Sunil Tyagi, Managing Partner, Zeus Law, said this during a seminar at Yokohama India Centre in Japan recently. He also highlighted the crucial significance of attaining affirmative rights in a JV arrangement.
Speaker: Mr. Sunil Tyagi, Managing Partner at ZEUS Law
Published in asiancommunitynews.com on 06th December 2022
TOKYO: Sunil Tyagi, Managing Partner at Zeus Law Associates, a full-service corporate & commercial law and litigation advisory firm headquartered in New Delhi, on his recent trip to Tokyo presented at a seminar organized at the Yokohama India Centre, along with Kenji Suzuki San, on the topic “Joint Venture Companies in India: Formation & Dispute Resolution Mechanism”.
The seminar was well attended by participants from different business sectors, either doing or planning to do business with Indian partners. At this interactive seminar, Mr. Tyagi also discussed and explained the important considerations and concerns of foreign entities seeking to set up business in India with local partnership.
The seminar highlighted the requirement for conducting a multifaceted due diligence exercise of not only the target entity (if any) and the partner company but also of the promoters of the partner company, before entering into a joint venture arrangement, which is often overlooked.
“The character and reputation of the promoters of the partner company, their other business and assets, legal history and history of disputes, their past joint ventures and analysis of the risks should be assessed before entering into the joint venture arrangement,” said Mr. Tyagi.
The relevance and importance of affirmative rights in a joint venture was discussed at length during the seminar “Joint Venture Companies in India: Formation & Dispute Resolution Mechanism”.
Considering that litigation in India is very tedious and time-consuming, mediation, conciliation and arbitration as preferred alternatives, were stressed upon, for differences arising between joint venture partners, for faster and comparatively cost-effective resolution of disputes.