France Joint Venture Agreement

This strategic agreement strengthens Telefonica`s position in the European market and lays the foundations for the future growth of the French multinational market (MNCs). It provides Bouygues Telecom with the international coverage needed to do business with global groups and strengthen their presence in the French market. Joint ventures can be very informal, for example. B a handshake. Other agreements can be extremely complex, such as a consortium of large telecommunications companies. B, airlines or media companies, etc., that are teaming up to open new markets. If you create a joint venture in France, like any other business organisation, it must be registered with the French trade and commerce register. When the joint venture operates independently of its parent companies, it is subject to the supervision and control of the French competition authority. If the joint venture`s profit exceeds 150,000,000 euros, it will also be subject to the competition authority. In French law, there is no specific legal concept of a joint venture. Contracting parties sometimes opt for certain forms of joint ventures that allow tax transparency (for example. B a commercial partnership or civil partnership). Under the transparency regime, the profits of joint ventures are taxed in proportion to the joint venture at the level of each shareholder.

Air France has fundamental advantages in a highly competitive environment: the powerful Paris-Charles de Gaulle hub, a balanced network, an optimized fleet, a member of SkyTeam, a global alliance with 19 member airlines, a trans-Atlantic joint venture agreement with Delta, an innovative product offering that puts the customer at the heart of its strategy, a strict cost control strategy. It is customary to specify in the joint enterprise agreement the consequences of not meeting future financing obligations. The latter differ considerably from one deal to another, the least serious .B. being a late interest charge, ranging from the possibility for the financing party to dilute the interests of the joint venture of the non-financing party or the suspension of the rights of the unfunded party under the joint enterprise agreement (such as the representation of the board of directors , rights in reserved cases, etc.) to the most severe punishment. : a put option (or call option) on the share of the joint venture with an increase of (or discount) on the market value. The most common governance issues are the composition of the board of directors, decision-making and the rules of the majority of the board of directors; The appointment of the CEO or other senior executives of the joint venture; and the reserved list. Created in 2009 with Delta, the joint venture was extended to Alitalia the following year. It covers all flights between North America, Mexico and Europe through integrated cooperation. Take, for example, the contractual joint venture between foreign investors Air France-KLM, Delta and Alitalia.

This joint venture is now the most advanced model of cooperation between airlines. This involves sharing and sharing revenues and costs of more than 250 daily transatlantic flights operated by Air France, KLM Delta and Alitalia. However, since it does not have the personality of a company, it cannot adopt its own legal act. It cannot be passed on to third parties or commercial, otherwise the partners are responsible for their actions with third parties for an indeterminate, solidarity and solidarity period. It is customary to include a deadlock scheme and a resolution mechanism in the joint enterprise agreement. However, the omission of this clause is a valid option that could be used to encourage the parties to reach an agreement. An alternative is the purchase or sale provision (Russian roulette), which has been recognized as valid by the French courts.