Employees Buy Major Canadian Trucking Company

The 2,700 employees of Canadian Pacific Express have purchased the company from Canadian Pacific Corporation and changed its name to Interlink Freight Systems. The company had been a subsidiary of Canadian Pacific.

Clinton Budget Proposal Does Not Include Section 133 Repeal

The Administration's proposed budget does not include repeal of section 133 of the Internal Revenue Code. Section 133 allows commercial lenders to deduct 50% on the interest income they receive on loans to majority ESOPs that pass through full voting rights.

Promising Developments in China on Employee Ownership

Prospects for employee ownership continue to look promising in China. As we have already reported, several local governments have been privatizing enterprises they own through employee ownership.

Another New German Model for Privatization

We recently reported on a new model for employee ownership developed for Continental AG, one of Germany's largest firms. Now Deutsche Telekom AG, the German telephone monopoly, has come up with yet another approach.

Section 133 Update

Section 133 of the Internal Revenue Code allows commercial lenders to exclude 50% of the interest income they receive from loans to majority ESOP companies that pass through full voting rights.

Budget Reconciliation Bill Passed; Section 133 Dropped

As reported earlier, the Senate eliminated section 133 of the Internal Revenue Code. Section 133 allows lenders to ESOPs that own more than 50% of a company's shares and pass through full voting rights to exclude 50% of the interest income on ESOP loans from taxable earnings.

Court Rules in Favor of ESOP Trustees Who Did Not Diversify Holdings

A U.S. Court of Appeals has ruled that an ESOP trustee cannot generally be held liable for failing to diversify ESOP holdings out of company stock, even if such diversification would have been a more prudent course of investment. The case (Kuper v. Iovenko, CA 6, No.

Microsoft Options Plan Creates Employee Millionaires

Microsoft is famous for making Bill Gates the richest person in America, but the company has made a lot of other people wealthy as well. At an NCEO workshop on broad stock options, Lisa Yeager, Manager of Employee Stock Services for Microsoft, described how the company's ownership plan works.