Document background
A Pooling Agreement is a crucial document used in South African business operations where two or more parties wish to combine their resources, assets, or operations for mutual benefit while maintaining their separate legal identities. This type of agreement is particularly relevant in the South African context where businesses often need to collaborate to achieve scale, share risks, or meet regulatory requirements such as BBBEE objectives. The agreement must comply with South African competition law, particularly the Competition Act 89 of 1998, and addresses key aspects such as contribution valuations, management structures, profit sharing, and exit mechanisms. The document is especially important in capital-intensive industries or where operational efficiencies can be achieved through resource sharing. The Pooling Agreement should be carefully structured to address both the commercial objectives of the parties and the specific regulatory requirements of the South African legal framework.
