Mining Joint Venture Agreement South Africa

James heads the tax group of Deloitte Global Mining – Metals. He works with a management team of more than 40 mining and metals professionals in all regions. He is also an international tax partner and heads the equity capital markets tax group, which provides tax advice, structuring and monitoring audits for IPOs. James also heads Deloitte UK`s CIS Services Group. He has more than 23 years of experience in global markets, including the UK, South Africa and Russia. James specializes in the energy, resource and industrial industries, as well as in the technology, media and telecommunications sectors. He has a master`s degree in physics from Oxford University. We understand that joint ventures may require an interdisciplinary approach and we provide the practice areas and jurisdictions smoothly. The most common governance issues associated with joint ventures are the division between day-to-day operations and overall monitoring of day-to-day operations. Whether the joint venture is managed through a company or partnership, there is normally a business or management committee that would be responsible for the day-to-day running of the partnership or business. This institution would have some kind of delegated authority to make certain decisions on behalf of the company or the partners.

As a general rule, the board of directors or management committee would oversee this settlement or management committee. In the case of a company, certain decisions may also be reserved for decision-making by the company`s shareholders. See also the debate on question 31 on strengthening the black economy. Apart from South African exchange control rules, there are no specific rules for foreign partners. Joint ventures are not specifically regulated in South Africa. If the joint venture vehicle is a business, the rules of corporate law (mainly the South African Companies Act) apply. When the joint venture is structured through a partnership company, the rules for partnerships apply to South Africa`s common law. There are no corporate or corporate law rules that specifically apply to parties outside the joint venture. South African companies do most of their business by a simple majority vote on the board of directors or by a majority vote of shareholders. In the absence of a contrary agreement, minority investors therefore have the opportunity, through their legal action, to exercise control over the decision-making of a joint venture, particularly in the case of a registered joint venture, in which a majority shareholder with a stake of more than 50% will be able to effectively control the joint venture. , also by the power to appoint and remove directors. Therefore, it is customary for minority investors in these circumstances to seek additional means of blocking controls by a majority shareholder and for this additional protection to be included in the constitution agreement.

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