This is a difficult legal space because laws vary from country to country, particularly with regard to the applicability of heads of agreements or shareholders. For some legal reasons, it can be characterized as a declaration of intent. It takes place in parallel with other activities in the context of the creation of a joint venture. Although they have been briefly reviewed by a shareholders` pact, some issues must be treated as a preamble to the ensuing discussion. There are also many topics that are not included in articles when a business starts or is never present. In addition, a joint venture may decide to remain alone as a joint venture in a «quasi-partnership» to avoid non-negligible disclosure to the government or the public. Most joint ventures are formed, although some, such as in the oil and gas industry, are «unincorporated» joint ventures that mimic a business unit. If two or more people come together to form a temporary partnership for a given project, such a partnership can also be described as a joint venture in which the parties are «co-investors». The other fundamental document to be articulated is that of articles that are a published document and that are known to members. This is repeated as part of the shareholders` pact regarding the number of directors that each founder can appoint to the board of directors; Whether the board of directors or the founders; the simple majority decision (50%-1) of those present or of a majority of 51% or 75% for all directors present (their substitutes/alternates); Making company funds available The level of debt The share of profit that can be declared as a dividend; Etc. What is important is also what will happen if the business is dissolved, if one of the partners dies or if the business is sold. This is another aspect that should be taken into account in the joint enterprise agreement. This clause should also mention the issuance of shares against flat fees and royalties that are allowed.
Until recently, there were no guidelines on how foreign investment should be made because of China`s restrictive nature vis-à-vis foreign investors. Following Mao Zedong`s death in 1976, initiatives began to be implemented in foreign trade and existing foreign direct investment legislation was clarified in 1979, while the first Sino-foreign enterprise took place in 2001.  The body of the law has improved since then. According to Gerard Baynham of Water Street Partners, there has been a lot of negative press about joint ventures, but objective data indicate that they can actually exceed 100% in controlled possession and subsidiaries. He writes: «Another account was taken from our recent analysis of U.S. Department of Commerce (DOC) data collected by more than 20,000 companies. According to DOC data, foreign joint ventures of U.S. companies achieved an average return of 5.5 percent on assets (ROA), while controlled and controlled subsidiaries of these companies (the vast majority of which are wholly owned) achieved a slightly lower roe of 5.2 percent. The same story applies to foreign business investment in the United States, but the difference is more pronounced.