Report on profit-sharing and labour co-partnership in the United Kingdom

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Monograph

Identifikator:: 1016336950

URN:: urn:nbn:de:zbw-retromon-27123

Document type:: Monograph

Title:: Report on profit-sharing and labour co-partnership in the United Kingdom

Place of publication:: London

Publisher:: His Majesty's Stationery Office

Year of publication:: 1912

Scope:: 1 Online-Ressource (160 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: II. Profit sharing and co-partnership in private firms and companies

Collection:: Economics Books

DETAILED ACCOUNT OP VARIOUS SCHEMES. 49 24548 D Interest on shares shall be at the rate of 5 per cent, per annum whenever the profits of the Society, after extinguishing any adverse balance and providing for reduction of preliminary expenses, and for any subscriptions due to propaganda organisa tions, suffice to pay such interest. Any surplus profit shall be applied in forming a Reserve Fund, applicable by resolution of any general meeting on a recommendation of the Committee, to meet any contingency affecting the Society, or for any other purpose, whether within the objects of the Society or not, other than the payment of interest on shares, provided that notice of every such recommendation be given to every member not less than six clear days before such meeting. The terms of the partnership agreement which, on July 28, 1908, was entered into between Messrs. Gilbert Brothers, as general partners, and the Society, as limited partner, provides that the partnership should commence as from June 30, 1907, and should continue until three months’ notice of intention to terminate it should have been given by any partner, or until the whole of the capital should have been acquired by the limited partner. The agreement also provides that, after paying salaries to the general partners (the two Messrs. Gilbert), depreciation, and interest on capital at 5 per cent., the remaining profit shall go to form a profit-sharing fund, until Is. in the pound shall have been paid on wages, and, after that, a reserve fund. The agreement also provides, that, as the amount of capital belonging to the employees increases, the capital belonging to the general partners shall be reduced; and that, when the two general partners shall have been entirely paid out, then the business shall belong to the Employees’ Society as their sole property, and be carried on by that Society as a Workers’ Pro ductive Society. Of the 92 persons at present employed by Messrs. Gilbert Brothers 66 are members of Gilbert Brothers’ Employees, Limited. Employees’ Investment Society. In the case last described, the employees, although capable of acquiring shares in their employer’s business, have at present no part in the management of its affairs. As an example of special arrangements made with the object of enabling the employees of a profit-sharing firm to acquire by the investment of their bonus not only a financial interest ni a business, but also a considerable share in the control of the undertaking, may be cited the case of Foster, Sons & Company, Limited, of Padiham, near Burnley, a firm of builders and con tractors, employing in 1911 from 56 to 80 persons. This business was originally a private firm (William Foster & Sons), and in that form had already introduced a system of Profit-sharing in January, 1900. Under this scheme capital was to receive, in the first place, a fixed rate of interest, while the remaining net profits were to be divided in stated proportions between the firm and its employees, the share of the employees being divisible among them in cash, in proportion towages earned. In 1903 the business was turned into a joint stock company, while, at the same time, an association was formed of the em

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