Difference between revisions of "User Shares"
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User Shares are defined in Clause 10 (iii) as follows: | User Shares are defined in Clause 10 (iii) as follows: | ||
| − | * '''User Shares''': issued at par value to natural or legal persons who use company products and services; non-transferable; one vote per shareholder at [[General Meeting|General Meetings]] (except as defined in Clauses 23 and 24) | + | * '''User Shares''': issued at par value to natural or legal persons who use company products and services; non-transferable; one vote per shareholder at [[General Meeting|General Meetings]] (except as defined in Clauses 23 and 24); forfeited on holder's death, bankruptcy or insolvency; cancelled upon cessation of a trading relationship; cancelled without payment on winding up. |
As with [[Labour Shares]], the default rules suggest that User Shares should only be issued to users who have entered into a commitment that lasts for more than 1 year. This prevents having to issue shares for people who make a single, or short series of purchases. It does encourage, however, the issue of shares to customers who renew an annual contract, or who contract to buy a service for a period of time that exceeds 1 year. User shares can be also be issued to long-term customers who have purchased regularly for more than a year to help cement the trading relationship. | As with [[Labour Shares]], the default rules suggest that User Shares should only be issued to users who have entered into a commitment that lasts for more than 1 year. This prevents having to issue shares for people who make a single, or short series of purchases. It does encourage, however, the issue of shares to customers who renew an annual contract, or who contract to buy a service for a period of time that exceeds 1 year. User shares can be also be issued to long-term customers who have purchased regularly for more than a year to help cement the trading relationship. | ||
Revision as of 10:42, 9 January 2017
A User Share is a share owned by a member who is a user of goods and services, entitling her or him to participate in governance and receive a share of the surplus. For the purposes of clarity, any person recognised as a beneficiary or a customer of the organisation will quality for User Shares.
From v3.0, the FairShares Rules Processor allows clients to change User Shares to 'Customer Shares' or 'Consumer Shares'. Their characteristics are identical.
User Shares are defined in Clause 10 (iii) as follows:
- User Shares: issued at par value to natural or legal persons who use company products and services; non-transferable; one vote per shareholder at General Meetings (except as defined in Clauses 23 and 24); forfeited on holder's death, bankruptcy or insolvency; cancelled upon cessation of a trading relationship; cancelled without payment on winding up.
As with Labour Shares, the default rules suggest that User Shares should only be issued to users who have entered into a commitment that lasts for more than 1 year. This prevents having to issue shares for people who make a single, or short series of purchases. It does encourage, however, the issue of shares to customers who renew an annual contract, or who contract to buy a service for a period of time that exceeds 1 year. User shares can be also be issued to long-term customers who have purchased regularly for more than a year to help cement the trading relationship.
The number of User Shares becomes important when surpluses are generated, as it determines both the share of surplus distributed as a cash dividend to User Shareholders, and the number of Investor Shares (Member Shares) that are distributed to represent User Shareholders' ownership of the company's assets.
See Also:
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