Difference between revisions of "Labour Share"

Revision as of 11:20, 22 June 2014

The Labour Share of Surplus is calculated using the Labour Share Fraction defined in Clause 40, and can only be changed by Special Resolution in General Meeting.

By default, the Labour Share Fraction is:

• 0.5 in Worker Co-operatives and Employee-Owned Social Enterprises

• 0.35 in Social Enterprises and Social Co-operatives

The Labour Share is calculated as follows:

[Surplus] x [Labour Share Fraction]

Each member's proportion of the Labour Share is allocated as follows:

[Labour Share] x (Member’s Labour Shareholding / All Issued Labour Shares).

For example, if the Labour Share is £11,000, and a member has 10 Labour Shares of 180 in issue, their share would be:

11,000 x (10/180) = £611.11

Return to the FairShares Glossary.