Original scientific paper

DAVID ELLERMAN’S THEORY OF DEMOCRATIC FIRM

DINKO WASSERBAUER ; External associate in ITAS Prvomajska d.d. Ivanec, Croatia

Abstract

This paper is about the nature, legal and financial structure of democratic firm in David Ellerman's view. Democratic firm is a company „owned“ and controlled by all people working in it. It's ownership structure rests on principle that people have natural and inalienable right to the fruits of their labour. In addition, it's governence structure rests on principle that people have a natural and inalienable right to economic self-determination. In democratic firm voting rights and rights to the net income are restructered as personal rights assigned to the functional role of working in the firm. Net asset rights remain property rights and they are registered on the internal capital accounts and they are quite separated from membership rights. Most popular examples of democratic firms are workers cooperatives and ESOP companies. This companies are analysed through restructuring or lack of restructuring conventional bundle of property rights. However, there are many questions about economic democracy that are left opened.

Keywords

democratic firm; economic democracy; membership rights; internal capital accounts; workers cooperatives; ESOP companies

Hrčak ID:

150825

URI

https://hrcak.srce.hr/150825

Publication date:

25.12.2015.

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