For the successful execution of joint ventures, the following guidelines may be followed:

(i)    Objectives. The basic objectives of the joint venture should be spelled out clearly. The interests of two partners may not be identical and compatible. Therefore, basic differences in their objectives should be stated in advance before laying down the objectives of the joint venture.

(ii)    Choice of Partner. Choice of partner should be based not eh intention, sincerity and capability (financial, technical and managerial) of the concerned partner in carrying out the joint venture.

(iii)    Shareholding. The pattern of shareholding to be held by each partner must be pre-determined. Ideally speaking, cut-off point for equity participation by the partners should be at
the level which serves the interests of joint venture as well as these of partners.

(iv)    Management. The management of the joint  venture should be as autonomous as possible. There should not be much interference form the partners. in any case, the composition of the board of directors of joint-venture must be decided at the initial stage.

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