What is the Business Network
A new and important model for governing inter-business relations is the Enterprise Network. This is an innovative legal-economic instrument of collaboration between companies that has the fundamental objective of increasing the status of the company in the global market while maintaining its individuality. In fact, the Business networks don’t have legal personality and not even fiscal subjectivity, they don’t constitute an autonomous and distinct business activity but only an organization of companies arising from a contract stipulated between them so that the contractors remain distinct and independent entities, coordinated among themselves exclusively for the achievement of a common purpose set in the network contract.
The network contract
Under the "company network contract", drawn up in the form of a public deed or authenticated private deed, the participating companies mutually undertake to collaborate in aggregation by exchanging information and services of industrial, commercial, technological and scientific nature..
The network contract an "open" or "closed" business combination structure is determined and regulated with, depending on whether or not it provides for new accessions following the establishment of the "network", must necessarily indicate:
- the subscribers
- the strategic objectives of innovation and the raising of the competitive capacity of companies
- a "network program" containing the rights and obligations of each participant
- the methods for achieving the goals
- the duration of the contract
- the rules for taking participants' decisions
Otherwise, the optional elements for signing the network contract are:
- the creation of a "patrimonial fund", or a set of contributions capable of economic evaluation aimed at achieving the pre-established goals;
- a "common body" with the function of executing the contract, of representing the network in the relations with third parties, in procedures with the Public Administration, in thr guarantee interventions for access to credit, as well as in the use of tools for promoting and protecting products born from aggregation.
Each company undertaking the "network" has the right to early termination of the network contract, under the rules detailed in the above mentioned contract, in addition to those provided for the total or partial dissolution of plurilateral contracts.