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I don’t believe that the percentage ownership of shares is a relevant factor in determining whether a joint venture exists.A joint arrangement exists where there is evidence of a contractual arrangement between parties concerning the rights and obligations of each concerning the project in question and where there is joint control of arrangement(no dominance by one party over the operating and financial strategies and policies).When this is determined and the joint arrangement is structured through a separate legal vehicle such as a company or llp then it may be considered a joint venture.
Whether a separate vehicle is considered a joint venture rather than a joint operation depends on whether they have rights in substantially all the assets or obligations for the liabilities of the operation.If they don’t then it should be considered a joint venture and accounted for using equity method.
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