You are a Company Secretary of Cube Ltd. which is planning into joint venture with Puma Ltd. based in London, for marketing and selling a new product launched by your company. Advise your Board of Directors about the imp

(i) Restrictive covenants A Restrictive Covenant is a specific type of covenant in which someone agrees to be restricted by a contract. The most common type of restrictive covenant is one in which a former employee is restricted from working in his or her field for a specific time and within a specific area after leaving employment. Cube Ltd. would be advised to enter into restrictive covenants in the complex area of parallel or relates businesses. It should also seek non-disparagement, confidentiality and nonsolicitation of employee covenants. Whether an IJV is dissolved or ends by one party purchasing the interest of another, non-competition provisions may well be appropriate. (ii) Alternative Dispute Resolution Only Cube Ltd. and Puma Ltd. themselves can achieve a solution their will not only resolve the dispute and facilitate a useful future relationship. Mediation, conciliation and arbitration are the important ADR mechanism. Arbitration is the more important and prominent of the private settlement mechanisms for international commercial relations. Arbitration is consensual, a private procedure and leads to a final and binding determination of the rights and obligations of the parties. Cube Ltd. would be advised to include an arbitration clause in the joint venture agreements.