Finding the right way in.

Tom,

Sam Toland has successfully adapted the Coop Society Model Rules for incorporation as an IPS in Ireland, and we have FCS accepted model rules for Great Britain. However, I concur that company rules will usually be easier to use (and adapt) under exisitng company laws, and - in most countries - can also provide a more robust (defensible) multi-stakeholder cooperative model. For example, the provisions for entrenching Clauses means you can prevent the modification of key provisions more easily than under Coop Law.

Shifting back to my initial point, I think what might be missing in and amongst the plethora of online resources that I can find about FairShares, is a simple handbook or guide for people like me that are interested in using the model and want a way to work through the decision pathway with coherent and timely information provided at each step. Does such a thing exist?

Graham,

Not aware of a book unless a FairShares Lab partner has written one, but there are two courses (one for those doing FairShares) and one for those supporting/educating FairShares Trainers. Enrol at http://fsi.coop/courses

Have looked at the courses. Don't seem to offers answers to my questions, but will bear them in mind. I've got a draft set of company rules produced by the generator. I'm trying to work through them to understand all of the maths and the relationships involved. Clearly all of this must have been worked through in some detail in order to design the model rules, but I can't find any discussion or guidance, other than a few bits on the wiki site.

Are there any worked examples of how a set of rules actually operates over time, and how decisions on qualifying contributions, share fractions, etc. can be considered and how they impact on outcomes.?

Is there any explanation or discussion of the rationale for things like the 'Dividend Multiplier', 'Capital Gain Fraction', etc.? -[ UPDATE: now realised that the generated file for the rules includes links to wiki pages, which is good. I had printed it all out given the size of the document and working on paper.]

By my reading, no Investor (Type A) shares can be issued in the first year. Is that correct?. If so, investors can only invest by buying Type B shares through an exchange, and then they have no option to become a member and participate in the governance.

But if no Type A shares can be issued, then clause 15b fails, so I must be wrong?

Hi Graham, have a look in here at the recent work I did for a startup this year: https://drive.google.com/open?id=1aN9JsWijqdNX1ix8aRLNwl0izoisCtRM and in here: https://drive.google.com/open?id=1aN9JsWijqdNX1ix8aRLNwl0izoisCtRM

Thanks. Those two links are identical?

Assuming financial year end aligns with the birthday of the organisation, and investor (A) shares are valued at £0 at birth of the business, then investor (A) shares have no value throughout the first year. And anyway the rules seem to indicate that investor (A) shares can only be issued after employees and users have been in the organisation for 12 months. Hence the calculation at 15b doesn't work.

I would be interested in people's comments on the attached article that has just been accepted for publication. Thanks! Guy Major

Apologies: maybe this should be a new thread, but there is some overlap! Guy