A cooperative is "an autonomous association of persons united voluntarily to meet their common economic and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise". Cooperatives may include: businesses owned and managed by the people who use their services organizations managed by the people who work there multi-stakeholder or hybrid cooperatives that share ownership between different stakeholder groups. For example, care cooperatives where ownership is shared between both care-givers and receivers. Stakeholders might include non-profits or investors. Second- and third-tier cooperatives whose members are other cooperatives platform cooperatives that use a cooperatively owned and governed website, mobile app or a protocol to facilitate the sale of goods and services. Research published by the Worldwatch Institute found that in 2012 one billion people in 96 countries had become members of at least one cooperative; the turnover of the largest three hundred cooperatives in the world reached $2.2 trillion.
Cooperative businesses are more economically resilient than many other forms of enterprise, with twice the number of co-operatives surviving their first five years compared with other business ownership models. Cooperatives have social goals which they aim to accomplish by investing a proportion of trading profits back into their communities; as an example of this, in 2013, retail co-operatives in the UK invested 6.9% of their pre-tax profits in the communities in which they trade as compared with 2.4% for other rival supermarkets. Since 2002 cooperatives and credit unions could be distinguished on the Internet by use of a.coop domain. Since 2014, following International Cooperative Alliance's introduction of the Cooperative Marque, ICA cooperatives and WOCCU credit unions can be identified by a coop ethical consumerism label. Cooperation dates back as far. Tribes were organized as cooperative structures, allocating jobs and resources among each other, only trading with the external communities.
In alpine environments, trade could only be maintained in organized cooperatives to achieve a useful condition of artificial roads such as Viamala in 1472. Pre-industrial Europe is home to the first cooperatives from an industrial context; the roots of the cooperative movement can extend worldwide. In the English-speaking world, post-feudal forms of cooperation between workers and owners that are expressed today as "profit-sharing" and "surplus sharing" arrangements, existed as far back as 1795; the key ideological influence on the Anglosphere branch of the cooperative movement, was a rejection of the charity principles that underpinned welfare reforms when the British government radically revised its Poor Laws in 1834. As both state and church institutions began to distinguish between the'deserving' and'undeserving' poor, a movement of friendly societies grew throughout the British Empire based on the principle of mutuality, committed to self-help in the welfare of working people. In 1761, the Fenwick Weavers' Society was formed in Fenwick, East Ayrshire, Scotland to sell discounted oatmeal to local workers.
Its services expanded to include assistance with savings and loans and education. In 1810, Welsh social reformer Robert Owen, from Newtown in mid-Wales, his partners purchased New Lanark mill from Owen's father-in-law David Dale and proceeded to introduce better labour standards including discounted retail shops where profits were passed on to his employees. Owen left New Lanark to pursue other forms of cooperative organization and develop coop ideas through writing and lecture. Cooperative communities were set up in Glasgow and Hampshire, although unsuccessful. In 1828, William King set up a newspaper, The Cooperator, to promote Owen's thinking, having set up a cooperative store in Brighton; the Rochdale Society of Equitable Pioneers, founded in 1844, is considered the first successful cooperative enterprise, used as a model for modern coops, following the'Rochdale Principles'. A group of 28 weavers and other artisans in Rochdale, England set up the society to open their own store selling food items they could not otherwise afford.
Within ten years there were over a thousand cooperative societies in the United Kingdom. Other events such as the founding of a friendly society by the Tolpuddle Martyrs in 1832 were key occasions in the creation of organized labor and consumer movements. Friendly Societies established forums through which one member, one vote was practiced in organisation decision-making; the principles challenged the idea that a person should be an owner of property before being granted a political voice. Throughout the second half of the nineteenth century there was a surge in the number of cooperative organisations, both in commercial practice and civil society, operating to advance democracy and universal suffrage as a political principle. Friendly Societies and consumer cooperatives became the dominant form of organization amongst working people in Anglosphere industrial societies prior to the rise of trade unions and industrial factories. Weinbren reports that by the end of the 19th century, over 80% of British working age men and 90% of Australian working age men were members of one or more Friendly Society.
