What is a consortium? A consortium is a temporary association of economically independent enterprises in order to coordinate various types of entrepreneurial activity. As a rule, such a union is created to jointly receive a large order and its subsequent execution. Other tasks for which a consortium is being created can be the implementation of a large project or program or the placement of a loan in a large amount. The consortium may include any enterprise, regardless of ownership. Within this association, roles are distributed so that each company works in the area where it has reached the highest technical level with minimal production costs.
Each company that is part of such a union forms its proposal for the share of supplies, from which then the aggregate offer is formed. The Consortium is a voluntary matter, and you can leave its structure at any time. At the same time, there are no restrictions on the size of the enterprise that wants to join the union being created.
The consortium can be open and closed. In private, the work of the participants is coordinated by the leader, who receives a certain amount of deductions for this and acts within the framework of strictly defined powers. It is with the leader that the customer concludes a contract. The responsibility of an open consortium to customers is distributed among the participants on a joint basis. In a closed consortium, the customer negotiates separately with each participant.
In the legislation of Russia, as in many other foreign countries, there are no legal documents regulating the creation of a consortium. In 1973 and 1979 The United Nations Economic Commission for Europe has developed recommendations for a consortium agreement.
From the point of view of the organization, two main types of consortium can be distinguished. The first is based on a simple partnership agreement, and the second, a simple consortium, is based on the obligation of each participant with the customer and with each other.
The following features of such a union can be distinguished:
- the organization of the consortium is formalized by agreement;
- the creation of such a union can occur with the formation and without the formation of a joint-stock company, business company or other legal entity;
- within the framework of the consortium, as a rule, there is no organizational structure, with the exception of the board of directors or a similar small apparatus;
- The economic and legal independence of participants who wish to join the consortium is fully preserved. This, of course, does not apply to the type of activity that is associated with the purpose of such an association;
- quite often the consortium is a non-profit organization;
- within the framework of such a union, efforts are combined to implement a specific task, project or placement of a loan or securities;
- the same company may be part of several consortia;
- in such an association, not only the activities are coordinated, but also the overall development strategy and investment policy are implemented .
The main types of created consortia:
- Banking Consortium. This is a union consisting of a group of large banks.
- Guarantor consortium, guaranteeing the return of the loan.
- Warranty Consortium. This is an alliance that distributes the risk taken by each participant and ensures its reimbursement.
- Subscription Consortium. It ensures the implementation of the loan or the placement of new shares.
- Financial consortium. This is the union of several banks to carry out major financial transactions.
- Export consortium facilitating the export operations of each of the participants.
Among subscription or financial consortia, you can find those that operate on an ongoing basis. If the alliance is successful, it can eventually lead to the formation of a corporation.