An Indian automobile company made joint venture with a European company for technology transfer to manufacture automobile in India and after running successfully for 15 years in India now both the company wants to termin

Any number of events may lead to the termination of a Joint Venture (JV). Many termination events are anticipated and provided for in the joint venture agreement. For example, a breach of the joint venture agreement may trigger termination or failure to meet research and development deadlines may lead to termination. A JV may terminate upon achieving its objectives. Alternatively, a JV may terminate upon failing to meet its objectives. The agreement could provide that one JVP buy the other out or sell its shares, or vice versa. Excessive costs, failure to achieve projected income, or unforeseen capital requirements may make the continuation of a JV unattractive. In addition, a change in the JV's objectives or those of a shareholder may also lead to the early termination of the JV. Changes in objectives may result from a JVP's internal strategic redirection, competitive advances, or market changes beyond the control of the JV or its shareholders. Disagreement by JVPs on fundamental management issues may also lead to termination. An obvious disadvantage of sharing capital obligations is the need to share profits generated from the actual operation of the JV. Issues can arise in this area because of the fact that parties will also be contributing intangible assets to the business, such as intellectual property rights and technical expertise. Technology and management sharing can potentially create significant problems among the parties. In particular, one party's mastery of the other's technology can lead to improvements on that technology beyond the intended services of the JV, a factor that tends to discourage companies from disclosing their technologies for fear of losing the competitive edge to their JVP. However, JVs offer a structure where both partners contribute to the costs associated with the exploitation of the technology in proportion to their expected benefits. The motive of forming a joint venture is to gain from the venture by boil the parties and terminate the venture when the desired objective is fulfilled. Listed below are the ways a joint venture can be terminated or dissolved: According to the termination or dissolution provisions in the joint venture contract, most joint venture contracts will state a date upon which the venture is to end. Because it was ordered by a court decree. At the direction of one of the venturers. Moreover, provisions regarding at-will dissolution will likely be contained in the contract. The stated goals of the venture have not been met, or have already been completed. The aims of the venture have become impossible to fulfill and therefore the joint venture in jeopardy. There are one or more entities that disagree with the aims of the venture or have developed different business goals. The market conditions could have rendered the joint venture unprofitable, inappropriate, or irrelevant. Legal problems or other financial hardships have taken place.