The Ministry of Corporate Affairs issued general circular No. 9/2017 on 5 September to clarify its definition of a joint venture (JV) following its decision in July to exempt unlisted public companies that were JVs, wholly owned subsidiaries or dormant companies from the requirement to appoint independent directors.
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A JV in this context would mean a joint arrangement entered into in writing by parties so that the parties would have rights to the net assets of the arrangement. The usage of the term is similar to that under the accounting standards.
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
