The Basic of Corporate Governance, with Focus on Joint Venture

Document Type : Original Article

Author

Private Law Department,, Law and Political Science Faculty, University of Tehran

Abstract

The need to consolidate expertise, different skills and even cooperation between fund providers and on the other hand the need of developing countries to transfer technology has led to the use of Joint Ventures as one of the methods of foreign indirect investment. Therefore, in order to take advantage of new investment opportunities, effective corporate governance rules should be used to strengthen investment, entrepreneurship, transparency and conflict resolution. This type of governance is seen at first glance as a commercial affair. However, since it is a regulatory process that pays great attention to the vital facilitating mechanisms of the company and to creating balance between various goals, and its non-observance leads to legal or criminal enforcement guarantee, it should be considered as a legal matter.

Due to the limited research on this subject from the law perspective, the purpose of this study is to investigate the legal aspects and the governing theories with an emphasis on corporate Joint Venture, which due to its features such as limited activity and duration, lack of stability, risk and uncertainty, as well as competition between shareholders, require different and stronger corporate governance. This article in terms purpose is considered applied and in terms of research method is library-based.

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Main Subjects


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