Beyond Decriminalization: Sex-work, Human Rights and a New ...

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PIVOT LEGAL SOCIETYA. Actually I like working with other people.A. I wouldn’t work for anybody but I’d work with a group of guys, you know what Imean? But I wouldn’t want to work for a business.A. More supportive support structure there, whereas if you’re on your own you make sureyou get some support here and there but it’s not there in the same way.- male street-level sex workersSex workers felt that working with others would help increase their safety:A. Well, I think I prefer to work independently, but I would prefer to work withanother girl for safety reasons. Just somebody, you know, the two of us could worktogether. We could kind of watch each other’s back kind of thing. And the guy wouldalso know that you aren’t there by yourself; but the way it is now, they know we’rehere by ourselves, so you know, it’s dangerous. Well, I, you know, it’s like I say, justsomeone could sort of be here while I’m here, you know. We can make sure that eachother are safe, the guy isn’t beating you up and vice-versa, and you know, we couldclose together, walk out together at night, walk each other to our cars. It would bemuch safer, and plus, they know there’s somebody else here so they won’t likely trysomething. When they know you’re by yourself, they’ll try anything.Q. So would you work like in a partnership with somebody? Is that what you’redescribing, more like a partnership?A. Yeah. Like a partnership.Q. Okay. And why is that, again?A. Safety.- female off-street out-call sex workerPartnerships would allow sex workers many of the same freedoms they would enjoy as sole proprietors,with the added benefit that they could work together in a formally organized group, therebyestablishing support networks and improving the safety of their working conditions.CorporationsA corporation is a legal entity separate from its owners. It has all the powers of an individual: itcan acquire assets; go into debt; enter contracts; borrow; lend; and sue or be sued. The owners of acorporation are called its shareholders. Shareholders invest in the corporation, and elect directors whoappoint officers and make decisions about the corporation’s operations. The number of votes eachshareholder gets is often, but not always, proportional to the number of shares she or he owns in thecorporation. Unlike a sole proprietorship or a partnership, when a company is incorporated, there are limitson the amount of risk that investors face. A shareholder’s possible losses are limited to the amountpaid for his or her shares; if the corporation becomes insolvent the shares may be worthless but theshareholder will not be required to use personal assets to satisfy the unpaid debts of the corporation. For this reason, a corporation is an attractive business structure for investors who do not want to playan active part in the management of the business and want to know the extent of their risk.A corporation may be created under either federal or provincial legislation. Federally incorporatedcorporations are regulated under the Canada Business Corporations Act. If the business of the corporationwill be carried on in only one province, it is usually incorporated provincially. In B.C., the Business Corporations Act, S.B.C. 2002, c. 57, s. 30. Ibid., s. 87(1). Canada Business Corporations Act, R.S. 1985, c. C-44.176
BEYOND DECRIMINALIZATION: Sex Work, Human Rights and a New Framework for Law Reformapplicable statute is the Business Corporations Act. While participants believed that sex workers ought to be able to structure their business as theywish, some were concerned that within a corporation, the shareholders might have too much powerover decision-making. One escort felt that shareholders who are not involved in the day-to-dayoperations of the business might not be adequately informed to make decisions about it. Althoughshareholders do not necessarily play any part in day-to-day operations of a business, they do elect thedirectors who control the management.A. The shareholders, if they’re not involved in the everyday running of the business, thatthey would not be able to properly assess. I mean you can have a situation in thefacility and if they are not there than they will not be able to properly assess, unlessthey are specialists, you know, if they were, they need to be informed and awarethough too.- female off-street out-call sex workerSome participants indicated that a sex industry business should be permitted to grow to any size,without restrictions on the number of people that they employ. Therefore, in the case of large-scaleenterprises, incorporation is likely the preferable business structure because the capital required toestablish and maintain such enterprises could come from a number of investors rather than oneperson. Also, incorporation is best suited to a business franchise, which was suggested by a businessowner as a direction she has considered with her company:A. I guess because there’s a Wal-Mart out there does not mean there’s not small hardwarestores. There may not be as many small hardware stores as there once were as a resultof that, but really, in a free enterprise system, there should be, you should be able toyou know grow your businesses as big as you can I suppose. It, I guess you have theconcern, is that making it a monopoly, but you know, I can’t see in this business thatthere wouldn’t be individuals still doing their own thing anyway, so it may be fine.I mean I’ve certainly thought ‘is this a business I could franchise at some point?’ Iam interested in growing into other locations other than just Vancouver, and thatmay still mean that you know, I’m totally in charge of those other zones, but is therea point at which I would just apply my own you know, evolution of the way I dothings for the last 25 years as a franchise business. It could happen and I don’t seeany reason why it couldn’t basically, if it’s a model that works, then it’s better to havethat out there than a bunch of floundering businesses that are still trying to figure outwhat they’re doing I guess. That would be my take.- female escort agency owner, former sex workerWhile it may seem like an unusual way to organize a sex industry business, it is certainly possible that,if the sex industry is no longer subject to criminal prohibition, a corporate business structure wouldbe a viable option for this type of business.CooperativesUnlike other business structures that are wholly profit driven, cooperatives are established to meetthe economic, social, and/or cultural needs of the members. Cooperatives operate democraticallyon a one-member, one-vote basis. Surplus income from the cooperative is distributed among themembers and members may elect to put this money back into the cooperative as retained earnings. Supra, note 4. Cooperative Associations Act, S.B.C. 1999, c. 28, s. 40(1). Ibid., s. 9(1).177
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