Within LIG, nationalized companies would not be owned by the government – they would be owned by each person of the population directly. One of the great down-sides of nationalizing companies as how it has been done in the past, is that the government owns the companies, and thus – the companies are managed in a way to benefit the government, often creating inefficiencies due to corruption and fraud. With LIG – the government would be the vehicle to transfer the company from the private to the public sector – but the company would not be owned by the government, where the government then supposedly runs the companies ‘on behalf of’ and ‘in the interest of’ the people. No – each citizen would become a shareholder of the company and have the ability to perform their shareholder duties. The Liquid Democracy platform would herein be beneficial to allow such large numbers of people to participate in events such as annual shareholder meetings.
In terms of the process of nationalization – herein the laws of a specific country must be consulted. In countries where nationalization occurs through providing compensation to the current business-owners, we suggest this would be the last investment for which personal income taxes would be required. The government would then purchase the companies on behalf of the people, however still with taxpayers’ money – which implies the company belongs directly to the people.
What does it mean in effect that a person owns an equal share in a country's national companies?
We suggest that every citizen becomes shareholder of those companies that are nationalized as part of a nation’s national heritage. In being a shareholder, each citizen owns an equal part of the company and hence:
- Each citizen has an equal vote in important decisions, such as nominating directors.
- Management and daily operations are likely to remain as they are.
- The companies and their management are directly accountable to every citizen.
- Citizens can submit shareholder resolutions.
- The companies serve the interest of the shareholders, which means: they serve the population as a whole.
- Government officials play no privileged role in the management of the nationalized companies – they are citizens and thus their role equals that of every other citizen.
In terms of receiving dividends, every citizen has a right to receive a Living Income Guaranteed, funded by the profits of the nationalized companies, when they have no other means of supporting themselves (as determined by the particular means-test of the country).
So the share-income from National companies does not work as stock dividends do in today's world, if those who have sufficient means to support themselves have their Shares but don't get LIG?