Introduction

Abstract

A SL is a qualified form of conventional corporations, majority-owned by its permanent employees. Unlike a cooperative, a SL having a minimum of three owners, two of which must be working partners, is based on shared ownership and is permitted to utilise non-employee capital. No partner may own more than 33% of the company’s stock. SLs are usually small and micro-sized limited liability companies employing an average of 4.8 workers. Joint stock SLs are less common. A major reason for the steady growth in the number of SLs is that since 1985 in lieu of receiving monthly payments, job seekers may choose to capitalise their unemployment benefits into a lump sum in order to find a new SL or to recapitalize an existing SL by becoming a member.