Research Areas

The concept of steward ownership is not a national phenomenon, but a type of responsible corporate governance that is already practised internationally in numerous companies. The concrete forms of implementation within different legal systems are correspondingly diverse. Although steward ownership has not yet been enshrined in law as an independent legal form in any legal system, there are already numerous legal structures in place to enable entrepreneurs to utilise this form of corporate governance. The aim of the Steward Ownership Network (StONe) is to bring together leading international academics in this field in order to advance research worldwide. With the help of comparative legal methods and empirical research, the aim is to gain insights that go beyond individual national legal systems. To this end, StONe organises international conferences and research projects.

The core of the concept behind steward ownership is the so-called asset lock: People who control these companies with their voting rights should not have access to the profits generated in the company in order to base their decisions on the good of the company and not on hopes of personally collecting profits. Ownership is understood as a bundle of rights attached to membership in the company. These economic and decision rights are normally combined in company shares; in steward-owned companies with asset lock, they are separate. At the same time, shareholders have full freedom to organise the company. They can shut it down, sell it and reorganise it. Although they do not receive the profits from the sale or liquidation, they can receive market-based remuneration for their activities. They are trustees, or "stewards", who are connected to the company. These stewards pass on their position at the end of their entrepreneurial involvement. Steward ownership can thus resolve succession issues, contribute to the preservation of independent companies, and promote long-term economic success and sustainability with high employee loyalty.

The asset lock as the core principle of steward ownership can currently be implemented in various forms. The specific form of implementation and thus the costs and effort for the company depend largely on the respective legal system. In general, however, various models have emerged that can be applied across most legal systems.

For example, in the so-called veto share model, a foundation holds a 1% share of the voting rights and the right to veto changes that contravene the company's statutory asset lock. Due to the high cost of implementing steward ownership principles for companies, efforts are underway in several countries to create legal regulations for this purpose. 

For a list of companies in steward ownership created by the Purpose Group see here.

The discussion about steward ownership in Germany has led to a draft law (see here), which, according to the coalition agreement, is to be implemented during the current legislative period.