Formation Architects has become an ‘Employee Ownership Trust’. This means that the shares of the company are no longer owned by any individual or group, but are held ‘in trust’ by an independent body (the “Formation Architects Trust”).
The purpose of the Trust is to ensure that the company is run for the benefit of our employees. Profits are shared among the staff according to seniority, and the trust status means that we are able to offer certain tax advantages when benefits are distributed.
But perhaps the most important benefit of trust ownership concerns succession from one generation to the next. Because there are no shares to buy or sell it will be easier for future generations to gain a controlling interest in the practice without the need to purchase shares. The aim is to attract the best architectural staff to make their careers with us.
The trust model reinforces Formation Architects’ philosophy of collaboration and means that it is in the mutual interest of all our staff to work well together to make a successful company.