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This comes down to the structure of the "Corporation" and it's inherent "Principal/Agency" conflict between the owner shareholders and the management.

I believe that the solution to this problem lies in a corporate body which shares the revenues or production between Capital providers and Capital users: the "Capital Partnership" as I call it, is enabled by simple new legal forms like the US LLC and UK LLP.

In this model there are no "employees", merely managing and operating "partners".

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Apr 23rd, 2007 at 12:11:52 PM EST
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Once the organisation gets beyond a certain size you'll have the same problems. Someone is going to have to run the thing and the problems of agency come up immediately.
by Colman (colman at eurotrib.com) on Mon Apr 23rd, 2007 at 12:18:53 PM EST
[ Parent ]
The "Open Corporate" LLC/LLP I am developing and implementing is not an "organisation" but a framework within which individuals "self organise".

It's the "chaordic" approach envisaged by Dee Hock when setting up Visa.

Except I envisage (as did he, but the Banks would have none of it) that individuals - as well as intermediaries - would be members of the "chaordic" "partnership of partnerships" or "cooperative of cooperatives" that constitutes the enterprise model that results.

If a managing partner has a pre-agreed share of production or revenues then agency does not come into it.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Apr 23rd, 2007 at 12:35:50 PM EST
[ Parent ]

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