27 September 2018
The UK Labour Party has announced a proposal at its annual autumn conference that would require 10% of the shares in all companies with more than 250 employees to be owned by the employees. The dividends on those shares would then be shared between employees (but capped at £500 per employee), and the balance paid to the Government.
This briefing looks at some of the novel legal and practical issues raised by the proposal as well as the potential for legal challenges. We also consider whether the same political objectives could be achieved in a more straightforward way.
Labour's Plan for the Compulsory Acquisition of 10% of All Large UK Companies by 'Inclusive Ownership Funds'