Commentary

107 Further finance from outside the joint venture

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

107 Further finance from outside the joint venture

| Commentary

107 Further finance from outside the joint venture

It may not be possible to find all or some of the necessary further finance from within the company itself. In this eventuality, it is of course impossible in the shareholders’ agreement to dictate the terms upon which an outside lender, for example a bank or finance company, will be prepared to advance the money. Neither can the agreement specify which, if any, of the shareholders may be required to guarantee the loan or to pay out in the event of the company’s default.

What the agreement can do, however, is to

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