n+e 2$i+$ !rises )urin% t$e se+on),ent 2i## +ontinue to "e )e!#t 2it$ "< us
un)er our (ro+e)ures fro, ti,e to ti,e in for+e4
11 ?ou 2i## not "e+o,e !n e,(#o<ee of t$e Joint Venture Co,(!n< )urin% <our se+on),ent4
!1"/($
1 Durin% <our se+on),ent !n) !t !n< ti,e t$ere!fter <ou s$!## not use for <our o2n (ur(oses or "enefit or
)ivu#%e or +o,,uni+!te to !n< (erson (ot$er t$!n !s !ut$orise) "< t$e Joint Venture Co,(!n< or !s re;uire)
for t$e (ur(oses of +!rr<in% out <our )uties) !n< tr!)e se+rets or ot$er infor,!tion 2$i+$ is for t$e ti,e "ein%
+onfi)enti!# re#!tin% to t$e "usiness of t$e Joint Venture Co,(!n< or !n< of its su"si)i!ries> "ein%
infor,!tion 2$i+$ is ,!rCe) D+onfi)enti!#A or 2$i+$ t$e Joint Venture Co,(!n< s$!## $!ve notifie) <ou is to
"e Ce(t +onfi)enti!# or 2$i+$ "< its n!ture 2ou#) nor,!##< "e re%!r)e) !s "ein% +onfi)enti!#> or 2$i+$ to
<our Cno2#e)%e $!s "een o"t!ine) "< t$e Joint Venture Co,(!n< fro, ! t$ir) (!rt< on ter,s t$!t t$e Joint
Venture Co,(!n< or !n< of its su"si)i!ries is to Cee( it +onfi)enti!#> "ut t$is o"#i%!tion s$!## not e9ten) to
infor,!tion or Cno2#e)%e 2$i+$ is for t$e ti,e "ein% in t$e (u"#i+ )o,!in (ot$er2ise t$!n "< re!son of its
2ron%fu# )is+#osure) or 2$i+$ is re;uire) to "e )is+#ose) "< #!24
1& ?ou s$!## return to t$e Joint Venture Co,(!n< u(on re;uest !n) !#so u(on t$e ter,in!tion of <our
se+on),ent> !## notes> ,e,or!n)!> too#s> s!,(#es> ,o)e#s> ,!teri!#s> (rotot<(es> )o+u,ents> )r!2in%s>
s(e+ifi+!tions ot$er 2ritten ,!teri!#> +o,(uter soft2!re !n) ot$er (ro(ert< 2$!tsoever of t$e Joint Venture
Co,(!n< !n) !n< of its su"si)i!ries 2$i+$ for t$e ti,e "ein% is in <our (ossession or un)er <our +ontro#
in+#u)in% +o(ies of !n< su+$ )o+u,ents> )r!2in%s> s(e+ifi+!tions> 2ritten ,!teri!# or +o,(uter soft2!re !n)
s$!## ensure t$!t !## infor,!tion in !n< 2!< re#!tin% t$ereto is er!se) fro, !n< (erson!# +o,(uter s<ste, or
!n< ot$er infor,!tion retriev!# s<ste, <ou ,!< $!ve !t t$e s!,e ti,e4
!1"/)$
1* U(on t$e re;uest of t$e Joint Venture Co,(!n< !n) in !n< event u(on t$e ter,in!tion of <our se+on),ent>
<ou !re to resi%n 2it$out +o,(ens!tion fro, !n< !((oint,ents <ou t$en $o#) !s !n offi+er> !ut$orise)
si%n!tor<> or no,inee of t$e Joint Venture Co,(!n< or its su"si)i!ries !n) fro, !n< ot$er +!(!+it< to 2$i+$
<ou $!ve "een !((ointe) "< t$e Joint Venture Co,(!n< or !n< of its su"si)i!ries !n) s$!## e9e+ute su+$
)o+u,ents !s t$e Joint Venture Co,(!n< re!son!"#< re;uires to vest in t$e Joint Venture Co,(!n< or !n< of
its su"si)i!ries !n< (ro(ert< "e#on%in% to !n< of t$e, t$e #e%!# tit#e to 2$i+$ is $e#) "< <ou !s no,inee or
ot$er2ise4
10 An< )is+over<> invention> )esi%n> (ro+ess> or 2orC in res(e+t of 2$i+$ +o(<ri%$t or !n< ri%$ts in t$e n!ture of
+o(<ri%$t su"sists 2$i+$ is +!(!"#e of (rote+tion "< #!2 "< ,e!ns of !n< for, of inte##e+tu!# or in)ustri!#
(ro(ert< ri%$t (2$i+$ e9(ression s$!## in+#u)e t$e ri%$t to !((#< for !n< su+$ (rote+tion) ,!)e or )evise) "<
<ou )urin% t$e (erfor,!n+e of <our )uties )urin% <our se+on),ent s$!##> !s f!r !s t$e #!2 !##o2s> "e t$e
(ro(ert< of t$e Joint Venture Co,(!n< !n) <ou s$!## u(on t$e Joint Venture Co,(!n<As re;uest !ssi%n to t$e
Joint Venture Co,(!n< !n< su+$ ri%$ts4
!11 /rior to t$e +o,,en+e,ent of <our se+on),ent> <ou !%ree to si%n ! non'+o,(ete +oven!nt in f!vour of t$e
Joint Venture Co,(!n< in t$e for, !tt!+$e) to t$is #etter4$
!1"/,$
/#e!se si%n )!te !n) return t$e !tt!+$e) +o(< of t$is #etter to 1name6 "< 1date6 to in)i+!te <our !++e(t!n+e of t$e
se+on),ent !n) t$e +$!n%e to <our ter,s !n) +on)itions of e,(#o<,ent !s set out in t$is #etter !!n) !#so return to ,e
t$e !tt!+$e) non'+o,(ete +oven!nt$
1
4
?ours et+
1si!nature6
:or !n) on "e$!#f of 1emplo,er compan,6
1endorsement on cop,6
To 1emplo,er compan,6
I $ere"< !++e(t t$e se+on),ent to t$e Joint Venture Co,(!n< on t$e ter,s !n) +on)itions set out in <our #etter )!te)
1date6> of 2$i+$ t$e !"ove is ! +o(<4 I !+Cno2#e)%e !n) !%ree t$!t t$e ter,s of ,< e,(#o<,ent $!ve "een v!rie)
!++or)in%#<4
1si!nature o. emplo,ee6
D!te 4444444444444444444444444444444444444444444444
1
Att!+$ non'+o,(ete +oven!nt if !((ro(ri!teGis t$ere ! (rote+t!"#e interestQ T$e )o+u,ent s$ou#) "e si%ne) !s ! )ee) "< t$e
e,(#o<ee !n) t$e joint venture +o,(!n< if no +onsi)er!tion is to "e (!i)4 -ut note t$!t in t$e !"sen+e of +onsi)er!tion> t$e joint
venture +o,(!n< ,!< not "e !"#e to o"t!in e;uit!"#e re#ief su+$ !s !n injun+tion for "re!+$ of t$e +oven!nt4 E;uit< 2i## not
!ssist ! vo#unteer4 As t$e joint venture +o,(!n< is #iCe#< to "e seeCin% su+$ ! re,e)<> it ,!< 2!nt to offer so,e fin!n+i!#
in)u+e,ent to t$e e,(#o<ees to enter into t$e +oven!nt so t$!t t$ere is so,e +onsi)er!tion !#t$ou%$ t$is nee) not "e !)e;u!te
!1"/.$
%#
&ecitals for a shareholders a'reement 0here the joint enture company is not yet formed
(A) T$e (!rties (ro(ose to (ro,ote !n) for, ! (riv!te +o,(!n< #i,ite) "< s$!res un)er t$e Co,(!nies A+t 1650
!n) un)er t$e n!,e TTTT Li,ite) (or su+$ ot$er n!,e !s t$e (!rties s$!## !%ree !n) t$e Re%istr!r of
Co,(!nies s$!## (er,it) 2$i+$ t$e (!rties (ro(ose s$!## 1insert purpose o. venture64
(-) A++or)in%#<> t$e (!rties $!ve no2 !%ree) to enter into t$is !%ree,ent to un)ert!Ce to for, t$!t +o,(!n<> to
su"s+ri"e for s$!res in it u(on in+or(or!tion !n) to enter into +ert!in +o,,it,ents !n) ot$er2ise re%u#!te
t$eir ri%$ts in re#!tion to t$e joint +o,(!n< in t$e ,!nner !((e!rin% "e#o24
!1"//$
%1
Constitution and share subscription clause for a shareholders a'reement 0here the joint enture company is
not yet formed
41 :ort$2it$ or !s soon !s (r!+ti+!"#e fo##o2in% t$e e9e+ution of t$is !%ree,ent t$e (!rties s$!## (ro+ure t$e
in+or(or!tion of t$e Co,(!n<:
(A) un)er t$e n!,e TTT Li,ite) (or su+$ ot$er n!,e !s t$e (!rties s$!## !%ree !n) t$e Re%ister of
Co,(!nies s$!## (er,it)H
(-) $!vin% !n !ut$orise) s$!re +!(it!# of OTTT )ivi)e) into 1number6 or)in!r< s$!res of O1 e!+$ 1or
speci., di..erent classes0 i. applicable6H
(C) 2it$ ! ,e,or!n)u, !n) !rti+#es of !sso+i!tion in t$e !%ree) for,s ,!rCe) DAA !n) D-A
res(e+tive#<H
(D) 2it$ ! re%istere) offi+e !t 1address6H
(E) 2it$ !n !++ountin% referen+e )!te of 1date6H !n)
(:) 2it$ 1name6 !n) 1name6 !s its first )ire+tors !n) 2it$ 1name6 !s its first se+ret!r<
An) e!+$ of t$e (!rties s$!## res(e+tive#< (ro+ure t$!t t$e s!i) ,e,or!n)u, !n) !rti+#es of !sso+i!tion s$!##
"e su"s+ri"e) "< t$e, or t$eir res(e+tive no,inees (e!+$ of 2$o, s$!## !%ree in t$e ,e,or!n)u, to t!Ce u(
!one$
1
or)in!r< s$!re of O1 e!+$ in t$e +!(it!# of t$e Co,(!n<) !n) t$!t !## ot$er ne+ess!r< )o+u,ents !re
e9e+ute)> ,!)e !n)Eor fi#e) "< t$e, or t$eir res(e+tive no,inees or re(resent!tives !n) !## e9(enses (!i) in
or)er to in+or(or!te t$e Co,(!n< on t$e ter,s set out in t$is +#!use4
!1"/"$
4 !T$e (!rties s$!## (ro+ure t$!t u(on in+or(or!tion !n) out of t$e ,one< to "e su"s+ri"e) un)er +#!use 4& t$e
Co,(!n< s$!## rei,"urse e!+$ of t$e (!rties for !## re!son!"#e +osts !n) e9(enses "orne "< t$e, in re#!tion
to t$e for,!tion of t$e Co,(!n<4
1or6
T$e (!rties !%ree t$!t t$e< 2i## e!+$ "e!r !08L 1or as re>uired6$ of t$e re!son!"#e +osts !n) e9(enses "orne
"< e!+$ of t$e, in re#!tion to t$e for,!tion of t$e Co,(!n< !n) t$!t e!+$ of t$e, s$!## rei,"urse or !++ount
to one !not$er for t$e s!,e !++or)in%#<4$
4& :ort$2it$ u(on in+or(or!tion of t$e Co,(!n<:
(A) !F s$!## su"s+ri"e for +!s$ !!t (!r$ 1number6 ne2 or)in!r< s$!res of O1 e!+$ !n) ? s$!## su"s+ri"e
for +!s$ !!t (!r$ 1number6 ne2 or)in!r< s$!res of O1 e!+$ !n) t$e (!rties s$!## (ro+ure t$!t t$e
Co,(!n< s$!## !##ot su+$ s$!res to F !n) ? res(e+tive#< !%!inst i,,e)i!te (!<,ent of t$e re#ev!nt
su"s+ri(tion ,one<4
1or6
F !n) ? s$!## su"s+ri"e in +!s$ !!t (!r$ for ne2 or)in!r< s$!res of O1 e!+$ in t$e Co,(!n< !s
fo##o2s:
Name Number and class of shares
F 1number6 A s$!res
? 1number6 - s$!res
!n) t$e (!rties s$!## (ro+ure t$!t t$e Co,(!n< s$!## !##ot su+$ s$!res to F !n) ? res(e+tive#<
!%!inst i,,e)i!te (!<,ent of t$e re#ev!nt su"s+ri(tion ,one<4$
!1"/2$
(-) T$e (!rties s$!## (ro+ure t$!t:
(1) 1name6 !n) 1name6 s$!## (su"je+t to t$e, res(e+tive#< +onsentin% in 2ritin% so to !+t) "e
!((ointe) !s !))ition!# )ire+tors of t$e Co,(!n<
H
() t$e !u)itors of t$e Co,(!n< s$!## "e 1names6H !n)
(&) t$e "!nCers to t$e Co,(!n< s$!## "e 1name o. bank6 of 1branch address64
1
A#t$ou%$ it is usu!# on#< for one s$!re to "e !%ree) to "e t!Cen u( "< e!+$ su"s+ri"er> t$ere is no re!son 2$< !## t$e s$!res
(ro(ose) to "e su"s+ri"e) "< e!+$ (!rt< +!nnot "e st!te)4 A((ro(ri!te !,en),ents 2i## of +ourse nee) to "e ,!)e if t$e (!rties
!%ree to t!Ce u( s$!res of )ifferent +#!sses4
A((ro(ri!te !,en),ents 2i## nee) to "e ,!)e if t$e )ire+tors !re to "e )esi%n!te) DAA or D-A )ire+tors !n) "e )ee,e) to $!ve
"een !((ointe) !s su+$ un)er (!rti+u#!r (rovisions of t$e !rti+#es of !sso+i!tion4 T$is 2i## on#< !((#< if t$e s$!res !re )ivi)e)
into )ifferent +#!sses4 See :or, * !rti+#e 11 J111K !nte4
!1""#$
%%
Clause for a shareholders a'reement proidin' for the ma>in' of specific loans to the company
1
141 !E!+$ of t$e (!rties !(ot$er t$!n t$e Co,(!n<)$ (D! #en)erA) s$!## fort$2it$ fo##o2in% +o,(#i!n+e 2it$ t$e
(rovisions of +#!use !)v!n+e to t$e Co,(!n< "< 2!< of #o!n (D! #o!nA) !t$e su, of OTTT 1or speci.,
respective amounts to be lent b, each part, i. not e>ual6$ on t$e ter,s set out in +#!use 144
1or6
T$e (!rties s$!## e!+$ use !## re!son!"#e en)e!vours to (ro+ure t$!t t$e 2orCin% +!(it!# re;uire,ents of t$e
Co,(!n< (to t$e e9tent not ,et out of t$e su"s+ri(tion ,one< referre) to in +#!use ) s$!## "e s!tisfie) !s f!r
!s (r!+ti+!"#e "< "orro2in%s fro, "!nCs !n) ot$er si,i#!r sour+es on t$e ,ost f!vour!"#e ter,s re!son!"#<
o"t!in!"#e "ut on t$e "!sis t$!t un#ess t$e (!rties s$!## ot$er2ise so !%ree no %u!r!ntee s$!## "e %iven "< !n<
of t$e (!rties in res(e+t of su+$ "orro2in%s nor s$!## !n< #en)er or (ros(e+tive #en)er "e !##o2e) to o"t!in
!n< interest ()ire+t or in)ire+t) in t$e or)in!r< s$!re +!(it!# of t$e Co,(!n< !s ! +on)ition of su+$
"orro2in%s4 In t$e event t$!t !n< su+$ "orro2in%s !re not !v!i#!"#e or )o not s!tisf< t$e 2orCin% +!(it!#
re;uire,ents of t$e Co,(!n< !s )eter,ine) "< t$e -o!r) or if !n< su+$ f!+i#ities for su+$ "orro2in%s 2$i+$
!re o"t!ine) !re su"se;uent#< 2it$)r!2n !n)Eor if !t !n< ti,e )urin% t$e ter, of t$is !%ree,ent t$e -o!r)
s$!## so )eter,ine> e!+$ of t$e (!rties s$!## 2$en re;ueste) fro, ti,e to ti,e #en) to t$e Co,(!n< #o!ns of
!,ounts s(e+ifie) "< t$e -o!r) u( to ! ,!9i,u, (rin+i(!# !,ount (2$en !%%re%!te) 2it$ t$e (rin+i(!#
!,ount of !## ot$er #o!ns ,!)e "< it to t$e Co,(!n< !n) t$en sti## outst!n)in%) of !OTTT 1or speci.,
respective amounts to be lent b, each part, i. not e>ual)$ u(on t$e ter,s set out in +#!use 14 (rovi)e)
!#2!<s t$!t no (!rt< s$!## "e re;uire) !t !n< ti,e to !)v!n+e !n< ,onies "< 2!< of #o!n in ! %re!ter
!%%re%!te !,ount t$!n its re#ev!nt (ro(ortion of t$e !%%re%!te !,ount of !## #o!ns t$en outst!n)in% !n)
(ro(ose) to "e re;ueste) of t$e ot$er (!rties !t t$e s!,e ti,e !n) (rovi)e) !#2!<s t$!t !## #o!ns !)v!n+e) or
to "e !)v!n+e) $ereun)er s$!## "e on t$e s!,e ter,s4 Referen+es in +#!use 14 to ! D#en)erA or D#en)ersA s$!##
"e to !n< one or ,ore (!rties to t$is !%ree,ent 2$o !)v!n+e ,one< un)er or (ursu!nt to t$is +#!use 141 !n)
referen+es to ! D#o!nA s$!## "e to !n< (rin+i(!# !,ount !)v!n+e) "< !n< of t$e (!rties (ursu!nt to t$is +#!use
141 to t$e e9tent t$en sti## outst!n)in%4 Referen+es in t$is +#!use 1 to ! Dre#ev!nt (ro(ortionA 2$en !((#ie) in
t$e +!se of !n< (!rt< to ! (!rti+u#!r su, s$!## ,e!n in t$e +!se of F TTL of t$!t su,> in t$e +!se of ? TT
L of t$!t su, !!n) in t$e +!se of R TTL of t$!t su,$ (or su+$ ot$er res(e+tive (ro(ortions !s t$e (!rties
,!< fro, ti,e to ti,e !%ree)4$
!1""1$
14
(A) E!+$ #o!n !)v!n+e) (ursu!nt to +#!use 141 ,!< "e re(!i) in 2$o#e or in (!rt "< t$e Co,(!n< !t
!n< ti,e if t$e -o!r) so )e+i)es /ROVIDED t$!t (un#ess !## t$e #en)ers ot$er2ise so !%ree) no
