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International expertise Our work in practice

Expanding business overseas: helping to realise the greater potential. Setting up a joint venture in India A UK-based small wind turbine manufacturer saw the opportunity of teaming up with an overseas conglomerate. The manufacturer’s vision was to make their wind turbine designs in India and establish a marketing and distribution capability across the South Asian country. Key tasks – Identifying tax-saving mechanisms We advised our client to establish a strategic network of marketing operations and distribution centres within India. This arrangement will save on Indian sales tax, charged on the transfer of products from one region to the next. – Reducing board management time and costs We devised a company structure that enabled the board members who were not based in India to rotate their attendance at meetings in the country. This innovation met Indian regulations, while saving valuable management time and costs. Delivering value for money We agreed a fixed upper-limit on fees with the client and carefully monitored our project management costs.

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Creating a global, green technology joint venture Our client, a global engineering company, wanted to establish a joint-venture company with a Japanese-based conglomerate. The new venture’s aim was to identify commercially viable green and clean technologies. Sweat equity would come from the engineering company – the minority shareholder – with the Japanese partner providing the necessary cash and agreeing to finance the joint venture’s clients, where necessary. We were asked by our client to draft and negotiate the joint venture’s terms. Key tasks – Establishing the basis for the joint venture The key issues included identifying the scope of business for the joint venture and advising on the board’s composition and shareholder representative matters. – Negotiating the necessary minority shareholder protections We made sure that key decisions on the deployment of capital funds and on raising of the company’s leverage targets involved the minority shareholder. – Managing the cultural differences Explaining issues and risks in simple terms, with an indepth understanding of the hierarchical nature of the Japanese corporate decision-making and management style, proved invaluable to the project’s success.

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Cresco Legal International Case Studies