(Koch bros) Battle for control of Cato Institute highlights unusual structure
The battle for control over a prominent libertarian organization in Washington has cast a spotlight on its highly unusual structure, which allows the nonprofit research institution to be controlled by shareholders.
The Cato Institute, one of the largest think tanks in Washington, is governed by four people, each with a 25 percent stake in the organization. That stake can be bought and sold for cash under an arrangement, only legal in a handful of states, that is frowned upon by the Internal Revenue Service.
Charles and David Koch, billionaire brothers who own a large energy conglomerate, filed suit on Thursday seeking an option to increase their 50 percent stake in Cato, a large research organization that espouses free-market economics and limited government.
Charles Koch founded the organization with Cato president Ed Crane over 30 years ago. Uncommon provisions of law in Kansas have allowed the Kochs to remain firmly in control of the think tank, despite the fact that neither of the brothers have been major financial backers in years, according to Cato officials.
full: http://www.washingtonpost.com/politics/koch-brothers-sue-for-control-of-cato-institute/2012/03/02/gIQAHQ9XpR_story.html