This paper and the law it describes were coauthored with Peter Pitegoff, then the Staff Attorney of the Industrial Cooperative Association and now the Dean of the University of Maine Law School in Portland. It describes the theory behind the adaptation of Mondragon system of internal capital accounts that was expressed in this law for “employee cooperatives” in Massachusetts. The legislation was copied in several other states but is probably little used since one can get much the same structure using the ICA Model Bylaws and incorporating under the usual corporate statute. The importance of the paper lies the law journal-type description of the theory and practice of worker ownership in the early 1980s.
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