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What happens if we unable to break the deadlock in a joint venture agreement?

A deadlock scenario will usually occur in 50:50 joint ventures where neither party to the joint venture has a majority. In these circumstances, no agreement can be reached without one party conceding.

Vardags advises businesses on deadlock scenarios, particularly in relation to deadlock provisions in joint venture agreements. Where an agreement is silent, will look at what you and the business want to achieve, what you seek to protect and how you envisage moving forwards. Having understood your needs, Vardags will explore the various options available to you which may include selling shares, acquiring shares, share buy-backs, third party buy-ins or court action.

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