Proprietary Corporation

The proprietary corporation () is a concept proposed during Italian fascism by fascist political philosopher Ugo Spirito, in which a corporation, akin to a guild, assumes ownership of a company in which its members operate. This was proposed as a class-collaborative means to end the dualism between capital and labor via the transfer of the means of production to the corporation.

Definition 
The Proprietary Corporation was born from an idea of Ugo Spirito, expressed for the first time during the II Convention on syndical and corporate studies, held in Ferrara in May 1932.

A proprietary corporation, therefore, means the product of the transformation of a limited company into a corporation, passing from the legal status of a private company to that of an institution of public law, to force the capital to exit the decision-making circuit to be relegated to the passive and external one of the simple participation in profit.

This transformation would lead to two consequences:

 The transfer of control of the capital from the shareholders, a taxable person in terms of productivity and work, to the workers of the company
 The transfer of the means of production, and therefore of the ownership of the company itself, to the corporation.

In this perspective, there is a transformation of the worker into an authentic protagonist of the company in which, with equal rights, all those who carry out a productive activity are members and, in the words of Spirito himself, the capital passes from shareholders to workers who become:

The proposal thus fell on the one hand in the continuation of the fascist conception of class collaboration (as opposed to the Marxist class struggle and capitalist liberalism), eliminating the distinction between employer and employee; on the other, in the publicistic push of the property, according to the principles of the Gentilian ethical state, envisaging progressive exhaustion of private property in the public exercise of the company. This last conception was inherent in the Gentilian conception of the relationship between the individual and the state, sharing the same entity, as the corporate state organizes and disciplines the entire life of society within it. 

Furthermore, the Proprietary Corporation is part of the ideological conception of fascism in the labor and economic sphere by referring to Article VII of the Labor Charter:

With the proprietary corporation, Spirito intended to create one of the tools capable of opposing and winning the struggle against Marxism and Capitalism, giving rise to a "Nation of producers" that disciplines itself through the system of corporations, which made the individual interest coincide with the national and community one thanks to the belonging of all the workers themselves to the company bodies.

Reactions 
The concept garnered support from Mussolini himself, who embraced it with enthusiasm and endorsement. Asserting that it had "it overcomes the opposing positions of liberal economics and socialist economics" Within the Fascist left, however, there emerged two camps. There were proponents who supported Spiritos' concept, viewing it as a coherent extension of fascist class collaborationism and perceived class collaboration as a means beneficial to the nation's interests. In contrast, the other faction held reservations, grounded in the belief that class struggle, rather than collaborationism, served as a conduit for advancing national interests. This contingent also posited that the concept effectively nullified the essence of syndicalism within the broader framework of corporatism.

Implementation 
After the establishment of the Italian Social Republic and the publication of the Verona Manifesto, elements of the proprietary corporation were put into practice through the enactment of a decree on socialization (Legislative Decree 12 February 1944, n. 375). This decree, endorsed and signed by Benito Mussolini and several Fascist hierarchs, established a comprehensive legal and regulatory framework aimed at economic socialization. Under its provisions, management boards were instituted, composed of managers, technicians, and workers.

Central to this approach was the participation of the state and corporations in the management and strategic planning of large and medium-sized companies. The intention was to transcend traditional divisions between labor and management and to promote a harmonious collaboration among these stakeholders.

However, the implementation of these measures was hampered by circumstances of the war and German occupation. The realization of the proprietary corporation concept remained severely limited, preventing the full exploration of its potential impacts on economic structure and worker participation.

See also
 Italian Social Republic
 Economy of fascist Italy
 Fascist syndicalism
 National syndicalism
 Corporatism
 Co-determination
 Industrial democracy

References 

Italian Fascism
Corporatism
Economic ideologies
Economics of fascism
Political terminology