Geof Cox with Mark Lazarowicz MP at the Parliamentary Launch

• The Common Cause Foundation report Insolvency, Employee Rights and Employee Buyouts, edited by Geof Cox, was launched in the UK Parliament on 14th December and in Brussels at the European Federation of Employee Share Ownership 'Top 100' Conference on 15th December.

The Report's author, Anthony Jensen, talks with Peter Booth of the TGWU at the Launch

Peter Booth, National Industrial Officer of the T&GWU spoke at the launch on issues raised by the Warwick Agreement, and Grant Jones, international lawyer with Squire Saunders and Dempsy, explained the pension implications of employee buyouts. The report’s author, Anthony Jensen, outlined the proposals, recommendations and the role of the employee buyout as a superior economic restructuring model.

Insolvency isn’t just about disappearing markets: bad management or just bad luck can be equally important. 44% of business failures are thought to be due to management failure. In England and Wales in 2005 16,500 businesses went into insolvency resulting in the loss of 7,000 jobs a month. The Government has pledged that companies that 'can be saved should be saved', but this simply is not happening.

Anthony Jensen's Report

Geof Cox, speaking as a director of Common Cause, commented:

'Anthony has really struck a chord with the report by putting an argument at the intersection of ideas on 'stakeholder capitalism' – which recognises employees and the wider community as 'investors' – and the increasing fear among policy makers that globalisation will lead to more radical restructuring of industry. It draws specifically on current issues like the review of the impact of the Enterprise Act 2002, the Warwick Agreement, the Lisbon Strategy and the future use of the European Globalisation Adjustment Fund. He and other employee and community buyout specialists for once agree with R3 – the association of insolvency practitioners - that we may be near a tipping point for employees/communities as purchasers of businesses.'

Insolvency, Employee Rights and Employee Buyouts
Available now as a free download here. This report of a research project by Anthony Jensen has been edited with additional material by Geof Cox.

The Charities Act 2006 became law on 8th November

For the Charity Commission's summary of the new law go here.

Note however the Charitable Incorporated Organisation - the new organisational structure for charitable companies that will not require them to register as both companies and charities - will need secondary legisalation, and we are still maybe a year away from actually having this structure available.

• The Companies Act 2006 also became law on 8th November

This is the largest single piece of legislation ever passed in the UK, and replaces all previous company law. However, much of the law does not come into force for two years.

The Act clarifies directors' duties, and in a nod to 'stakeholder' ideas also asks directors to give consideration to how their decisions affect the interests of the community, the environment and suppliers. Particularly controversial are requirements for companies to list main suppliers, making it more difficult to pass ethical, exploitative or environmentally damaging buisiness down the supply chain.

A useful comparison of the new and old company law can be found here. The biggest impact on social enterprise is likely to be in the area of deregulation of private companies, such as removal of the requirement to have a company secretary.