Distinction between Joint Ventu

re andConsortium
A joint venture or consortium is a strategic business
association between two or more parties.
It can be used in any type of business transactions and in
domestic or international business but is generally used
for engineering project management contracts and
complex ventures.
Joint Venture
A joint venture is a special combination of two or more persons
where, in some specific venture, a profit is jointly sought without
any actual partnership or corporate designation.
Blacks Law Dictionary defines `joint venture as a business
undertaking by two or more persons engaged in a single defined
project. The necessary elements are:
(1) an express or implied agreement;
(2) a common purpose that the group intends to carry out;
(3) shared profits and losses; and
(4) each members equal voice in controlling the project.
Consortium
Consortium is a Latin word, meaning partnership, association
or society and derives from consors meaning Partner.
A consortium is an association of two or more individuals,
companies, organisations or governments (or any
combination of these entities) with the objective of
participating in a common activity or pooling their resources
for achieving a common goal.Each participant retains its
separate legal status and the consortiums control over each
participant is generally limited to activities involving the joint
endeavour, particularly the division of profits..
A consortium is formed by an agreementor MoU, which
delineates the rights and obligations of each member.A
consortium is defined as a group of companies
participating for mutual benefit. Companies in a
consortium co-operate with one another, often sharing
resourcesas needed. A consortium allows the companies
to conduct operations that they would not be able to do
individually. It is important to note, however, that a
consortium is not a merger and the companies remain
independent.
Joint Venture Consortium

Joint Venture may be Consortium is not

incorporated as a incorporated as a legal
legal entity entity

Management control
Management control is
rests with the
exercised by JV itself
Consortium members

Can acquire, own and

Assets are generally
dispose of assets in its
held by Consortium
name(when
members
incorporated)