Co-partnership (Participation through ownership):
In co-partnership, workers are converted, into shareholders of the company (by offering equity shares to them) and are allowed to participate in the management like other shareholders. The company may give financial assistance to workers to purchase equity shares. They can elect their representatives on the Board of Directors. Workers are also allowed to attend meetings company and participate in the discussions.
In India the experiment of co-partnership is not popular. Workers show limited interest in purchasing shares of their companies and when offered. Very few workers purchase the shares and join the company as members. Naturally, the participation of workers in the management is weak and ineffective.
3 Comments