Companies are popular for many types of enterprise and are currently the dominant legal model in many OECD countries. Recent legislative changes mean that companies can now be used for social economy development. For example, UK companies can be registered for 'private', 'charitable' or 'community interest' purposes. Legal tests to establish Benefit Corporations (B-Corps)1 have developed in many countries and there are now 'social purpose company' laws in some EU states.2

To register a FairShares Company, you need company laws that allow for incorporation with bespoke Articles of Association or additional ByLaws. Investor Shares have many of the characteristics of ordinary shares (UK) and common stock (US). Investor shares change value depending on an enterprise's profitability. As a result, a FairShares company can engage with private sector institutions more easily than its cooperative, association and partnership cousins. Moreover, Investor Shares can can be relabelled to 'Ordinary Shares' or 'Common Stock' using the new FairShares Company Rules Generator. Investor Shareholders, however, still only get 1 vote irrespective of the number of shares held. Profits and value creation can be shared without undermining the social economy governance norm of one member, one vote.

Adopting a FairShares Company structure could create barriers to recognition as a co-operative in countries that do not recognise them unless constituted under Cooperative Law (or which require a cooperative or associational legal form for public / charitable funding). Choose a company if you are confident you can fund the enterprise primarily through market trading, member and private loans, but check further if you want to access public / charitable funds.3