Date Published: 1 December 2020
CNPLaw LLP (CNP) advised Singapore-based technology services group, ADERA AI on its joint venture with recently delisted food and beverage (F&B) player, BreadTalk Group.
The joint venture provides significant opportunities for ADERA AI to introduce and deploy its fintech and digital solutions to BreadTalk Group’s established F&B businesses. It comes amid the Covid-19 pandemic where technology has become an essential tool to overcome operational challenges and enhance business agility. Specifically, the joint venture will develop innovative fintech and digital solutions targeted at small and medium-sized enterprises and set up a blockchain-based supply-chain financing platform with digitalised processes and document automation.
Every business involves an amalgam of various stakeholders, such as investors, shareholders and directors. Ideally, each of these stakeholders should have a common vision of what is best for the company. However, this is rarely the case when individual interests are factored into the equation.
Stakeholder conflicts (regarding issues such as breaches of fiduciary duties, derivative actions, shareholder oppression, management deadlocks, management compensation, dividend payments and buy-outs) can be a thorny issue and can leave a company crippled if not addressed promptly.
Given the diversity of interests at play, we appreciate that a multi-faceted approach is usually the most cost-efficient method of resolving stakeholder conflicts. Therefore, we provide clients with ready access to an integrated team of lawyers (combining the experience of our corporate, dispute resolution and employment law practices where applicable) who will effectively engage the relevant stakeholders in discussions on how best to resolve their differences amicably.
More often than not, clients are able to avoid costly protracted court proceedings and resolve stakeholder conflicts with discretion and expediency.
There are numerous commercial drivers behind the rising popularity of joint ventures as a business/investment structure, including obtaining access to new markets within and across jurisdictions and harnessing the synergies of complementary skill sets.
By advising on how the joint venture should be structured along with related issues, such as the sharing of intellectual property and tax considerations, and documenting the terms of the party’s collaboration, our corporate lawyers help drive your joint venture ideas forward.
We continue to provide support to the joint venture throughout the course of its lifespan by preparing service agreements and other commercial agreements relevant to its operations.
In addition to offering legal insights, our lawyers are experienced at advancing our clients’ interests while being attuned to the ongoing and developing relationship between the respective parties. This contributes towards fostering a spirit of trust which is the cornerstone of any successful joint venture.