Ownership and Control in a Satellite Economy: A Discussion from Scottish Data

Abstract

This paper discusses various concepts and ideas concerned with patterns of owner-ship and control in industry. It is concluded that Maurice Zeitlin's discussion is the most sophisticated and the most useful for empirical research. Some of Zeitlin's ideas are related to the structure of ownership and control in Scotland. It is argued that sociologists, unlike economists and political scientists, have paid insufficient attention to the relative autonomy of Scotland as a region within British society. The 248 Scottish registered public companies are analysed and it is concluded that there is strong evidence in favour of the view that companies can be seen as units in a class-controlled system. Considerable doubt is thrown upon the `managerial' view of the corporation. It is argued that a particularly important role is played by groups of investment trusts in controlling the network of Scottish companies—the ownership of Burmah Oil and other Scottish companies is discussed to illustrate this. Finally it is argued that further research must construct a typology of directors and relate this to the position of Scotland in the international economic system.