From the mid-nineteenth century, mutual organisations embraced these ideas in economic enterprises, firstly amongst tradespeople, in cooperative stores, educational institutes, financial institutions and industrial enterprises. The common thread (enacte
A corporation is an organization a group of people or a company, authorized to act as a single entity and recognized as such in law. Early incorporated entities were established by charter. Most jurisdictions now allow the creation of new corporations through registration. Corporations come in many different types but are divided by the law of the jurisdiction where they are chartered into two kinds: by whether they can issue stock or not, or by whether they are formed to make a profit or not. Corporations can be divided by the number of owners: corporation corporation sole; the subject of this article is a corporation aggregate. A corporation sole is a legal entity consisting of a single incorporated office, occupied by a single natural person. Where local law distinguishes corporations by the ability to issue stock, corporations allowed to do so are referred to as "stock corporations", ownership of the corporation is through stock, owners of stock are referred to as "stockholders" or "shareholders".
Corporations not allowed to issue stock are referred to as "non-stock" corporations. Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as "for profit" and "not-for-profit" corporations, respectively. There is some overlap between stock/non-stock and for-profit/not-for-profit in that not-for-profit corporations are always non-stock as well. A for-profit corporation is always a stock corporation, but some for-profit corporations may choose to be non-stock. To simplify the explanation, whenever "Stockholder" or "shareholder" is used in the rest of this article to refer to a stock corporation, it is presumed to mean the same as "member" for a non-profit corporation or for a profit, non-stock corporation. Registered corporations have legal personality and their shares are owned by shareholders whose liability is limited to their investment. Shareholders do not actively manage a corporation. In most circumstances, a shareholder may serve as a director or officer of a corporation.
In American English, the word corporation is most used to describe large business corporations. In British English and in the Commonwealth countries, the term company is more used to describe the same sort of entity while the word corporation encompasses all incorporated entities. In American English, the word company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity. Late in the 19th century, a new form of company having the limited liability protections of a corporation, the more favorable tax treatment of either a sole proprietorship or partnership was developed. While not a corporation, this new type of entity became attractive as an alternative for corporations not needing to issue stock. In Germany, the organization was referred to as Gesellschaft mit beschränkter Haftung or GmbH. In the last quarter of the 20th Century this new form of non-corporate organization became available in the United States and other countries, was known as the limited liability company or LLC.
Since the GmbH and LLC forms of organization are technically not corporations, they will not be discussed in this article. The word "corporation" derives from corpus, the Latin word for body, or a "body of people". By the time of Justinian, Roman law recognized a range of corporate entities under the names universitas, corpus or collegium; these included the state itself and such private associations as sponsors of a religious cult, burial clubs, political groups, guilds of craftsmen or traders. Such bodies had the right to own property and make contracts, to receive gifts and legacies, to sue and be sued, and, in general, to perform legal acts through representatives. Private associations were granted designated liberties by the emperor. Entities which carried on business and were the subjects of legal rights were found in ancient Rome, the Maurya Empire in ancient India. In medieval Europe, churches became incorporated, as did local governments, such as the Pope and the City of London Corporation.
The point was that the incorporation would survive longer than the lives of any particular member, existing in perpetuity. The alleged oldest commercial corporation in the world, the Stora Kopparberg mining community in Falun, obtained a charter from King Magnus Eriksson in 1347. In medieval times, traders would do business through common law constructs, such as partnerships. Whenever people acted together with a view to profit, the law deemed. Early guilds and livery companies were often involved in the regulation of competition between traders. Dutch and English chartered companies, such as the Dutch East India Company and the Hudson's Bay Company, were created to lead the colonial ventures of European nations in the 17th century. Acting under a charter sanctioned by the Dutch government, the Dutch East India Company defeated Portuguese forces and established itself in the Moluccan Islands in order to profit from the European demand for spices. Investors in the VOC were issued paper certificates as proof of share ownership, were able to trade their shares on the original Amsterdam
Aktiengesellschaft is a German word for a corporation limited by share ownership whose shares may be traded on a stock market. The term is used in Germany and Switzerland, South Tyrol for companies incorporated there, it is used in Luxembourg, although the equivalent French language term Société Anonyme is more common. In the United Kingdom and the United States, the equivalent terms are "limited" and "incorporated", respectively; the German word Aktiengesellschaft is a compound noun made up of two elements: Aktien meaning shares, Gesellschaft meaning company or society. An English translation is thus "share company", or company limited by shares, or joint-stock company. In German the use of the term Aktien for shares is restricted to Aktiengesellschaften. Shares in other types of German companies are called Anteile rather than Aktien. In Germany and Austria, the legal basis of the AG is the German Aktiengesetz or the Austrian Aktiengesetz. Since the German commercial law requires all corporations to specify their legal form in their name, in order to inform the public of the limits on their liability, all German and Austrian stock corporations include Aktiengesellschaft or AG as part of their name as a suffix.
