An Act supporting the establishment of employee cooperatives (S.993): Specialized membership shares (‘transition shares’) allow original business owners to sell their business to their employees in stages, rather than in an all-at-once transaction. This lowers the threshold that employees face when looking for conventional financing for their purchase. Upon agreeing to the terms of the staged buyout: the length of time over which said buyout will occur, the owner’s responsibilities to oversee successful cooperative conversion, and the owner’s right to dividends from his dwindling ownership, the employees will begin allocating membership shares and transition shares between employees (buyers) and owners (sellers), respectively.  In addition to allowing easier access to necessary capital, this staged transaction will require the owner to continue to contribute their expertise and help to ensure a smoother conversion process than if they withdrew upon being paid.