Mergers And Collaborative Working

Introduction

With a double dip recession just behind us, there remains a concern about the effect our straitened economic times might have on the independent schools sector.

Collaborative working

For some schools collaborative working arrangements may offer a way forward that keeps the school independent while reducing the costs of operations. Collaborative working allows organisations to retain their independent legal identities, but save costs by working together on operational or support activities.

Administrative or back office functions are capable of being shared over quite wide geographical distances; schools do not have to be within any group structure to do so and it is perfectly possible for otherwise unrelated schools to provide services to each or enter into share purchasing arrangement. Sharing teaching and other front line services is usually more subject to the practical constraints of distance.

There is usually no legal reason why services and facilities cannot be shared on commercial terms. Where the provider school is a charity with general objects for the advancement of education there is no reason why the terms should not include an element of subsidy. In any event arrangements should be appropriately documented to cover the level of service, price, payment, liability and other...