In Switzerland, the Company Limited by Shares is defined in Title Twenty-Six of the Code of Obligations. Article 950 specifies. German AGs have a "two-tiered board" structure, consisting of a supervisory board and a management board; the supervisory board is controlled by shareholders, although employees may have seats, depending on the size of the company. The management board directly runs the company, but its members may be removed by the supervisory board, which determines the management board's compensation; some German AGs have management boards which determine their own remuneration, but that situation is now uncommon. The general meeting is the supreme governing body of a Swiss company limited by shares, it elects the board of the external auditors. The board of directors may appoint and dismiss persons entrusted with managing and representing the company; the equivalent terms in other countries include the following, which mean either "share company/society" or "anonymous company/society".
Denmark – Aktieselskab Estonia – Aktsiaselts Norway – Aksjeselskap Sweden – Aktiebolag Finland – Osakeyhtiö Turkey – Anonim Şirket Argentina, Costa Rica, Peru and other Spanish speaking countries – Sociedad Anónima Portugal – Sociedade Anónima Brazil – Sociedade Anônima Bulgaria – Акционерно дружество, derived directly from the German AG Belgium, Netherlands – Naamloze Vennootschap Belgium, France – Société Anonyme Poland – Spółka akcyjna Italy – Società per Azioni United Kingdom – Public limited company United Kingdom - cymdeithas cyhoeddus cyfyngedig Croatia - dioničko društvo Romania – Societate pe acțiuni or "Societate anonimă" Russia – Публичное акционерное общество Greece - ανώνυμος εταιρεία Hungary – Részvénytársaság Gesellschaft mit beschränkter Haftung Fohlin, Caroline. "Chapter 4: The History of Corporate Ownership and Control in Germany". In Morck, Randall K. A History of Corporate Governance around the World: Family Business Groups to Professional Managers. University of Chicago Press.
Pp. 223–282. ISBN 0-226-53680-7. E McGaughey,'The Codetermination Bargains: The History of German Corporate and Labour Law' 23 Columbia Journal of European Law 135 Franks, Julian. "Ownership and Control of German Corporations". The Review of Financial Studies. Oxford University Press. 14: 943–977. Doi:10.1093/rfs/14.4.943. JSTOR 2696732. German Stock Corporations Act 1965 translation
A societas Europaea is a public company registered in accordance with the corporate law of the European Union, introduced in 2004 with the Council Regulation on the Statute for a European Company. Such a company may more transfer to or merge with companies in other member states; as of April 2018, more than 3,000 registrations have been reported, including the following nine components of the Euro Stoxx 50 stock market index of leading Euro Area companies: Airbus, Allianz, BASF, E. ON, Fresenius, LVMH Moët Hennessy Louis Vuitton, SAP, Schneider Electric and Unibail-Rodamco. National law continues to supplement the basic rules in the Regulation on formation and mergers; the European Company Regulation is complemented by an Employee Involvement Directive that sets rules for participation by employees on the company's board of directors. There is a statute allowing European Cooperative Societies; the Statute provides four ways of forming a European limited company: By merger of national companies from different member states By the creation of a joint venture between companies in different member states By the creation of an SE subsidiary of a national company By the conversion of a national company into an SEFormation by merger is available only to public limited companies from different member states.
Formation of an SE holding company is available to public and private limited companies with their registered offices in different member states or having subsidiaries or branches in member states other than that of their registered office. Formation of a joint subsidiary is available under the same circumstances to any legal entities governed by public or private law; the SE must have a minimum subscribed capital of €120,000 as per article 4 of the directive, subject to the provision that where a member state requires a larger capital for companies exercising certain types of activities, the same requirement will apply to an SE with its registered office in that member state. The registered office of the SE designated in the statutes must be the place where it has its central administration, to say its true centre of operations; the SE may transfer its registered office within the European Economic Area without dissolving the company in one member state in order to form a new one in another member state.
The order of precedence of the laws applicable to the SE is clarified. The registration and completion of the liquidation of an SE must be disclosed for information purposes in the Official Journal of the European Communities; every SE must be registered in the State where it has its registered office, in a register designated by the law of that State. The Statutes of the SE must provide as governing bodies the general meeting of shareholders and either a management board and a supervisory board or an administrative board. Under the two-tier system the SE is managed by a management board; the member or members of the management board have the power to represent the company in dealings with third parties and in legal proceedings. They are removed by the supervisory board. No person may be a member of both the management board and the supervisory board of the same company at the same time, but the supervisory board may appoint one of its members to exercise the functions of a member of the management board in the event of absence through holidays.
