User Share
From FairShares Wiki 3.x
The User Share of Surplus is calculated using the User Share Fraction defined in Clause 40, and can only be changed by Special Resolution in General Meeting.
In V1.x, the default User Share Fraction is:
- 0.5 in User Co-operatives and User-Owned Social Enterprises
- 0.35 in Social Co-operatives and Social Enterprises
From V2.x, and explicitly in V3.x, the default of the User Share is 0.35. The Labour Share is calculated and invested in projects that benefit the labour force rather than users, even in a FairShares User Cooperative. This meets the ICA Principle 7 - Concern for Community.
The User Share is calculated as follows:
[Surplus] x [User Share Fraction]
Each member's proportion of the User Share is allocated as follows:
[User Share] x (Member’s User Shareholding / All Issued User Shares).
For example, if the User Share is £11,000, and a member has 2 User Shares of 180 issued, their share would be:
11,000 x (2/180) = £122.22.
See also
Return to the FairShares Glossary.
