Consortium Regulation in Brazil

Mychèlle Fortunato, Head of Legal, Banco CNH Capital S.A. (FIAT Group), Brazil

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).

Mychèlle Fortunato is Head of Legal at Banco CNH Capital S.A. in Brazil. Her previous experiences prior Banco CNH Capital was as an in house attorney for CNH Latin America Ltda., TIM Participações S.A., NET Serviços de Comunicações S.A and as a litigator attorney.

Banco CNH Capital S.A. in Brazil, a Fiat Group Company focused on banking activities to finance manufactured equipment by CNH Latin America business (company that manufactures Agricultural and Construction Equipment CASE and New Holland Brands).