During such a period the function of the person concerned as a member of the supervisory board shall be suspended. Under the single-tier system, the SE is managed by an administrative board; the member or members of the administrative board have the power to represent the company in dealings with third parties and in legal proceedings. Under the single-tier system the administrative board may delegate the power of management to one or more of its members; the following operations require the authorization of the supervisory board or the deliberation of the administrative board: any investment project requiring an amount more than the percentage of subscribed capital the conclusion of supply and performance contracts where the total turnover provided for therein is more than the percentage of turnover for the previous financial year the raising or granting of loans, the issue of debt securities and the assumption of liabilities of a third party or suretyship for a third party where the total money value in each case is more than the percentage of subscribed capital the setting-up, disposal or closing down of undertakings, businesses or parts of businesses where the purchase price or disposal proceeds account for more than the percentage of subscribed capital the percentage referred to above is to be determined by the Statutes of the SE.
It may not be less than 5% nor more than 25%. The SE must draw up annual accounts comprising the balance sheet, the profit and loss account, the notes to the accounts, an annual report giving a fair view of the company's business and of its position. In tax matters, the SE is treated the same as any other multinational, i.e. it is subject to the tax regime of the national legislation applicable to the company and its subsidiaries. SEs are subject to taxes and charges in all member states where their administrative c
Delaware statutory trust
A Delaware statutory trust is a recognized trust, set up for the purpose of business, but not in the U. S. state of Delaware. It may be referred to as an Unincorporated Business Trust or UBO. Delaware statutory trusts are formed as private governing agreements under which either property is held, administered, invested and/or operated. DST Investments are offered as replacement property for accredited investors seeking to defer their capital gains taxes through the use of a 1031 tax deferred exchange and as straight cash investments for those wishing to diversify their real estate holdings; the DST property ownership structure allows the smaller investor to own a fractional interest in large, institutional quality and professionally managed commercial property along with other investors, not as limited partners, but as individual owners within a Trust. Each owner receives their percentage share of the cash flow income, tax benefits, appreciation, if any, of the entire property. DSTs provide the investor the potential for annual appreciation and depreciation, most have minimum investments as low as $100,000, allowing some investors the benefit of diversification into several properties.
The DST ownership option offers the same benefits and risks that an investor would receive as a single large-scale investment property owner, but without the management responsibility. Each DST property asset is managed by professional investment real estate asset managers and property managers, it used to be that only large institutional investors such as life insurance companies, pension funds, real estate investment trusts, college endowments and foundations were able to invest in these properties. Now as a viable 1031 exchange replacement property option through a DST, individual investors have the ability to invest in a diversified selection of institutional quality, investment property types that they otherwise could not purchase individually. DST Investments are located throughout the United States. Property types may include multifamily apartment communities, office buildings, industrial properties, multi-tenant retail, student housing, assisted living, self-storage facilities, medical office, single tenant retail properties and others.
The concept for business trusts those that involve the holding of property, dates back to 16th century English Common Law. In Delaware, it was not until 1947. No legal recognition of statutory trusts existed until the passage of the Delaware Statutory Trust Act, 12 Del. C. 3801 et. Seq. in 1988. Under The Act, developed on the premise of trust law, statutory trusts were now recognized as their own legal entity, separate from their trustee, offering freedom from the corporate law template. Within the tradition of trust law, freedom of contract allows the trustee to structure their entity in a way, most beneficial to the relationship of all parties and their expertise, while offering liability protection similar to that of a Limited liability company or Partnership. Since the year 2000, Delaware statutory trusts have been used as a form of tax deferral, asset protection, balance sheet advantages in real estate, mezzanine financing, real estate investment trusts, mutual funds. Massachusetts, another state that has trust law, refers to its legal entity as a Massachusetts business trust.
Most states, still rely on Common Law to oversee the trusts within their jurisdiction. The formation of a Delaware statutory trust is simple and inexpensive, when compared to that of the more complex filings of other entity types. To form a statutory trust, a private trust agreement must be developed by all involved parties to ensure that individual interests are protected; the private trust agreement need not be shown to any official of the State. Once the agreement is completed, a Certificate of Trust can be obtained from the Delaware Division of Corporations and completed; the signatures of the trustee involved are required, followed by submission of the forms to the Division of Corporations, along with a one-time $200 processing fee. If the statutory trust is, or will become, a registered investment company, it must maintain a registered agent and a registered office within the State of Delaware. If no desire for the statutory trust to be an investment company exists, the only remaining requirement is that it must have at least one trustee who resides in, or has a principal place of business within the State of Delaware.
