Employee ownership meets such tough red tape - where anything over 100 employees needs to file with the SEC. It is a mess.
Rather than “ownership” we can set up PMAs. Private Membership Associations- like Costco or Sam’s club or a Yacht Club. As a way to pool money. Avoid the red tape. Set up our own laws and bylaws.
Members would get perks.
We discussed it at the end of our most recent “interview” here, with thoughts coming from @paragov. Also is there a place to sign up for the news letter? Or is it just this substack is the newsletter?
Hello! If you Subscribe here, that's the newsletter. Happy to have you!
On employee ownership: you're likely thinking of direct employee ownership, which has those limitations, as opposed to other forms of employee ownership that are regulated differently (employee stock ownership plans by ERISA; employee ownership trusts by trust law).
The membership route you describe is interesting, but I am not sure about these examples--Costco does have memberships, but it isn't owned by its members, as best I can tell.
The PMA route is genuinely underexplored as a workaround for the SEC threshold problem. The Costco analogy is useful members get structured benefits without triggering securities regulation. The limitation I would push on: PMAs work well for pooling consumption power but get complicated when the goal is actual productive ownership and profit participation. What is your model for distributing returns to members without crossing into securities territory? That seems like the structural question the SEC threshold was designed to force.
Employee ownership meets such tough red tape - where anything over 100 employees needs to file with the SEC. It is a mess.
Rather than “ownership” we can set up PMAs. Private Membership Associations- like Costco or Sam’s club or a Yacht Club. As a way to pool money. Avoid the red tape. Set up our own laws and bylaws.
Members would get perks.
We discussed it at the end of our most recent “interview” here, with thoughts coming from @paragov. Also is there a place to sign up for the news letter? Or is it just this substack is the newsletter?
Interview: https://joshketry.substack.com/p/the-visitor
Hello! If you Subscribe here, that's the newsletter. Happy to have you!
On employee ownership: you're likely thinking of direct employee ownership, which has those limitations, as opposed to other forms of employee ownership that are regulated differently (employee stock ownership plans by ERISA; employee ownership trusts by trust law).
The membership route you describe is interesting, but I am not sure about these examples--Costco does have memberships, but it isn't owned by its members, as best I can tell.
Yeah Costco but strip away everything Wall Street and stock related. Just as a baseline for legal understanding of the possibilities.
The PMA route is genuinely underexplored as a workaround for the SEC threshold problem. The Costco analogy is useful members get structured benefits without triggering securities regulation. The limitation I would push on: PMAs work well for pooling consumption power but get complicated when the goal is actual productive ownership and profit participation. What is your model for distributing returns to members without crossing into securities territory? That seems like the structural question the SEC threshold was designed to force.
Benefits. Discounts. And the ability to have an equally using collective swarm intelligence in how all the money is spent