Publications

Company Opportunities

 

Joint venture participants should agree on a process for determining whether a participant is obligated to refer a business opportunity to the venture or whether the individual participant may consider the opportunity on a stand-alone basis. The most important element in agreeing upon company opportunity provisions is often in defining what types of opportunities fall within the scope of the joint venture's business activities. A related issue is how the joint venture will decide whether to pursue a business opportunity that is identified by one of the venture parties. If one of the joint venture's members is in favor of pursuing an opportunity and the other party is not in favor, will the joint venture pursue the opportunity in same fashion? Will the proposing party have the right to pursue the opportunity individually if the joint venture does not elect to pursue the opportunity?