#o!n s$!## "e re(!i) in fu## un#ess !## ot$er #o!ns 2$i+$ !re t$en outst!n)in% !n) o2e) to #en)ers !re
!#so (re(!i) in fu## !t t$e s!,e ti,e !n) no #o!n s$!## "e re(!i) in (!rt un#ess e!+$ (!rt<As
(ro(ortion (e9(resse) !s ! (er+ent!%e) of t$e !%%re%!te !,ount of !## #o!ns (fo##o2in% su+$
(ro(ose) re(!<,ent) to !## t$e #en)ers un)er or (ursu!nt to +#!use 141 s$!## not "e ,ore t$!n su+$
(!rt<As re#ev!nt (ro(ortion of su+$ !%%re%!te !,ount4
(-) Interest s$!## !++rue to !n) "e (!<!"#e (!s 2e## !fter !s "efore ju)%e,ent) on t$e res(e+tive
(rin+i(!# !,ounts for t$e ti,e "ein% outst!n)in% of e!+$ of t$e res(e+tive #o!ns !t t$e r!te of !TT
L ! <e!r 1or6 TTL over t$e "!se r!te of 1name o. bank6 fro, ti,e to ti,e 1or as re>uired6$ !n)
s$!## "e (!<!"#e in !rre!rs to e!+$ #en)er (net of !n< t!9 re;uire) to "e )e)u+te) t$erefro,) on !&1
=!r+$> &8 June> &8 Se(te,"er !n) &1 De+e,"er 1or as re>uired6$ (or t$e ne9t su++ee)in% "usiness
)!<) in e!+$ <e!r (e!+$ D!n interest (!<,ent )!teA)> t$e first su+$ (!<,ent "ein% in res(e+t of t$e
interest !++ruin% fro, t$e )!te on 2$i+$ su+$ #o!n 2!s )r!2n )o2n (in 2$o#e or in (!rt) )o2n to
!n) in+#u)in% t$e first interest (!<,ent )!te !n) e!+$ su"se;uent (!<,ent "ein% in res(e+t of t$e
interest !++rue) for t$e (erio) )o2n to t$e !n) in+#u)in% t$e interest (!<,ent )!te u(on 2$i+$ t$e
(!<,ent is )ue> su+$ (erio) +o,,en+in% on t$e )!< fo##o2in% t$e interest (!<,ent )!te
i,,e)i!te#< (re+e)in%4 U(on t$e re(!<,ent in fu## of !n< #o!n !## interest !++rue) on t$!t #o!n
)o2n to t$e )!te of re(!<,ent s$!## !#so "e (!i) (net of !n< t!9 re;uire) to "e )e)u+te) t$erefro,)
!t t$e s!,e ti,e !s su+$ re(!<,ent4 Interest s$!## !++rue on ! )!i#< "!sis on t$e "!sis of ! &10 )!<
<e!r4
(C) Re(!<,ent of e!+$ #o!n s$!## "e ,!)e on
(1) 1speci., date or event 1i. applicable66 or
() t$e )!te u(on 2$i+$ ! #i;ui)!tor of t$e Co,(!n< is !((ointe) for 2$!tever re!son (ot$er
t$!n !s (!rt of !n !,!#%!,!tion or re+onstru+tion not invo#vin% inso#ven+< !!((rove) "<
! ,!jorit< of t$e (!rties $ereto$) or
(&) su+$ e!r#ier )!te t$e -o!r) of t$e Co,(!n< so reso#ves
"ut no #o!n s$!## "e (!<!"#e u(on )e,!n) "< !n< #en)er or ot$er2ise4
1
Note t$!t in or)er t$!t e!+$ #en)er s$!## $!ve !n enfor+e!"#e )e"t !%!inst t$e +o,(!n<> t$e +o,(!n< 2i## eit$er $!ve to "e (!rt<
to t$e #o!n !%ree,ent> or t$e (!rties s$ou#) !%ree to join in (ro+urin% t$!t t$e +o,(!n< s$!## e9e+ute ! #o!n !%ree,ent for e!+$
#o!n> in t$e ter,s set out in t$is for,4
!1""%$
%(
Clause for a shareholders a'reement proidin' for the subscription of loan stoc> of the company
!E!+$ of t$e (!rties s$!## fort$2it$ fo##o2in% +o,(#i!n+e 2it$ t$e (rovisions of +#!use su"s+ri"e in +!s$ !t (!r for !O
TTT 1or speci., respective amounts to be subscribed b, each part, i. not e>ual6$ no,in!# of !+onverti"#e$ #o!n sto+C
of t$e Co,(!n< u(on t$e ter,s of t$e #o!n sto+C instru,ent in t$e !%ree) for, ,!rCe) DTA !n) t$e (!rties s$!##
(ro+ure t$e Co,(!n< to issue su+$ #o!n sto+C
1
4
1or6
T$e (!rties s$!## e!+$ use !## re!son!"#e en)e!vours to (ro+ure t$!t t$e 2orCin% +!(it!# re;uire,ents of t$e Co,(!n<
(to t$e e9tent not ,et out of t$e su"s+ri(tion ,one< referre) to in +#!use ) s$!## "e s!tisfie) !s f!r !s (r!+ti+!"#e "<
"orro2in%s fro, "!nCs !n) ot$er si,i#!r sour+es on t$e ,ost f!vour!"#e ter,s re!son!"#< o"t!in!"#e "ut on t$e "!sis
t$!t un#ess t$e (!rties s$!## ot$er2ise so !%ree no %u!r!ntee s$!## "e %iven "< !n< of t$e (!rties in res(e+t of su+$
"orro2in%s nor s$!## !n< #en)er or (ros(e+tive #en)er "e !##o2e) to o"t!in !n< interest ()ire+t or in)ire+t) in t$e
or)in!r< s$!re +!(it!# of t$e Co,(!n< !s ! +on)ition of su+$ "orro2in%s4 In t$e event t$!t !n< su+$ "orro2in%s !re not
!v!i#!"#e or )o not s!tisf< t$e 2orCin% +!(it!# re;uire,ents of t$e Co,(!n< !s )eter,ine) "< t$e -o!r) or if !n< su+$
f!+i#ities for su+$ "orro2in%s 2$i+$ !re o"t!ine) !re su"se;uent#< 2it$)r!2n !n)Eor if !t !n< ti,e )urin% t$e ter, of
t$is !%ree,ent t$e -o!r) s$!## so )eter,ine e!+$ of t$e (!rties s$!## 2$en re;ueste) su"s+ri"e in +!s$ !t (!r for u( to
!OTTT 1or speci., respective amounts to be subscribed b, each part, i. not e>ual6$ no,in!# of !+onverti"#e$ #o!n
sto+C of t$e Co,(!n< on t$e ter,s of t$e #o!n sto+C instru,ent in t$e !%ree) for, ,!rCe) DTA4$
1
:or ! (re+e)ent for ! #o!n sto+C instru,ent see :or, 0 J1555K (ost4
!1"")$
%)
Clause for a shareholders a'reement proidin' for the 'iin' of 'uarantees by the parties for borro0in's of the
company from third parties
141 T$e (!rties s$!## e!+$ use !## re!son!"#e en)e!vours to (ro+ure t$!t t$e 2orCin% +!(it!# re;uire,ents of t$e
Co,(!n< (to t$e e9tent not ,et out of t$e su"s+ri(tion ,one< referre) to in +#!use ) s$!## "e s!tisfie) !s f!r
!s (r!+ti+!"#e "< "orro2in%s fro, "!nCs !n) ot$er si,i#!r sour+es on t$e ,ost f!vour!"#e ter,s re!son!"#<
o"t!in!"#e "ut on t$e "!sis t$!t un#ess t$e (!rties s$!## ot$er2ise so !%ree no su+$ #en)er or (ros(e+tive
#en)er s$!## "e !##o2e) to o"t!in !n< interest ()ire+t or in)ire+t) in t$e or)in!r< s$!re +!(it!# of t$e Co,(!n<
!s ! +on)ition of su+$ "orro2in%s4 In t$e event t$!t su+$ "orro2in%s +!nnot "e o"t!ine) or ,!)e !v!i#!"#e in
t$e !,ounts re;uire) "< t$e -o!r) 2it$out t$e (rovision of %u!r!ntees ()efine) "e#o2) t$en t$e (!rties
!(ot$er t$!n t$e Co,(!n<)$ e!+$ $ere"< un)ert!Ce to (rovi)e t$e %u!r!ntees (erson!##<> su"je+t to !n) in
!++or)!n+e 2it$ t$e (rovisions of +#!use 144
14 An< %u!r!ntee re;uire) to "e %iven !t !n< ti,e )urin% t$e ter, of t$is !%ree,ent un)er or (ursu!nt to t$e
(rovisions of +#!use 141> 2$et$er %iven joint#< or sever!##< !s "et2een t$e, !n) !n< t$ir) (!rties> s$!## "e
(rovi)e) !s "et2een t$e (!rties !(ot$er t$!n t$e Co,(!n<)$ on t$e fo##o2in% ter,s:
(A) t$e ,!9i,u, !%%re%!te #i!"i#it< of !## t$e (!rties !risin% un)er !## su+$ %u!r!ntees s$!## "e #i,ite)
to ! tot!# !,ount not e9+ee)in% OTTTH
(-) no %u!r!ntee s$!## "e %iven "< !n< of t$e (!rties un)er or (ursu!nt to +#!use 141 !"ove un#ess %iven
on t$e s!,e ter,s ,ut!tis ,ut!n)is "< !## t$e (!rtiesH
(C) !s "et2een t$e,se#ves !n< #i!"i#it< 2$i+$ !n< one or ,ore of t$e (!rties ,!< "e!r un)er or
(ursu!nt to !n< %u!r!ntee (in+#u)in%> !n< #e%!# or ot$er +osts in+urre) "< or 2$i+$ !n< (!rt< is
re;uire) to (!< (ursu!nt to or in +onne+tion 2it$ it) s$!##> irres(e+tive of 2$et$er t$e< or !n< of
t$e, !re #i!"#e !s +o'sureties or 2$et$er t$e< !re #i!"#e joint#< !n)Eor sever!##<> "e "orne "< t$e
(!rties in t$eir res(e+tive re#ev!nt (ro(ortions (!s )efine) "e#o2)H
(D) none of t$e (!rties s$!## t!Ce or re+eive fro, t$e Co,(!n< or !n< ot$er (erson !n< se+urit< in
+onne+tion 2it$ !n< %u!r!ntee (rovi)e) "< it to or on "e$!#f of t$e Co,(!n< (s!ve 2it$ t$e (rior
+onsent of !## t$e (!rties) !n) (s!ve !s !fores!i)) !n< se+urit< so t!Cen or re+eive) or !n< su, of
,one< or ot$er "enefit re+eive) in res(e+t of su+$ se+urit< or ot$er2ise in res(e+t of or in
+onne+tion 2it$ su+$ %u!r!ntee) s$!## "e $e#) "< t$e re#ev!nt (!rt< !s trustee for !## t$e (!rties so
t$!t t$e< s$!## (su"je+t to t$eir res(e+tive o"#i%!tions un)er +#!use 14(C) s$!re t$e "enefit of t$e
s!,e in t$eir res(e+tive re#ev!nt (ro(ortionsH
!1"",$
14& In t$e event of !n< (!rt< ,!Cin% !n< (!<,ent eit$er:
(A) in +onse;uen+e of ! ju)%e,ent %iven !%!inst t$!t (!rt< (or !s (!rt of ! ju)%e,ent %iven !%!inst !##
or so,e of t$e (!rties) or in +onse;uen+e of !n< or)er ,!)e "< !n< +ourt of +o,(etent juris)i+tion
in !n< !+tion "rou%$t to enfor+e !n< %u!r!ntee !s !fores!i)H or
(-) in "on! fi)e s!tisf!+tion or +o,(ro,ise of !n< )e,!n) ,!)e on t$e (!rties (or !n< of t$e,) un)er
!n< of t$e s!i) %u!r!ntees (in+#u)in% ! (!<,ent into +ourt 2$i+$ $!s "een !++e(te))H
!n) !n< su+$ (!<,ent e9+ee)s or (to%et$er 2it$ !n< ot$er (!<,ents t$en ,!)e) in !%%re%!te e9+ee)s su+$
(!rt<As re#ev!nt (ro(ortion of t$e su, for 2$i+$ ju)%e,ent $!s "een %iven or or)er ,!)e or t$e +#!i,
s!tisfie) or +o,(ro,ise) (!s t$e +!se ,!< "e) t$en t$!t (!rt< s$!## "e entit#e) to "e in)e,nifie) "< or to
re+over +ontri"ution fro, !## or !n< of t$e ot$er (!rties to t$e e9tent s(e+ifie) in +#!use 14(C) irres(e+tive of
2$et$er or not !n< su+$ "on! fi)e sett#e,ent or +o,(ro,ise 2!s 2e## foun)e) in #!24 If !n< su+$ ju)%e,ent
is inv!#i) or reverse) on !((e!#> t$e !,ount of su+$ fin!# ju)%e,ent (in+#u)in% !n< +osts !2!r)e)) s$!## "e
"orne "< t$e (!rties in t$eir res(e+tive re#ev!nt (ro(ortions in so f!r !s su+$ !,ount e9+ee)s t$e !,ount of
!n< e!r#ier ju)%e,ent in t$e re#ev!nt !+tion 2$i+$ ,!< $!ve t$en "een (!i) !n) "orne "< t$e (!rties (or !n<
of t$e,) un)er t$is +#!use 14&4 An< (!<,ent re;uire) to "e ,!)e "< 2!< of in)e,nit< or +ontri"ution un)er
!n< of t$e fore%oin% (rovisions of t$is +#!use 14& s$!## "e (!i) 2it$in &8 )!<s of re+ei(t of 2ritten noti+e
re;uestin% t$e s!,e !n) in t$e event of !n< f!i#ure so to )o in fu## "< t$e (!rt< or (!rties to 2$o, su+$
re;uest is ,!)e (or !n< of t$e,)> t$!t (!rt< or t$ose (!rties s$!## (!< interest on !n< su, or su,s not t$en
(!i) to t$e (!rt< ,!Cin% su+$ re;uest !t t$e r!te of TTL ! <e!r !"ove t$e "!se r!te of 1name o. bank6 fro,
ti,e to ti,e in for+e> su+$ interest to !++rue on ! )!i#< "!sis unti# !## su+$ su,s )ue !re (!i) in fu## (!s 2e##
"efore !s !fter ju)%e,ent)4
14* If !t !n< ti,e !n< (!rt< $!s in)e,nifie) or ,!)e +ontri"ution to !n< ot$er (!rt< $ereun)er or s!tisfie) !n<
+#!i, in 2$o#e or in (!rt ,!)e !%!inst it in res(e+t of !n< %u!r!ntee %iven (ursu!nt to t$is +#!use !n) t$en
re+overs in 2$o#e or in (!rt ! su, of ,one< or ot$er "enefit or +onsi)er!tion eit$er fro, t$e Co,(!n< or
fro, !n< t$ir) (!rt< (ot$er t$!n !n< ot$er (!rt< $ereto) 2$et$er t$e s!,e is re+overe) "< ri%$t of in)e,nit<
or su"ro%!tion or "< o"t!inin% t$e fin!# ju)%e,ent or in !n< ot$er 2!<> t$en t$e su, or ot$er "enefit or
+onsi)er!tion so re+overe) (in+#u)in% !n< !2!r) for +osts (revious#< "orne "< t$e (!rties in t$eir res(e+tive
re#ev!nt (ro(ortions) s$!## su"je+t to +o,(#i!n+e "< e!+$ (!rt< 2it$ +#!use 14& "e !((ortione) "et2een t$e
(!rties in t$eir res(e+tive re#ev!nt (ro(ortions !n) t$e (!rt< re+eivin% t$e s!,e s$!## !++ount to t$e ot$er(s)
for its t$eir (ro r!t! s$!re of su+$ su, or ot$er "enefit or +onsi)er!tion fort$2it$ or !s soon !s (r!+ti+!"#e
!fter re+ei(t4
!1"".$
140 7$ere !n< of t$e (!rties %ive !n< %u!r!ntee !s is referre) to !"ove in f!vour of !n< (erson in res(e+t of t$e
in)e"te)ness of t$e Co,(!n<> t$en su+$ (!rt< s$!## "e entit#e) to re+eive fro, t$e Co,(!n< ! %u!r!ntee fee
!t t$e r!te of TTL ! <e!r +!#+u#!te) "< referen+e to !its ,!9i,u, #i!"i#it< 1or6 t$e !,ount of its e9(osure
un)er t$e %u!r!ntee$4
141 Not$in% +ont!ine) in t$is !%ree,ent s$!## o(er!te to )e(rive !n< of t$e (!rties of !n< ri%$ts or re,e)ies
!v!i#!"#e to it !t #!2 !%!inst t$e ot$er (!rties !s +o'suret< un)er !n< su+$ %u!r!ntee e9+e(t in so f!r !s !n<
ri%$ts or re,e)ies !re in+onsistent 2it$ or e9+#u)e) "< t$e ter,s of t$is !%ree,ent4
!143 In t$e event t$!t !n< (!rt< 2$o $!s %iven or (rovi)e)> 2$et$er joint#< or sever!##<> !n< %u!r!ntee un)er or
(ursu!nt to t$e ter,s of t$is +#!use 1> s$!## )ef!u#t in its o"#i%!tions to +ontri"ute to !## or !n< of t$e ot$er
(!rties to t$is !%ree,ent un)er or in res(e+t of t$e %u!r!ntee in "re!+$ of its o"#i%!tions un)er t$is !%ree,ent
!n) eit$er su+$ o"#i%!tions +!nnot #e%!##< "e enfor+e) !%!inst it for 2$!tever re!son or> $!vin% re+eive)
ju)%e,ent !%!inst it> no or insuffi+ient ,one< is re+overe) fro, it fo##o2in% enfor+e,ent of t$e ju)%e,ent
to ,eet its o"#i%!tions $ereun)er in fu##> t$e )ifferen+e or s$ortf!## s$!## "e "orne "< t$e re,!inin% (!rties in
t$eir res(e+tive re#ev!nt (ro(ortions !n) e!+$ s$!## ,!Ce +ontri"utions to t$e ot$er or ot$ers to t$!t e9tent
!++or)in%#<4$
145 :or t$e (ur(oses of t$is +#!use 1 t$e fo##o2in% e9(ressions s$!##> un#ess t$e +onte9t ot$er2ise re;uires> "e!r
t$e fo##o2in% res(e+tive ,e!nin%s:
(A) D%u!r!nteeA ,e!ns !n< %u!r!ntee> suret<s$i( or ot$er "in)in% #etter of +o,fort or +oven!nt %iven or
