Hi Barry:
> Chaz, Why do they call UL a non-profit organization?
UL, as a corporation, is chartered as a "not-for-profit"
organization.
This means that it cannot distribute retained earnings
to the owners. Instead, it uses retained earnings to add
to endowment funds for financing future activities.
Indeed, there is a limit as to the magnitude of retained
earnings. One year, back in the '70's, UL rebated funds
to all of its clients proportional to their UL expenditure
because the UL retained earnings exceeded the legal amount!
Apparently, UL has some sort of tax advantage as a result
of its not-for-profit status.
UL does not have a board of directors, but has a Board of
Trustees. I like to draw an analogy with a church.
The question is: Who are the "owners?" The answer is:
The Board of Trustees. The Board decides the acquisition,
use, and disposition of the assets of the Corporation.
Insofar as its daily operations, UL is managed just as is
a profit-making enterprise.
Best regards,
Rich
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