Will I be liable if the joint venture becomes insolvent?

 

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19. Will I be liable if the joint venture becomes insolvent?

If the joint venture is a limited company, you will not normally be liable if it becomes insolvent. You will, however, be liable if you have guaranteed the joint venture company's debts. If the joint venture is structured as a partnership, your liability will depend on exactly how this has been done.

Even where you are not liable, there can be indirect effects on your business. For example, your image may be affected if you are associated with the joint venture.