to "e %iven "< !n< (!rt< to t$is !%ree,ent !(ot$er t$!n t$e Co,(!n<)$> in res(e+t or for t$e "enefit
of t$e Co,(!n<> in f!vour of !n< #en)er or ot$er (rovi)er of fin!n+e or +re)it to t$e Co,(!n<H !n)
(-) Dre#ev!nt (ro(ortionA s$!## in res(e+t of e!+$ (!rt< !ot$er t$!n t$e Co,(!n<$ "e> !t t$e ti,e ! su, is
re;uire) to "e re+eive) !n)Eor (!i) "< !n< (!rt< un)er or (ursu!nt to t$e (rovisions of t$is +#!use 1>
t$e (ro(ortion t$!t t$e no,in!# v!#ue of t$e or)in!r< s$!res "enefi+i!##< o2ne) "< t$!t (!rt< in t$e
Co,(!n< "e!rs to t$e !%%re%!te no,in!# v!#ue of t$e or)in!r< s$!re +!(it!# of t$e Co,(!n< t$en in
issue4
!1""/$
%,
:oan stoc> instrument
1
T.IS INSTRU=ENT is ,!)e t$e TTT )!< of TTTT -? 1name6 Li,ite) (Co,(!n< Nu,"er 1re!istration
number6) 2$ose re%istere) offi+e is situ!te !t 1address6 !n) +onstitutes OTTT TTL !+onverti"#e$ unse+ure) #o!n
sto+C 1,ear6 +re!te) "< reso#ution of t$e )ire+tors of 1name6 Li,ite) (!sse) to)!< !n) +onstitute) in ,!nner !((e!rin%
"e#o2
141 In t$is instru,ent un#ess t$e +onte9t ot$er2ise re;uires t$e fo##o2in% e9(ressions s$!## $!ve t$e fo##o2in%
,e!nin%s n!,e#<:
(A) Dt$e -o!r)A ,e!ns t$e "o!r) of )ire+tors of t$e Co,(!n< for t$e ti,e "ein%H
(-) Dt$e Co,(!n<A ,e!ns 1name6 Li,ite)H
!(C) Dt$e Conversion D!teA ,e!ns 1date6H$
(D) Dt$e Re%isterA ,e!ns t$e re%ister Ce(t in !++or)!n+e 2it$ +#!use &H
(E) Dt$e Sto+CA ,e!ns t$e OTT TTL !+onverti"#e$ unse+ure) #o!n sto+C 1,ear6 of t$e Co,(!n< !s
+onstitute) "< t$is instru,ent> or su+$ (!rt of t$!t sto+C !s is for t$e ti,e "ein% outst!n)in%H !n)
(:) Dt$e Sto+C$o#)ersA ,e!ns t$ose (ersons 2$ose n!,es !re entere) in t$e Re%ister !s $o#)ers of t$e
Sto+C4
14 Un#ess t$e +onte9t ot$er2ise re;uires 2or)s !n) e9(ression +ont!ine) in t$ese (resents s$!## "e!r t$e s!,e
,e!nin%s !s t$e Co,(!nies A+t 16504
14& 7or)s i,(ortin% one %en)er in+#u)e !## ot$er %en)ers !n) 2or)s i,(ortin% t$e sin%u#!r in+#u)e t$e (#ur!#
!n) vi+e vers!4
14* Referen+es to (ersons s$!## in+#u)e "o)ies +or(or!te> unin+or(or!te) !sso+i!tions !n) (!rtners$i(s4
140 .e!)in%s use) in t$is instru,ent !re for e!se of referen+e !n) s$!## not "e )ee,e) to for, (!rt of t$is
instru,ent4
141 T$e s+$e)u#es to t$is instru,ent for, (!rt of it !n) s$!## $!ve t$e s!,e fu## for+e !n) effe+t !s if e9(ress#<
set out in t$e "o)< of it4
!1"""$
% Creation and issue of the 3toc>
41 T$e Sto+C s$!## "e issue) to su+$ (ersons !n) on su+$ ter,s !n) !t su+$ ti,es !s t$e -o!r) ,!< )eter,ine4
4 T$e Sto+C s$!## "e #i,ite) to OTTT !n) t$e 2$o#e of t$e Sto+C s$!## r!nC (!ri (!ssu !s !n unse+ure)
o"#i%!tion of t$e Co,(!n<4
4& T$e Co,(!n< s$!## "e entit#e) fro, ti,e to ti,e to +re!te !n) issue furt$er unse+ure) #o!n sto+C so !s to "e
or "e+o,e i)enti+!# in !## res(e+ts !n) to for, ! sin%#e issue 2it$ t$e Sto+C (e9+e(t !s re%!r)s t$e )!te of t$e
first (!<,ent of interest on it) 2$i+$ s$!## "e +onstitute) "< !n instru,ent su((#e,ent!# to t$is instru,ent4
( *he &e'ister
&41 T$e Co,(!n< s$!## Cee( !t its re%istere) offi+e ! re%ister s$o2in%:
(A) t$e n!,es !n) !))resses of t$e $o#)ers for t$e ti,e "ein% of t$e Sto+CH
(-) t$e !,ount of sto+C $e#) "< e!+$ of t$e Sto+C$o#)ersH
(C) t$e )!te of issue of t$e Sto+C to e!+$ of t$e Sto+C$o#)ersH !n)
(D) t$e seri!# nu,"er of e!+$ +ertifi+!te for t$e Sto+C4
&4 Sto+C$o#)ers s$!## notif< t$e Co,(!n< fort$2it$ of !n< !#ter!tions in t$e )et!i#s re#!tin% to t$e, s$o2n in
t$e Re%ister4
&4& T$e Re%ister s$!## "e o(en to ins(e+tion "< t$e Sto+C$o#)ers or t$eir )u#< !ut$orise) re(resent!tives )urin%
nor,!# "usiness $ours4
!1""2$
) 3toc> certificates
*41 E!+$ of t$e Sto+C$o#)ers s$!## "e issue) 2it$ ! +ertifi+!te in res(e+t of t$e !,ount of sto+C $e#) "< $i,
2it$in 5 )!<s !fter t$e )!te of issue of $is sto+C "ut joint $o#)ers s$!## "e entit#e) to on#< one +ertifi+!te for
t$e sto+C $e#) joint#< "< t$e,4
*4 Certifi+!tes for t$e Sto+C s$!## "e in t$e for, set out in s+$e)u#e 1 "e#o2 !n) s$!## "e issue) un)er t$e
+o,,on se!# of t$e Co,(!n< !ffi9e) in !++or)!n+e 2it$ t$e !rti+#es of !sso+i!tion of t$e Co,(!n<4
*4& Co(ies of t$is instru,ent s$!## "e su((#ie) "< t$e Co,(!n< to t$e Sto+C$o#)ers on re;uest on (!<,ent of !
fee not e9+ee)in% 08( (er +o(<4
*4* T$e Sto+C s$!## "e $e#) su"je+t to t$e (rovisions of t$is instru,ent !n) of t$e +ertifi+!te> 2$i+$ (rovisions
s$!## "e "in)in% on t$e Co,(!n< !n) t$e Sto+C$o#)ers !n) !## (ersons +#!i,in% t$rou%$ or un)er t$e,
res(e+tive#<4
!1"2#$
, 7nterest
T$e Co,(!n< s$!## (!< interest on t$e Sto+C !t t$e r!te> !++ruin% )!i#< on t$e "!sis of ! &10 )!< <e!r !n) !s 2e## !fter
!s "efore ju)%e,ent> of TTL ! <e!r %ross (!<!"#e 1 ,ont$#< in !rre!rs on 1date6 in res(e+t of t$e (erio) fro, !n)
in+#u)in% t$e )!te of issue of !n< of t$e Sto+C to !n) in+#u)in% 1date6 !n) on e!+$ 1date6 !n) 1date6 t$ere!fter (or t$e
ne9t su++ee)in% "usiness )!<) 2$i#st !n< of t$e Sto+C re,!ins outst!n)in%> su"je+t to !n< )e)u+tion or 2it$$o#)in%
re;uire) "< #!24
. 7mmediate repayment of the 3toc>
141 T$e Sto+C s$!## "e+o,e i,,e)i!te#< re(!<!"#e in e!+$ !n) ever< of t$e fo##o2in% events:
!!(A) if )ef!u#t s$!## "e ,!)e in t$e (!<,ent on t$e )ue )!te of !n< !,ount of (rin+i(!# o2in% in res(e+t
of t$e Sto+C or of !n< !,ount of interest o2e) in res(e+t of su+$ (rin+i(!# (un#ess su+$ (!<,ent
s$!## $!ve "een 2!ive) "< t$e sto+C$o#)er entit#e) to it (rior to t$e )ue )!te for (!<,ent)H$
(-) if !n or)er is ,!)e or !n effe+tive reso#ution is (!sse) for t$e 2in)in% u( of t$e Co,(!n<H
!(C) if !n en+u,"r!n+er t!Ces (ossession or ! re+eiver or !),inistr!tive re+eiver or !),inistr!tor or
si,i#!r offi+i!# is !((ointe) of t$e 2$o#e or !n< su"st!nti!# (!rt of t$e !ssets or un)ert!Cin% of t$e
Co,(!n<H$
!(D) if t$e Co,(!n< +e!ses or t$re!tens to +e!se to +!rr< on "usiness!H !n)
(E) if t$e Co,(!n< f!i#s to (erfor, or o"serve !n< of t$e (rovisions of t$is instru,ent (ot$er t$!n t$e
(!<,ent of ,one<) on its (!rt to "e (erfor,e) or o"serve) !n) f!i#s to re,e)< su+$ "re!+$ 2it$in
1 )!<s of "ein% notifie) in 2ritin% of su+$ "re!+$$4
1or ali!n events o. de.ault with those in Form 99 N:==:O ante6$
!1"21$
/ &edemption by the Company
341 T$e Co,(!n< ,!< u(on %ivin% noti+e !s (rovi)e) in +#!use 340 "e#o2 !t !n< ti,e re)ee, !t (!r !!t t$e
re%istere) offi+e of t$e Co,(!n<$ t$e 2$o#e of t$e Sto+C or !n< (!rt of it to%et$er 2it$ interest !++rue) to t$e
)!te of re(!<,ent !(rovi)e) t$!t t$e 2$o#e of t$e Sto+C s$!## to t$e e9tent not (revious#< re)ee,e) "< t$e
Co,(!n< s$!## "e re)ee,e) !t (!r on 1date6$4
34 A## ,one< 2$i+$ s$!## "e+o,e (!<!"#e "< 2!< of re)e,(tion s$!## "e (!<!"#e to t$e Sto+C$o#)ers (!ri (!ssu
in (ro(ortion to t$e no,in!# !,ounts of t$e Sto+C $e#) "< t$e, res(e+tive#< !n) 2it$out (riorit< or
(referen+e 2$!tsoever4
!34& A## sto+C not (revious#< re)ee,e) "< t$e Co,(!n< s$!## "e +onverte) into or)in!r< s$!res of O1 in t$e
Co,(!n< on 1date6 in !++or)!n+e 2it$ t$e (rovisions of +#!use 5 !n) s+$e)u#e "e#o24$
34* A## sto+C re)ee,e) (ursu!nt to t$is +#!use or ot$er2ise re(!i) !or +onverte)$ s$!## "e +!n+e##e) !n) t$e
Co,(!n< s$!## not "e !t #i"ert< to re'issue t$e s!,e4
340 Not #ess t$!n 3 )!<s (revious noti+e in 2ritin% of t$e )!te fi9e) for re)e,(tion s$!## "e %iven "< t$e
Co,(!n< to e!+$ of t$e Sto+C$o#)ers !n< of 2$ose sto+C is to "e re)ee,e) in !++or)!n+e 2it$ +#!use 341
!"ove !n) su+$ noti+e s$!## st!te t$e !,ount of $is sto+C )ue for re)e,(tion !n) s$!## n!,e t$e )!te !n)
(#!+e for re(!<,ent of su+$ sto+C !n) for )e#iver< to t$e Co,(!n< of t$e +ertifi+!te or +ertifi+!tes re#!tin% to
it4
341 On t$e e9(ir!tion of !n< su+$ noti+e t$e Co,(!n< s$!## "e entit#e) !n) "oun) to (!< off t$e sto+C in res(e+t
of 2$i+$ su+$ noti+e $!s "een %iven !n) e!+$ su+$ sto+C$o#)er s$!## "e "oun) to )e#iver to t$e Co,(!n< !t
t$e (#!+e n!,e) in t$e noti+e t$e +ertifi+!te or +ertifi+!tes for $is sto+C !n) u(on su+$ )e#iver< !n)> !%!inst
t$e re+ei(t of t$e sto+C$o#)er for t$e re)e,(tion ,one< (!<!"#e in res(e+t of $is sto+C> t$e Co,(!n< s$!##
(!< to t$e sto+C$o#)er t$e !,ount (!<!"#e to $i, in res(e+t of su+$ re)e,(tion !n) su+$ (!<,ent s$!## "e
,!)e t$rou%$ ! "!nC on "e$!#f of t$e Co,(!n< if t$e Co,(!n< s$!## t$inC fit4 T$e Co,(!n< s$!## in t$e
+!se of (!<,ent in fu## +!n+e# t$e +ertifi+!te or +ertifi+!tes of t$e sto+C$o#)er +on+erne)> !n) in t$e +!se of !
re(!<,ent of (!rt of t$e sto+C in+#u)e) in ! +ertifi+!te eit$er
(A) en)orse on t$e +ertifi+!te ! ,e,or!n)u, of t$e !,ount !n) )!te of (!<,ent> or
(-) +!n+e# t$e +ertifi+!te !n) 2it$out +$!r%e issue to t$e sto+C$o#)er )e#iverin% t$e +ertifi+!te to t$e
Co,(!n< ! fres$ +ertifi+!te for t$e "!#!n+e of t$e sto+C not re)ee,!"#e on t$!t o++!sion4
!1"2($
!" Conersion
T$e Sto+C 2i## +onvert into or)in!r< s$!res of O1 e!+$ in t$e +!(it!# of t$e Co,(!n< on !n) in !++or)!n+e 2it$ t$e
ter,s of s+$e)u#e "e#o24$
2 7nterest on stoc> liable for redemption
Interest on !n< of t$e Sto+C "e+o,in% #i!"#e to re)e,(tion un)er !n< (rovision $ereof (e9+e(tin% un)er +#!use 1
!"ove) s$!## +e!se to !++rue !s fro, t$e )ue )!te for re)e,(tion t$ereof un#ess (u(on t$e )e,!n)in%> on or !fter t$e
)!te !n) !t t$e (#!+e fi9e) for re)e,(tion of t$!t sto+C> (!<,ent of t$e re)e,(tion ,one< in res(e+t of it !n) ten)erin%
t$e +ertifi+!te or +ertifi+!tes for t$!t sto+C !n) ! re+ei(t for t$e ,one< )u#< si%ne) !n) !ut$enti+!te) in su+$ ,!nner !s
t$e -o!r) ,!< re!son!"#< re;uire) (!<,ent of t$e re)e,(tion ,one< s$!## "e refuse)4
1# <odification of this instrument
A## or !n< of t$e (rovisions of t$is instru,ent ,!< "e ,o)ifie) "< !n e9tr!or)in!r< reso#ution (!sse) !t ! ,eetin% of
t$e Sto+C$o#)ers )u#< +onvene) !n) $e#) in !++or)!n+e 2it$ t$e (rovisions +ont!ine) "e#o2 or "< t$e +onsent in
2ritin% of !## t$e Sto+C$o#)ers4 An e9tr!or)in!r< reso#ution ,e!ns for t$e (ur(ose of t$is +#!use ! reso#ution +!rrie) "<
! ,!jorit< +onsistin% of not #ess t$!n !30L 1or as re>uired6$ of t$e (ersons votin% !t t$e ,eetin% u(on ! s$o2 of $!n)s
or if ! (o## is )u#< )e,!n)e) "< ! ,!jorit< +onsistin% of not #ess t$!n !30L 1or as re>uired6$ of t$e votes %iven on t$e
(o##4
!1"2)$
11 <eetin's of the 3toc>holders
1141 T$e Co,(!n< ,!< !t !n< ti,e !n) s$!## !t t$e re;uest in 2ritin% of sto+C$o#)ers $o#)in% ! ,!jorit< of t$e
Sto+C +onvene ! ,eetin% of t$e Sto+C$o#)ers4
114 A ,eetin% of t$e Sto+C$o#)ers s$!## "e $e#) !t su+$ (#!+e !n) ti,e !s t$e Co,(!n< ,!< )eter,ine !n) s$!##
"e +on)u+te) in !++or)!n+e 2it$ t$e (rovisions (,ut!tis ,ut!n)is) of t$e !rti+#es of !sso+i!tion of t$e
Co,(!n< re#!tin% to t$e $o#)in% of %ener!# ,eetin%s> s!ve t$!t t$e ;uoru, !t ! ,eetin% of t$e Sto+C$o#)ers
s$!## "e sto+C$o#)ers $o#)in% ! ,!jorit< in no,in!# v!#ue of t$e Sto+C !n) if ! (o## is )e,!n)e) e!+$ O1 of
sto+C s$!## +onfer one vote4
1% &eco'nition of stoc>holders
T$e Co,(!n< s$!## re+o%nise t$e re%istere) $o#)er of !n< sto+C !s t$e !"so#ute o2ner of it !n) (e9+e(t !s re;uire) "<
#!2) s$!## not "e "oun) to t!Ce noti+e or see to t$e e9e+ution of !n< trust 2$et$er e9(ress i,(#ie) or +onstru+tive to
2$i+$ !n< sto+C ,!< "e su"je+t !n) t$e re+ei(t of t$e re%istere) $o#)er for t$e ti,e "ein% of !n< sto+C or in t$e +!se of
joint re%istere) $o#)ers t$e re+ei(t of !n< of t$e, for !n< ,one< (!<!"#e in res(e+t of t$e sto+C s$!## "e ! %oo)
)is+$!r%e to t$e Co,(!n< not2it$st!n)in% !n< noti+e it ,!< $!ve 2$et$er e9(ress or ot$er2ise of t$e ri%$t> tit#e>
interest or +#!i, of !n< ot$er (erson to or in t$e sto+C> interest or ,one<4 No noti+e of !n< trust e9(ress i,(#ie) or
+onstru+tive s$!## "e entere) on t$e Re%ister in res(e+t of !n< sto+C4
!1"2,$
1( *ransfer of stoc>
!T$e Sto+C s$!## not "e tr!nsfer!"#e in 2$o#e or in (!rt e9+e(t eit$er to !not$er of t$e Sto+C$o#)ers> or 2it$ t$e (rior
2ritten +onsent of t$e -o!r)4
1or6
1&41 T$e Sto+C s$!## "e re%istere) !n) tr!nsfer!"#e in !,ounts !n) ,u#ti(#es of OTT !n) is tr!nsfer!"#e "< !n
instru,ent in 2ritin% in t$e usu!# +o,,on for,4
1&4 Ever< instru,ent of tr!nsfer ,ust "e si%ne) "< or on "e$!#f of t$e tr!nsferor !n) t$e tr!nsferor s$!## "e
