The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

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By Topic: Joint Ventures

  • From Vol. 3 No.10 (May 14, 2014)

    FCPA Compliance in Non-Controlled Joint Ventures

    Transnational joint ventures – especially where the company owns a minority stake and does not control the venture – are fraught with corruption risk because the company is “on the hook” for the actions of the joint venture abroad.  At a recent panel, FCPA experts noted that companies are increasingly aware of this risk and are acting on it.  Mark Mendelsohn, a partner at Paul Weiss, moderated the discussion about joint venture corruption risks and compliance strategies at Practising Law Institute’s Foreign Corrupt Practices Act and International Anti-Corruption Developments 2014 program.  The panel featured James Bamford, a Founder and Managing Director at joint venture advisory firm Water Street Partners; Timothy Dickinson, a partner at Paul Hastings; and Kathryn Cameron Atkinson, a member of Miller & Chevalier.  See also “Strategies for Mitigating the FCPA Risk of Entering Into Joint Ventures,” The FCPA Report, Vol. 2, No. 9 (May 1, 2013).

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  • From Vol. 2 No.9 (May 1, 2013)

    Strategies for Mitigating the FCPA Risk of Entering Into Joint Ventures

    Companies are relying increasingly on joint ventures (JVs), that is, a business undertaking by two or more companies engaged in a single defined project, particularly when accessing a new market or building a new business line.  While JVs may make sound business sense – allowing the JV partners to leverage one another’s expertise, markets, resources, reputations, etc. – they also present significant legal risk under the FCPA.  Although the potential for FCPA liability based on the actions of a joint venture or one of its partners may depend on the level of control a company has over the joint venture or the extent to which it was aware of or involved in the misconduct, the risk of partnering with a company engaged in misconduct is always present.  In a guest article, Andrew J. Dunbar and Ike Adams, partner and associate, respectively, at Sidley Austin LLP, discuss the FCPA provisions giving rise to joint venture liability based on the actions of joint ventures and joint venture partners as well as the steps companies should take before entering into joint ventures in order to limit the risk of FCPA liability.

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