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EOnation Discussion


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Re: EOnation: Collective Ownership and EO



Dear Mr. Wheatcroft,
 
One of the innovations under the new federal co-operative acts in Canada is the creation of stakeholder co-operatives.  The key to this innovation is the ability to incorporate a co-operative with several classes of members.  For example one might have a day care co-operative that has parent members, worker members and representation from the community.  Each class of member might have different rights and privileges.  Worker members might choose 40% of the board, Patents 40% of the board and the community 20%.  Parents might be required to buy 2 shares at $100 each and workers 10 shares at $100 each.  The worker and parent members might each elect their board members and the community board member might be appointed by the elected board members or elected by community members or some other arrangement.  In this way the stake of each group is engaged and they engage in mutual self help on a democratic basis and no one group with a key stake in the daycare business is exploited by another.
 
This new type of co-operative arrangement is not part of our tradition and its flexibility makes it more complicated.  If we are to make the best use of these new possibilities for more co-operative businesses we will need to do a lot of thinking about them and a lot of experimentation and innovation.  They clearly however provide an opportunity to structure a co-operative much more in line with co-operative values and principles.
 
Alas, co-operative law in the UK as I understand it does not allow this kind of arrangement.
 
Best regards,
 
Tom Webb
----- Original Message -----
Sent: Wednesday, October 30, 2002 8:46 PM
Subject: EOnation: Collective Ownership and EO

Dear all
 
In the UK we recognise the merits of both collective and individual ownership.
 
One model we use is a hybrid that accommodates both ideas. In this model expect at least 51% to be owned collectively and democratically controlled, while the other 49% would be available for individuals to own and therefore encouraging incentives.
 
As a matter of fact the huge retail coops in the UK which have always had a traditional collective ownership structure are now looking at this model to romaine competitive as the other large retail stores like Tesco and Asda (wallmart) give their employees the chance to own shares.
 
I am at present working as an advisor on a conversion from a home care coop to a share based company that will also use this model if you would like more details on the model I could elaborate more
 
Regards
 
Dave Wheatcroft