2.7 In a JV company the shares or membership interest will be owned by the public sector and private sector founding participants and there will be a Board of Directors who will have legal responsibility for managing the JV.
2.8 The board and/or the executive management will make most of the decisions on the running of JV. Some matters will require shareholder approval. Issues associated with the setting up and management of JVs are set out in more detail in Chapters 8 and 10.
2.9 The shares or membership interest of the JV will be owned by the public sector body and a private sector participant (the JV's "founding participants", who will become the JV's "shareholders" when it is established). The shares may be held in any proportion, such as 50:50, 75:25 etc.
Example 1: Customer Services Direct (CSD) Ltd CSD (Customer Service Direct Ltd) is a JV between BT, Suffolk County Council and Mid-Suffolk District Council providing employee services for HR and ICT support to over 30,000 council staff. CSD also provides an online facility, via its website, (as well as a customer contact centre) to make payments, find information and report problems or submit requests for Council Services. The business objective of the JV company is to provide enhanced services, whilst containing the cost of provision. A key requirement of the JV is investment in the replacement of legacy assets with modern solutions, requiring innovative working practices. In 2007 the organisation was short listed for GC Awards for Innovation. Source: CSD Ltd website |