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Business Applications

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  • Mark
    Bala, You wanted me to discuss business applications concerning SD2 - here is a large scale idea: This is a list of the 100 largest EMPLOYEE OWNED businesses
    Message 1 of 2 , Aug 3 12:23 PM
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      Bala,

      You wanted me to discuss business applications concerning SD2 - here
      is a large scale idea:

      This is a list of the 100 largest EMPLOYEE OWNED businesses in the
      USA: http://www.nceo.org/library/eo100.html

      SD2 obviously would be perfect for employee owned businesses.

      Imagine a four entity structure:

      1. A non-profit corporation (in UK Commonwealth countries the
      equivelant would be a charitable trust) - This could be an
      organizational research institute and/or a college. This would serve
      as a tax shelter, an instrument for accepting tax-deductable
      contributions, and as a holding company for business interests.

      2. A publicly traded finance company - This could be a mutual fund
      and/or a bank. These are the best instuments for attracting
      investment capital. It/they could be traded offshore before
      attempting to brave the highly regulated American markets. This would
      finace the other entities in this structure.

      3. A private management company - this would be either a LLC or a
      private corporation. This would manage entities #2 and #4. These
      would be the SD2 experts and consultants. For security reasons the
      voting stock would be guarded and may be held by #1, but the non-
      voting stock could be issued to qualified investors.

      4. A Delaware Series LLC - this is the most flexible business entity
      that I have seen. It has provisions within it which allow for the
      formation of mini-businesses within it, small *cells* with their own
      books, account(s) and liability insulated from the parent business.

      My idea is to use the Series LLC(LLS) to generate business entities
      which would invest in and help manage (using SD2 of course) existing
      employee owned businesses. The LLS could be used to insulate high
      risk assets, such as company vehicles, from liability from the main
      company. The LLS could also be used as an instument to swap stock, or
      have under common holding, with other employee owned companies. The
      intended goal here is to have most American employee-owned MERGED
      into one well financed MEGA-CORPORATION that would be SD2 controlled.

      For the non-Americans here, a similar structure could probably be
      created using your home country's business entities. The limited use
      of, and investment in American entities may be allowed as well.

      I would like to welcome the young German computer-biochemistry
      student Florian Trippel. He has innovated the efficient production of
      malic acid, which can be used as a mould inhibitor in foods - rock on!

      -Shanti
      -Mark Rosst
      -Seattle WA USA
    • Mark
      -- Mark wrote: [...] ... MERGED into one well financed MEGA-CORPORATION that would be SD2 controlled.[...] Solidarnosk! (Polish: solidarity) Our Polish friend
      Message 2 of 2 , Aug 3 1:49 PM
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        --"Mark" wrote:
        [...]
        >-M: The intended goal here is to have most American employee-owned
        MERGED into one well financed MEGA-CORPORATION that would be SD2
        controlled.[...]

        Solidarnosk! (Polish: solidarity)

        Our Polish friend Lech Walesa wanted factory production in his commie
        country of Poland to be worker controlled - this is bottom-up instead
        of top-down form of commie-nism.

        Capitalism allows, and even encourgages, worker ownership and control.
        Why?:

        1. If a worker pays for and/or earns ownership of his/her share of
        the company, then he/she should have his/her share of control - this
        is normal PROPERTY RIGHTS in capitlistic systems.

        2. Employee ownership is usually more PROFITABLE than their investor
        owned counterparts. Why? Because workers have a vested interest in
        productivity because it increases profits - THEIR profits.

        The profitability fact is being contended. Critics say that the
        employees have more short-term interests: higher pay instead of
        capital reinvestment. Both sides have data to back their arguements.

        SD2 offers an organizational method that may be able to separate the
        employees with long-term profitability goals from those who may want
        a "fast-buck". These long-term minded could be placed into decision
        making positions.

        So maybe SD2 = Solidarnosk, AND SD2 = $.

        -Shanti
        -Mark Rosst
        -Seattle WA USA
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