)ee,e) to re,!in t$e o2ner of t$e sto+C to "e tr!nsferre) unti# t$e n!,e of t$e tr!nsferee is entere) in t$e
Re%ister in res(e+t of it4
1&4& Ever< instru,ent of tr!nsfer ,ust "e #eft for re%istr!tion !t t$e (#!+e 2$ere t$e Re%ister s$!## for t$e ti,e
"ein% "e Ce(t !++o,(!nie) "< t$e +ertifi+!te for t$e sto+C to "e tr!nsferre) !n) su+$ ot$er evi)en+e !s t$e
-o!r) ,!< re;uire to (rove t$e tit#e of t$e tr!nsferor !n) $is ri%$t to tr!nsfer t$e sto+C !n)> if t$e instru,ent
is e9e+ute) "< so,e ot$er (erson on $is "e$!#f> t$e !ut$orit< of t$!t (erson to )o so4 7$ere ! sto+C$o#)er
tr!nsfers (!rt on#< of t$e sto+C +o,(rise) in ! +ertifi+!te $e s$!## "e entit#e) to ! +ertifi+!te for t$e "!#!n+e of
t$e sto+C ret!ine) "< $i, 2it$out +$!r%e4 A## instru,ents of tr!nsfer 2$i+$ s$!## "e re%istere) 2i## "e
ret!ine) "< t$e Co,(!n< for one <e!r4
1&4* No fee s$!## "e +$!r%e) for t$e re%istr!tion of ! tr!nsfer or in res(e+t of t$e re%istr!tion of !n< +onfir,!tion>
(ro"!te> #etters of !),inistr!tion> +ertifi+!te of ,!rri!%e or )e!t$> (o2er of !ttorne< or ot$er )o+u,ent
re#!tin% to or !ffe+tin% t$e tit#e to !n< sto+C4$
!1"2.$
1) *ransmission of stoc>
An< (erson "e+o,in% entit#e) to sto+C in +onse;uen+e of t$e )e!t$ or "!nCru(t+< of t$e $o#)er of su+$ sto+C ,!<> u(on
(ro)u+in% su+$ evi)en+e t$!t $e sust!ins t$e +$!r!+ter in res(e+t of 2$i+$ $e (ro(oses to !+t un)er t$is (rovision or of
$is tit#e !s t$e Co,(!n< s$!## t$inC suffi+ient> "e re%istere) $i,se#f !s t$e $o#)er of su+$ sto+C or su"je+t to t$e
(re+e)in% (rovisions !s to tr!nsfer ,!< tr!nsfer su+$ sto+C4
1, Payment by che6ue
T$e ,one< (!<!"#e in res(e+t of t$e Sto+C ,!< "e (!i) "< +$e;ue sent t$rou%$ t$e (ost !t t$e risC of t$e $o#)er or
$o#)ers to t$e re%istere) !))ress of t$e $o#)er or in t$e +!se of joint $o#)ers to t$e re%istere) !))ress of t$!t one of t$e
joint $o#)ers 2$o is first n!,e) on t$e Re%ister in res(e+t of su+$ $o#)in% or to su+$ (erson !n) to su+$ !))ress !s t$e
$o#)er or joint $o#)ers ,!< in 2ritin% )ire+t4 Ever< su+$ +$e;ue s$!## "e ,!)e (!<!"#e to t$e or)er of t$e (erson to
2$o, it is sent !n) (!<,ent of t$e +$e;ue s$!## "e ! s!tisf!+tion of t$e ,one< re(resente) t$ere"<4
!1"2/$
1. :ost certificate
If !n< sto+C +ertifi+!te is )ef!+e) #ost or )estro<e) it ,!< "e re(#!+e) on (!<,ent of su+$ fee (if !n<) not e9+ee)in% O1
!n) on su+$ ter,s !s to evi)en+e !n) in)e,nit< !s t$e -o!r) ,!< re;uire> "ut so t$!t in t$e +!se of )ef!+e,ent t$e
)ef!+e) +ertifi+!te s$!## "e surren)ere) "efore t$e ne2 +ertifi+!te is issue)4
1/ Notice
An< noti+e ,!< "e %iven to !n< sto+C$o#)er eit$er (erson!##< or "< sen)in% it "< first +#!ss (ost in ! (re(!i) enve#o(e
to $i, !t $is re%istere) !))ress or (if $e )esires t$!t noti+e s$!## "e sent to so,e ot$er (erson or !))ress) to t$e (erson
!t t$e !))ress su((#ie) "< $i, to t$e Co,(!n< for t$e %ivin% of noti+es to $i,> !n) in t$e +!se of joint re%istere)
$o#)ers of !n< sto+C ! noti+e %iven to t$e sto+C$o#)er 2$ose n!,e st!n)s first in t$e re%ister in res(e+t of su+$ sto+C
s$!## "e suffi+ient noti+e to !## t$e joint $o#)ers4 An< noti+e so %iven s$!## "e )ee,e) to $!ve "een serve) )!<s
fo##o2in% t$!t on 2$i+$ it is (oste) !n) in (rovin% su+$ servi+e it s$!## "e suffi+ient to (rove t$!t t$e enve#o(e
+ont!inin% t$e noti+e 2!s (ro(er#< !))resse) st!,(e) !n) (oste)4
1.or alternative provisions .or overseas holders i. re>uired adapt Form ;4 N:C:FO post6
!1"2"$
SC.EDULE 1
:or, of Sto+C Certifi+!te
1name6 Li,ite)
(in+or(or!te) un)er t$e Co,(!nies A+t 1650)
No: TTTT A,ount of Sto+C: OTTTTTT
OTTTT TTL !+onverti"#e$ unse+ure) #o!n sto+C 1,ear6
T$is is to +ertif< t$!t 1name1s66 of 1address1es66 !is 1or6 !re$ t$e re%istere) $o#)er(s) of t$e !"ove ,entione) !,ount of
OTTTT TTL !+onverti"#e$ unse+ure) #o!n sto+C 1,ear6 of t$e Co,(!n< 2$i+$ sto+C is +onstitute) "< !n
instru,ent )!te) 1date6 !n) is issue) un)er t$e !ut$orit< of t$e ,e,or!n)u, !n) !rti+#es of !sso+i!tion of t$e
Co,(!n< !n) ! reso#ution of t$e -o!r) of Dire+tors (!sse) on 1date6 su"je+t to !n) 2it$ t$e "enefit of t$e (rovisions
+ont!ine) in t$!t instru,ent !n) in t$is +ertifi+!te4
Interest is (!<!"#e on t$e sto+C +o,(rise) in t$is +ertifi+!te $!#f <e!r#< on 1date6 !n) 1date6 in e!+$ <e!r4
GIVEN un)er t$e Co,,on Se!# of t$e Co,(!n< !s its )ee)
1date6
1si!natures o. director and secretar,6
!1"22$
!SC.EDULE
Conversion
1 T$e Sto+C> if t$en sti## outst!n)in%> s$!## "e +onverte) on t$e Conversion D!te 2$en t$e Co,(!n< s$!## !##ot
fu##< (!i) or)in!r< s$!res of O1 e!+$ !t (!r in t$e +!(it!# of t$e Co,(!n< in e9+$!n%e for !n) in s!tisf!+tion
of t$e (!r !,ount of sto+C $e#) "< e!+$ sto+C$o#)er> !n) of su+$ nu,"er !s s$!## !t (!r $!ve t$e v!#ue ne!rest
to "ut not ,ore t$!n t$e (rin+i(!# !,ount of t$e Sto+C4
U(on su+$ +onversion t$e Co,(!n< s$!## fort$2it$ enter t$e n!,e of t$e sto+C$o#)er in t$e re%ister of
,e,"ers of t$e +o,(!n< in res(e+t of su+$ or)in!r< s$!re +!(it!#4 Su+$ !##ot,ent !n) issue s$!## "e in fu##
s!tisf!+tion !n) )is+$!r%e of t$e (rin+i(!# ,one<s in res(e+t of t$e sto+C so +onverte)4
& T$e Co,(!n< s$!## not #!ter t$!n t$e e9(ir!tion of 5 )!<s ne9t fo##o2in% t$e Conversion D!te sen) free of
+$!r%e to e!+$ sto+C$o#)er ! +ertifi+!te for t$e s$!re +!(it!# !risin% on +onversion4
!12##$
* A## s$!re +!(it!# issue) in res(e+t of sto+C so +onverte) s$!## "e +re)ite) !s fu##< (!i)4
0 T$e sto+C$o#)er s$!## not "e entit#e) to !##ot,ent of ! fr!+tion of ! s$!re !n) s$!res re(resentin% fr!+tions
s$!## "e ret!ine) for t$e "enefit of t$e Co,(!n<4
1 Or)in!r< s$!re +!(it!# !##otte) on +onversion s$!## r!nC in fu## for !## )ivi)en)s !n) !## ot$er )istri"utions
)e+#!re) (!i) or ,!)e on t$e or)in!r< s$!re +!(it!# of t$e Co,(!n< in res(e+t of t$e fin!n+i!# (erio) of t$e
Co,(!n< in 2$i+$ t$e Conversion D!te f!##s !e9+e(t for t$e fin!# )ivi)en) in res(e+t of t$e <e!r en)in%
1date6 !n) t$e interi, )ivi)en) in res(e+t of t$e fin!n+i!# <e!r +o,,en+in% on t$e 1date6 !n) in !## ot$er
res(e+ts s$!## r!nC (!ri (!ssu !n) for, one +#!ss 2it$ t$e or)in!r< s$!re +!(it!# of t$e Co,(!n< in issue on
su+$ )!te4
3 Interest on sto+C +onverte) s$!## "e (!<!"#e u( to !n) in+#u)in% t$e Conversion D!te "ut s$!## +e!se to !++rue
t$ere!fter4$
Si%n!ture:TTTTTTTTTTTTTT
A))ress:TTTTTTTTTTTTTT
1
If t$e sto+C is +onverti"#e> ensure t$!t t$e re;uisite !ut$orities un)er t$e Co,(!nies A+t 1650 ss 58 !n) 56 to issue t$e s$!res
!risin% on +onversion !re +onferre) (rior to t$e sto+C "ein% issue)4 If t$e +!(it!# of t$e Co,(!n< is )ivi)e) into s$!res of
)ifferent +#!sses t$en !,en),ent 2i## nee) to "e ,!)e to ensure t$!t u(on !n< +onversion of t$e Lo!n Sto+C +ont!ine) in t$is
for, !n< or)in!r< s$!res issue) to !n< $o#)er !re of t$e s!,e +#!ss !s t$e or)in!r< s$!res $e#) "< t$!t $o#)er4
!12#1$
%.
Clause proidin' for a shareholders a'reement to be conditional
!#$ Pre+conditions
!8$41 A## t$e o"#i%!tions of t$e (!rties un)er t$is !%ree,ent (s!ve !s (rovi)e) in +#!use !8$4) !re su"je+t to !n)
+on)ition!# u(on t$e s!tisf!+tion of t$e fo##o2in% +on)itions:
1insert details6
!8$4 T$e (!rties s$!## use !## re!son!"#e en)e!vours to ensure t$!t !## t$e +on)itions !re s!tisfie) not #!ter t$!n
1date6 "ut if "< t$!t )!te !n< of t$e +on)itions $!s not "een s!tisfie) t$is !%ree,ent s$!## #!(se !n) "e of no
furt$er effe+t !n) no (!rt< s$!## t$ere!fter $!ve !n< furt$er ri%$t or +#!i, or +!use of !+tion !%!inst !n< ot$er
un)er or (ursu!nt $ereto or !risin% out of t$is !%ree,ent (s!ve for !n< !nte+e)ent "re!+$ of t$e (rovisions of
t$is +#!use !8$4)4
!12#%$
%/
*ermination proisions for a limited life joint enture a'reement
!8$41 T$is !%ree,ent s$!## $!ve effe+t fro, t$e )!te of it !n) s$!## +ontinue t$ere!fter (su"je+t !s (rovi)e) "e#o2)
un#ess !n) unti# ter,in!te) "< one (!rt< %ivin% to t$e ot$er(s) eit$er:
(A) not #ess t$!n 1 ,ont$sA noti+e e9(irin% !t !n< ti,e !fter t$e e9(ir< of ! (erio) of !18 1or as
re>uired6$ <e!rs +o,,en+in% on t$e )!te of t$is !%ree,ent> or
(-) not #ess t$!n 1* )!<sA noti+e e9(irin% !t !n< ti,e !fter 1speci., event)4
Su+$ ter,in!tion s$!## "e 2it$out (reju)i+e to t$e (rovisions of t$is !%ree,ent 2$i+$ !re e9(resse) to $!ve
effe+t not2it$st!n)in% su+$ ter,in!tion> !n) 2it$out (reju)i+e to !n< +#!i,s $ereun)er 2$i+$ !!n< 1or6
eit$er$ (!rt< ,!< $!ve !%!inst t$e ot$er!s$ 2$i+$ su"sist i,,e)i!te#< (rior to su+$ ter,in!tion4
!8$4 !U(on t$e ter,in!tion of t$is !%ree,ent (ursu!nt to +#!use !8$41 !"ove !n) in )ef!u#t of !%ree,ent to t$e
+ontr!r< t$e (!rties s$!## 2it$in 1* )!<s !fter su+$ ter,in!tion (ro+ure t$!t t$e Co,(!n< s$!## in %ener!#
,eetin% (!ss ! s(e+i!# reso#ution for its 2in)in% u( (!n) e!+$ (!rt< s$!## (ro+ure t$!t su+$ +#!ss +onsents !s
!re ne+ess!r< for su+$ (ur(ose !re )u#< %iven)4 1or provide .or one o. the realisation mechanisms set out in
Form 9 clause :4 N:4;4O ante or in Form ;< N:C:DO or Forms ;CG: N:C:COK;CG; N:C9:O post6$4
!12#($
%"
Proision for articles of association restrictin' share transfers e5cept to certain cate'ories of permitted
transferee
!8$41 Su"je+t to t$e (rovisions of Re%u#!tion * of T!"#e A (!s v!rie) "< t$ese Arti+#es) !n< s$!re ,!< !t !n< ti,e
"e tr!nsferre):
(A) !(2$ere t$e s$!re +!(it!# of t$e Co,(!n< is )ivi)e) into s$!res of )ifferent +#!sses "ut not
ot$er2ise)$ to ! ,e,"er $o#)in% s$!res of t$e s!,e +#!ssH or
(-) "< !n< ,e,"er> "ein% ! "o)< +or(or!te> to ! "o)< +or(or!te 2$i+$ is in re#!tion to t$!t ,e,"er its
$o#)in% +o,(!n< or su"si)i!r< !or ! su"si)i!r< of su+$ $o#)in% +o,(!n<$ !or to ! "o)< +or(or!te
2$i+$ $!s !+;uire) in +onne+tion 2it$ ! s+$e,e of !,!#%!,!tion or re+onstru+tion t$e 2$o#e or
t$e ,!in (!rt of t$e un)ert!Cin% !n) !ssets of t$!t ,e,"er$ ((rovi)e) t$!t s$ou#) t$e tr!nsferee
+e!se to "e t$e $o#)in% +o,(!n< !or su"si)i!r< of t$e $o#)in% +o,(!n<$ t$e s$!re s$!## "e re'
tr!nsferre) to t$e tr!nsferor or to !not$er +o,(!n< 2$i+$ is t$en t$e $o#)in% +o,(!n< or !
su"si)i!r< of t$e tr!nsferor !or ! su"si)i!r< of t$!t $o#)in% +o,(!n<$)H or
(C) to !n< (erson 2it$ t$e +onsent in 2ritin% of !## ot$er ,e,"ers of t$e Co,(!n<H or
(D) to t$e s(ouse or +$i#) (in+#u)in% !n< ste( or !)o(te) +$i#)) of !n< ,e,"er or to trustees of ! trust
2$ose on#< "enefi+i!ries for t$e ti,e "ein% +o,(rise t$e tr!nsferrin% ,e,"er> $is s(ouse !n) !## or
!n< of $is +$i#)ren !n) t$e trustees for t$e ti,e "ein% of su+$ ! trust ,!< tr!nsfer !n< s$!re
+o,(rise) in t$e trust to t$eir su++essor trustees or to !n< "enefi+i!r< of t$e trust> "ut #i,ite) !s
!fores!i)4
!!8$4 E9+e(t !s (er,itte) un)er !rti+#e !8$41 !"ove !n) su"je+t to t$e ri%$ts !tt!+$e) to !n< (!rti+u#!r +#!ss of
s$!res in t$e Co,(!n<> no tr!nsfer of !n< s$!re s$!## "e ,!)e or re%istere) 2it$out t$e (revious s!n+tion of
t$e )ire+tors 2$o ,!< in t$eir !"so#ute !n) unfettere) )is+retion> 2it$out !ssi%nin% !n< re!son> refuse to %ive
t$eir s!n+tion4 If t$eir s!n+tion s$!## not "e %iven 2it$in 5 2eeCs !fter t$e tr!nsfer is #o)%e) for re%istr!tion
t$e s!n+tion s$!## "e )ee,e) to $!ve "een refuse) !t t$e e9(ir!tion of su+$ (erio) !n) t$e tr!nsferee s$!## "e
notifie) of su+$ refus!#4 Re%u#!tion * of T!"#e A s$!## "e v!rie) !++or)in%#<4$
!12#)$
%2
3imple ri'ht of eto enshrined as a class ri'ht in articles of association
!!8$4$ A s$!re$o#)ersA reso#ution s$!## not "e v!#i)#< (!sse) eit$er on ! s$o2 of $!n)s or on ! (o## or ot$er2ise
un#ess t$e $o#)er or $o#)ers of ! ,!jorit< in no,in!# v!#ue of t$e issue) s$!re +!(it!# for t$e ti,e "ein% of
e!+$ +#!ss of !or)in!r<$ s$!res in t$e Co,(!n<> "ein% (resent in (erson or "< (ro9< or> in t$e +!se of !
+or(or!tion> "< ! )u#< !ut$orise) re(resent!tive> s$!## vote in its f!vour4
!12#,$
(#
Article proidin' for appointment of alternate director by holders of a majority of shares of any particular class
!8$41 T$e ,e,"ers 2$o for t$e ti,e "ein% $o#) ! ,!jorit< in no,in!# v!#ue of t$e issue) A s$!res or of t$e issue)
- s$!res or of t$e issue) C s$!res (!s !((#i+!"#e) ,!< !t !n< ti,e !((oint !n< (erson (in+#u)in% !not$er
