Well, there’s a start to a Labour proposal

Best to nail your colours to the mast early on:

CHAPTER 4
A DEMOCRATIC REGIME FOR LARGE CORPORATIONS
The essential starting point for reform of corporate governance is the recognition that
large corporations are not the private property of their shareholders and should not
be controlled only by executives and directors in the sole or primary interest of
shareholders.

What actually is private property then?

36 comments on “Well, there’s a start to a Labour proposal

  1. Ah, democratic as in People’s Democratic Republic of (insert totalitarian, commie shite-hole, present or historical).

    Naturally

  2. @Diogenes,

    Spud wasn’t involved directly, but companies will be forced to pay the protection money to get a Fair Tax Mark. Not sure how this will work if you get one, and then just ignore it.

  3. The stuff on insolvency is pure gibberish.

    Liquidations are apparently organised to benefit shareholders, which means most of the assets go to secured creditors. (?!)

    And they’re proposing that secured creditors now rank no higher than unsecured creditors. Bearing in mind that secured creditors are usually lenders who wouldn’t lend without security, I can imagine that borrowing would be a damn sight more expensive, that’s if you can actually get someone to lend.

    Seriously, it defies belief…..

    “Companies like Bernard Matthews were placed into liquidation to maximise returns to shareholders, but other stakeholders were left high and dry. Upon liquidation, most of the proceeds are passed to secured creditors (usually banks) who historically have been the first in the queue for distribution. Little is left for unsecured creditors and many innocent businesses are driven ought of business. Insolvency law must be reformed so as to protect small businesses. The order of liquidation distribution has long been established and is unfair in that one stakeholder (secured creditor) can collect most of the liquidation proceeds whilst others get little. In a stakeholder economy there must be more equitable risk-sharing arrangements. That would mean ring-fencing a significant part of the proceeds of liquidation for the benefit of unsecured creditors. Simply put, instead of all of the assets being passed to the secured creditors, a pool of assets would be reserved to protect the unsecured creditors.”

  4. They are Marxist scum –simple as that . No need for involved analysis of their plans–any plans they have are ipso facto crazy shite.

    The only plans we need are ones to ensure ZaNu are headed up shit creek without a paddle.

    Momentum certainly needs to be a banned organisation.

  5. Coming next: homeless people to be billeted in your spare bedroom. Unless you’re using it to promote world revolution or are paying membership fees to Labour.

    Your house is not your own; “You didn’t build it, did you?”

  6. This “companies must give 10% of shares to staff” thing – the shares are already owned by other people. How are they going to do this? Buy them back then give them away? Dilution of shares? Steal them?

    People don’t realise that their pension plans will be affected by stuff like this. Ten percent of your pension assets disappearing?

    Anyway, I thought the whole “share holding democracy” thing was despised by the Left? What changed? Plus wait until you hear the squeals from the public sector when they see workers in the private sector handed ten percent equity for fuck all.

    Fun times ahead

  7. And the worst of the recent pension scandals have been where the company pension scheme was based on owning shares of the company – so when the company goes belly up, so does the pension.

  8. I’d be slightly more sympathetic to big business if they weren’t political actors relentlessly promoting smug metropolitan wanky-dankery. One small recent example:

    Representatives of several leading multinationals have signed an open letter calling for the introduction of same-sex marriage in NI.

    The list includes Coca Cola and BT. We’re living in Clownworld, where the phone company and sugarwater salesmen presume the right to dictate public morals.

    The FTSE 100 also isn’t shy in telling us that we’d better not even think of leaving the EU, and that we “need” unlimited immigration.

    So… Let them eat Corbyn.

  9. For many of these companies it is a form of Danegeld – do it for an easy life, and avoid having a hundred extremists outside your corporate HQ throwing dustbins through your lovely plate glass frontage. They know the police will do absolutely fuck all to stop them. They might even join in.

  10. The utter incompetence of McD’s Labour is frightening. The amount of damage these policies would do the economy dwarfs any possible impact of Brexit* – the insolvency reform by itself would mean credit collapses. Yet where are the outraged howls about this stupidity? Instead we continue to hear about the supposed impact of a no deal Brexit.

    *It’s going to be negative over the short to medium term, although the scale is difficult is measure. Difficult to say over the long run. Over ten years probably knocks 3-5% off total GDP.

  11. @Rob – “Plus wait until you hear the squeals from the public sector when they see workers in the private sector handed ten percent equity for fuck all.”

    Small print is that the ‘workers shares’ pay dividends of up to £500 to the workers and anything above that goes to McDonnell to spunk away on public sector wages or anything else that will keep him in power.

  12. Wouldn’t this be incentive for the workers to keep the numbers on the team low?

    10% of the shares spread across 80 people looks different to 10% spread across 90 people.

  13. Having read the Executive Summary, all I can say is that it is every bit stupid enough to be worthy of Richard Murphy’s support. So why no mention on the roll of dishonor? Is it too much to suspect that he’s managed to piss off everyone in the UK… with the exception of the half-dozen non-trolls presently inhabiting his site?

  14. Does nobody in the Labour party understand that the majority of medium let alone large companies have operations , employees and shareholders outside the U.K. ?

    What about overseas companies which have their workforce spread across multiple companies ? Or privately held companies ?

