Consortium Regulation in Brazil

September 2010

Abstract

The consortium is a structure which arose from the need for grouping legal entities for the purpose of pursuing activities of common interest, by joining efforts and resources to perform a specific enterprise which would exceed the individual competence of each member of the consortium, without thereby creating a new corporate entity. This would enable companies to become part of huge corporations, explore common services and provide strength to obtain credit and loans. During the nineties, with the privatisation of energy and telecommunication sectors, Consortiums were set up in Brazil to carry out public works. There is a lack of specific regulation regarding Corporate Consortium in Brazil and it would be necessary to analyse this legal institute under private and public laws mainly with regard to the liabilities of the companies and their limitations. This institute is growing especially because of the difficulties in economic development imposed on national companies compared to foreign companies, already working in the global market. The possibility of creating a consortium is a potential opportunity for Brazilian Companies to have real opportunities to compete in the global market. It is likely a possibility that the number of new consortiums will increase in the near future because of the events that will occur in Brazil in the next years (World Cup in 2014 and Olympic Games in 2016).

Company

Banco CNH Capital S.A. (FIAT Group)

In November 1999, Case and New Holland became part of CNH, a global leader in the agricultural and construction equipment industry. Then, Case Credit and New Holland Credit were CNH’s captive finance companies, and their products and services were marketed under their respective brand names. A legacy of equipment financing. Case Credit had a heritage of meeting the financing needs of Case IH agricultural and Case construction equipment customers since 1957. It grew to become the financing source of choice for Case IH agricultural and Case construction equipment dealers and customers throughout the United States and the world. New Holland Credit, likewise, was among the leading equipment finance companies in the United States, building on more than 35 years of experience financing agricultural, construction and industrial equipment. A global financing powerhouse. Today, CNH Capital delivers a wide array of financial products and services to well over half a million customers in North America, Latin America, Europe, and Australia. CNH Capital markets retail and wholesale financing products directly to customers and through the CNH global network of approximately 12,000 independent dealerships and distributors in 160 countries. One company, one brand. In 2005, CNH Capital adopted one brand name for financing all of its brands—CNH Capital—which serves multiple distribution channels and equipment brands. The name reflects our company's proud heritage, as well as the importance of financing to dealers, customers, and CNH

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