On August 16, 2004, Internal Revenue Bulletin 2004-33 was published in reference to Rev. Rul. 2004-86. This involved a Delaware Statutory Trust that came before the Internal Revenue Service and Treasury Department, who offered a ruling on the following two issues: "ow is a Delaware statutory trust, described in Del. Code Ann. Title 12, §§ 3801 - 3824, classified for federal tax purposes?""The Delaware statutory trust described above is an investment trust, under § 301.7701-4, that will be classified as a trust for federal tax purposes." "ay a taxpayer exchange real property for an interest in a Delaware statutory trust without recognition of gain or loss under § 1031 of the Internal Revenue Code?""A taxpayer may exchange real property for an interest in the Delaware statutory trust described above without recognition of gain or loss under § 1031, if the other requirements of § 1031 are satisfied."These holdings of the federal government offered a clearer notion that Delaware statutory trusts are
British Virgin Islands company law
British Virgin Islands company law is codified in the BVI Business Companies Act, 2004, to a lesser extent by the Insolvency Act, 2003 and the Securities and Investment Business Act, 2010. The British Virgin Islands has 30 registered companies per head of population, the highest ratio of any country in the world. Annual company registration fees provide a significant part of Government revenue in the British Virgin Islands, which accounts for the comparative lack of other taxation. Accordingly, company law forms a much more prominent part of the law of the British Virgin Islands than might otherwise be expected; the first companies legislation in the British Virgin Islands was the Companies Act, 1884. However the great leap forward for company law in the jurisdiction occurred in 1984 with the passing of the International Business Companies Act, 1984; that legislation was passed to try and promote the incorporation of offshore companies as a method of economic development in the wake of the cancellation by the U.
S. A. of the double taxation treaty which had existed between the two countries prior to that time. The International Business Companies Act was enormously successful, resulted in the registration of a large number of companies. However, in the early 2000s the British Virgin Islands came under external pressure to repeal statutes such as the International Business Companies Act which provided for "ring-fenced" taxation; this led to the repeal of both the Companies Act and the International Business Companies Act and their replacement with the BVI Business Companies Act, which provided for equal tax treatment of all companies. The change had little impact on incorporation rates as the British Virgin Islands imposes no form of direct taxation. In the British Virgin Islands, only a licensed registered agent can form a company, it is not possible for a member of the public to do so. The principal reason for this is to reinforce anti-money laundering obligations under the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008.
Any person who wishes to form a registered company must do so through a licensed agent, the agent is required to obtain client due diligence to comply with the regulations. All companies formed in the British Virgin Islands are now registered under the BVI Business Companies Act. In addition there are a small number of statutory corporations, most of which serve some kind of public function. Under the BVI Business Companies Act it is possible to register five broad types of company: Company limited by shares Company limited by guarantee and not authorised to issue shares Company limited by guarantee and authorised to issue shares Unlimited company authorised to issue shares Unlimited company not authorised to issue sharesIn practice the vast majority of companies are registered as companies limited by shares. Furthermore, when registering a company, the company may further be registered as: Segregated portfolio company Restricted purpose companyA segregated portfolio company is a company which segregates the assets and liabilities of different classes of shares from each other and from the general assets of the company.
All segregated portfolio companies are required to include the designation "" within their name, must comply with the Segregated Portfolio Company Regulations, 2005. A restricted purpose company is a special type of company intended for use in bankruptcy remote bond issues, which only has limited corporate capacity to undertake certain specific purposes. Unusually, in the British Virgin Islands the formation of a company does not involve the issuing of subscriber shares. Accordingly, when a company is incorporated it has no members; the registered agent has a statutory power to appoint the first directors of the company, the first directors can receive subscriptions and issue shares. However, until the first shares are issued the directors are liable for anything which they do in the name of the company. In the British Virgin Islands a company has separate legal personality from its members; the liability of the members of a company is limited to their shares or the amount of their guarantee.
