Joint Arrangements by Antonio Dayag

Joint Arrangements by Antonio Dayag Voting Rights Right s Case Entity A Entity B Entity C Other Party

Reqired !ote to direct rele!ant acti!ities Conclsio n

Assessing te terms o. te 'ontra't/al arrangement

1

2

3

4

50% 30% 20%

50% 25% 25%

5 5% 2 5% 2 0%

3 5% 3 5% None

 Not applicabl e

 Not applicabl e

 Not applicabl e

Widely dispersed

"5%

"5%

" 5%

" 5%

#oint Control$

 No oint Control$$

#oint Control$

 No oint Control$ $

parties collecti collecti!ely !ely control control the *Joi *Joint nt Cont Contro roll ~ the parties arran&e'ent becase they are the only co'bination o(   parties that can control and the parties parties 'st nani'osly a&ree) a&ree) *n case case 3, there is also a oint control becase a sin&le co'bination is s((icient to achie!e the 'ini''  proportion or !otin& !otin& ri&hts) (25%>20%) **o Joint Joint Control + 'ltiple co'bination o( parties col cold d coll collec ecti ti!e !ely ly cont contro roll the the arra arran& n&e' e'en ent, t, the the contract contractal al a&ree'ent a&ree'ent does not speci(y speci(y -hich -hich parties parties 'st st a&re a&ree, e, ther theree is no nan nani' i'o oss cons consen ent) t) .he .he arra arran& n&e' e'en entt is trea treate ted d as an A!!"C#A$& A!!"C#A$& ('ase 2, bot 25%, 'ase 4, " +0% an tere are oter -arties)

Contractual Terms  

Joint "-eration Terms of contractual  agreement 

 Rights to assets assets and obligations

 Right to assets

 Parties share share all  the  the interest   Parties share share all liabilities, obligations, costs and expenses in a  specified proportion proportion

Obligations for liabilities

Joint ent/  Rights to the net ass (joint arrangement i liable not the partie  Parties have no int   Joint arrangement i liable for the debts obligations ~ contractual agree establishes that par  are liable to the arrangement only t  extent or their respective:

 nvestments !bligations to cont  any unpaid or additional capital both  Relative performance performance "hare in the profit o of each party to the relating to the activi arrangement  of the arrangement#  Parties are are often re$uire re$uired d to provide provide guarantie third parties# •  • 

 Revenues, expenses,  profit or loss (Basis) Guarantees