Below are details of a consortium that wants to clarify its liabilities.

Background

*It was formed 5 years ago and has just over 10 member organisations. It has a name, logo, branding and website.

* The members meet monthly. They have developed protocols, membership, procedures for electing officers, running sub-groups which in one case has its own funding streams.

* The consortium bids for work and then delivers work, sometimes branded with the consortium's brand, sometimes with the individual member's own brand, sometimes with a mixture of both. They have protocols for bidding, planning and delivering and reporting on work.

* The consortium uses funding (as specified in the bid) to pay for staff to service the consortium but who are employed through one of the members.

* Bids are submitted in the consortium's name. There is a lead organisation and a statement to sub-contract to other members. Each member who delivers work is issued a commissioning letter and a sub-contract to deliver. The member is responsible for insurance and managing the liability of the services it delivers. Work sub-contracted to members can include events open to the VCS and public sector and branded with the consortium's logo, name.

* Members understand that if they do not deliver the work they are sub-contracted to deliver they will not receive payment.

* Members accept that they are wholly liable for work they are sub-contracted to deliver.

Questions

* What is the legal identity of the consortium? Is it a network, an informal partnership, an unincorporated organisation or something else?

*To what extent are members liable for other members actions, as opposed to the lead body being liable for its sub-contractor's actions? This subdivides into:

**When the member is sub-contracted to deliver work but does not deliver at all/to schedule/to specification/to an agree standard

**When a member delivers work they have been sub-contracted to carry out on behalf of the consortium and to which a third party takes offence and wants to complain - do members have control over whether the third party should be directed to complain to the sub-contractor or the consortium?

**How liable are other members when one member speaks on behalf of the consortium ?

**Can protocols/agreements be put in place to cover the liability of the 2 previous questions?

*Bearing in mind the various agreements and contracts used to cover liabilities when sub-contracting work and cover of financial liabilities, what are the other possible liabilities consortium members might incur and how likely is it that they will occur? (I think this is an enquiry along the lines of a nature, level and likelihood of risk analysis). Sub questions to this are:

**What are the implications of liabilities regarding its current legal structure?

**Can these liabilities be covered effectively through protocols/insurances?