Re: EFES: Answer to Shann Turnbull

[Shann Turnbull <sturnbull@mba1963.hbs.edu>]

At 11:45 PM 23/10/2001, you wrote:
>The owner of the company is the co-operative, and employees of
>the company are owners of the co-operative.

Marc

This approach could largely solve the problems I mentioned if (a) the 
directors of the cooperative where not directors of the company (b) the 
constitution of the company did not deny a singly shareholder (the 
cooperative) from calling general meetings, and (c) members of the 
co-operative (employees of the company) where recognised by the corporate 
constitution as having a right to at least speak at annual meetings even 
though they could not vote because this would be done for them through the 
cooperative.  It is the extra layer of voting through the cooperative that 
then may introduce some concerns and any provisions in the company 
constitution that provides protection of shareholders by number rather than 
by value as all the employees would be represented by a single shareholding 
with only a single vote rather than many.  However, this is also the 
problem of the different tax treatment of employees selling their interests 
when their shares are held through another taxable entity.

Regards

Shann
Shann Turnbull  Ph.D.
P.O. Box 266 Woollahra, Sydney, Australia, 1350
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