- 12 Nov
Consortium Contract – Characteristic and key elements:
If I enter into a Consortium contract with third parties , do i get a new partner/shareholder?
According to the first article of the decree no.231/81, of July 28th, the Consortium is an agreement, through which two or more people, singular or collective, who exercise an economical activity compel each other, concertedly, to accomplish a given activity or perform a certain contribution aimed to pursue any of the following objects:
a) The accomplishment of material or legal preparatory actions either from a certain project, or from a continuous activity;
b) The execution of a certain project;
c) The supply to third parties of goods, equal or complementary among themselves, produced by each of the consortium members;
d) The research and exploration of natural resources;
e) The production of goods that can be divided, in kind, between the members of the consortium.
The members of the consortium don’t exert a common activity, because each one carries on exercising their own, even though it is concerted in the activities of the other members.
When the accomplishment of a contractual object involves the rendering of any contributions, it shall consist of something tangible or of the use of something tangible; cash contributions are only allowed if all the members make the contribution in the same kind.
The Consortium can be internal or external.
A consortium is internal when:
a) The activities or goods are given to one of the members of the consortium and only this member establishes relations with third parties;
b) The activities or goods are supplied directly to the third parties by each and every member of the consortium, without expressed evocation it.
It is external when the activities or goods are supplied directly to the third parties by each and every member of the consortium, with expressed evocation it.
The bodies of the Consortium are:
– Consortium Leader – a mandatory position.
– Guidance and Supervision Council – optional but its existence is advisable.
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