Neutralised capital and company councils

Neutralised capital is a concept that transforms the existing ownership logic by structuring a company's capital in such a way that it is no longer subject to the usual market mechanisms and profit interests. Instead, it is transformed into a form that ensures long-term stability, sustainable development and employee participation. This is to be achieved by transferring company shares to foundations, trust funds or cooperatives that act in the interests of the workforce and the general public. The aim is to free economic activities from short-term profit maximisation constraints and to promote a sustainable, socially just economy.

Company councils are bodies within companies that are made up of employee representatives and play a key role in decision-making processes. These councils often have the right to have a say in important company decisions, including company policy, strategic direction and personnel decisions. Company councils should ensure that the interests of employees are taken into account and that decisions are made transparently and democratically. They promote employee participation and contribute to improving working conditions and workplace democracy.

Practical examples:

A concrete example of the implementation of these principles is Autowelt Hoppmann in Siegen. Hoppmann is a company in the automotive industry that is characterised by a particularly high degree of co-determination and democratic company management.

In 2007, owner and managing director Walter Hoppmann transferred his company to a charitable foundation. Since then, this foundation has held the majority of the company shares, which has neutralised the company's capital. This structure ensures that profits are not distributed to external shareholders, but remain within the company and are used for its sustainable development, employee development and charitable purposes.

Employees elect representatives to the company council, which is actively involved in strategic decisions. This form of corporate governance encourages employees to identify strongly with their employer, improves job satisfaction and strengthens the sense of community within the company.