)ire+tor) to "e t$e !#tern!te )ire+tor of !n< )ire+tor !((ointe) "< t$e re#ev!nt +#!ss !n) ,!< !t !n< ti,e
ter,in!te su+$ !((oint,ent4 An< !((oint,ent or ter,in!tion of !((oint,ent s$!## "e effe+te) in #iCe ,!nner
!s (rovi)e) in !rti+#e !11$4 T$e s!,e (erson ,!< "e !((ointe) !s t$e !#tern!te )ire+tor of ,ore t$!n one
)ire+tor4
!12#.$
(1
Article 'iin' po0er for ordinary shareholders to appoint additional directors
T$e Co,(!n< "< !or)in!r<$ reso#ution s$!## $!ve (o2er !t !n< ti,e !n) fro, ti,e to ti,e to !((oint !n< (erson to "e !
)ire+tor eit$er to fi## ! v!+!n+< or !s !n !))ition to t$e e9istin% )ire+tors4 An< )ire+tor so !((ointe) s$!## (su"je+t to
!rti+#e !11$ !n) to t$e (rovisions of t$e Co,(!nies A+ts) $o#) offi+e unti# $e is re,ove) (ursu!nt to t$ese !rti+#es4
!12#/$
(%
Article entrenchin' minority protection ri'hts
!8$4 An< of t$e fo##o2in% ,!tters s$!## +onstitute ! v!ri!tion of t$e ri%$ts !tt!+$in% to res(e+tive#< t$e A s$!res
!!n)$ t$e - s$!res !!n) t$e C s$!res$ n!,e#<:
(A) !n< reso#ution !#terin% in !n< 2!< !n< (rovision of t$e ,e,or!n)u, or !rti+#es of !sso+i!tion of
t$e Co,(!n<H
(-) !n< reso#ution "ein% (!sse) for t$e 2in)in%'u( of t$e Co,(!n< (un#ess it s$!## t$en $!ve "e+o,e
inso#vent)H
(C) !n< ne2 issue of De;uit< se+uritiesA (!s )efine) in se+tion 6* of t$e A+t) or !n< +$!n%e (2$et$er "<
2!< of in+re!se> re)u+tion> +onso#i)!tion> )ivision> su"')ivision or issue or ot$er2ise) ot$er2ise in
t$e !ut$orise) or issue) s$!re +!(it!# of t$e Co,(!n< !s !t t$e )!te of t$e !)o(tion of t$ese
Arti+#esH
(D) !n< !+tion t!Cen "< or on "e$!#f of t$e Co,(!n< 2$ere"< t$e Co,(!n< in +onse;uen+e s$!##:
1insert list o. matters re>uired to be restricted-see Form 9 clause < N:499O ante6
1
!8$4& No (erson )e!#in% 2it$ t$e Co,(!n< or !n< of its su"si)i!ries s$!## "< re!son of t$e (rovisions of t$is !rti+#e
!8$ "e +on+erne) to see or en;uire 2$et$er t$e re;uisite +#!ss +onsents to su+$ !+tions $!ve "een o"t!ine) !n)
!n< !+tion s$!## "e v!#i) or effe+tu!# un#ess !n< t$e t$ir) (!rt< $!) !t t$e ti,e of t$e !+tion !+tu!# Cno2#e)%e
or noti+e t$!t !n< ne+ess!r< +#!ss +onsent $!) not "een v!#i)#< o"t!ine)4
1
It ,i%$t not "e !((ro(ri!te for !## t$e re;uire) restri+tions to "e in+#u)e) in t$e !rti+#es of !sso+i!tion 2$i+$ is ! (u"#i+ fi#e)
)o+u,ent4 It ,!< in +ert!in +ir+u,st!n+es "e ,ore !((ro(ri!te for ,!n< of t$e +o,,er+i!# (!s to o((ose) to s$!re$o#)er
restri+tions) to "e +ont!ine) in t$e s$!re$o#)ers !%ree,ent4
!12#"$
((
Deadloc> resolution clause for a shareholders a'reement
1
1&41 :or t$e (ur(oses of t$is +#!use 1& D)e!)#o+CA s$!## "e )ee,e) to $!ve o++urre) in eit$er of t$e fo##o2in%
situ!tions n!,e#<:
(A) if one of t$e (!rties s$!## %ive noti+e in 2ritin% to !t$e ot$er (!rt< 1or6 !## t$e ot$er (!rties$>
referrin% to t$is +#!use> t$!t ! (!rti+u#!r ,!tter ("ein% one of t$ose ,!tters referre) to in +#!use !3$
!"ove or !n< ot$er ,!tter re;uirin% un!ni,it< of t$e (!rties un)er t$is !%ree,ent) $!vin% "een
+onsi)ere) or r!ise) "< t$e (!rties or !n< of t$e, !t ! "o!r) ,eetin% or %ener!# ,eetin% of t$e
Co,(!n< !or !t !n< ot$er foru,$ !n) not reso#ve) u(on 2it$ un!ni,it< is to "e +onsi)ere) !%!in !t
! s(e+i!# "o!r) or %ener!# ,eetin% (+onvene) for t$e (ur(ose "< not #ess t$!n 3 )!<s 2ritten noti+e
%iven "< !n< (!rt< to !e!+$ of$ t$e ot$er!s$ st!tin% t$e ti,e !n) (#!+e of su+$ ,eetin%) !n) !eit$er:
(1)$ un!ni,it< in f!vour of su+$ reso#ution is !%!in not !+$ieve)!> or
() t$ere s$!## not "e (resent ! re(resent!tive of e!+$ of t$e (!rties re;uire) to "e (resent to
+onstitute ! ;uoru, !t su+$ ,eetin% 2it$in one $our !fter t$e ti,e !((ointe) for su+$
,eetin%$!H or
(-) if one (!rt< s$!## %ive noti+e in 2ritin% to !t$e ot$er (!rt< 1or6 !## t$e ot$er (!rties$> referrin% to t$is
+#!use> t$!t ! )e!)#o+C s$!## e9ist if ! ;uoru, is not !+$ieve) !t t$e re+onvenin% of ! "o!r) or
%ener!# ,eetin% 2$i+$ $!s "een !)journe) for 2!nt of ! ;uoru,> !n) su+$ ;uoru, is not !+$ieve)
!t t$e re+onvene) ,eetin%$4
!12#2$
1&4
(A) If ! )e!)#o+C s$!## o++ur !t$e ,!tter in res(e+t of 2$i+$ t$e )e!)#o+C $!s !risen s$!## "e referre)
for ! )e+ision "< t$e C$!ir,en of t$e (!rties $ereto 2$o s$!## )is+uss t$e ,!tter in %oo) f!it$ !n)
!tte,(t to re!+$ ! )e+ision t$ereon4 If t$e< s$!## f!i# to )o so 2it$in &8 )!<s of t$e ,!tter "ein%
referre) to t$e,$ !n< (!rt< or (!rties 2$i+$ vote) 2it$ t$e ,!jorit< in res(e+t of su+$ reso#ution !s
is referre) to in +#!use 1&41(A)(1) !or !n< (!rt< 2$i+$ 2!s (resent or re(resente) !t su+$ ,eetin%
(or (ro(ose) ,eetin%) !s is referre) to in !+#!use 1&41(A)()$ !or$ !+#!use 1&41(-)$$ (in)ivi)u!##< or
(if ,ore t$!n one) to%et$er Dt$e ServerA) s$!## "e entit#e) to serve on t$e )ire+tors of t$e Co,(!n< !
noti+e (D! )e!)#o+C reso#ution noti+eA) re;uirin% eit$er:
(1) t$!t t$e Co,(!n< "e 2oun) u( or
() t$!t !t$e (!rt< 1or6 !!## 1or6 !n< of$ t$e (!rties$ (i)entifie) in t$e noti+e) 2$i+$ !2!s 1or6
2ere$ in t$e ,inorit< !or !"st!ine)$ in t$e vote on su+$ reso#ution (in t$e +!se of su"'
+#!use 1&41(A)(1)) or 2$o 2ere !"sent fro, su+$ ,eetin% (or (ro(ose) ,eetin%) (in t$e
+!se of su"'+#!use 1&41(A)() or su"'+#!use 1&41(-))> to se## !## ("ut not so,e on#< of) its
or t$eir s$!res in t$e Co,(!n<4
(-) T$e )ire+tors s$!## )e#iver ! +o(< of t$e )e!)#o+C reso#ution noti+e to !## (!rties in+#u)in% (2$ere
!((#i+!"#e) t$ose (Dt$e Re+i(ient(s)A) 2$o !re re;uire) to se## t$eir s$!res in t$e Co,(!n< (ursu!nt
to t$e noti+e4 T$e servi+e of one )e!)#o+C reso#ution noti+e on t$e )ire+tors s$!## (ro$i"it t$e ri%$t
of !n< ot$er (!rt< or (!rties to serve !not$er )e!)#o+C reso#ution noti+e !risin% out of t$e s!,e
su"je+t ,!tter or +ir+u,st!n+es 2$i+$ en!"#e) t$e first to "e %iven4
(C) U(on servi+e of ! )e!)#o+C reso#ution noti+e "< t$e Server on t$e )ire+tors:
(1) if t$e noti+e re;uires t$e Co,(!n< to "e 2oun) u( t$e (!rties s$!## fort$2it$ (ro+ure t$!t
t$e Co,(!n< is 2oun) u(H or
() if t$e noti+e re;uires t$e Re+i(ient(s) to se## its or t$eir s$!res in t$e Co,(!n<> t$e Server
(!n) !s "et2een t$e,se#ves if t$ere is ,ore t$!n one server !s t$e< ,!< s(e+if< in t$e
)e!)#o+C reso#ution noti+e or f!i#in% 2$i+$ in (ro(ortion to t$e no,in!# v!#ues of t$eir
t$en res(e+tive $o#)in%s of or)in!r< s$!res) !n) t$e Re+i(ient(s) s$!## "e+o,e "oun) to
"u< !n) se## res(e+tive#< !n) t$e !((#i+!"#e (ur+$!se (ri+e s$!## "e )eter,ine) in
!++or)!n+e 2it$ t$e (rovisions of +#!use !10(-)$ !n) +o,(#etion of su+$ s!#e !n)
(ur+$!se s$!## t!Ce (#!+e in !++or)!n+e 2it$ t$e (rovisions of +#!use !10(C)$4
!121#$
1
T$is +#!use is inten)e) to (rovi)e ! ,e+$!nis, for reso#ution of )e!)#o+C in ! ,u#ti'(!rt< joint venture !%ree,ent4 As )r!2n
t$is is tri%%ere) "< re(etitive use of t$e ri%$t of veto un)er e% :or,s +#!use 3 J10K or & +#!use 3 J1033K !nte> or "< t$e
re(etitive f!i#ure to (rovi)e ! ;uoru,> !#t$ou%$ t$e #!tter is not re#ev!nt if t$e !rti+#es +ont!in !s :or, 3 J1115K !nte )oes> !
(rovision )esi%ne) to !voi) ! st!#e,!te !risin% in t$e !"sen+e of ! ;uoru,4 It is for +onsi)er!tion 2$et$er in +ert!in +!ses it
,i%$t "e re;uire) to o(er!te in ot$er +ir+u,st!n+es4
As )r!2n t$e +#!use is +!(!"#e of "ein% use) on#< "< one or ,ore (!rties 2$o vote 2it$ t$e ,!jorit< on !n issue 2$i+$ is
"#o+Ce)4 T$ere is no (rovision for it to "e use) if t$ere is !n e;u!#it< of votes4 T$e +onse;uen+e of ! )e!)#o+C reso#ution noti+e
is eit$er 2in)in% u( or t$e s!#e of t$e s$!res $e#) "< so,e of t$ose on 2$o, t$e noti+e is serve)4 T$e +onsi)er!tion !n) ter,s
for t$e s!#e !re set out in :or,s +#!use 10 J10&0K or & +#!use 10 J1055K !nteG!n) see :or, &* J161K (ost4
In ,!n< ,u#ti'(!rt< ventures if +ert!in #ess i,(ort!nt ,!tters re;uirin% !##'(!rt< +onsent +!nnot "e !%ree) on> it ,i%$t "e
+onsi)ere) t$!t t$e ri%$t of +ert!in (!rties to for+e ! )issentin% ,inorit< to se## is too )r!sti+ ! re,e)<4 In su+$ +ir+u,st!n+es> it
,i%$t "e +onsi)ere) ,ore !((ro(ri!te for t$e ,!tter in )is(ute to "e reso#ve) "< referen+e to ! t$ir) (!rt<4 :or ! (ossi"#e
(re+e)ent see :or, &1 J1610K (ost4 Anot$er (ossi"i#it< is ! D%in !n) toni+A +#!use un)er 2$i+$ t$e ,!tter is #eft to "e reso#ve)
"< t$e +$!ir,en of +or(or!te joint venturers> "ut if t$e< s$ou#) f!i# to )o so> it 2i## sti## "e ne+ess!r< to reso#ve t$e )e!)#o+C in
!not$er 2!<4 /rovision for t$is is in+#u)e) in s;u!re "r!+Cets !s ! st!%e to "e %one t$rou%$ (rior to t$e servi+e of t$e )e!)#o+C
reso#ution noti+e4
!1211$
()
Alternatie termination clause for a shareholders a'reement
1041 !If !n< (!rt< s$!## serve ! noti+e of ter,in!tion un)er +#!use !1*4(A)M(E) 1or as the case ma, be6$ or +#!use
!1*4& 1or as the case ma, be6$ t$e effe+t of su+$ noti+e s$!## "e to re;uire t$e (!rt< on 2$o, it is serve) or> in
t$e +!se of ! noti+e serve) un)er +#!use !1*4& 1or as the case ma, be6$> t$e (erson servin% t$e noti+e (Dt$e
Tr!nsferorA) to serve ! tr!nsfer noti+e in res(e+t of !## !or)in!r<$ s$!res in t$e Co,(!n< $e#) "< $i, in
!++or)!n+e 2it$ !rti+#e !3 1or as the case ma, be6$ of t$e Co,(!n<As !rti+#es of !sso+i!tion (on t$e "!sis t$!t
t$e (roviso in !rti+#e !340 1or as the case ma, be6$ s$!## !not$ !((#<)> f!i#in% servi+e of 2$i+$ "< t$e re+i(ient
2it$in 1* )!<s of t$e re+ei(t of su+$ ter,in!tion noti+e> t$e re+i(ient s$!## "e )ee,e) to $!ve so serve) !
tr!nsfer noti+e !n) t$e (rovisions of !rti+#es of !sso+i!tion s$!## "e !((#ie) !++or)in%#<4
1or6
If !n< (!rt< s$!## serve ! noti+e of ter,in!tion un)er +#!use !1*4(A)M(E)$ or +#!use !1*4&$ t$e effe+t of su+$
noti+e s$!## "e to re;uire t$e (!rt< on 2$o, it is serve) or> in t$e +!se of ! noti+e serve) un)er +#!use !1*4&$>
t$e (erson servin% t$e noti+e (t$e DTr!nsferorA) to offer to se## !## of its !or)in!r<$ s$!res in t$e Co,(!n< to
t$e ot$er (!rties $ereto u(on t$e fo##o2in% ter,s:
(A) t$e )ire+tors s$!## !((oint t$e !u)itors to +ertif< t$e f!ir v!#ue of t$e s$!res "ein% so offere) for s!#e
on t$e "!sis s(e+ifie) in +#!use !104*$ (!n) on t$e "!sis t$!t t$eir fees !n) e9(enses in so +ertif<in%
s$!## "e "orne "< !t$e re+i(ient 1or as re>uired6$)H
(-) u(on re+ei(t of t$e !u)itorAs +ertifi+!te t$e )ire+tors s$!## +ir+u#!te ! +o(< of it to e!+$ of t$e (!rties
to 2$o, t$e s$!res !re "ein% offere) to%et$er 2it$ ! noti+e for,!##< offerin% su+$ s$!res for s!#e to
t$e re,!inin% (!rties> !s !%ent for t$e re+i(ient (!s it $ere"< irrevo+!"#< !ut$orises) !n) s(e+if<in%
! (erio) ("ein% not #ess t$!n 1* )!<s) )urin% 2$i+$ su+$ offer ,ust "e !++e(te)H
(C) in t$e +!se of +o,(etition for t$e s$!res "ein% offere) "et2een t$e (!rties to 2$o, t$e< !re
offere)> t$e s$!res so offere) s$!## "e so#) to !++e(tors $o#)in% s$!res of t$e s!,e +#!ss !s t$e
s$!res "ein% offere)> in (ro(ortion (!s ne!r#< !s ,!< "e 2it$out invo#vin% fr!+tions or in+re!sin%
t$e nu,"er so#) to !n< s$!re$o#)er "e<on) t$!t !((#ie) for "< $i,) to t$eir e9istin% $o#)in%s of
s$!res of t$e s!,e +#!ss !n) in t$e event of su+$ (!rt< or (!rties not t!Cin% u( !## t$e s$!res offere)>
t$en t$e s$!res so offere) "ut not so so#) s$!## "e so#) to t$e s$!re$o#)ers $o#)in% s$!res of !n<
ot$er +#!ss !n) in t$e +!se of +o,(etition on ! si,i#!r "!sis ,ut!tis ,ut!n)is !s !fores!i)H
(D) u(on re+ei(t "< !++e(tin% s$!re$o#)ers of t$eir !++e(t!n+e to (ur+$!se !## !or !n<$ of t$e s$!res
"ein% so offere) t$e re+i(ient on t$e one (!rt !n) t$e !++e(tin% s$!re$o#)ers on t$e ot$er (!rt s$!##
in res(e+t of t$e s$!res !%ree) to "e t!Cen u( "e "oun) to se## !n) "u< t$e s!,e res(e+tive#< !n)
+o,(#etion of su+$ s!#e !n) (ur+$!se s$!## t!Ce (#!+e in !++or)!n+e 2it$ +#!use !1040$ "e#o24$
1
!121%$
!104 If t$ere s$!## "e insuffi+ient !++e(tors of t$e offer ,!)e un)er +#!use 1041 to ensure t$e s!#e of !## t$e
Tr!nsferorAs s$!res in t$e Co,(!n< t$e Tr!nsferor ,!<> 2it$in !1* 1or as re>uired6$ )!<s of t$e )!te u(on
2$i+$ t$e s!i) offer +#ose)> serve ! noti+e on !## t$e ot$er (!rties re;uirin% e!+$ of t$e, to se## to t$e
Tr!nsferor !## t$eir s$!res in t$e Co,(!n< !t t$e !f!ir v!#ue$
!n) on servi+e of su+$ noti+e t$e ot$er (!rties