Directors or officers of a company are not liable for the company's debts except insofar as they may otherwise be liable for their own conduct or actions. The primary circumstances where liability may be imposed upon directors in relation to their acts as directors are where the company has no members, where a person acts as a director despite being disqualified, where the director authorises payment of an unlawful distribution which cannot be recovered, where the director is guilty of trading whilst insolvent, misfeasance or fraudulent trading, or where the director undertakes personal responsibility or liability for certain actions. Conversely, the assets of a company are regarded as belonging to the company and not the company's members. In exception circumstances the courts are prepared to "pierce the corporate veil" and treat the assets of the company as belonging to the members, but the circumstances in which this will be done are rare and exceptional; the corporate constitution of a private company regis
United States corporate law
United States corporate law regulates the governance and power of corporations in US law. Every state and territory has its own basic corporate code, while federal law creates minimum standards for trade in company shares and governance rights, found in the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended by laws like the Sarbanes–Oxley Act of 2002 and the Dodd–Frank Act of 2010; the US Constitution was interpreted by the US Supreme Court to allow corporations to incorporate in the state of their choice, regardless of where their headquarters are. Over the 20th century, most major corporations incorporated under the Delaware General Corporation Law, which offered lower corporate taxes, fewer shareholder rights against directors, developed a specialized court and legal profession. Nevada has done the same. Twenty-four states follow the Model Business Corporation Act, while New York and California are important due to their size. At the Declaration of Independence, corporations had been unlawful without explicit authorization in a Royal Charter or an Act of Parliament of the United Kingdom.
Since the world's first stock market crash corporations were perceived as dangerous. This was because, as the economist Adam Smith wrote in The Wealth of Nations, directors managed "other people's money" and this conflict of interest meant directors were prone to "negligence and profusion". Corporations were only thought to be legitimate in specific industries that could not be managed efficiently through partnerships. After the US Constitution was ratified in 1788, corporations were still distrusted, were tied into debate about interstate exercise of sovereign power; the First Bank of the United States was chartered in 1791 by the US Congress to raise money for the government and create a common currency. It had private investors, but faced opposition from southern politicians who feared federal power overtaking state power. So, the First Bank's charter was written to expire in 20 years. State governments could and did incorporate corporations through special legislation. In 1811, New York became the first state to have a simple public registration procedure to start corporations for manufacturing business.
It allowed investors to have limited liability, so that if the enterprise went bankrupt investors would lose their investment, but not any extra debts, run up to creditors. An early US Supreme Court case, Trustees of Dartmouth College v Woodward, went so far as to say that once a corporation was established a state legislature could not amend it. States reacted by reserving the right to regulate future dealings by corporations. Speaking, corporations were treated as "legal persons" with separate legal personality from its shareholders, directors or employees. Corporations were the subject of legal rights and duties: they could make contracts, hold property or commission torts, but there was no necessary requirement to treat a corporation as favorably as a real person. Over the late 19th century and more states allowed free incorporation of businesses with a simple registration procedure. Many corporations would be small and democratically organized, with one-person, one-vote, no matter what amount the investor had, directors would be up for election.
However, the dominant trend led towards immense corporate groups where the standard rule was one-share, one-vote. At the end of the 19th century, "trust" systems were used to concentrate control into the hands of a few people, or a single person. In response, the Sherman Antitrust Act of 1890 was created to break up big business conglomerates, the Clayton Act of 1914 gave the government power to halt mergers and acquisitions that could damage the public interest. By the end of the First World War, it was perceived that ordinary people had little voice compared to the "financial oligarchy" of bankers and industrial magnates. In particular, employees lacked voice compared to shareholders, but plans for a post-war "industrial democracy" did not become widespread. Through the 1920s, power concentrated in fewer hands as corporations issued shares with multiple voting rights, while other shares were sold with no votes at all; this practice was halted in 1926 by public pressure and the New York Stock Exchange refusing to list non-voting shares.
It was possible to sell voteless shares in the economic boom of the 1920s, because more and more ordinary people were looking to the stock market to save the new money they were earning, but the law did not guarantee good information or fair terms. New shareholders had no power to bargain against large corporate issuers, but still needed a place to save. Before the Wall Street Crash of 1929, people were being sold shares in corporations with fake businesses, as accounts and business reports were not made available to the investing public; the Wall Street Crash saw the total collapse of stock market values, as shareholders realized that corporations had become overpriced. They sold shares en masse, meaning meant; the result was that thousands of businesses were forced to close, they laid off workers. Because workers had less money to spend, businesses received less income, leading to more closures and lay-offs; this downward spiral began the Great Depression. Berle and Means argued that under-regulation was the primary cause in their foundational book in 1932, The Modern Corporation and Private Property.
They said di