Consortium Agreement Definition

To illustrate the complexity of such an agreement, Airbus` four partner companies (British Aerospace, Aerospace, Construcciones Aeronáuticas SA and DASA) were both subcontractors and shareholders of the consortium. This agreement led to some conflicts of interest and inefficiencies, as well as a possible transfer to Airbus SAS in 2001, which helped to consolidate the initial members of the consortium and reduce overheads. A consortium (plural consortium: consortium) is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) for the purpose of participating in a common activity or pooling their resources to achieve a common goal. Airbus Industries was established in 1970 as a consortium of aerospace manufacturers. The maintenance of production and engineering assets by partner companies has made Airbus Industries a sales and marketing company. [2] This agreement resulted in inefficiencies due to the inherent conflicts of interest faced by the four partner companies; they were both shareholders and subcontractors of the consortium. The companies cooperated in the development of the Airbus series, while keeping the financial details of their own production activities and trying to maximize the transfer prices of their subsets. [3] For example, the Massachusetts Five College Consortium includes the University of Massachusetts Amherst, Mount Holyoke College, Hampshire College, Smith College, and Amherst College as members. Students attending one of these institutions can take courses at no additional cost at another partner school.

Other colleges are the Quaker Consortium, Claremont Colleges and big Ten Academic Alliance. An example of a for-profit consortium is a group of banks that work together to grant a loan – also known as a Syndicate. This type of loan is more often known as a syndicated loan. In England, it is common for a consortium to buy football clubs in financial difficulty to protect them from liquidation. [Citation required] In addition, a joint venture is often more relevant when it comes to obtaining project funding and support, as the joint venture is considered to be the child of the project promoters, whereas in a consortium the team members retain their identity and a consortium agreement is therefore not a sufficiently strong document to ensure such funding. I have met with a large number of bidders, especially for medium to large scale government and CPSE projects, who are discussing over a long period of time between the two without reaching any conclusions…

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