Difference between revisions of "Labour Shares"
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| − | A Labour | + | A Labour Share is a share owned by a member who invests labour in the Company or Co-operative, entitling her or him to participate in governance and receive a share of the surplus. For the purposes of clarity, any person recognised in UK Employment law as a ‘worker’ will qualify for Labour Shares. |
Labour Shares are defined in Clause 10(ii) as follows: | Labour Shares are defined in Clause 10(ii) as follows: | ||
| − | * '''Labour Shares''': issued at par value to natural or legal persons who invest remunerated labour in proportion to their labour contribution; non-transferable; one vote per shareholder at General Meetings (except as defined in Clauses 23 and 24); 1p fixed preference dividend each; forfeited on holder's death, bankruptcy or insolvency; cancelled upon cessation of contracts to provide labour; cancelled without payment on winding up. | + | * '''Labour Shares''': issued at par value to natural or legal persons who invest remunerated labour in proportion to their labour contribution; non-transferable; one vote per shareholder at [[General Meeting|General Meetings]] (except as defined in Clauses 23 and 24); 1p fixed preference dividend each; forfeited on holder's death, bankruptcy or insolvency; cancelled upon cessation of contracts to provide labour; cancelled without payment on winding up. |
| − | Like [[User Shares]], the model rules suggest that a person should only be issued a Labour | + | Like [[User Shares]], the model rules suggest that a person should only be issued a Labour Share if they have contracted to work continuously for more than 1 year. This prevents having to issue shares for short term contracts, and also permits the issue of shares to self-employed contractors and suppliers who enter into long-term supply relationships. |
| − | The number of Labour | + | The number of Labour Shares becomes important when [[Surplus|surpluses]] are generated, as it determines both the share of surplus distributed as a cash dividend, and the number of [[Investor Shares]] ([[Member Shares]]) that are distributed to represent Labour Shareholders' ownership of the company's assets. |
'''See Also:''' | '''See Also:''' | ||
Revision as of 10:59, 22 June 2014
A Labour Share is a share owned by a member who invests labour in the Company or Co-operative, entitling her or him to participate in governance and receive a share of the surplus. For the purposes of clarity, any person recognised in UK Employment law as a ‘worker’ will qualify for Labour Shares.
Labour Shares are defined in Clause 10(ii) as follows:
- Labour Shares: issued at par value to natural or legal persons who invest remunerated labour in proportion to their labour contribution; non-transferable; one vote per shareholder at General Meetings (except as defined in Clauses 23 and 24); 1p fixed preference dividend each; forfeited on holder's death, bankruptcy or insolvency; cancelled upon cessation of contracts to provide labour; cancelled without payment on winding up.
Like User Shares, the model rules suggest that a person should only be issued a Labour Share if they have contracted to work continuously for more than 1 year. This prevents having to issue shares for short term contracts, and also permits the issue of shares to self-employed contractors and suppliers who enter into long-term supply relationships.
The number of Labour Shares becomes important when surpluses are generated, as it determines both the share of surplus distributed as a cash dividend, and the number of Investor Shares (Member Shares) that are distributed to represent Labour Shareholders' ownership of the company's assets.
See Also:
Return me to the FairShares Glossary