s$!## "e+o,e "oun) to se## !n) t$e Tr!nsferor s$!## "e+o,e "oun) to "u< t$e s!,e res(e+tive#< !n)
+o,(#etion of su+$ s!#e !n) (ur+$!se s$!## t!Ce (#!+e in !++or)!n+e 2it$ +#!use !1040$4
104& If t$e Tr!nsferor s$!## serve no noti+e un)er +#!use 104 "< t$e e9(ir!tion of t$e s!i) (erio) of !1* 1or as
re>uired6$ )!<s t$e (!rties s$!## "e+o,e "oun) to (ro+ure t$!t t$e Co,(!n< "e 2oun) u(Gor ,!Ce 2in)in%
u( !n !#tern!tive !v!i#!"#e to t$e Tr!nsferor in +#!use 104$
1
Consi)er 2$et$er eit$er of t$ese (ro+e)ures +ou#) !((#< to ! )e!)#o+C reso#ution ter,in!tion un)er +#!use 1& (see e% :or, &&
J1686K !nte)4 An !#tern!tive is for t$e tr!nsferor to n!,e its (ri+e> r!t$er t$!n it "ein% fi9e) "< t$e !u)itors> "ut t$is is (ro"!"#<
on#< !((ro(ri!te for ! noti+e un)er +#!use 1*4& (see e% :or, +#!use 1*4& J10&*K !nte)4
:!ir v!#ue 2i## on#< "e +orre+t if !## t$e s$!res !re +orre+t#< v!#ue) !t t$e s!,e v!#ue !s t$e tr!nsferorAs s$!res4
&
T$e su%%este) +#!uses 104 !n) 104& ,!< on#< "e t$ou%$t !((ro(ri!te for ! noti+e un)er +#!use 1*4& (see e% :or, +#!use 1*4&
J10&*K !nte)Gt$e< (rovi)e ot$er for,s of e9it for t$e out%oin% s$!re$o#)er if t$e e9istin% s$!re$o#)ers f!i# to "u< $is s$!resH if
$e !+;uires !## t$e s$!res $e ,!< se## t$e 2$o#e issue) s$!re +!(it!# to ! t$ir) (!rt<4
!121($
(,
Article proidin' for deemed serice of notice 0here one or more shareholders hae re'istered addresses outside
the Hnited Bin'dom
An< su+$ noti+e or ot$er )o+u,ent> if sent "< first +#!ss (re'(!i) (ost to !n !))ress 2it$in t$e Unite) Bin%)o,> s$!##
"e )ee,e) to $!ve "een serve) or )e#ivere) on t$e )!< !fter t$e )!< 2$en it 2!s (ut in t$e (ost !n)> if sent "< (re'(!i)
!ir,!i# (ost to !n !))ress outsi)e t$e Unite) Bin%)o,> s$!## "e )ee,e) to $!ve "een serve) or )e#ivere) on t$e !0t$
1or as re>uired6$ )!< !fter t$e )!< 2$en it 2!s (ut in t$e (ost> !n) in (rovin% su+$ servi+e or )e#iver< it s$!## "e
suffi+ient to (rove t$!t t$e noti+e or )o+u,ent 2!s (ro(er#< !))resse)> st!,(e) !n) (ut in t$e (ost4 T$e )!te of
)ee,e) servi+e of ! noti+e of %ener!# ,eetin% 2$i+$ is sent to one or ,ore !))resses "ot$ 2it$in !n) outsi)e t$e
Unite) Bin%)o, s$!## "e t$e #!ter of t$e res(e+tive )!tes on 2$i+$ su+$ noti+es !re or !re )ee,e) to "e res(e+tive#<
serve) in !++or)!n+e 2it$ t$e fore%oin% (rovisions4
!121)$
(.
Clause for a shareholders a'reement proidin' for deadloc> resolution on minor issues
!8$41 In t$e event of !n< reso#ution re#!tin% to !n< of t$e ,!tters re;uirin% t$e !((rov!# of e!+$ of t$e (!rties in
!++or)!n+e 2it$ +#!uses 1insert clause numbers6 not "ein% (!sse) !t !n< t2o +onse+utive "o!r) ,eetin%s !t
2$i+$ it is (ro(ose)> !n< (!rt< votin% in f!vour of su+$ reso#ution s$!## "e entit#e) 2it$in !&8 1or as
re>uired6$ )!<s of t$e se+on) su+$ "o!r) ,eetin% to !((oint> on "e$!#f of t$e Co,(!n<> ! ;u!#ifie) e9(ert (!s
s(e+ifie) in +#!use !8$4 "e#o2) no,in!te) "< !%ree,ent "et2een !## t$e (!rties to t$is !%ree,ent> or f!i#in%
!%ree,ent no,in!te) "< t$e /resi)ent for t$e ti,e "ein% of t$e Institute of C$!rtere) A++ount!nts for
En%#!n) !n) 7!#es !t t$e re;uest of !n< (!rt<> to reso#ve t$e ,!tter 2$i+$ +!nnot "e !%ree) u(on4
!8$4 :or t$e (ur(oses of +#!use !8$41 t$e ;u!#ifie) e9(ert s$!## "e !!n< +$!rtere) !++ount!nt 2$o is ! (!rtner in
1speci., names o. a!reed .irms6 1or as re>uired6$4 T$e ;u!#ifie) e9(ert s$!## !+t !s !!n e9(ert not !s !n
!r"itr!tor 1or as re>uired6$ in )eter,inin% t$e ,!tter 2$i+$ +!nnot "e !%ree) u(on4 .is ,et$o) of
(ro+ee)in% s$!## "e !s $e in $is !"so#ute )is+retion )ire+ts4 In so !+tin% $e s$!## t!Ce into !++ount !## su+$
f!+ts !n) +ir+u,st!n+es !s $e +onsi)ers re#ev!nt4 E!+$ of t$e (!rties s$!## "e entit#e) to ! re!son!"#e
o((ortunit< to su",it eit$er or!##< or in 2ritin% (!s t$e ;u!#ifie) e9(ert s$!## )ire+t) t$eir o2n res(e+tive
vie2s on $o2 t$e ,!tter in ;uestion s$ou#) "e )eter,ine) !n) t$eir re!sons for su+$ vie2s4 T$e ;u!#ifie)
e9(ert s$!## notif< !## (!rties to t$is !%ree,ent in 2ritin% of $is )e+ision !s !n) 2$en $e $!s so )eter,ine)
t$e ,!tter in ;uestion !#t$ou%$ $e s$!## not "e o"#i%e) to %ive !n< re!sons for $is )e+ision un#ess $e so
2is$es4
!8$4& T$e )e+ision of t$e ;u!#ifie) e9(ert !s to t$e ,!tter in )is(ute s$!## "e fin!# !n) "in)in% on !## (!rties to t$is
!%ree,ent for !## (ur(oses !n) (su"je+t on#< to t$eir fi)u+i!r< )uties !s )ire+tors of t$e Co,(!n<) t$e (!rties
!n) t$eir res(e+tive no,inees !n)Eor !((ointees on t$e -o!r) s$!## e9e+ute !## su+$ )o+u,ents !n) )o !n)
t!Ce !## su+$ !+tion !s ,!< "e ne+ess!r< or re!son!"#< )esir!"#e to %ive effe+t to !n)Eor i,(#e,ent t$!t
)e+ision !s (ro,(t#< !s re!son!"#< (r!+ti+!"#e !fter t$e )!te of t$e s!,e "ein% ,!)e4 :or t$e (ur(oses of
+#!use !3$ !n< +onsent re;uire) fro, !n< (!rt< "< t$!t +#!use to i,(#e,ent t$e )e+ision of t$e ;u!#ifie)
e9(ert ,!)e in !++or)!n+e 2it$ t$e !"ove (rovisions s$!## "e )ee,e) to $!ve "een %iven4 T$e fees !n)
e9(enses of t$e ;u!#ifie) e9(ert s$!## "e "orne "< !t$e (!rties in e;u!# s$!res 1or as re>uired6$4
!121,$
(/
Clause for a shareholders a'reement proidin' for the sale of the shares of an out'oin' shareholder by arious
alternatie methods; failin' 0hich li6uidation ensues
1
!104&$ If !n< (!rt< s$!## serve ! noti+e of ter,in!tion un)er +#!use !1*4(D)M(E) 1or as the case ma, be6$ or +#!use
!1*4& 1or as the case ma, be6$> t$en t$e fo##o2in% (rovisions of t$is +#!use 104& s$!## !((#< in re#!tion to !##
s$!res of t$e Co,(!n< o2ne) "< t$e (!rt< u(on 2$o, t$e noti+e is serve)> or in t$e +!se of ! noti+e serve)
un)er +#!use !1*4&$> t$e (!rt< servin% t$e noti+e (Dt$e Tr!nsferorAs S$!resA)4 If "< 1date6 t$e s!#e of !## t$e
Tr!nsferorAs S$!res $!s not "een +o,(#ete) "< one of t$e fo##o2in% ,et$o)s> or ! +o,"in!tion of t$e,> on
ter,s !++e(t!"#e to t$e Tr!nsferor> t$e (!rties s$!## "e "oun) to join in (#!+in% t$e Co,(!n< in #i;ui)!tion4
Su+$ ,et$o)s !re:
(A) t$e (ur+$!se "< t$e Co,(!n< of t$e Tr!nsferorAs S$!res> on ter,s !++e(t!"#e to t$e Tr!nsferor> if
su+$ (ur+$!se s$!## "e #!2fu# !n) (r!+ti+!"#eH or
(-) t$e (ur+$!se "< one or ,ore of t$e ot$er (!rties of t$e Tr!nsferorAs S$!resH or
(C) t$e (ur+$!se "< one or ,ore t$ir) (!rties of t$e Tr!nsferorAs S$!resH or
(D) t$e s!#e of t$e 2$o#e issue) s$!re +!(it!# of t$e Co,(!n<> in+#u)in% t$e Tr!nsferorAs S$!res to !
t$ir) (!rt<4
T$e (!rties s$!## ne%oti!te 2it$ e!+$ ot$er in %oo) f!it$ !n) s$!## +o'o(er!te 2it$ one !not$er 2it$ ! vie2 to
!+$ievin% t$e s!#e of t$e Tr!nsferorAs S$!res "< one of t$e !fores!i) ,et$o)s> or ! +o,"in!tion of t$e,> not
#!ter t$!n 1date64 If ! s!#e to ! "on! fi)e t$ir) (!rt< is envis!%e) t$e (!rties s$!## +o'o(er!te in t$e (rovision
to t$e t$ir) (!rt< of !## infor,!tion 2$i+$ $e ,!< re!son!"#< re;uire +on+ernin% t$e issue) s$!re +!(it!# of
t$e Co,(!n< !n) t$e !ff!irs of t$e Co,(!n< !n) its su"si)i!ries> su"je+t to t$e )e#iver< "< t$e t$ir) (!rt< to
t$e Co,(!n< of !n !((ro(ri!te +onfi)enti!#it< un)ert!Cin%4
1
Consi)er 2$et$er t$is +#!use s$ou#) !#so !((#< to ! )e!)#o+C noti+e un)er +#!use 1& (see e% :or, 11 +#!use 1& J150K !nte)> !n)
2$et$er t$e v!#u!tion for,u#! in +#!use 1041 (see e% :or, 11 +#!use 1041 J153K !nte) s$ou#) !((#<> r!t$er t$!n #e!vin% t$e
(!rties to ne%oti!te t$e (ri+e4
T$is +#!use is (ro"!"#< unsuit!"#e for ! ter,in!tion !risin% out of "re!+$ or inso#ven+<> for 2$i+$ !not$er !#tern!tive ,!<
"e (refer!"#e4
!121.$
("
Article re6uirin' offers for control to be e5tended to all shareholders and; for shareholders to be bound to accept
such an offer if a certain percenta'e of the do so
!841$ Not2it$st!n)in% !rti+#e 1number o. article containin! pre%emption ri!hts6 no "u<er (!s )efine) "e#o2) s$!##
"e entit#e) or (er,itte) to !+;uire ! +ontro##in% interest !n) no "u<er 2$o s$!## $!ve ! +ontro##in% interest
s$!## !+;uire !n< !))ition!# s$!res in t$e Co,(!n< !n) no tr!nsfers of s$!res +onferrin% su+$ ! +ontro##in%
interest or in res(e+t of t$e !+;uisition of !n< !))ition!# s$!res !s !fores!i) s$!## "e re%istere) un#ess !n)
unti# t$e "u<er s$!## $!ve ,!)e !n offer to !## t$e $o#)ers of s$!res in t$e Co,(!n< !t t$e re#ev!nt ti,e (ot$er
t$!n t$e "u<er if $e is !#re!)< ! $o#)er) to (ur+$!se fro, t$e, for +!s$ t$eir entire $o#)in%s of s$!res in t$e
Co,(!n< u(on ter,s t$!t t$e tot!# (ri+e (!s )efine) "e#o2) s$!## "e !((ortione) "et2een t$e $o#)ers of
s$!res in t$e Co,(!n< in t$e s!,e 2!< !s t$e !,ount !v!i#!"#e for )istri"ution "et2een t$e ,e,"ers on !
2in)in% u( 2ou#) f!## to "e !((ortione) "et2een t$e, !n) ot$er2ise on t$e s!,e ter,s4
!84$ :or t$e (ur(oses of t$is !rti+#e !8$:
(A) D"u<erA s$!## refer to one (erson or %rou( of (ersons !+tin% in +on+ert> !n) (ersons s$!## "e )ee,e)
to "e !+tin% in +on+ert if t$e< 2ou#) "e re%!r)e) !s so )oin% un)er t$e Cit< Co)e on T!Ceovers !n)
=er%ers in for+e fro, ti,e to ti,eH
(-) t$e e9(ression D!+;uireA s$!## ,e!n "ein% or "e+o,in% t$e o2ner of s$!res 2$et$er )ire+t#< or
in)ire+t#< !n) 2$et$er "< issue> tr!nsfer> renun+i!tion> or +onversion of s$!res (or $o2soever
ot$er2ise)H
(C) ! D+ontro##in% interestA s$!## ,e!n s$!res +onferrin% in t$e !%%re%!te ,ore t$!n $!#f t$e votes
e9er+is!"#e !t !n< %ener!# ,eetin% of t$e Co,(!n< 1e7clude an, special votin! ri!hts e7ercisable
in limited circumstances6H
(D) Dt$e tot!# (ri+eA s$!## ,e!n t$e tot!# +onsi)er!tion offere) or (!i) or (!<!"#e "< t$e "u<er or $is
no,inees for t$e entire issue) s$!re +!(it!# of t$e Co,(!n< (#us !n< ot$er +onsi)er!tion (in +!s$ or
ot$er2ise) offere) to or re+eive) or re+eiv!"#e "< !n< $o#)ers of s$!res in t$e Co,(!n< 2$i+$
$!vin% re%!r) to t$e su"st!n+e of t$e tr!ns!+tion !s ! 2$o#e +!n re!son!"#< "e re%!r)e) !s
!))ition!# to t$e (ri+e (!i) or (!<!"#e for su+$ entire issue) s$!re +!(it!# !!n) (2$ere !((#i+!"#e)
t$e tot!# (ri+e s$!## "e not "e #ess t$!n t$e $i%$er of:
(i) t$e $i%$est (ri+e (er s$!re (!fter !n< !))itions !s !fores!i)) !t 2$i+$ t$e "u<er s$!## $!ve
!+;uire) !n< s$!res of t$e Co,(!n< )urin% t$e 1 ,ont$s (rior to t$e ,!Cin% of t$e offer
re;uire) "< t$is !rti+#e !8$H !n)
(ii) t$e $i%$est (ri+e (er s$!re (!fter !n< !))itions !s !fores!i)) offere) "< t$e "u<er for t$e
!+;uisition of !n< s$!res $e#) "< !n< ,e,"er )urin% t$e 1 ,ont$s (rior to t$e ,!Cin% of
t$e offer re;uire) "< t$is !rti+#e !8$ !n) for t$ese (ur(oses !n offer nee) not "e "in)in% or
un+on)ition!# if it 2ou#) "e re!son!"#e for re+i(ient to re%!r) it !s ! (ro(os!# in res(e+t
of 2$i+$ t$ere 2!s ! serious intention to +!rr< it into effe+t4$
!121/$
!84&$ An offer ,!)e (ursu!nt to t$is !rti+#e !8$ s$!## "e +o,,uni+!te) in 2ritin% to t$e )ire+tors of t$e Co,(!n<
2$o s$!## !s soon !s (r!+ti+!"#e +onvene !n e9tr!or)in!r< %ener!# ,eetin% of t$e Co,(!n< !t 2$i+$ 2i## "e
(ro(ose) ! !s(e+i!#$ reso#ution for t$e !((rov!# of t$e offer "< t$e ,e,"ers4
!84*$ If t$e !s(e+i!#$ reso#ution s$!## "e (!sse) ever< ,e,"er s$!## "e+o,e "oun) to tr!nsfer !## $is s$!res in t$e
Co,(!n< to t$e "u<er for t$e +onsi)er!tion st!te) in !n) u(on t$e ot$er ter,s of t$e offer4 If !n< ,e,"er
s$!## f!i# to tr!nsfer !## $is s$!res t$e )ire+tors ,!< !ut$orise so,e (erson to e9e+ute !n< ne+ess!r< tr!nsfers
or ot$er )o+u,ents4 T$e (ur+$!se ,one< or ot$er +onsi)er!tion )ue to ! )ef!u#tin% tr!nsferor s$!## "e
re+eive) "< t$e Co,(!n< or "< ! (erson !((ointe) "< t$e )ire+tors 2$o s$!## $o#) it in trust for t$e
)ef!u#tin% tr!nsferor4 T$e re+ei(t of t$e Co,(!n< or !n !ut$orise) (erson for t$e (ur+$!se ,one< or ot$er
+onsi)er!tion s$!## "e ! %oo) )is+$!r%e to t$e "u<er !n) !fter t$e n!,e of t$e "u<er s$!## $!ve "een entere)
on t$e re%ister in (ur(orte) e9er+ise of t$e !fores!i) (o2ers t$e v!#i)it< of t$e (ro+ee)in%s s$!## not "e
;uestione) "< !n< (erson4
!840$ If ! !s(e+i!#$ reso#ution s$!## "e (!sse)> t$e restri+tions on tr!nsfers of s$!res +ont!ine) in !rti+#e 1number6
s$!## not !((#< in re#!tion to t$e tr!nsfers of s$!res (ursu!nt to t$e offer !n) t$e )ire+tors s$!## "e "oun) to
