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Who will employ the employees?

The history of employee owned companies demonstrates that employee ownership is not a bar to take-over. Indeed such was the state of turnover of ownership of employee owned compnaies in the 1990s it was argued that employee ownership was akin to transitional ownership. For examples look at the sale of Rowntree to Nestle or any of the sell offs of the newly privatised bus companies in the 1990s. Entrenching ownership (as said by Carole Leslie) can be an intended consequence of the adoption of employee ownership especially where a significant holding is vested in an employee trust. However even in this situation a take over is possible and the complications are , in my experience, never insurmountable when there is a willing buyer and willing seller.

16-Jan-2013

3:26 pm