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Joint ventures

  1. There may be occasions when two or more companies combine their resources to carry out a joint venture. This can take different forms:
    • Each individual company carries out a separate contract, although they may co-operate for administrative or organisational purposes.

      Each company would be liable for its own contraventions and could therefore be prosecuted in its own name without reference to any of the other companies involved.

    • The companies involved contribute resources to the formation of a new company for the purpose of the joint venture.

      This separate company is a legal person which can be prosecuted in its corporate name.

    • The companies involved conduct the venture under a business name without forming a new company.

      This will constitute a partnership in which the companies are the partners. They will be jointly and severally liable for contraventions arising from the venture.

Updated 2009-07-07