Difference between revisions of "User Shares"
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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. | 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. | ||
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| + | See Also: | ||
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| + | [[User Share Fraction]] | ||
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| + | [[User Share]] | ||
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| + | [[User Share Dividends]] | ||
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| + | ---- | ||
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| + | Return me to the [[FairShares Glossary]] | ||
Revision as of 08:50, 9 February 2014
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 Labour Shares.
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); 1p fixed preference dividend each; 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 issues 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:
Return me to the FairShares Glossary
