An example of a non-EU joint venture in Malaysia is the joint venture between Ho Hup Construction Co Berhad and DSE Construction Sdn Bhd, where Ho Hup Construction Co Berhad holds an 80.7% profit share in the non-owned joint venture. The joint venture, without a legal personality, has won a contract of 221.4 million.RM as part of the Sungai Besut rehabilitation project in Terengganu. The duration of the community without a commune was three years. Since each party plays its own role in the joint venture, it is essential for the joint enterprise agreement to define the rights, obligations and obligations of each party to the joint venture. These clauses in a joint enterprise agreement should be comprehensively developed and cover all rights, obligations and obligations of each party. A comprehensive joint venture agreement will help minimize the risk that one party will say that the other party has not fulfilled its obligations and obligations to the joint venture or that it has not fulfilled them. Finally, the success of a joint venture requires the joint effort of all parties involved. Any allegation of non-compliance with tariffs and obligations by one party against another will undoubtedly result in a huge setback for the joint venture. Many factors must be considered by the parties before entering into a joint venture. These factors should include a balance between diligence and the business model.
The parties should consider appointing a legal expert to instruct the parties of a proposed joint venture to carry out interim diligence in order to avoid future setbacks. This essentially minimizes future risks and promotes transparency between all parties to the joint venture. Tan Boon Lee, CEO of Tan-Tan, said: “We are very pleased to be working with Mitsubishi Jisho Residence through our agreement with MJRI and hope that this will mark the beginning of a long and fruitful relationship. As part of Mitsubishi Estate Group, the company is very experienced and we look forward to working with them as local partners here in Malaysia. There is never a guarantee of success in the economy and, in some cases, one or more parties to a joint venture may find that their business objectives and interests have changed from the original objectives and scope of the joint venture. Parties should consider including exit strategies in the joint enterprise agreement. Exit strategy provisions generally help parties to a joint venture to terminate the joint venture in a predictable and amicable manner. Common exit strategies include liquidation, put and call and the right to refuse in the event of a registered joint venture. The inclusion of an exit strategy helps parties not to be forced to remain at an impasse. The popularity of joint ventures has increased in recent years, with parties having a number of advantages available to a joint venture, including risk and cost sharing, access to new markets and strategic conflicts against competition.