re%ister ever< su+$ tr!nsfer4 If su+$ ! !s(e+i!#$ reso#ution s$!## not "e (!sse) t$en t$e restri+tions s$!##
+ontinue to !((#< !n) no tr!nsfers of !n< s$!res (ursu!nt to !n< !++e(t!n+e of t$e offer s$!## "e re%istere)
un#ess !n) unti# e!+$ ,e,"er +on+erne) s$!## $!ve +o,(#ie) 2it$ !rti+#e 1number6 !n) t$e ri%$ts of (re'
e,(tion +ont!ine) in it !re e9$!uste)4
!841$ :or t$e !voi)!n+e of )ou"t !n offer to "e ,!)e "< t$e "u<er for t$e (ur(oses of t$is !rti+#e !8$ ,!< in+#u)e
one 2$i+$ is to "e !++e(te) "< t$e ,!Cin% of ! (riv!te +ontr!+t !s 2e## !s one ,!)e "< %ener!# offer !n) ,!<
in+#u)e one 2$i+$ is su"je+t to +ontr!+t or in so,e 2!< +on)ition!#4 If t$e offer )oes not "e+o,e
un+on)ition!# or t$e su"je+t of ! +ontr!+t "< re!son of ! 2it$)r!2!# "< t$e "u<er> !n< !s(e+i!#$ reso#ution
(!sse) s$!## "e ! nu##it< !n) no ,e,"er s$!## "e "oun) to se## !n< s$!res4
!843$ No ,e,"er s$!## "e "oun) to su+$ !n offer un#ess t$ere is +ir+u#!te) to !## ,e,"ers 2it$ t$e noti+e
+onvenin% t$e e9tr!or)in!r< %ener!# ,eetin% ! st!te,ent settin% out t$e ter,s of t$e offer to%et$er 2it$
+o(ies of !## )o+u,ents re;uire) to "e e9e+ute) "< !++e(tors of it> !n) not2it$st!n)in% !n< ot$er (rovision of
t$ese Arti+#es> 1 )!<s noti+e of t$e $o#)in% of su+$ ,eetin% s$!## "e %iven4
!845$ An offer to "e ,!)e "< t$e -u<er for t$e (ur(oses of t$is !rti+#e !8$ s$!## "e re%!r)e) !s ,!)e on t$e s!,e
ter,s to !## ,e,"ers not2it$st!n)in% t$!t:
(i) so,e ,e,"ers !n) not ot$ers !re to re+eive re,uner!tion for servi+es to "e ren)ere) "< t$e,
(rovi)e) t$!t t$e re,uner!tion re(resents !n o(en ,!rCet +onsi)er!tion for t$e (rovision of t$e
servi+esH or t$!t
(ii) so,e ,e,"ers $!ve !%ree) to (rovi)e 2!rr!nties> in)e,nities or non'+o,(etition +oven!nts ,ore
onerous t$!n !n< +ont!ine) or referre) to in t$e offer4
!121"$
(2
Clauses for a shareholders a'reement proidin' for a *e5as shoot out
(211
Dual party joint entureGri'ht to buy out the others shares
If eit$er (!rt< to t$is !%ree,ent s$!## serve ! noti+e of ter,in!tion un)er +#!use 1*4(D) or (E) or +#!use 1*4& !or s$!##
serve ! )e!)#o+C reso#ution noti+e un)er +#!use 1&$ t$e (!rt< servin% t$e noti+e s$!## serve ! +o(< u(on t$e ot$er (!rt<
to t$is !%ree,ent> 2$ereu(on e!+$ (!rt< s$!## $!ve t$e ri%$t 2it$in t$e e9(ir!tion of !&8 )!<s 1or as re>uired6$ fro, t$e
)!te of servi+e of t$!t noti+e to )e(osit !t t$e re%istere) offi+e of t$e Co,(!n<> !))resse) to t$e se+ret!r< of t$e
Co,(!n<> ! se!#e) "i) in 2ritin% un)er 2$i+$ t$!t (!rt< s$!## un+on)ition!##< offer to (ur+$!se !## t$e s$!res in t$e
Co,(!n< of t$e ot$er (!rt< !t t$e +!s$ (ri+e> (!<!"#e on +o,(#etion of t$e (ur+$!se> st!te) in t$e "i)4 T$e (!rt< 2$o
s$!## )e(osit t$e "i) 2$i+$ n!,es t$e $i%$est (ri+e (er s$!re (or s$!## )e(osit t$e on#< "i)) s$!## "e+o,e "oun) to
(ur+$!se !n) t$e ot$er (!rt< s$!## "e+o,e "oun) to se## its s$!res !t t$e (ri+e st!te) in su+$ "i)4
1add machiner, .or e..ectin! the sale-see Form ; clauses :4GF N:4C5O0 :4G4 and :4GD N:4C:O ante6
!1212$
(21%
<ultiparty joint entureGri'ht to buy the out'oin' partys shares
If !n< (!rt< to t$is !%ree,ent s$!## serve ! noti+e of ter,in!tion un)er +#!use 1*4(D) or (E) or +#!use 1*4& !or s$!##
serve ! )e!)#o+C reso#ution noti+e un)er +#!use 1&$ t$e (!rt< servin% t$e noti+e s$!## serve ! +o(< u(on ever< ot$er
(!rt< to t$is !%ree,ent> 2$ereu(on e!+$ (!rt< ot$er t$!n t$e (!rt< servin% t$e noti+e (t$e #!tter (!rt< "ein% referre) to
!s Dt$e Out%oin% /!rt<A) s$!## $!ve t$e ri%$t 2it$in t$e e9(ir!tion of !&8 )!<s 1or as re>uired6$ fro, t$e )!te of servi+e
of t$e noti+e serve) "< t$e Out%oin% /!rt< to )e(osit !t t$e re%istere) offi+e of t$e Co,(!n<> !))resse) to t$e se+ret!r<
of t$e Co,(!n<> ! se!#e) "i) in 2ritin% un)er 2$i+$ e!+$ su+$ (!rt< s$!## un+on)ition!##< offer to (ur+$!se !## t$e
s$!res in t$e Co,(!n< of t$e Out%oin% /!rt< !t t$e +!s$ (ri+e> (!<!"#e on +o,(#etion of t$e (ur+$!se> st!te) in t$e "i)4
T$e (!rt< 2$o s$!## )e(osit t$e "i) 2$i+$ n!,es t$e $i%$est (ri+e (or s$!## )e(osit t$e on#< "i)) s$!## "e+o,e "oun) to
(ur+$!se !n) t$e Out%oin% /!rt< s$!## "e+o,e "oun) to se## its s$!res !t t$e (ri+e st!te) in su+$ "i)4
!12%#$
(21(
<ultiparty joint entureGri'ht to buy the shares of all other parties
If !n< (!rt< to t$is !%ree,ent s$!## serve ! noti+e of ter,in!tion un)er +#!use 1*4(D) or (E) or +#!use 1*4& !or s$!##
serve ! )e!)#o+C reso#ution noti+e un)er +#!use 1&$ t$e (!rt< servin% t$e noti+e s$!## serve ! +o(< u(on ever< ot$er
(!rt< to t$is !%ree,ent> 2$ereu(on e!+$ (!rt< s$!## $!ve t$e ri%$t 2it$in t$e e9(ir!tion of !&8 )!<s 1or as re>uired6$
fro, t$e )!te of servi+e of su+$ noti+e to )e(osit !t t$e re%istere) offi+e of t$e Co,(!n<> !))resse) to t$e se+ret!r< of
t$e Co,(!n<> ! se!#e) "i) in 2ritin% un)er 2$i+$ su+$ (!rt< s$!## un+on)ition!##< offer to (ur+$!se !## t$e s$!res in t$e
Co,(!n< $e#) "< !## (!rties ot$er t$!n t$e (!rt< )e(ositin% t$e "i) !t t$e +!s$ (ri+e> (!<!"#e on +o,(#etion of t$e
(ur+$!se> st!te) in t$e "i) (2$i+$ s$!## "e t$e s!,e (ri+e (er s$!re for !## t$e s$!res t$e su"je+t of t$e "i)) !n) t$e
(!rt< 2$o s$!## )e(osit t$e "i) 2$i+$ n!,es t$e $i%$est (ri+e (er s$!re (or s$!## )e(osit t$e on#< "i)) s$!## "e+o,e
"oun) to (ur+$!se !n) t$e ot$er (!rties s$!## "e+o,e "oun) to se## t$eir s$!res !t t$e (ri+es res(e+tive#< st!te) in su+$
"i)4
!12%1$
)#
Call option clause for a shareholders a'reement
!At !n< ti,e 1or6 After 1date6$ F s$!## "e entit#e) "< servin% noti+e on ? to re;uire ? to se## to F !t$e 1number6
!or)in!r<$ s$!res in t$e Co,(!n< $e#) "< ? 1or6 !## t$e s$!res t$en $e#) "< ? in t$e Co,(!n<$ !t t$e (ri+e !n) u(on
t$e ot$er ter,s set out in t$is +#!use !8$4
1insert provisions .or establishin! the price-i. this is to be b, valuation adapt Form ; clause :4G9 N:4=CO ante6
!12%%$
)1
Put option for a shareholders a'reement
!At !n< ti,e 1or6 After 1date6$ ? s$!## "e entit#e) "< servin% noti+e on F to re;uire F to (ur+$!se fro, ? !t$e 1number6
!or)in!r<$ s$!res in t$e Co,(!n< $e#) "< ? 1or6 !## t$e s$!res t$en $e#) "< ? in t$e Co,(!n<$ !t t$e (ri+e !n) u(on
t$e ot$er ter,s set out in t$is +#!use !8$4
1insert provisions .or establishin! the price-i. this is to be b, valuation adapt Form ; clause :4G9 N:4=CO ante6
!12%($
)%
Arbitration clause for a shareholders a'reement 0ithout an alternatie dispute resolution or conciliation
proision
!#$ Arbitration
!841$ An< )is(ute !risin% out of or in +onne+tion 2it$ t$is !%ree,ent> in+#u)in% !n< ;uestion re%!r)in% t$e
e9isten+e> s+o(e> v!#i)it< or ter,in!tion of t$is !%ree,ent or t$is +#!use !8$ s$!## "e referre) to !n) fin!##<
reso#ve) un)er t$e Ru#es of t$e Lon)on Court of Intern!tion!# Ar"itr!tion !or t$e Ru#es of Con+i#i!tion !n)
Ar"itr!tion of t$e Intern!tion!# C$!,"er of Co,,er+e$> 2$i+$ ru#es !re )ee,e) to "e in+or(or!te) "<
referen+e into t$is +#!use4
!84$ T$e nu,"er of !r"itr!tors s$!## "e !1 1or6 &$4 1i. ;0 then provide .or manner o. nominationL usuall, one
chosen b, each side and the ;rd appointed b, a!reement o. the 9 arbitrators-i. no a!reement0 then the
relevant institution bod, will make the appointment6
!84&$ T$e (#!+e of t$e !r"itr!tion s$!## "e Lon)on !n) t$e (ro+ee)in%s of t$e !r"itr!tion s$!## "e %overne) "< t$e
#!2s of En%#!n)4
!84*$ T$e !r"itr!tion (ro+ee)in%s s$!## "e +on)u+te) in t$e En%#is$ #!n%u!%e !n) t$e A2!r) s$!## "e in En%#is$4
!840$ T$is !%ree,ent s$!## "e %overne) "< t$e #!2s of En%#!n)4
!!841$ T$e tri"un!# s$!## $!ve t$e (o2er to !2!r) se+urit< for +osts4$
!!843$ T$e (!rties !%ree t$!t infor,!tion +on+ernin% !n< !r"itr!tion> in+#u)in%> 2it$out #i,it!tion> infor,!tion
+on+ernin% !n< !r"itr!tion !2!r)> s$!## "e tre!te) !s +onfi)enti!# !n) not )is+#ose) to !n< t$ir) (!rties
2it$out t$e +onsent in 2ritin% of !## of t$e (!rties un#ess:
(A) t$e infor,!tion $!s +o,e into t$e (u"#i+ )o,!in ot$er t$!n t$rou%$ t$e f!u#t of t$e (!rt< )is+#osin%
itH
(-) )is+#osure is re;uire) "< #!2 or "< !n< se+urities e9+$!n%e or re%u#!tor< or %overn,ent!# "o)<
$!vin% juris)i+tion over t$e (!rt< )is+#osin% t$e infor,!tion> 2$et$er or not t$e re;uire,ent $!s
t$e for+e of #!2H
(C) )is+#osure is ne+ess!r< in or)er to est!"#is$ or (rote+t !n< #e%!# ri%$t of t$e (!rt< )is+#osin% t$e
infor,!tionH or
(D) t$e )is+#osure is #i,ite) to t$e )ire+tors !n) offi+ers> (rofession!# !)visers> !u)itors> "!nCers or
insurers of t$e (erson )is+#osin% t$e infor,!tion> !+tin% !s su+$> or to ! (erson inten)e) to "e
+!##e) !s ! 2itness in t$e !r"itr!tion "< t$e (erson )is+#osin% t$e infor,!tion> for t$e (ur(ose of
(re(!rin% $is testi,on<> "ut (rovi)e) t$!t in !n< su+$ +!se ! 2ritten +onfi)enti!#it< un)ert!Cin% in
! for, e;uiv!#ent to t$is +#!use $!s first "een o"t!ine) fro, t$!t (erson4
T$e restri+tions +ont!ine) in t$is +#!use !843$ s$!## survive t$e ter,in!tion of t$is !%ree,ent4$
!12%)$
)(
Arbitration clause for a shareholders a'reement 0ith an alternatie dispute resolution or conciliation proision
!#$ Arbitration
!841$ If ! )is(ute !rises out of or in +onne+tion 2it$ t$is !%ree,ent> in+#u)in% !n< ;uestion re%!r)in% t$e e9isten+e>
s+o(e> v!#i)it< or )eter,in!tion of t$is !%ree,ent or t$is +#!use t$en t$e (!rties !%ree first to seeC in %oo)
f!it$ to reso#ve t$e )is(ute "< !#tern!tive )is(ute reso#ution4
!84$ In t$e event of t$e )is(ute not "ein% sett#e) 2it$in &8 )!<s of t$e +o,,en+e,ent of t$e !#tern!tive )is(ute
reso#ution (ro+e)ure> or su+$ furt$er (erio) !s t$e (!rties s$!## !%ree in 2ritin%> eit$er (!rt< ,!< re;uire t$!t
t$e )is(ute "e referre) to !n) fin!##< reso#ve) un)er t$e Ru#es of t$e Lon)on Court of Intern!tion!#
Ar"itr!tion !or t$e Ru#es of Con+i#i!tion !n) Ar"itr!tion of t$e Intern!tion!# C$!,"er of Co,,er+e$ 2$i+$
Ru#es !re )ee,e) to "e in+or(or!te) "< referen+e into t$is +#!use4
!84&$ T$e )!te of t$e +o,,en+e,ent of t$e !#tern!tive )is(ute reso#ution (ro+e)ure s$!## "e )efine) !s t$e )!te on
2$i+$ one of t$e (!rties for2!r)s ! re;uest in 2ritin% to t$e ot$er (!rt< to !tte,(t to reso#ve t$e )is(ute "<
!#tern!tive )is(ute reso#ution4
!84*$ T$e nu,"er of !r"itr!tors s$!## "e !1 1or6 &$4 1i. ;0 then provide .or manner o. nominationL usuall, one
chosen b, each side and the ;rd appointed b, a!reement o. the 9 arbitrators-i. no a!reement0 then the
relevant institution bod, will make the appointment6
!840$ T$e (#!+e of t$e !r"itr!tion s$!## "e Lon)on !n) t$e (ro+ee)in%s of t$e !r"itr!tion s$!## "e %overne) "< t$e
#!2s of En%#!n)4
!841$ T$e !r"itr!tion (ro+ee)in%s s$!## "e +on)u+te) in t$e En%#is$ #!n%u!%e !n) t$e A2!r) s$!## "e in En%#is$4
!843$ T$is !%ree,ent s$!## "e %overne) "< t$e #!2s of En%#!n)4
!!845$ T$e tri"un!# s$!## $!ve t$e (o2er to !2!r) se+urit< for +osts4$
!!846$ T$e (!rties !%ree t$!t infor,!tion +on+ernin% !n< !r"itr!tion> in+#u)in%> 2it$out #i,it!tion> infor,!tion
+on+ernin% !n< !r"itr!tion !2!r)> s$!## "e tre!te) !s +onfi)enti!# !n) not )is+#ose) to !n< t$ir) (!rties
2it$out t$e +onsent in 2ritin% of !## of t$e (!rties un#ess:
(A) t$e infor,!tion $!s +o,e into t$e (u"#i+ )o,!in ot$er t$!n t$rou%$ t$e f!u#t of t$e (!rt< )is+#osin%
itH
(-) )is+#osure is re;uire) "< #!2 or "< !n< se+urities e9+$!n%e or re%u#!tor< or %overn,ent!# "o)<
$!vin% juris)i+tion over t$e (!rt< )is+#osin% t$e infor,!tion> 2$et$er or not t$e re;uire,ent $!s
t$e for+e of #!2H
(C) )is+#osure is ne+ess!r< in or)er to est!"#is$ or (rote+t !n< #e%!# ri%$t of t$e (!rt< )is+#osin% t$e
infor,!tionH or
(D) t$e )is+#osure is #i,ite) to t$e )ire+tors !n) offi+ers> (rofession!# !)visers> !u)itors> "!nCers or
insurers of t$e (erson )is+#osin% t$e infor,!tion> !+tin% !s su+$> or to ! (erson inten)e) to "e
+!##e) !s ! 2itness in t$e !r"itr!tion "< t$e (erson )is+#osin% t$e infor,!tion> for t$e (ur(ose of
(re(!rin% $is testi,on<> "ut (rovi)e) t$!t in !n< su+$ +!se ! 2ritten +onfi)enti!#it< un)ert!Cin% in
! for, e;uiv!#ent to t$is +#!use $!s first "een o"t!ine) fro, t$!t (erson4
T$e restri+tions +ont!ine) in t$is +#!use !846$ s$!## survive t$e ter,in!tion of t$is !%ree,ent4$
!12%,$9!12)2$

