Document background
The Incorporated Joint Venture Agreement is a critical document used when two or more parties wish to establish a new corporate entity under Canadian law to pursue a specific business opportunity or project together. This type of agreement is particularly suitable for long-term business collaborations requiring significant capital investment, shared resources, or complex operational structures. It provides a comprehensive framework for the joint venture's governance, including detailed provisions for corporate formation, shareholder rights, management structure, financial contributions, and profit sharing. The agreement must comply with both federal legislation (particularly the Canada Business Corporations Act) and relevant provincial corporate laws. It's commonly used in capital-intensive industries or when parties seek to create a distinct legal entity with its own identity, assets, and liabilities separate from the parent companies.
