Enterprise Foundation Law in a Comparative Perspective

Enterprise foundations are foundations that own companies, such as Bosch, Bertelsmann, Carlsberg, Hershey, Rolex, Investor, and Tata Sons. They have recently attracted attention as embodiments of the purpose-driven company advocated by Colin Mayer. This book provides an overview of enterprise foundation law in six European countries and the US, comparing the civil and tax laws that influence their prevalence and governance.

Format: Paperback / softback
Length: 224 pages
Publication date: 07 March 2023
Publisher: Intersentia Ltd

Enterprise foundations are a unique type of foundation that owns companies, a concept that may not be widely known but is recognized by the names of prominent companies such as Bosch, Bertelsmann, Carlsberg, Hershey, Rolex, Investor, and Tata Sons. These companies are owned by foundations or equivalent entities, such as stiftungen, trusts, fondes, stichtingen, which reflect their legal and national origins. While enterprise foundations have existed for over a century, they have gained renewed attention in recent years as exemplars of the purpose-driven company advocated by figures like Colin Mayer, the British Academy, the World Economic Forum, George Serafeim, and others.

One distinctive feature of enterprise foundations is that they are often non-profits, operating without a personal profit motive. Instead, their primary goal is to secure the longevity and independence of the companies they own and to contribute to society through philanthropy. As perpetuities, enterprise foundations cannot be dissolved and are long-term owners of the companies they control. However, it is important to note that not all enterprise foundations are equally idealistic. Some have strong ties to the founding family and continue to support its descendants, while others have connections to government organizations, cooperatives, or associations that helped establish them.

The legal framework surrounding enterprise foundations varies significantly across the world. While some countries, such as Denmark, have codified civil and tax law on the topic. In contrast, others, such as the US, have effectively banned them. In Germany, for example, there are efforts to limit foundation involvement in the underlying businesses. The tax treatment of foundations also exhibits considerable diversity, with different countries applying different tax policies to these entities.

Given the diverse nature of enterprise foundations and their legal and tax complexities, there is a significant need for mapping and analyzing the diversity of these foundations. This book aims to provide a comprehensive exploration of enterprise foundations, their history, motivations, and circumstances, as well as their legal and tax implications. By examining the experiences of different countries and regions, this book will shed light on the challenges and opportunities that these foundations present for businesses, investors, and society.

Weight: 402g
Dimension: 228 x 153 x 17 (mm)
ISBN-13: 9781839703065