Joint Ventures

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JOINT VENTURES

See $o2ever> t$e (osition 2it$ re%!r) to (riv!te #i,ite) +o,(!nies4

4 So,e (rovisions of t$e /!rtners$i( A+t

for ! (!rtners$i( joint venture to "e for,e) 2$ere

Ie t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !s !,en)e)4

As to t$e #i!"i#ities of (!rti+i(!nts in ! +onsortiu, see /!r!%r!($ 60 J6*K (ost4

See @i!!ins v #enior (15*1) 5 = !n) 7 5&*4

&rellin v Brook (15*0) 1* = N 7 114

> t$!t t$e !+tivit< of ! (!rtner "in)s t$e ot$er (!rtner(s)>

/!rtners$i( A+t 1568 s 0 (& .!#s"ur<As St!tutes (*t$ E)n) /ARTNERS.I/)4

Bentle, v &raven (150&) 15 -e!v 304

See t$e /!rtners$i(s !n) Un#i,ite) Co,(!nies (A++ounts) Re%u#!tions 166&E1584

4 Ins(e+tion of !n< "ooCs of t$e (!rtners$i( joint

4 T$e (!rtners$i(s su"je+t to t$ese Re%u#!tions !re referre) to !s ;u!#if<in%

4 :urt$er,ore> if ! ,e,"er of ! ;u!#if<in% (!rtners$i(> in+#u)in% ! ,e,"er of ! ;u!#if<in% (!rtners$i( joint

I"i) re% 5()4

I"i) re% 1()4

4 :or t$e e9e,(tion to !((#<> $o2ever> t$e

I"i) re% 3(1)4

4 T$ere !re t2o (rin+i(!# (ro+e)ures for 2in)in% u( !

Inso#ven+< A+t 1651 s 1A(1) !s inserte) (see note 1 !"ove)4

See t$e Inso#vent /!rtners$i(s Or)er 166*E*1 !rt 5(1)4

!n) e!+$ (!rtner 2i## "e su"je+t to t$e

4 T$e juris)i+tion ru#es for

,!< !((#< to t$is inso#ven+< (ro+e)ure4 7$ere ! "!nCru(t+< (etition

Inso#vent /!rtners$i(s Or)er 166* !rt 1*()4

I"i) !rt *> S+$ 14

Dallas (c(illan B #inclair v #impson (1656) SLT *0*4

! restr!int of tr!)e +#!use in res(e+t of ! ,e)i+!# (r!+ti+e

&larke v *ewland J1661K 1 A## ER &63> CA4

See :or,s 8 J1533K> 1 J1535K (ost4

"< reso#ution i,,e)i!te#< !fter t$e ne+ess!r<

See e% :or, 5 J1153K (ost4

See :or, J1551K (ost4

4 Conse;uent#<> it is ne+ess!r< to +onsi)er 2$et$er ! ,inorit< (rote+tion +#!use %overnin%

As to )e!)#o+C (rovisions see /!r!%r!($ 51 J6&K (ost4

4 E!+$ (!rt< +oven!nts> first> to use its "est

See :or, +#!use 6 J105K (ost4

4 In su+$ ! +!se> un#ess !

See :or, &6 J1616K (ost4

4 If #iti%!tion is t$e %ener!# (referre)

4 7$ere t$ere !re ,ore t$!n t2o (!rties to t$e venture> !

See :or,s 3 J168&K> &* J161K (ost4

> or to +o'o(er!te in t$e )esi%n !n) )eve#o(,ent of ! (ro)u+t

See :or, 18 J13&1K (ost4

4 At t$e $e!rt of t$e ;u!si'(!rtners$i( +on+e(t is ! re#!tions$i( "et2een t$e (!rti+i(!nts

2$i+$ +on+erns ! ,er%er> i##ustr!tes t$e (ro"#e,s r!ise) "< ;u!si'(!rtners$i(s>

Re Eenid/e 'obacco &o Ltd J1611K C$ *14

!n) (rovi)es t$!t 2$ere !

Co,(!nies A+t 1650 s *06()4

4 T$e 2or)in% of Se+tion *06 $!s "een

See t$e Co,(!nies A+t 16*5 s 184

See Re a &ompan, J1650K -CLC 584

4 In Re B#B @oldin!s Ltd

! joint venturer in ! +o,(!n< te,(or!ri#< re%istere) $is s$!res in $is

See Auinlan v Esse7 @in!e &o Ltd J1661K -CLC *134

Re &umana Ltd J1651K -CLC *&8> CA4

See Re Wondo.le7 'e7tiles Pt, Ltd J1601K VLR *054

!n) or)er t$!t !)e;u!te +o,(ens!tion "e (!i) for t$e

Ie t$e Inso#vent /!rtners$i(s Or)er 166E1 !s !,en)e)4

See @i!!ins v #enior (151) 5 = !n) 7 5&4

&rellin v Brook (150) 1 = N 7 114

See t$e Inso#vent /!rtners$i(s Or)er 166E1 !rt 5(1)4

Dallas (c(illan B #inclair v #impson (1656) SLT 04

Re #mith B Fawcett Ltd J16K C$ &8> CAG

Dean v Prince J160K C$ 864

7it$in t$e ,e!nin% of EC Coun+i# Re%u#!tion 81E56 !rt &4

34 s(e+i!#is!tion !%ree,ents (EC Co,,ission Re%u#!tion 13E50)