6.17 The JV partners will need to determine how the JV is to be staffed and by whom. Often it is important to the success of the JV business that particular employees employed by one or other of the JV partners, who have in-depth knowledge of the asset or a specific expertise, continue to provide this knowledge and expertise to the JV. Where particular skills are needed which cannot be provided by the parties, the JV will need to recruit from the market place.
6.18 The potential for concerns about propriety and conflict of interest can come to the fore when public sector employees lead 'buy-outs' of entities from public sector bodies (see also Chapter 3 and Chapter 10). If there is the potential for such concerns this will highlight the importance of adequate procedures for the independent assessment of asset valuations, remuneration policies, etc.
6.19 Careful consideration should be given to the appointment of any employees of the public sector body as executive directors of the JV or as designated members (for administrative purposes) of a LLP. Different considerations apply where a LP structure is adopted (with the general partner being responsible for the management of the LP and the other partners not taking management responsibility). It is not uncommon for employees of each participant to be nominated as directors of the JV. The role and duties of directors of a JV company need to be understood by the individual taking up the directorship (or equivalent under a LLP). These issues are further set out in Chapter 10.
6.20 Staffing issues associated with the establishment of a JV can be compicated and Public sector bodies should seek formal independent advice from employment specialists or from an employment lawyer at an early stage.