What does joint control entail?

Joint control refers to a situation where two or more parties have a contractual arrangement to share control over an economic activity, such as a joint venture. The key aspect of joint control is that it requires the unanimous consent of the parties involved for decisions regarding the relevant activities. This ensures that no single entity can unilaterally make decisions without the agreement of the other parties, fostering collaboration and mutual agreement in strategic decisions.

In contrast, full control by a single entity indicates a scenario where one entity has complete authority over decisions, which does not align with the concept of joint control. Decentralized decision-making rights imply a different governance structure where decisions are made independently within different units or divisions rather than through a collective agreement. A temporary management agreement suggests a short-term arrangement rather than the sustained and shared governance needed to define joint control.

Thus, understanding joint control as a framework that necessitates unanimous consent among parties provides clarity on how entities can collaborate while making joint decisions about their shared resources or operations.