Enterpises’ Network Agreement is an agreement with which several entrepreneurs are committed to working together in order to increase, both individually and collectively, their competitiveness in the market. To this end, under the network contract based on a common program, all the involved enterprises undertake to:

• cooperate in predetermined forms and areas relevant to the exercise of their activities;
• exchange industrial, commercial, technical or technological pieces of information or services<,
• jointly carry out one or more activities within the goal of the company’s business.

The contract may also provide for the creation of a common capital fund and a common body to manage the performance of the contract. The network will have a coordination and interaction function among the entrepreneurs, while the strategic decision-making will remain in the hands of each enterprise separately, even in the pursuit of the common target.

The companies’ network contract does not create a new legal entity such as, for example,  A.T.I. and consortia, therefore, it is just  a contract among several parties. From a legal point of view, the network contract is characterized by the common purpose among contractors and, consequently, if one of the parties fails (for example by withdrawal of one of the companies) the network contract will remain valid and effective for the other participants. The fundamental characteristic of the network activity is the necessary presence of a common purpose among its members.

Hence, “aggregations among enterprises” is meant as a productive reality constituted from a gathering of small and medium companies with an established collaboration relation. In such a business combination, enterprises come to constitute a unitary economic-productive reality.

The individual companies, which retain their autonomy both from a legal and economic point of view, nevertheless pursue a common interest, both legal and economic, appear, from outside, both for customers and suppliers, as a unitary entity that encompasses the individual enterprises that constitute it.

The Form of the Enterprises’ Network Agreement

As regards the form of the network contract, it must be drawn up by public deed or notarized private writing or digitally signed by each legal representative of the participating companies and must be forwarded to the relevant Trade Register offices.

The network endowed with patrimonial fund

Where the network has a capital fund, the network contract shall provide for a legal name and a head office and shall be entered in the responsible Trade Register of the territory in which the network is established. By registering, the net endowed with funds acquires legal subjectivity. The network endowed with patrimonial fund must draw up an annual report

by respecting the rules laid down for financial statements of public limited companies. Finally, the network endowed with a wealth fund is required to indicate in its documents and correspondence its head office, the Trade Office where it is registered and the registration number.

It should be noted that for obligations contracted by the joint group in relation to the network program, third parties can assert their rights exclusively on the fund itself.

The common body

 The common body «acts as representative of the network», therefore not only representing the individual members but the network itself. All this, obviously, implies the idea of a proper subjectivity of the network and, therefore, of a relation of organic representation of the common entity.

Incentives

 The first incentive is the sharing of some promotional measures planned for business districts to the networks. The second incentive is the suspension of taxes for those companies that provide assets in the capital fund of a network.

 In addition to these incentives, there is the one for consortia by internationalization, which can carry out their activities, benefiting from the relevant State contributions by stipulating network contracts with small and medium-sized enterprises, even if they are not members of a consortium: “ to consortia by Internationalization shall be granted subsidies to cover not more than 50% of the costs incurred by them in carrying out projects for internationalization, to be implemented also through network contracts with small and medium-sized companies not affiliated» (art. 42, paragraph 6, D.L. n. 83/2012).

 Moreover, limited to the economic sector of tourism, it is expected that the Ministry for Regional Affairs, Tourism and Sport allocates grants, up to 8 million Euros, for the implementation of pilot projects of “networks between companies and supply chains” promoted by companies in the tourism sector of the national territory.

 Enterpises’ Network Agreement and its Parties

Firstly, farms can also pledge network contracts.

In fact, any type of enterprise (individual or corporate – large, medium or small – craft or agricultural) can be part of a network contract, provided that it is registered in the Trade Register.

 For further information, please contact

Lawyer Luca Salvi

Phone: +39 0697996050

Email: luca.salvi@ssalex.com