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Associates and Joint Ventures

In: Off Balance Sheet Finance

Author

Listed:
  • Ron Paterson

Abstract

As an alternative to carrying on a business activity on its own or through a subsidiary, a company may do so jointly with another party or parties in such a way that it participates in the management of the activity but does not control it outright. This may be achieved by taking a minority stake in another company which is substantial enough to give the investor a significant influence over the affairs of the investee, but which falls short of the dominant influence which would make the investee its subsidiary undertaking. Alternatively, the shared activity may be conducted directly by the parties as a joint venture without using a company as the vehicle through which to conduct it.

Suggested Citation

  • Ron Paterson, 1993. "Associates and Joint Ventures," Palgrave Macmillan Books, in: Off Balance Sheet Finance, chapter 4, pages 35-39, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-12613-2_4
    DOI: 10.1007/978-1-349-12613-2_4
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