Difference between revisions of "Redemption Fund"
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As defined in Clause 10(a), a [[FairShares Company]] plans, from the outset, to create one or more of the following: | As defined in Clause 10(a), a [[FairShares Company]] plans, from the outset, to create one or more of the following: | ||
| − | # | + | # An '''Employee Benefit Trust''' or '''Co-operative Society''' established for the purpose of buying and selling (redeeming) Labour shareholders’ investor shares and managing the income from them for the benefit of employees; |
| − | # | + | # A '''Charitable Trust''' or '''Charitable Company''' established for the purpose of buying and selling (redeeming) members’ investor shares, and managing the income from them to support charitable projects; |
| − | # | + | # A '''Community Interest Company''', '''Community Benefit Society''', '''FairShares Company''' or '''FairShares Co-operative''' created or selected to purchase (redeem) members’ investor shares and manage the income from them to make social investments in a community. |
The Redemption Fund provides the start-up capital for these organisations. Thereafter, they are funded by income derived from their shareholdings in [[FairShares Company|FairShares Companies]]. | The Redemption Fund provides the start-up capital for these organisations. Thereafter, they are funded by income derived from their shareholdings in [[FairShares Company|FairShares Companies]]. | ||
Revision as of 12:19, 8 February 2014
The Redemption Fund is created by allocating part of the Surplus to a special reserve fund for the creation of mutual, co-operatives and charities that can buy members' Investor Shares and redeem members' Investor Accounts. Without a Redemption Fund, members would have to borrow capital to create the institutions defined in Clause 10(a)(iv).
As defined in Clause 10(a), a FairShares Company plans, from the outset, to create one or more of the following:
- An Employee Benefit Trust or Co-operative Society established for the purpose of buying and selling (redeeming) Labour shareholders’ investor shares and managing the income from them for the benefit of employees;
- A Charitable Trust or Charitable Company established for the purpose of buying and selling (redeeming) members’ investor shares, and managing the income from them to support charitable projects;
- A Community Interest Company, Community Benefit Society, FairShares Company or FairShares Co-operative created or selected to purchase (redeem) members’ investor shares and manage the income from them to make social investments in a community.
The Redemption Fund provides the start-up capital for these organisations. Thereafter, they are funded by income derived from their shareholdings in FairShares Companies.
Return to the FairShares Glossary.
