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 early versions of FairShares, default User Share Fraction was:
- 0.5 in User Co-operatives and User-Owned Social Enterprises
- 0.35 in Solidarity Co-operatives and Enterprises
From V3.0 onwards, the User Share is set by Founders during the formation of the enterprise using the FairShares Rules Generator. The range of possible values is from 0.3 to 0.45.
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 two User Shares of 180 issued, their share would be:
11,000 x (2/180) = £122.22.
See also
Return to the FairShares Glossary.
