Fiduciary Responsibilities of a Joint Venture Manager-Free-Sample

Question: Discuss about the Fiduciary Responsibilities of a Joint Venture Manager. Answer: Introduction Joint venture in the colloquial sense is the business arrangement whereby two or more parties collaborate with each other contributing money and skill in order to accomplish a particular venture or trading. In a joint venture no particular business structure is maintained, the joint ownership business is implemented through series of interlocked contracts and agreements[1]. There is a specific purpose in a joint venture and once the goal is accomplished, the business is terminated. Discussion Fiduciary Duties and Resource Joint Venture Manager The discussion deals with the fiduciary responsibility of a resource joint venture manager towards its members. The resource joint venture deals with the exploitation of minerals and petroleum resources. The participants of the joint venture appoint a manager or an operator who is in charge of the agreed activities in the business and is in charge of the proper implementation of the same. There is complex fiduciary relationship between the manager and the participants[2]. Fiduciary duties refer to the corporate duties than an operator owes to its members to promote the best interests of the corporations. The fiduciary duty includes: Duty of care: The operator must be diligent in making decisions on behalf of the business and manage the activities with enough care. Duty of loyalty: The manager must be loyal towards the business and must not take any undue advantage of his position. He should not look for any opportunities to gain any secret profit or try to compete with the corporation on any terms. Duty of good faith: the manager controls the whole business and all the participants are dependent on him. He is liable for all the activities in business. Thus, it is important to conduct the responsibilities in good faith. Tenure of the responsibilities The fiduciary responsibility of a joint venture begins at the beginning of the venture. Each party has the duty to carry on the business faithfully, the duty exist throughout the business tenure and it terminates s the business gets over. Responsibilities towards the participants in the joint venture The joint venture involves the collaboration several different individuals, corporations and entities. Each member owes other partners basic fiduciary duties[3]. The manager who operates the whole affair has to be sensible in taking the business decisions and take responsibilities with reasonable care. Basic responsibilities that he should carry on are: Cooperation with other parities and motivate them to accomplish the company goal. To efficiently utilize his position and appropriately divide the work according to members skill and knowledge[4]. To avoid the actions, that is motivated by individual gains or interest and can hurt the joint venture. To manage each of the members efficiently to avoid confusion and misinterpretation of the venture goal. The joint venture manager might be held responsible for the success or failure of the venture, he should therefore look into all the matters in details and ensure whether they meet the statutory requirements or not. The resource manager deals with the non-renewable resources he should employ its members efficiently so that none of the resources are wasted in the business[5]. Joint venture manager is jointly appointed by the participants he must have a clear understanding of the business and in order to avoid conflicts must make sure proper informations are given to each of the members[6]. Conclusion The nature of an operator in a resource joint venture depends largely on the scope and agreement of the business project. The manager must responsibly operate the participants so that the venture goal is accomplished and no resources are wasted. The joint venture is solely dependent on the operator. Therefore, he should be more cautious in taking decisions and implement his duties effectively References Connell, Julia, "Frank Horwitz And Pawan Budhwar, Handbook Of Human Resource Management In Emerging Marketshorwitzfrank And Budhwarpawan, Handbook Of Human Resource Management In Emerging Markets, Gloucester: Edward Elgar Publishing Ltd, 2015; 509 Pp., 135." (2016) 58(3)Journal of Industrial Relations Leshchinskiy, Pavel,Corporate Fiduciary Duties | Legalmatch Law Library(2018) Legalmatch.com https://www.legalmatch.com/law-library/article/corporate-fiduciary-duties.html?intakeredesigned=1 Mapedza, Everisto et al, "Joint Venture Schemes In Limpopo Province And Their Outcomes On Smallholder Farmers Livelihoods" (2016) 92Physics and Chemistry of the Earth, Parts A/B/C Shishido, Zenichi, Munetaka Fukuda and Masato Umetani,Joint Venture Strategies(Edward Elgar Pub. Ltd., 2015) Sun, Jindi,A Study Of Human Resource Management In A Joint Venture Organisation Compared To A Locally Owned Organisation In China(2018) Unitec.researchbank.ac.nz https://unitec.researchbank.ac.nz/handle/10652/1248 Ventures, Resources and Eligibility requirements,Eligibility And Requirements: Resources Joint Ventures (LAWS70210) The University Of Melbourne Handbook(2018) The University of Melbourne Handbook https://handbook.unimelb.edu.au/2017/subjects/laws70210/eligibility-and-requirements Everisto Mapedza et al, "Joint Venture Schemes In Limpopo Province And Their Outcomes On Smallholder Farmers Livelihoods" (2016) 92 Physics and Chemistry of the Earth, Parts A/B/C. Pavel Leshchinskiy,Corporate Fiduciary Duties | Legalmatch Law Library(2018) Legalmatch.com https://www.legalmatch.com/law-library/article/corporate-fiduciary-duties.html?intakeredesigned=1. Jindi Sun,A Study Of Human Resource Management In A Joint Venture Organisation Compared To A Locally Owned Organisation In China(2018) Unitec.researchbank.ac.nz https://unitec.researchbank.ac.nz/handle/10652/1248 Julia Connell, "Frank Horwitz And Pawan Budhwar, Handbook Of Human Resource Management In Emerging Marketshorwitzfrank And Budhwarpawan, Handbook Of Human Resource Management In Emerging Markets, Gloucester: Edward Elgar Publishing Ltd, 2015; 509 Pp., 135." (2016) 58(3)Journal of Industrial Relations. Resources Ventures and Eligibility requirements,Eligibility And Requirements: Resources Joint Ventures (LAWS70210) The University Of Melbourne Handbook(2018) The University of Melbourne Handbook https://handbook.unimelb.edu.au/2017/subjects/laws70210/eligibility-and-requirements Zenichi Shishido, Munetaka Fukuda and Masato Umetani,Joint Venture Strategies(Edward Elgar Pub. Ltd., 2015).