    Are they not aware that the nature of business has changed since the 3 day week and winter of discontent ?

    Such a policy does not even have to be implemented to cause damage . The mere threat of such an ill thought through policy will drive business overseas and scare away investment .

    Both Conservative and Labour are unelectable and UKIP has self destructed so I am faced with having to spoil my ballot paper next time round .

    Corbyn has whipped up a mob and surprise , surprise he can no longer control it .

  15. In some ways its good. The only way the State is keeping its tottering unicycle upright at the moment is because the private sector keeps managing, despite all the impediments the State puts in its way, to keep doing business, employing people and making profits. In the hope they will be able to keep some of them and the wealth so generated. Take that away and the whole edifice falls. If even 10% of all this was implemented, or even started its way through Parliament, there would be a rush for the exits, which would precipitate a massive economic crash. The UK is not like 1945 any more, or even 1975. Moving abroad is no longer the unknown to be feared, its as easy as jumping on a Rynair flight. People and their money won’t hang around to be plucked, they’ll be on the next private jet to Geneva or Monaco. All of which will instigate the mother of all crises.

    I’ve often said that the only way the State will be reformed into a smaller one is when it has to be, because there is no alternative, not via a democratic vote. This may be the start of that process.

  16. So what actually is private property then?

    Bloke in Italy: “A social construct?”

    Straigt from the land of Costa Nostra.

  17. Why would Corbyn worry about a massive economic crash? Cheaper and easier to “seize the commanding heights”. Engineer a crisis and exploit it. He’s 70-odd so won’t be around to suffer the long term consequences. He finally gets to fuck up the country he’s despised all his life.

  18. C’mon, you know that they haven’t looked far enough to even consider who actually, in reality, owns said shares and what you’d have to do to force 10% of them into public ownership.

    They think the answer is “a small number of top-hatted Capitalists own them so they can be easily disappropriated”. The issue isn’t that these clowns are stuck in the 1970’s, but that their worldview is firmly anchored in the 1860’s.

  19. And when the block vote of the employees isn’t used to push through the diversity policies etc as they don’t really care about that sort of stuff I’m sure that party representatives will be given the right to vote on their behalf and ensure the correct outcomes are achieved

  20. There is an all to plausible nightmare scenario opening up in front of us. It goes something like this. May so badly screws up Brexit that we don’t leave the EU but get a general election with a Labour government, of the sort which even Michael Foot would have fled the country to avoid, and all this crap gets implemented. This really is a pivotal moment and it goes the wrong way Britain is gone for a generation, if not forever

  21. Also chapter 4, are they having a giraffe. Isn’t it just clause 4 again which Blair is supposed to have got rid of.

  22. Dom S – applying to businesses with 250 plus staff as I recall.

    And max payout per staff member is limited. The rest goes to government….. hey extra tax for them.

    Once it works for larger companies then simple matter to change policy to include smaller companies, there a lot more of them.

  23. “There is an all to plausible nightmare scenario opening up in front of us. It goes something like this. May so badly screws up Brexit that we don’t leave the EU but get a general election with a Labour government, of the sort which even Michael Foot would have fled the country to avoid…”

    Staying in the EU would constrain socialist batshittery. It’s about the only good thing about being in the EU.

    It’s leaving the EU and getting a Labour government that is the nightmare.

  24. interesting views on captain potato’s site. A commentator points out that if the government steals 10% of shares their long term value will drop and people will sell their shares. Of course he believes the government should step in and stop people selling their shares. No doubt he’ll be resurrecting his scheme to monitor peoples bank accounts to stop conspicuous spending. Jeez the man is a cunt.

  25. all out automation to get rid off most of the workers would seem a good idea as a consequence of this idiots ideas. 300 workers – fire 51 and you are ok – or break up companies into a myriad of smaller companies.

  26. One possible reform to bankruptcy would be to give unpaid vendors ‘secured creditor’ status. This would protect innocent parties. But I’m not an economist, so what do I know? What do you think, Dennis?

  27. Staying in the EU would constrain socialist batshittery. It’s about the only good thing about being in the EU.

    No it isn’t. The EU is all bout socialist batshittery. Maybe not as extreme as the Corbyn/McDonnell flavour of batshittery but batshittery all the same.

  28. “The EU is all bout socialist batshittery. Maybe not as extreme as the Corbyn/McDonnell flavour of batshittery but batshittery all the same”

    I concur. We’re on a road to the Corbyn nightmare regardless, its just that with the EU and Conservative in Name Only governments we’re going there slowly. Far better to get there quickly and let people see the chaos that ensues, than simmer slowly over decades.

  29. Henry Crun, no less than our host has pointed out that Labour needs the UK to leave the EU in order to do the socialism it wants.

    The EU types are (super)state corporatists. They didn’t impose socialism on Greece, for example.

  30. I think we’re underestimating the Labour party here. If we stay in the EU, but don’t join the Euro I think they can do the vast majority of what they want. Let’s face it they only need to do a fraction of what they want to destroy the country. JC has just announced 400,000 Green jobs, What can possibly go wrong. And anyhow will the EU give a damn if we keep sending the money.

    2 predictions.

    1. If Labour do get elected they can blame any chaos on the Brexit effect.
    2. As a Labour victory looks more likely the Guardian will campaign for some form of capital controls to stop people taking money out of the UK economy.

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