This article is more than 24 months old and is now archived. This article has not been updated to reflect any changes to the law.

clearlaw

Business Structures in 2007: An eventful year in review — issues for you and your clients to consider

Two cases during 2007 aptly illustrated the need for joint venturers to carefully document their relationship — in particular, whether fiduciary duties apply between the parties as they would in a partnership. The Cleardocs Team at Maddocks

In Farah v Say-Dee, the High Court appeared to assume that fiduciary duties applied to the relationship — despite the parties having agreed that it was a joint venture.

In ASIC v Citigroup, the Victorian Supreme Court confirmed that parties can expressly 'contract out' of fiduciary duties — including in documents such as joint venture agreements.

These cases remind practitioners that they cannot rely on the assumption that fiduciary duties do not apply to joint venturers — even so, express contractual terms can address the issues adequately.

For a more detailed summary of the cases and the differences between partnerships and joint ventures, see our full article here.

 

Lawyer in Profile

Andrew Wright
Andrew Wright
Partner
PH: 61 3 9258 3362

Andrew is a Partner in the Maddocks Tax & Revenue team.

Andrew provides advice on:

  • structuring of businesses and transactions;
  • mergers and acquisitions;
  • corporate reorganisations;
  • sale of businesses;
  • fixed and discretionary trust deeds; and
  • international tax structuring.

His advice covers both direct and indirect tax considerations.

Prior to joining Maddocks, Andrew was a tax consultant at a Big 4 Chartered Accounting Firm.